GE Vernova boosts grid push with $9 billion Trench deal, lifts revenue forecast
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓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.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Reuters
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
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.
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Reuters
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