The power equipment maker posted 57% revenue growth to $1.2 billion in the third quarter and raised its full-year outlook
INNIO N.V. just had the kind of quarter most industrial companies only see in investor-day slide decks. The company reported third-quarter 2026 revenue of $1.2 billion on October 27, a 57% jump from the same period last year.
It is the first time INNIO has topped $1 billion in a single quarter. The reason fits in two letters: AI.
Data centers are hungry for electricity, and many cannot wait for the local utility to hook them up. So they are buying generation equipment and making power on-site. INNIO is one of the companies selling them the gear.
Inside the numbers
Equipment revenue did most of the heavy lifting. It climbed 86% to approximately $778 million in the quarter.
Data centers made up 60% of that equipment revenue.
Data center equipment revenue rose from $38 million to $463 million year over year.
The services side grew too, though at a more grown-up pace. Services revenue increased 20% to $390 million.
That split matters. Equipment sales are lumpy and tied to project timing. Service revenue tends to recur because installed machines need maintenance for years.
On that front, INNIO has long-term service agreements covering at least 450 MW of Jenbacher capacity with Aggreko, running through 2031. Contracts like that turn a one-time equipment sale into a multi-year income stream.
A backlog that stretches past the horizon
The company booked $2.2 billion in equipment orders during the third quarter.
Year-to-date order intake reached $6.1 billion, up 91% from the prior year.
The result is a record equipment backlog of $8 billion, up 142% year over year.
Two recent deals show the scale involved. INNIO landed a 620 MW follow-on order from a data center developer, plus a 450 MW project order from Liberty Energy.
Those orders push deliveries out into 2028.
Management responded by lifting full-year guidance. INNIO now expects 2026 revenue of $3.9 to $4.0 billion and adjusted EBITDA of $780 to $800 million.
Investors liked what they saw. Shares rose approximately 10% after the earnings release.
Why data centers are going off-grid
Data center developers can build a facility relatively quickly, but getting connected to utility power can take far longer. Meanwhile, AI workloads are pushing electricity consumption sharply higher.
That is where behind-the-meter generation comes in. Instead of drawing power from the utility, a facility produces its own electricity on-site.
INNIO’s results suggest this is no longer a niche workaround. It is becoming a mainstream strategy for getting AI capacity online fast.
What this means
INNIO is also planning for more. The company aims to expand capacity to more than 10 GW of annual production by 2030.
Still, concentration cuts both ways. With data centers now accounting for 60% of equipment revenue, INNIO’s fortunes are increasingly tied to the pace of AI infrastructure spending.
