INNIO’s credit rating upgraded to Ba3 by Moody’s

Moody's upgraded INNIO N.V.'s credit rating to Ba3 from B1 on Wednesday, bringing a positive outlook. The rating agency also raised INNIO's probability of default rating to Ba3-PD from B1-PD. The upgrade reflects the company's commitment to conservative financial policies post-IPO and strong operating performance, according to Moody's sources.

INNIO listed about 14% of its shares on NASDAQ:INNIO in June 2026 through a secondary offering, which did not provide new capital. The company pledged to keep its net leverage below 2.0x, except for temporary increases to 2.5x for acquisitions. As of June 2026, INNIO's net leverage was at 2.7x. The gas engine manufacturer has a $6.6 billion backlog, with $4.1 billion in data center orders from the previous year.

Revenue increased to more than $3 billion for the 12 months ending June 2026, up from $2.2 billion in 2024. Adjusted EBITDA rose to $586 million from $460 million over the same period. Moody's projects INNIO's revenue will reach $3.8 billion to $3.9 billion and adjusted EBITDA will be $720 million to $740 million in 2026. The company expects its adjusted debt-to-EBITDA ratio to decline to 4.0x by 2026 from 5.3x as of June 2026.

INNIO extended the maturities of all term loans and its revolving credit facility to 2031 in 2026. The company has $1 billion in cash and a fully undrawn €300 million revolving credit facility, with expectations of over $100 million in free cash flow by 2027.