GE Vernova to Buy Trench Group for $9 Billion to Tighten Supply Chain Control

GE Vernova has agreed to buy Trench Group, a high-voltage equipment supplier, for $9 billion, with the transaction expected to close in late 2027. The announcement came as the energy technology company reported that its gas turbine backlog grew by just 6 gigawatts in the most recent quarter, down from double-digit quarterly increases earlier in the year.

Chief executive Scott Strazik told investors the company is not stepping back from its gas business. The total gas equipment backlog grew from 116 GW to 122 GW, and Strazik said the company is targeting at least 130 GW by year-end. He also pointed to delivery timelines as an increasingly important factor across the industry, framing the Trench Group deal as a way to improve production planning and coordinate supply more closely with customer schedules.

Trench Group counts more than 800 utilities and data center operators among its clients and holds a combined order and framework agreement portfolio of roughly $5 billion, with some agreements extending into the next decade. Its North Carolina plant is set to become the first facility in the United States producing high-voltage bushings rated up to 765 kilovolts. Bringing instrument transformers, coils, and DC equipment in-house is expected to allow GE Vernova to align component deliveries directly with project timelines.

About 80 percent of current turbine demand comes from traditional power customers, with data centers representing the remaining 20 percent. The company is already accepting bookings for deliveries as far out as 2032.

GE Vernova’s wind division posted a profit in the third quarter, supported by 16 percent order growth. Strazik nonetheless cautioned against excessive optimism, noting that the wind market is still relatively small.

Source: Utility Dive