Forgent (FPS) Q4 2026 Financial Results Summary
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Forgent Power Solutions, Inc. (FPS) Q4 2026: Record Growth Across Metrics — Strongly Positive
Forgent Power Solutions, Inc. (NYSE: FPS) reported exceptional results for its fiscal fourth quarter ended June 30, 2026, with revenues of $462 million, reflecting an increase of $224 million or 94% year-over-year. This performance not only marks a significant improvement compared to the prior year but also exceeds the high-end of the company's guidance provided in May.
Key Financial Metrics
- Revenues: $462 million, up $224 million or +94% YoY
- Bookings: $1,503 million, up 375% YoY; book-to-bill ratio of 3.3x
- Backlog: $3.0 billion, up 256% YoY
- Net Income: $66 million, up $71 million YoY
- Net Income Margin: 14.3%, up ~800 bps QoQ
- Adjusted EBITDA: $113 million, up 163% YoY
- Adjusted EBITDA Margin: 24.4%, up ~200 bps QoQ
- Cash Flow from Operations: $74 million, up $81 million YoY
Analyst Opinion
This quarter is undoubtedly a strong positive for shareholders. The substantial revenue growth, coupled with a dramatic increase in net income and adjusted EBITDA, showcases Forgent's robust operational execution and market demand for its products. The company's ability to exceed guidance across multiple metrics indicates strong management performance and a favorable market environment. The impressive 375% increase in bookings and a 3.3x book-to-bill ratio further highlight the accelerating demand for Forgent's electrical distribution solutions, positioning the company well for future growth.
Dividend and Share Buyback
While the report did not mention any dividends or share buybacks, the strong cash flow from operations of $74 million suggests that the company is in a solid position to consider such actions in the future, depending on strategic priorities.
Fiscal Year 2027 Guidance
Looking ahead, Forgent has provided ambitious guidance for fiscal year 2027:
- Revenues: Expected in the range of $2,400 to $2,600 million, representing 76% year-over-year growth at the midpoint.
- Adjusted EBITDA: Expected in the range of $575 to $625 million, representing 86% year-over-year growth at the midpoint.
- Adjusted EPS: Expected in the range of $1.26 to $1.40, representing 95% year-over-year growth at the midpoint.
This guidance reflects the company's confidence in its operational capabilities and market demand, supported by a record backlog of $3.0 billion.
Forward Catalysts
Investors should closely monitor Forgent's execution on its capacity expansion initiatives, particularly the $35 million investment to enhance manufacturing capabilities at its Tijuana, Mexico campus. This expansion is expected to come online in the fourth quarter of fiscal 2027 and will significantly increase Forgent's total revenue capacity to approximately $5.8 billion. Additionally, the company's ability to maintain its high backlog and convert it into revenue will be crucial in sustaining growth momentum.
In conclusion, Forgent Power Solutions has delivered a remarkable quarter, setting a strong foundation for fiscal year 2027. The combination of record revenues, significant net income growth, and ambitious guidance positions the company favorably in the electrical distribution market. Investors should remain optimistic as Forgent continues to capitalize on its growth opportunities.
Here are the extracted tables from the press release:
FORGENT POWER SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS
*The amount is in thousands*
| Three Months | Year Ended | |||
|---|---|---|---|---|
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |
| Revenues | $461,672 | $237,613 | $1,420,059 | $753,188 |
| Cost of Revenues | 294,977 | 157,912 | 922,459 | 475,122 |
| Gross Profit | 166,695 | 79,701 | 497,600 | 278,066 |
| Operating Expenses | ||||
| Selling, general, and administrative expenses | 62,640 | 58,359 | 262,886 | 146,270 |
| Depreciation and amortization | 12,156 | 13,051 | 52,225 | 59,559 |
| Total Operating Expenses | 74,796 | 71,410 | 315,111 | 205,829 |
| Income from Operations | 91,899 | 8,291 | 182,489 | 72,237 |
| Other Income (Expense) | ||||
| Interest expense | -11,423 | -12,945 | -57,127 | -54,778 |
| Interest income | 699 | 1,049 | 2,787 | 5,558 |
| Other income | -654 | 231 | -749 | -231 |
| Total Other Expense, net | -11,378 | -11,665 | -55,089 | -49,451 |
| Income (Loss) Before Tax | 80,521 | -3,374 | 127,400 | 22,786 |
| Income Tax Expense | -14,427 | -1,387 | -21,365 | -5,340 |
| Net Income | 66,094 | -4,761 | 106,035 | 17,446 |
| Less: net income (loss) attributable to non-controlling interests | 12,796 | -2,201 | 24,190 | 2,250 |
| Net Income (Loss) Attributable to Forgent Power Solutions, Inc. | $53,298 | $(2,560) | $81,845 | $15,196 |
| Earnings per share of Class A common stock: | ||||
| Basic | $0.21 | $0.30 | ||
| Diluted | $0.21 | $0.30 | ||
| Weighted average shares of Class A common stock outstanding: | ||||
| Basic | 249,233 | 243,532 | ||
| Diluted | 249,559 | 243,802 |
FORGENT POWER SOLUTIONS, INC. CONSOLIDATED BALANCE SHEETS
*The amount is in thousands*
| June 30, 2026 | June 30, 2025 | |
|---|---|---|
| Assets | ||
| Current Assets | ||
| Cash and cash equivalents | $97,477 | $111,322 |
| Accounts receivable, net | 329,628 | 159,970 |
| Inventory, net | 249,817 | 117,577 |
| Prepaid and other current assets | 141,169 | 56,278 |
| Total Current Assets | 818,091 | 445,147 |
| Property and equipment, net | 204,957 | 108,170 |
| Operating lease right of use assets, net | 108,432 | 117,769 |
| Goodwill | 516,629 | 516,629 |
| Other intangible assets, net | 289,490 | 337,271 |
| Deferred tax assets, net | 280,971 | — |
| Other assets | 12,195 | 11,700 |
| Total Assets | $2,230,765 | $1,536,686 |
| Liabilities and Stockholders' Equity / Members' Equity | ||
| Current Liabilities | ||
| Accounts payable | $130,453 | $61,943 |
| Accrued expenses | 122,356 | 79,541 |
| Payables pursuant to the acquisitions | — | 17,226 |
| Deferred revenue | 263,859 | 110,895 |
| Operating lease liabilities, current portion | 8,626 | 6,879 |
| Long-term debt, current portion | 6,000 | 5,173 |
| Total Current Liabilities | 531,294 | 281,657 |
| Long-term debt, net of discount and deferred financing costs, less current portion | 576,175 | 496,934 |
| Payable pursuant to the Tax Receivable Agreement | 338,925 | — |
| Deferred tax liabilities, net | — | 63,318 |
| Operating lease liabilities, less current portion | 112,970 | 121,491 |
| Total Liabilities | 1,559,364 | 963,400 |
| Stockholders' Equity / Members' Equity | ||
| Members' equity | — | 374,534 |
| Class A common stock, $0.00001 par value; 2,000,000,000 shares authorized; 259,971,169 issued and outstanding | 2 | — |
| Class B common stock, $0.00001 par value; 100,000,000 shares authorized; 44,457,720 issued and outstanding | 1 | — |
| Additional paid-in capital | 484,994 | — |
| Retained earnings | 79,320 | — |
| Total Stockholders' Equity Attributable to Forgent Power Solutions, Inc. / Members' Equity | 564,317 | 374,534 |
| Non-controlling interests | 107,084 | 198,752 |
| Total Stockholders' Equity / Members' Equity | 671,401 | 573,286 |
| Total Liabilities and Stockholders' Equity / Members' Equity | $2,230,765 | $1,536,686 |
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