FPS · Forgent Power Solutions, Inc.

Forgent Power Solutions delivered exceptional Q3 FY2026 results, with revenues surging 103% year-over-year to $378.7 million, fueled by robust demand in data centers and power grid end-markets. Record bookings of $867 million, up 308% YoY, drove a 2.3x book-to-bill ratio and propelled backlog to a historic $1.98 billion, up 157% YoY and 33% sequentially. GAAP Net Income rose 190% to $24.5 million (6.5% margin, +650 bps QoQ), while Non-GAAP Adjusted EBITDA climbed 96% to $84.7 million (22.4% margin, +200 bps QoQ) and Adjusted Net Income increased 132% to $55.3 million. Margin expansion reflected revenue growth outpacing operating costs, despite headwinds from under-absorbed labor and overhead amid capacity ramp-up. CEO Gary Niederpruem highlighted manufacturing expansion, vertical integration, and short lead times as key differentiators enabling customized solutions at scale. CFO Ryan Fiedler noted margin pressures easing from 2.0% of revenues in Q2 to 1.8% in Q3, with further Adjusted EBITDA margin expansion expected in Q4 via higher volumes and SG&A leverage. Operating cash flow turned positive at $29 million (up $37 million YoY), supporting $28 million in capex for capacity expansion on track for FY2026 completion, positioning for up to $5 billion annual revenues. The company raised FY2026 guidance to $1.35-1.39 billion revenues (82% YoY growth midpoint), $310-320 million Adjusted EBITDA (86% growth), and $197-207 million Adjusted Net Income (128% growth), reflecting record orders, backlog visibility, and execution strength. Q4 guidance of $392-432 million revenues signals continued momentum into FY2027.