- \n
- \nRevenues of $379 million, an increase of 103% year-over-year<\/p>\n<\/li>\n
- \nBookings of $867 million, an increase of 308% year-over-year; Book-to-bill ratio of 2.3x<\/p>\n<\/li>\n
- \nBacklog of $1.98 billion, an increase of 157% year-over-year and 33% quarter-over-quarter, respectively<\/p>\n<\/li>\n
- \nNet Income of $24 million, an increase of 190% year-over-year<\/p>\n<\/li>\n
- \nNet Income margin of 6.5%, an increase of ~650 bps quarter-over-quarter<\/p>\n<\/li>\n
- \nAdjusted EBITDA of $85 million, an increase of 96% year-over-year<\/p>\n<\/li>\n
- \nAdjusted EBITDA margin of 22.4%, an increase of ~200 bps quarter-over-quarter<\/p>\n<\/li>\n
- \nAdjusted Net Income of $55 million, an increase of 132% year-over-year<\/p>\n<\/li>\n
- \nCash flow from operations of $29 million, an increase of $37 million year-over-year<\/p>\n<\/li>\n<\/ul>\n
Updated Full Year Fiscal 2026 Guidance<\/b><\/p>\n
- \n
- \nRevenues in the range of $1,350 to $1,390 million, representing 82% YoY growth at the midpoint<\/p>\n<\/li>\n
- \nAdjusted EBITDA in the range of $310 to $320 million, representing 86% YoY growth at the midpoint<\/p>\n<\/li>\n
- \nAdjusted Net Income in the range of $197 to $207 million, representing 128% YoY growth at the midpoint<\/p>\n<\/li>\n<\/ul>\n
DAYTON, Minn.–(BUSINESS WIRE<\/a>)–
\nForgent Power Solutions, Inc. (“Forgent” or the “Company”) (NYSE: FPS), a leading designer and manufacturer of electrical distribution equipment used in data centers, the power grid and energy-intensive industrial facilities, today announced financial results for its fiscal third quarter ended March 31, 2026.<\/p>\n\nForgent reported fiscal third quarter revenues of $379 million, an increase of $192 million, or 103%, compared to the prior year\u2019s quarter. Bookings in the quarter were the highest in the Company\u2019s history at $867 million, representing an increase of 308% year-over-year and 14% quarter-over-quarter. The Company\u2019s book-to-bill ratio was 2.3x, compared with 1.1x in the prior year\u2019s quarter. As of March 31, 2026, Forgent\u2019s backlog reached a record $1.98 billion, representing an increase of 157% and 33%, versus March 31, 2025 and December 31, 2025, respectively.<\/p>\n
\n\u201cDemand for our products continues to outpace our expectations. Year-over-year growth in both revenues and orders was higher in the third quarter than in the second, despite growing off a larger base. These results reflect the success of our manufacturing expansion, robust demand across our data center and grid end markets, and our differentiated ability to deliver customized solutions at scale with some of the shortest lead times in the industry,\u201d said Gary Niederpruem, Chief Executive Officer of Forgent. Mr. Niederpruem added, \u201cIn an environment where speed-to-power and technical agility are defining project success, customers are increasingly choosing Forgent for our ability to deliver highly customized solutions with greater timeline certainty, supported by our vertical integration, agile manufacturing model and deep engineering expertise.\u201d<\/p>\n
\nNet Income for the fiscal third quarter was $24 million, an increase of $16 million or 190%, compared to the prior year\u2019s quarter. Adjusted Net Income for the fiscal third quarter was $55 million, an increase of $31 million or 132%, compared to the prior year\u2019s quarter. Net Income and Adjusted Net Income increased primarily due to higher gross profit, partially offset by higher selling, general and administrative costs. Net Income margin was 6.5% in the third quarter, approximately 650 basis points higher sequentially, as the second quarter included the write-off of $10 million of deferred financing costs related to the refinancing of the Company\u2019s term loan.<\/p>\n
\nAdjusted EBITDA for the fiscal third quarter was $85 million, an increase of $41 million or 96%, compared to the prior year\u2019s quarter. Adjusted EBITDA increased primarily due to higher gross profit, partially offset by higher selling, general and administrative costs. Adjusted EBITDA margin was 22.4% in the quarter, representing an increase of approximately 200 basis points quarter-over-quarter. Adjusted EBITDA margin expanded sequentially as revenue growth outpaced operating cost growth. Gross margin expanded modestly in the quarter, but was impacted by under-absorbed labor costs related to accelerated headcount growth, under-absorbed fixed overhead relating to new campuses ramping toward their target production rates and one-time startup costs at new campuses.<\/p>\n
\n\u201cWe are raising our guidance to reflect the accelerating demand we are seeing across our business, and we are fully booked against our fourth quarter plan. While our margins continue to be impacted by accelerated hiring and one-time costs at our new facilities, the pace of revenue growth is enabling us to absorb investments in headcount and facilities more quickly,\u201d said Ryan Fiedler, Chief Financial Officer of Forgent. Mr. Fiedler added, \u201cThose items had less of an impact this quarter than last quarter, falling from approximately 2.0% of revenues in the second quarter to 1.8% of revenues this quarter. We expect sequential expansion in Adjusted EBITDA margin again in the fourth quarter as higher production volumes continue to drive greater SG&A leverage and absorption of labor and overhead.\u201d<\/p>\n
\nCash flow from operations improved $37 million year-over-year to $29 million in the third quarter, despite continued working capital investment to support higher planned production volumes in coming quarters. Capital expenditures in the quarter were $28 million and related almost entirely to the Company\u2019s capacity expansion plan, which remains on track to be substantially completed by the end of fiscal 2026. Following completion of the capacity expansion plan, the Company expects it will have the footprint to support up to $5 billion of annual revenues and expects capital expenditures to fall significantly.<\/p>\n
\n\u201cOur third quarter results\u2014across record orders and backlog, accelerating revenue growth, margin expansion, and the transition toward cash generation\u2014reinforces our confidence in the trajectory of the business. We have clear line of sight to closing out a strong fiscal 2026 and entering fiscal 2027 with positive momentum,\u201d concluded Mr. Niederpruem.<\/p>\n
Summary of Key Performance Indicators
\n
<\/b>The table below summarizes our key performance indicators for the quarters ended March 31, 2026 and 2025:<\/p>\n
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