Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Orders | $29.3 billion | up 96% year-over-year |
| Backlog | approximately $200 billion | sequential increase |
| Adjusted EBITDA | $1.9 billion | up 123% year-over-year |
| Free Cash Flow | $5.4 billion | up $4.7 billion year-over-year |
| Electrification EBITDA | $739 million | up 57% year-over-year |
Guidance and outlook
- Full year 2026 revenue: $46.5 billion to $47.5 billion.
- Full year 2026 adjusted EBITDA margin: 13.5% to 14.5%.
- Full year 2026 free cash flow: $16 billion to $17 billion.
- Full year 2026 Power EBITDA margin: 19% to 21%.
- Full year 2026 Electrification EBITDA margin: trending toward the higher end of 18% to 20%.
How management sounded
Positive (+7 on our -10 to +10 scale). Management raised revenue, margin, and free cash flow guidance for the full year, citing strong demand and execution across all three business segments. Management sounded more upbeat than on 48% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Power margins
Asked: An analyst asked if the second half of 2026 is the right jump-off point for 2027 margins.
Answer: Management confirmed that the second half of the year reflects better-priced equipment shipments and serves as a solid baseline for 2027 projections.
Trench acquisition
Asked: An analyst asked about the supply and demand mix for Trench and if more supply chain deals are expected.
Answer: Management noted they are a small part of Trench's current revenue but see significant vertical integration benefits, and they will continue to look for core business investments.
Power backlog
Asked: An analyst asked about the sustainability of SRA growth and conversion.
Answer: Management expects Q4 gigawatts under contract to be modestly higher than Q3 and sees continued growth in 2027.
Wind strategy
Asked: An analyst asked about long-term strategic optionality for the Wind business.
Answer: Management noted the business has returned to profitability and they are focused on executing offshore projects while evaluating how to best create value in the U.S. market.
What to watch before the next call
- Integration of the Trench Group acquisition, which is expected to close in late 2027.
- Execution of offshore wind projects in the North Sea.
- Conversion of Slot Reservation Agreements to firm orders in the Power segment.
- U.S. onshore wind market recovery and the impact of 232 tariffs.
