GE Vernova raises 2026 guidance and boosts buyback to $20 billion

GE Vernova Inc. (GEV) said on Oct. 28 that third-quarter revenue rose 27% from a year earlier to $12.6 billion, and that it is raising its 2026 financial guidance.

Net income was $1.3 billion, or a net income margin of 10.2%, according to the company's 8-K. Adjusted EBITDA was $1.9 billion, with an adjusted EBITDA margin of 15.4%, up from 8.1% a year earlier. Free cash flow was $5.4 billion.

Shares were little changed in premarket trading as of 6:17 a.m. ET.

2026 guidance

The company now expects revenue of $46.5 billion to $47.5 billion, up from $45.5 billion to $46.5 billion. It expects an adjusted EBITDA margin of 13.5% to 14.5%, up from 12% to 14%, and free cash flow of $16 billion to $17 billion, up from $11.5 billion to $12.5 billion.

At the Power segment, organic revenue growth is now expected at 19% to 21%, up from 18% to 20%. Its segment EBITDA margin is expected at 19% to 21%, up from 17% to 19%.

At Electrification, revenue is expected at $14.5 billion to $15.0 billion, including approximately $3.1 billion from Prolec GE. The segment EBITDA margin is expected at 18% to 20%, now trending toward the higher end of the range.

For Wind, organic revenue is expected to fall in the mid-single digits, versus prior guidance of a low-double-digit decline. Segment EBITDA losses are expected at $400 million to $500 million, versus prior guidance of about $400 million.

Segment results

Power orders were $21.8 billion, up 178% organically, led by gas power equipment. Power revenue was $6.1 billion, up 25%. Segment EBITDA margin was 21.4%.

Electrification revenue was $3.9 billion, up 51% on a U.S. GAAP basis and 16% organically. Orders fell 9% organically from a large synchronous condenser order in the year-earlier quarter.

Wind revenue was $2.7 billion, up 4%. Segment EBITDA margin was 2.6%.

Capital returns and Trench Group deal

The board increased the share repurchase authorization to $20 billion from $10 billion in October, with $10.1 billion remaining. The company repurchased about 1.7 million shares for $1.6 billion in the third quarter.

The company also said in its filing that it agreed in October to acquire Trench Group for $9.0 billion in U.S. dollar equivalent. Closing is expected in late 2027, subject to customary regulatory approvals.

Chief Financial Officer Ken Parks said in the release, "Based on our strong financial performance, we are raising our guidance for 2026 revenue, adjusted EBITDA margin, and free cash flow."