GE Vernova to Buy Grid-Equipment Manufacturer for $9 Billion as Energy Demand Grows — 2nd Update

By Connor Hart

GE Vernova agreed to buy Trench Group for $9 billion, a deal that will strengthen its grid-equipment manufacturing capabilities as demand for energy continues to skyrocket.

The deal marks a step forward in strengthening and scaling GE Vernova's electrification business in the high-voltage infrastructure market, which is estimated to reach $130 billion in size by the end of the decade, the energy company said Wednesday.

Data-center buildouts, electrification projects and manufacturing growth are just a few of the factors driving the increasing need for efficient high-voltage equipment, Chief Executive Scott Strazik said.

"Technology for high-voltage solutions will broaden our grid-equipment portfolio and expand our presence across product lines where we have a modest presence today," Strazik said on a call with analysts.

The deal for Trench Group, which GE Vernova is buying from investment-firm Triton Partners, will also help to shore up the company's supply chain, he added. The transaction, expected to be funded equally between cash and debt, is projected to close in late 2027.

Shares, which initially climbed in premarket trading, were recently trading 6% lower, at $841.88. Still, the stock is up about 24% year to date.

Trench Group's products are found in the majority of high-voltage direct current lines built globally, according to GE Vernova. Trench is expected to report revenue of about $1.4 billion this year, with its top line projected to grow at a double-digit clip over the coming years.

Trench employs more than 3,000 workers, with a manufacturing footprint that spans 11 sites across Europe, North America and Asia. The company serves more than 800 customers globally, having secured multiple supply agreements with hyperscalers over the past two years.

GE Vernova expects the acquisition to immediately boost margins, Chief Financial Officer Ken Parks said. He added the company expects to realize up to $100 million of annualized cost synergies from the deal by 2030.

"We see additional revenue synergy potential over time," Parks said.

Separately, GE Vernova on Wednesday raised its outlook for the year, as profit and revenue jumped in the recent quarter on the back of continued demand for electricity infrastructure.

The company, formed from the breakup of General Electric, said growth accelerated across both its core business and new offerings. Orders nearly doubled in the recent quarter, to $29.3 billion, while backlog grew about $20 billion sequentially, to $197 billion. Backlog is anticipated to surpass $200 billion in the current quarter.

"We continue to see strong pull from customers for the solutions we offer," Strazik said.

GE Vernova now expects revenue to come in between $46.5 billion to $47.5 billion for the year, up from a prior outlook of $45.5 billion to $46.5 billion. It also raised its forecasts for adjusted Ebitda margin and free cash flow.

The company notched a third-quarter profit of $1.29 billion, up from $453 million a year earlier. Quarterly earnings of $4.81 a share came in ahead of the $4.03 a share that analysts polled by FactSet expected.

Total revenues jumped 27% to $12.64 billion, topping Wall Street models for $11.99 billion.

GE Vernova also doubled its share repurchase authorization, with its board approving an increase to $20 billion from $10 billion.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

October 28, 2026 10:29 ET (14:29 GMT)