GE Vernova’s shares fell 1.9% after earnings, a roughly flat reaction. The quarter combined a larger backlog and higher segment margins with a $9 billion planned acquisition and a higher buyback authorization; the transcript does not identify a specific earnings disappointment.
- New orders were nearly $30 billion in the quarter, and backlog rose from $176 billion to approximately $200 billion.
- Power EBITDA margin reached 21% and Electrification reached 19%; Wind turned profitable, supported by services improvement.
- The company ended the quarter with approximately $17 billion in cash and announced a planned $9 billion acquisition of Trench Group, which it expects to be accretive on day one, subject to closing conditions.
- GE Vernova doubled its stock buyback authorization from $10 billion to $20 billion. It said it had invested $1.6 billion in buybacks during the quarter and more than $1.3 billion in October.
- Management cited a projected $130 billion high-voltage market by the end of the decade and said the Barmer HVDC project is expected to generate a $1.5 billion order in the fourth quarter.
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