SEC 8-K filings with transcript text
May 14, 2026
2 exhibit991earningsrelease_.htm
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Exhibit 99.1
Forgent Reports Third Quarter 2026 Results, Raises Fiscal 2026 Guidance
on Record Orders, Backlog and Sequential Margin Expansion
Fiscal Third Quarter 2026 Highlights
•Revenues of $379 million, an increase of 103% year-over-year
•Bookings of $867 million, an increase of 308% year-over-year; Book-to-bill ratio of 2.3x
•Backlog of $1.98 billion, an increase of 157% year-over-year and 33% quarter-over-quarter, respectively
•Net Income of $24 million, an increase of 190% year-over-year
•Net Income margin of 6.5%, an increase of ~650 bps quarter-over-quarter
•Adjusted EBITDA of $85 million, an increase of 96% year-over-year
•Adjusted EBITDA margin of 22.4%, an increase of ~200 bps quarter-over-quarter
•Adjusted Net Income of $55 million, an increase of 132% year-over-year
•Cash flow from operations of $29 million, an increase of $37 million year-over-year
Updated Full Year Fiscal 2026 Guidance
•Revenues in the range of $1,350 to $1,390 million, representing 82% YoY growth at the midpoint
•Adjusted EBITDA in the range of $310 to $320 million, representing 86% YoY growth at the midpoint
•Adjusted Net Income in the range of $197 to $207 million, representing 128% YoY growth at the midpoint
DAYTON, MN - May 14, 2026 - Forgent 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.
Forgent reported fiscal third quarter revenues of $379 million, an increase of $192 million, or 103%, compared to the prior year’s quarter. Bookings in the quarter were the highest in the Company’s history at $867 million, representing an increase of 308% year-over-year and 14% quarter-over-quarter. The Company’s book-to-bill ratio was 2.3x, compared with 1.1x in the prior year’s quarter. As of March 31, 2026, Forgent’s backlog reached a record $1.98 billion, representing an increase of 157% and 33%, versus March 31, 2025 and December 31, 2025, respectively.
“Demand 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,” said Gary Niederpruem, Chief Executive Officer of Forgent. Mr. Niederpruem added, “In 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.”
Net Income for the fiscal third quarter was $24 million, an increase of $16 million or 190%, compared to the prior year’s quarter. Adjusted Net Income for the fiscal third quarter was $55 million, an increase of $31 million or 132%, compared to the prior year’s 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’s term loan.
Adjusted EBITDA for the fiscal third quarter was $85 million, an increase of $41 million or 96%, compared to the prior year’s 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.
“We 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,” said Ryan Fiedler, Chief Financial Officer of Forgent. Mr. Fiedler added, “Those items had less of an impact this quarter than last
Mar 16, 2026
2 exhibit991earningsrelease_.htm
Document
Exhibit 99.1
Forgent Reports Second Quarter 2026 Results,
Accelerating Order Growth and Issues Fiscal 2026 Guidance
Fiscal Second Quarter 2026 Highlights
•Revenues of $296 million, an increase of 69% year-over-year
•Bookings of $762 million, an increase of 268% year-over-year
•Backlog of $1.5 billion, an increase of 100% and 45% year-over-year and quarter-over-quarter, respectively
•Book-to-bill ratio of 2.6x, an increase of 58% quarter-over-quarter
•Net Loss of $(0.1) million, a decrease of $6.5 million year-over-year
•Adjusted EBITDA of $60 million, an increase of 51% year-over-year
•Adjusted Net Income of $36 million, an increase of 66% year-over-year
Full Year Fiscal 2026 Guidance
•Revenues in the range of $1,275 to $1,325 million, representing 73% year-over-year growth at the midpoint
•Adjusted EBITDA in the range of $300 to $310 million, representing 80% year-over-year growth at the midpoint
•Adjusted Net Income in the range of $190 to $200 million, representing 120% year-over-year growth at the midpoint
DAYTON, MN - March 16, 2026 - Forgent 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 second quarter ended December 31, 2025.
Forgent reported fiscal second quarter revenues of $296 million, an increase of $121 million, or 69%, compared to the prior year’s quarter. Order activity accelerated sharply in the quarter, led by data center and grid customers, with bookings increasing 268% year-over-year and the Company’s book-to-bill ratio rising to 2.6x from 1.6x in the first quarter. As of December 31, 2025, the Company’s backlog was $1.5 billion, representing an increase of 45% and 100%, versus September 30, 2025 and December 31, 2024, respectively.
"Our second quarter growth in revenues, bookings and backlog highlight the exceptional momentum we have across our business and reflects both market growth and share gains in all three of our primary end-markets," said Gary Niederpruem, Chief Executive Officer of Forgent. Mr. Niederpruem added, "Demand for our products is exceeding our expectations and it is clear that our unique value proposition of delivering customization-at-scale with some of the shortest lead times in our industry is resonating with customers.”
Net Loss for the fiscal second quarter was $0.1 million, a decrease of $6.5 million compared to the prior year’s quarter, primarily due to the write-off of $10 million of deferred financing costs related to the refinancing of the Company’s term loan and higher selling, general and administrative expenses, partially offset by higher gross profit. Adjusted Net Income for the fiscal second quarter was $36 million, an increase of $14 million, or 66%, compared to the prior year’s quarter, primarily due to higher gross profit, partially offset by higher selling, general and administrative expenses.
The Company’s Adjusted EBITDA for the fiscal second quarter was $60 million, an increase of $21 million, or 51% compared to the prior year’s quarter. Adjusted EBITDA increased primarily due to higher gross profit, partially offset by higher selling, general and administrative costs. Adjusted EBITDA in the quarter included the impact of 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 that together totaled approximately $6 million.
“With demand for our products growing faster than we anticipated, we accelerated our hiring plans during the quarter to support higher production volumes in future quarters. We are continuing to add manufacturing headcount given the visibility we have into the remainder of this year as well as into fiscal 2027,” said Ryan Fiedler, Chief Financial Officer of
Forgent. Mr. Fiedler added, “We expect margins to expand sequentially in the third quarter and again in the fourth quarter as higher production volumes drive greater absorption of labor and overhead costs at our new campuses.”
Cash flow from operations was neutral in the second quarter as a result of working capital investment to support higher production volumes planned for the second half of fiscal 2026. Capital expenditures in the quarter were $26 million and related almost entirely to the Company’s capacity expansion plan, which is on track to be substantially completed by the end of fiscal 2026. Following completion of the capacity expansion plan, the Company believes it will have the footprint to support up to $5 billion of annual revenues and expects capital expenditures to fall significantly to maintenance levels. Going forward, the Company expects maintenance capital expenditures for the Company’s campuses will be ap
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