Forgent Power Solutions, Inc. (FPS) Q3 2026 Financial Results Summary

Release Date: May 14, 2026

Forgent Power Solutions, Inc. ("Forgent" or the "Company") reported its financial results for the fiscal third quarter ended March 31, 2026, demonstrating substantial growth across several key metrics. Below is a summary of the results:

Fiscal Third Quarter 2026 Highlights

• Revenues:
  $379 million, an increase of 103% year-over-year, up from $186 million in Q3 2025.
• Bookings:
  $867 million, significantly up 308% year-over-year, with a book-to-bill ratio of 2.3x compared to 1.1x in the prior year.
• Backlog:
  $1.98 billion, reflecting a 157% increase year-over-year and a 33% increase quarter-over-quarter.
• Net Income:
  $24 million, an increase of 190% year-over-year, up from $8.44 million in Q3 2025, with a net income margin of 6.5%, marking a rise of approximately 650 basis points from the previous quarter.
• Adjusted EBITDA:
  $85 million, representing a 96% increase year-over-year, with Adjusted EBITDA margin at 22.4%, increasing about 200 basis points quarter-over-quarter.
• Adjusted Net Income:
  $55 million, an increase of 132% from the same quarter last year (up from $23.8 million in Q3 2025).
• Cash Flow from Operations:
  $29 million, an increase of $37 million year-over-year, despite continued working capital investments supporting increased production volumes.

Updated Full Year Fiscal 2026 Guidance

• Revenues:
  Projected in the range of $1,350 to $1,390 million, indicating an 82% year-over-year growth at midpoint.
• Adjusted EBITDA:
  Expected in the range of $310 to $320 million, translating to an 86% increase year-over-year at midpoint.
• Adjusted Net Income:
  Estimated between $197 and $207 million, reflecting 128% growth year-over-year at midpoint.

Management Commentary

• Gary Niederpruem, CEO of Forgent, emphasized their robust demand and successful manufacturing expansion as factors driving these strong results. He pointed to their ability to meet technical demands efficiently, which appeals to their customer base.
• Ryan Fiedler, CFO, mentioned the adjustments in guidance reflect rising demand, along with the challenges of margin pressure due to investments in headcount and facilities. He reassured that these expansions contribute positively to the company’s long-term success.

Additional Notes

• The Company did not declare a quarterly dividend in this report.
• There was no mention of any share repurchase programs in this quarter's financial results.

Key Performance Indicators Summary

Note: All amounts are in thousands.

Metric	Q3 2026	Q3 2025	% Change (YoY)
Revenues	$378,709	$186,224	103%
Net Income	$24,475	$8,439	190%
Adjusted EBITDA	$84,682	$43,254	96%
Adjusted Net Income	$55,272	$23,797	132%

This report showcases Forgent's significant growth trajectory, marked by record bookings and backlog, along with strategic updates in guidance reflecting increased market demand and production capabilities.

Here are the extracted tables from the press release:

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands; unaudited)

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands; unaudited)

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