GE Vernova is moving to expand the reach of its fastest-growing business segment, Electrification, by acquiring full ownership of grid equipment supplier Prolec GE.

The company and its corporate predecessor, General Electric, have held a 50% stake in the transformer manufacturer through a joint venture with Mexico-based Xignux since 1995. In their Oct. 21 announcement, the partners said the $5.3 billion deal is expected to close in mid-2026.

GE Vernova CEO Scott Strazik led off the third-quarter earnings call Oct. 22 with discussion of the acquisition, which he said will provide multiple benefits for the company amid surging U.S. power demand.

Full ownership will remove contractual constraints, allow better control over pricing and strategy, provide a better customer experience and pave the way for integrated solutions, Strazik said. It also provides one more entry point to the data center market.

“We have talked recently about our expected higher R&D next year to develop and deliver more product to data centers, and going beyond the transmission substations we provide today,” Strazik said. “Prolec will help deliver an even more robust range of product offerings.”

Prolec is expected to produce an EBITDA margin of approximately 25% in 2025, and its 2028 revenue is projected to be 40% higher than 2025.

GE Vernova reported third-quarter 2025 income of $453 million ($1.64/share) on $10 billion in revenue.

Of the three business segments:

• • Power had the largest numbers: $7.8 billion in orders, $4.8 billion in revenue and $84.1 billion backlog.
  • Electrification had the strongest growth, with an EBITDA margin of 15.1% compared with 10.4% in the same quarter of 2024.
  • Wind brought up the rear, with improved profitability and decreased offshore losses, but a negative EBITDA of $61 million.

Strazik said market interest in gas power continues unabated: GE Vernova signed 12 GW of new contracts in the third quarter after signing 9 GW in the second quarter. The backlog of gas turbine orders grew from 29 GW to 33 GW, and manufacturing slot reservations increased from 25 to 29.

“We now expect to approach 70 GW of contractual gas power commitments by the end of ’25 with significant momentum into ’26,” he said.

An analyst asked about indications that demand for new turbines may be peaking and that asking prices are starting to be more negotiable.

Strazik said the company is not softening on its asking price, although its order book for any given quarter may not be an accurate barometer.

“In the third quarter, as an example, we had substantially more smaller gas turbines, more aeroderivatives, that are a higher price per megawatt than the baseload units,” Strazik said. “In totality, we continue to see price accelerating in gas,” he said, pointing to the higher prices and better profit margins for the slot reservations that he expects to progress to contracted orders in the next 12 months.

The larger gas turbines are much more economically efficient, he said, but there is a near-term surge in demand that the smaller units will meet. He predicted the aeroderivative and other small gas-fired generators would bridge the need for power until heavy-duty units are available, then convert to backup roles.