Shares of INNIO Holding GmbH (INIO) plummeted 6.17% in intraday trading on Tuesday, reversing an initial premarket gain of 1.9%, as investors digested the company's first post-IPO quarterly earnings report which revealed a GAAP net loss and shrinking profit margins despite robust revenue growth.

The distributed energy solutions provider reported second-quarter revenue of $937.7 million, up 42% year-over-year and comfortably ahead of analyst expectations of $881.7 million. Equipment order intake surged 316% to a record $2.3 billion, while the equipment order backlog reached an all-time high of $6.6 billion, driven by strong demand from data centers, power solutions, and compression businesses. However, the company posted a GAAP net loss of $(16.9) million, compared to a net income of $62.4 million in the same quarter last year, primarily due to $81.2 million in one-off costs related to its initial public offering and public market readiness. Adjusted earnings per share came in at $0.08, beating analyst estimates of $0.06 but down from $0.09 a year earlier.

Investor concerns appeared to center on margin compression across the business. Overall Adjusted EBITDA margin fell to 18.4% from 21.8% in the prior-year period, while the Equipment segment's Adjusted EBITDA margin dropped sharply to 13.8% from 18.7%, reflecting significant investments in manufacturing capacity expansion. The company initiated full-year 2026 guidance with revenue of $3.8 billion to $3.9 billion and Adjusted EBITDA of $720 million to $740 million, but the margin pressures and GAAP loss overshadowed the strong demand narrative, triggering the sell-off at the opening bell.