GE Vernova Inc. (GEV) shares surged 4.73% to $895.08 in regular trading, gaining $40.46, after the energy equipment company — one of the world's largest suppliers of gas turbines and grid equipment, spun off from General Electric in 2024 — reported third-quarter revenue of $12.6 billion, up 27%, alongside a 96% jump in organic orders to $29.3 billion.

The strong quarter lifted the company's total backlog to $197 billion, and management raised its full-year 2026 guidance for revenue, adjusted EBITDA margin, and free cash flow. GE Vernova generated $5.4 billion in free cash flow during the quarter and, in October, doubled its share repurchase authorization to $20 billion. The backlog is expected to top $200 billion in the fourth quarter of 2026.

Despite the stronger results and improved outlook, shares slipped 0.60% to $890.15 in pre-market trading.

Strong Q3 Earnings and Record Backlog

GE Vernova recorded $1.3 billion in net income for the third quarter, up from $453 million in the prior-year period. Diluted earnings per share climbed 193% to $4.81, reflecting stronger business performance across the company's operations. The net income margin improved to 10.2%, compared with 4.5% a year earlier.

Adjusted EBITDA came in at $1.9 billion, with the margin expanding to 15.4% from 8.1% in the same quarter last year. Operating activities generated $6.1 billion in cash, while free cash flow rose to $5.4 billion from $732 million in the corresponding quarter.

The company's total backlog reached $197 billion after adding $20 billion during the quarter, supported by strong equipment demand and service contracts across its Power and Electrification businesses. Backlog — the value of equipment and service agreements still to be fulfilled — is a key measure of revenue visibility for equipment makers, and at $197 billion GE Vernova's now stands at more than four times the midpoint of its raised 2026 revenue guidance. GE Vernova expects its backlog to exceed $200 billion in the fourth quarter of 2026.

Power and Electrification Drive Growth

Strong demand for gas-fired power equipment and grid infrastructure underpinned the quarter's growth. The Power segment generated $6.1 billion in revenue, a 25% annual increase. Segment orders reached $21.8 billion, reflecting 178% organic growth driven primarily by gas equipment demand. GE Vernova secured 11 gigawatts of new gas equipment contracts during the quarter.

Gas equipment backlog and slot reservations increased to a combined 122 gigawatts from 116 gigawatts, and the company now expects this combined figure to reach at least 130 gigawatts by year-end. The expansion reflects growing electricity infrastructure needs among utilities, industrial customers, and data centers. Gas turbines are long-lead-time products, and slot reservations give customers advance positions in manufacturing capacity, so order intake serves as an early read on demand before it appears in delivered revenue.

Electrification revenue climbed 51% to $3.9 billion, supported by demand for grid infrastructure and transmission equipment. The segment's equipment backlog increased 60% annually to $42.2 billion, including contributions from Prolec GE. Wind revenue also rose 4% to $2.7 billion, although the business continues to face profitability challenges.

Raised 2026 Guidance and Expanded Shareholder Returns

GE Vernova raised its 2026 revenue forecast to $46.5 billion–$47.5 billion, up from the previous range of $45.5 billion–$46.5 billion, reflecting stronger operating performance. Management also increased its adjusted EBITDA margin guidance to 13.5%–14.5%, compared with the prior 12%–14% range. The revised targets follow the company's strong third-quarter results.

The company lifted its annual free cash flow projection to $16 billion–$17 billion, from the earlier range of $11.5 billion–$12.5 billion, highlighting stronger expectations for cash generation. GE Vernova ended September with $16.8 billion in cash, providing resources for expansion and shareholder distributions.

In October, the company doubled its share repurchase authorization to $20 billion from $10 billion. It also announced a $9 billion agreement to acquire Trench Group, expanding its high-voltage equipment portfolio in support of its broader electrification strategy. The transaction is expected to be completed in late 2027.

With the quarter's orders of $29.3 billion running at more than twice its revenue, the pace at which the swelling backlog converts into deliveries and billings is the operational metric to watch as GE Vernova moves through 2026 under a raised outlook.

Source: Blockonomi