Key Highlights

  • Revenue rose 57% to about USD 1.2 billion, the first quarter above USD 1 billion, with equipment revenue up 86%.
  • Net income was USD 109.2 million, up 176%, and adjusted EBITDA rose 70% to USD 245.4 million.
  • Equipment backlog reached USD 8.0 billion from USD 3.3 billion a year ago, with data centers 60% of segment revenue.
  • 2026 revenue guidance rose to USD 3.9 to 4.0 billion, and adjusted EBITDA guidance to USD 780 to 800 million.

Data Center Deliveries Drive Growth

INNIO (NASDAQ:INIO), a maker of Jenbacher and Waukesha gas engines, reported third-quarter revenue of about USD 1.2 billion on Tuesday, up 57% and the first quarter above USD 1 billion in its history. Equipment revenue rose 86% to USD 777.6 million on backlog conversion and large data center deliveries, and services revenue rose 20% to USD 390.3 million on a growing installed base and a high share of parts sales.

Net income was USD 109.2 million, up 176%, and adjusted EBITDA rose 70% to USD 245.4 million, a 21% margin that expanded one percentage point on better backlog pricing and absorption of growth investments. SG&A fell to 11% of revenue from 19% in the first quarter. Nine-month net income in the quarterly filing was USD 83.3 million against USD 136.9 million, with foreign currency losses of USD 37.2 million in the period.

Data centers accounted for 60% of equipment revenue in the quarter. Management said equipment adjusted EBITDA per gigawatt reached USD 106 million, against USD 33 million in the first quarter, on improved pricing and scope, and that average selling prices exceed USD 600 per kilowatt.

Backlog, Orders and Capacity

The equipment order backlog rose 142% to USD 8.0 billion. Order intake was USD 2.2 billion, up 10%, and USD 6.1 billion over nine months, for a trailing 12-month book-to-bill ratio of 3.3 times. Backlog and slot reservations together reached 19 gigawatts, up 4 gigawatts from the prior quarter.

The company announced a 620 megawatt follow-on order from a data center developer with a 500 megawatt long-term service agreement, a 450 megawatt order from Liberty Energy with deliveries through 2028, and an extension of its Aggreko partnership through 2031 with at least 450 megawatts of engine capacity due by late 2027. Management said U.S. grid connection waits now exceed six years, supporting demand for behind-the-meter power.

Capacity is rising from 3.5 gigawatts in 2025 toward a target of 10 gigawatts by 2030, and the Waukesha plant assembled its first Jenbacher generator. The finance chief said the new installed base offers a service opportunity of USD 50,000 per megawatt per year against USD 30,000 for the existing fleet.

Balance Sheet and Guidance

Cash was USD 1.196 billion against USD 689.5 million at year-end, and net leverage fell to 2.1 times from 3.6 times, approaching a medium-term goal below 2.0 times.

Management raised 2026 guidance to revenue of USD 3.9 billion to USD 4.0 billion from USD 3.8 billion to USD 3.9 billion, and adjusted EBITDA of USD 780 million to USD 800 million, up USD 60 million at the midpoint. It targets 4.5 gigawatts of deliveries for the year, including 1.5 gigawatts in the fourth quarter.

Gas Engine Markers to Follow

Tracking points include fourth-quarter deliveries against the 1.5 gigawatt target, order intake relative to USD 2.2 billion, and adjusted EBITDA margin against 21%.

Further items are net leverage against the goal below 2.0 times, data center share of equipment revenue relative to 60%, and services growth against 20%.