Key Highlights

  • Innio reported third-quarter revenue of $1,167.9 million, up 57%, its first quarter above $1 billion.
  • Adjusted EBITDA rose 70% to $245.4 million, a 21.0% margin versus 19.4% a year earlier.
  • Equipment order backlog reached $7,963.4 million, up 142% from $3,292.9 million.
  • 2026 adjusted EBITDA guidance was raised by $60 million to $780 million to $800 million.
  • Net income was $109.2 million, or $0.15 per diluted share, versus $39.5 million, or $0.05.

Innio Earnings: Is Data Center Demand Driving the Raised Outlook?

Innio (NASDAQ:INIO) reported third-quarter results before the open on Tuesday, October 27, with revenue of $1,167.9 million, up 57%, and diluted EPS of $0.15 against $0.05. Management raised 2026 revenue guidance to $3.9 billion to $4.0 billion from $3.8 billion to $3.9 billion, and adjusted EBITDA guidance to $780 million to $800 million from $720 million to $740 million.

As screened, the EPS estimate was $0.12, a surprise of 29.97%. Diluted adjusted EPS was also $0.15, versus $0.06 a year earlier, and the screen shows a market capitalization of $12.73 billion.

Innio makes Jenbacher gas engines and related power equipment and services. Data center demand is the clear driver, with data center revenue rising to $463 million from $38 million and now about 60% of equipment revenue, per the earnings presentation.

Innio Results: What Did Equipment, Services and Margins Show?

Equipment revenue rose 86% to $777.6 million, while services revenue rose 20% to $390.3 million. Power delivered was 1.2 gigawatts versus 1.1 gigawatts.

Adjusted EBITDA was $245.4 million, with the margin at 21.0% against 19.4%. Equipment adjusted segment EBITDA was $132.8 million at a 17.1% margin versus 15.7%, while services reached $123.7 million at a 31.7% margin versus 27.7%.

Equipment order intake was $2,175.9 million, up 10%, and $6,083.8 million for nine months versus $3,178.4 million. Power Solutions orders fell about 50%, so growth in orders came from data center and compression demand.

Net income of $109.2 million compares with $39.5 million a year earlier. For nine months, net income was $83.3 million versus $136.9 million, after $93.6 million of IPO and public company readiness costs.

Innio Cash Flow and Leverage: How Strong Is the Balance Sheet?

Operating cash flow for nine months was $741.5 million versus $309.4 million, with investing outflows of $243.3 million, mainly capital expenditure. Cash rose to $1,195.8 million from $689.5 million at year-end, and long-term debt was $2,596.1 million.

Net leverage fell to 2.1 times from 3.6 times at year-end 2025, and the company targets below 2.0 times over the medium term. No cash dividend is planned in the near term, and management describes its capacity expansion as self-funded.

Last quarter management outlined growth from 3.5 gigawatts of output in 2025 to about 10 gigawatts by 2030, starting with a step to 7 gigawatts.

Innio Next Steps: What Do the Backlog and Orders Imply?

Management cited a potential grid shortfall of up to 80 gigawatts of firm capacity in the United States by 2030, and said gas engines need almost no water, which it presents as an advantage over turbines and fuel cells. It booked a 620 megawatt follow-on order from a mega-scale data center developer, bringing that customer to about 1.72 gigawatts, and extended its Aggreko partnership through 2031, with at least 450 megawatts to be ordered and delivered by the end of 2027.

Subtracting nine-month results from the full-year ranges implies fourth-quarter revenue of roughly $1,126 million to $1,226 million and adjusted EBITDA of $240 million to $260 million (calculated, not guided). Investors will watch whether equipment margins hold near the third-quarter level as deliveries rise.