GE Vernova agrees to acquire Trench Group for $9 billion — OilPrice

GE Vernova has agreed to acquire high-voltage grid equipment manufacturer Trench Group from investment company Triton Partners for $9 billion. The company also raised its 2026 revenue forecast for the third consecutive time, to $46.5–$47.5 billion from the $45.5–$46.5 billion range in its July forecast, OilPrice reports.

Production and orders

Trench Group manufactures equipment for high-voltage power grids. The deal is expected to add a facility in Charlotte to GE Vernova, where production of 765-kilovolt-class equipment is planned to begin at the end of 2027. The company will also receive Trench’s order backlog of approximately $5 billion and expand its presence in Europe and Asia.

GE Vernova expects Trench to generate about $1.9 billion in revenue in 2028, with an adjusted EBITDA margin of approximately 36%. By 2030, the company expects annual cost reductions of $50–$100 million. Half of the deal’s value is planned to be paid in cash, with the other half financed through debt. The acquisition is expected to be completed at the end of 2027.

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Growing demand for power grids

GE Vernova CEO Scott Strazik estimated the global market for high-voltage equipment at $130 billion by the end of the decade. According to the company, utilities are increasing investment in grids to replace aging infrastructure and meet demand from data centers and industrial electrification.

In the third quarter, GE Vernova’s orders rose by 96% to $29.3 billion, while its total order backlog reached a record $197 billion, compared with $176 billion three months earlier. The company’s revenue increased by 27%, while revenue from the Electrification segment rose by 51%. Adjusted EBITDA amounted to $1.94 billion and exceeded analysts’ estimates compiled by LSEG.

The company also doubled its share repurchase program to $20 billion; the available remaining amount is $10.1 billion.