GE Vernova said it will buy Trench for $9 billion to expand its power grid business. The company expects the deal to close in late 2027. CEO Scott Strazik said the move helps them "capitalize on a global high-voltage market." Meanwhile, shares fell over 3% to $863.14 on Tuesday.

Utilities ​are spending more on grids to replace aging infrastructure and meet demand from ​data centers and industrial electrification, driving orders for high-voltage transmission networks and ⁠specialized equipment used to move power over long distances.

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GE Vernova said the deal would expand ​its grid manufacturing footprint and add Trench's Charlotte facility, where production of 765-kilovolt equipment is ​expected to begin in late 2027. The acquisition also strengthens its presence in Europe and Asia and brings a backlog of about $5 billion.

The power equipment maker expects Trench to generate about $1.9 billion in revenue and ​an adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margin of roughly 36% in ​2028, while delivering $50-$100 million in annualized cost synergies by 2030.

GE Vernova expects to split the purchase price equally ‌between ⁠cash and debt, and close the transaction in late 2027.

CEO Scott Strazik said on a post-earnings call that the acquisition would help GE Vernova capitalize on a global high-voltage market expected to reach $130 billion by the end of the decade.

Shares of the company were down over ​3% at $863.14.

The company also ​doubled its share buyback ⁠authorization to $20 billion, leaving $10.1 billion available for repurchases.

DEMAND DRIVES GROWTH

GE Vernova raised its 2026 revenue forecast to $46.5-$47.5 billion from $45.5-$46.5 billion previously.

The company ​reported third-quarter revenue growth of 27% year over year, while adjusted ​EBITDA of $1.94 billion ⁠topped analysts' estimates compiled by LSEG.

Power orders nearly tripled on strong gas turbine demand, while Electrification revenue rose 51%.

Orders surged 96% to $29.3 billion and backlog reached a record $197 billion.

The company expects ⁠a 2026 ​wind EBITDA loss of $400 million-$500 million, though third-quarter EBITDA ​improved to $72 million from a year-earlier loss of $61 million.

It also lowered its estimate for 2026 global tariff-related costs ​to less than $100 million.

Reporting by Sumit Saha in Bengaluru; Editing by Tasim Zahid and Sriraj Kalluvila