GE Vernova Doubles Buyback Authorization to $20 Billion as Orders Nearly Double

GE Vernova doubled its share buyback authorization to $20 billion and raised its 2026 forecast on Wednesday after third-quarter orders nearly doubled organically to $29.3 billion, driven by surging demand for gas power equipment.

The Cambridge, Massachusetts, energy equipment maker said its backlog grew by $20 billion from the prior quarter to $197 billion, and it now expects backlog to exceed $200 billion in the fourth quarter, according to the earnings release it filed with an 8-K on Wednesday.

Orders and backlog surge

Organic orders rose 96%, led by Power, where orders jumped 178% organically to $21.8 billion. The segment booked 55 heavy-duty gas turbines, including 21 HA turbines, and 57 aeroderivative turbines.

Gas Power equipment backlog and slot reservation agreements grew to 122 gigawatts from 116 gigawatts, and the company now anticipates reaching at least 130 gigawatts by the end of 2026.

"We delivered strong financial results in the third quarter as demand for electricity infrastructure increases around the world," CEO Scott Strazik said in the release.

Profit and margins climb

Revenue rose 27% to $12.642 billion, or 18% organically. Net income rose to $1.289 billion from $453 million, and diluted EPS reached $4.81, up 193% from $1.64.

Adjusted EBITDA more than doubled to $1.943 billion from $811 million, and adjusted EBITDA margin widened to 15.4% from 8.1%. The company credited higher price, volume and productivity.

Power segment revenue rose 25% to $6.067 billion with an EBITDA margin of 21.4%, up 800 basis points. Electrification revenue jumped 51% to $3.862 billion, including the Prolec GE business, or 16% organically, though its orders fell 9% organically against large synchronous condenser orders a year earlier. Wind returned to a positive segment EBITDA of $72 million from a loss of $61 million.

Cash pile and capital returns

Cash from operating activities was $6.057 billion, and free cash flow was $5.409 billion, up $4.7 billion. The quarter-end cash balance was $16.8 billion.

GE Vernova repurchased about 1.7 million shares for $1.6 billion in the third quarter and another 1.4 million shares for $1.3 billion from Oct. 1 to Oct. 23. Since its program began in December 2024, it has bought back 15.6 million shares for $9.9 billion. After the board raised the authorization to $20 billion from $10 billion, $10.1 billion remains.

The company also kept its quarterly dividend at $0.50 per share, payable Nov. 24.

Raised guidance

GE Vernova now expects 2026 revenue of $46.5 billion to $47.5 billion, up from $45.5 billion to $46.5 billion. It lifted its adjusted EBITDA margin outlook to 13.5% to 14.5% from 12% to 14%, and its free cash flow forecast to $16 billion to $17 billion from $11.5 billion to $12.5 billion.

In October, the company also agreed to acquire Trench Group, a high-voltage grid equipment maker, for $9.0 billion, with closing expected in late 2027, subject to regulatory approvals.

Sources

1. GE Vernova Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 28, 2026 (accession 0001996810-26-000162)
2. GE Vernova Form 10-Q for the quarter ended Sept. 30, 2026, filed Oct. 28, 2026 (accession 0001996810-26-000163)

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