Updated Version 2-GE Vernova will acquire Trench for $9 billion to advance its grid business, and has once again raised its revenue forecast.

The entire text has been rewritten and further detailed.

Reuters, October 28 - Vernova, a subsidiary of General Electric (GE) GEV.N, said on Wednesday that it will acquire high-voltage power grid equipment manufacturer Trench Group from investment firm Triton Partners for $9 billion, and raised its full-year revenue forecast for the third consecutive time.

To meet the surge in electricity demand from data centers and industrial electrification, and to replace aging infrastructure, utilities are ramping up investment in their power grids, driving demand growth for high-voltage transmission networks and related specialized equipment.

GE Vernova said this acquisition will enhance its manufacturing capacity for North American grid components through Trench’s newly launched plant in Charlotte, North Carolina. The facility is expected to start producing 765-kilovolt (kV) equipment by the end of 2027.

The power equipment manufacturer expects Trench to generate about $1.9 billion in revenue in 2028 and achieve an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of roughly 36%.

This deal will also boost production capacity, expand GE Vernova’s footprint in Europe and Asia, and provide access to Trench’s backlog valued at about $5 billion.

GE Vernova anticipates financing the acquisition with a 50/50 split of cash and debt, with the transaction set to close by the end of 2027.

The company’s share price rose 2.8% in premarket trading to $920.50.

Demand-driven growth

The company said it now expects 2026 revenue to be between $46.5 billion and $47.5 billion, up from its previous forecast of $45.5 billion to $46.5 billion.

Third-quarter revenue rose 27% year-on-year to $12.64 billion. GE Vernova posted adjusted EBITDA of $1.94 billion for the quarter, beating the analysts’ estimate of $1.68 billion compiled by London Stock Exchange Group (LSEG).

https://www.reuters.com/graphics/GEVERNOVA-REVENUE/lgvdbernavo/chart.png

Driven by demand for gas turbines and services, power segment order volumes nearly doubled. The electrification segment saw revenue jump 51%, mainly thanks to higher sales of substation solutions, switchgear, and transformers.

The value of orders surged by over 96% to $29 billion, bringing the backlog to $197 billion.

https://www.reuters.com/graphics/GEVERNOVA-BACKLOG/myvmwjnbgvr/chart.png

GE Vernova said it now expects global tariffs to push its 2026 costs up by less than $100 million, versus an earlier estimate of $100 to $200 million.

(To facilitate non-native English speakers, Reuters has automated the translation of its reports into several other languages. Automated translations may be inaccurate or may not capture the required context, so Reuters does not guarantee the accuracy of such texts. Automated translations are provided solely for the convenience of readers. Reuters accepts no responsibility for any damage or loss arising from the use of automated translation features.)