Updated: GE Vernova accelerates its power grid business by acquiring Trench Company for $9 billion, and raises its revenue forecast

Key points added in paragraph 7, and the stock price information in the chart after paragraph 13 has been updated

Reuters, October 28 - GE Vernova (GEV.N) said on Wednesday it would acquire high-voltage grid equipment manufacturer Trench Group from investment firm Triton Partners for $9 billion, and raised its annual revenue forecast for the third consecutive time.

Utilities are ramping up grid investments to replace aging infrastructure and meet the needs of data centers and industrial electrification. These investments are driving demand for high-voltage transmission networks and specialized equipment, benefiting suppliers like GE Vernova.

GE Vernova said the acquisition would enhance its North American grid component manufacturing capabilities via Trench’s newly launched plant in Charlotte, North Carolina. The plant is expected to begin 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 EBITDA margin of approximately 36%.

The deal will also increase production capacity, expand GE Vernova’s presence in Europe and Asia, and give it access to Trench’s $5 billion order backlog.

GE Vernova expects to pay for the acquisition with a 50/50 split of cash and debt, and to complete the transaction by the end of 2027.

The company’s share price rose 4.1% in pre-market trading to $931.84.

Demand driving growth

The company now expects 2026 revenue in the range of $46.5 billion to $47.5 billion, up from its previous estimate of $45.5 billion to $46.5 billion.

Its third-quarter revenue rose 27% year-on-year to $12.64 billion. GE Vernova’s adjusted EBITDA for the quarter was $1.94 billion, beating the $1.68 billion analyst estimate compiled by London Stock Exchange Group (LSEG).

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Driven by demand for gas turbines and services, power orders nearly tripled; electrification business revenue jumped 51%, mainly boosted by higher sales of substation solutions, switching equipment, and transformers.

Orders soared over 96% to $29.3 billion, and backlog rose to a record $197 billion.

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GE Vernova now expects global tariffs to increase its 2026 costs by less than $100 million, compared to its previous estimate of a $100 million to $200 million rise.

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