Forgent Power Solutions, Inc. (NYSE: FPS), a Dayton, Minn.-based designer and manufacturer of electrical distribution equipment, reported fiscal fourth-quarter revenue of $462 million for the period ended June 30, 2026, an increase of 94% from a year earlier. The company closed the quarter with a backlog of $3 billion, an all-time high.
The results arrive as surging demand from AI data centers has exacerbated shortages of critical U.S. grid equipment. A Reuters wire report in July found that shortages of transformers and related hardware have driven up costs and stretched delivery times, pushing utilities and developers to lock in orders years in advance.
#Fourth-Quarter Bookings Jump 375%, Backlog Reaches $3 Billion
Bookings totaled $1.5 billion in the fourth quarter, up 375% from a year earlier and 73% from the third quarter, Forgent said.
The company's book-to-bill ratio, which measures new orders against revenue, rose to 3.3x in the fourth quarter from 2.3x in the third quarter.
Backlog stood at $3 billion as of June 30, 2026, up 256% from a year earlier and 53% from March 31, 2026.
#Net Income Reaches $66 Million as Margins Climb
Net income for the quarter was $66 million, compared with a net loss of $5 million in the prior-year quarter, an increase of $71 million.
Net income margin was 14.3% in the quarter, up about 800 basis points from the third quarter, as revenue growth outpaced operating cost growth.
Adjusted EBITDA was $113 million, up 163% from a year earlier, which the company said was its highest quarterly result to date.
Adjusted EBITDA margin was 24.4%, up about 200 basis points from the third quarter.
Cash flow from operations was $74 million in the quarter, an increase of $81 million from a year earlier.
"Momentum in electrical distribution equipment remains robust, and Forgent's products and solutions continue to gain traction with customers," said Gary Niederpruem, Chief Executive Officer of Forgent. "We booked more than $1.5 billion of orders in the fourth quarter, an amount that exceeded our total revenue for the full fiscal year," he said in the earnings release.
For fiscal 2026, Forgent reported revenue of $1.42 billion, up 89% from fiscal 2025.
Fiscal 2026 net income was $106 million, up from $17 million in fiscal 2025, an increase of 508%.
Fiscal 2026 Adjusted EBITDA was $323 million, up 91% from fiscal 2025. Revenue, Adjusted EBITDA and Adjusted Net Income for both the quarter and the full year exceeded the high end of the company's May guidance, Forgent said.
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#Forgent Adds $35 Million Tijuana Plant, Raises Fiscal 2027 Guidance
Forgent also announced a $35 million investment to expand Powertrain Solutions manufacturing capacity at its Tijuana, Mexico campus, which it called the 2027 PTS Capacity Expansion. Powertrain Solutions revenue grew 259% in fiscal 2026 and made up nearly one-third of fourth-quarter revenue, the company said.
The expansion is expected to come online in the fourth quarter of fiscal 2027 and increase Forgent's total revenue capacity to about $5.8 billion, an increase of about $800 million, the company said.
For fiscal 2027, Forgent guided to revenue of $2.4 billion to $2.6 billion, representing 76% year-over-year growth at the midpoint.
The company guided to Adjusted EBITDA of $575 million to $625 million, representing 86% year-over-year growth at the midpoint.
Forgent guided to Adjusted EPS of $1.26 to $1.40, representing 95% year-over-year growth at the midpoint. The guidance is significantly higher than the company's forecast at the time of its initial public offering, Forgent said.
Forgent said its results could differ from these projections due to factors including raw material and labor costs, supply chain disruptions, competitive pricing pressure and the timing of its capacity expansions, according to the earnings release.