Forgent Posts Record Bookings and Lifts 2027 Outlook
Fourth-quarter bookings of $1.503 billion produced a 3.3x book-to-bill ratio as backlog reached $3.0 billion.
Forgent Power Solutions (FPS), a designer and manufacturer of electrical distribution equipment for data centers, the power grid and energy-intensive industrial facilities, booked a record $1.503 billion of orders in the fiscal fourth quarter ended June 30, 2026, a 375% increase from a year earlier and 73% higher than the prior quarter’s $867 million.
The book-to-bill ratio rose to 3.3x from 2.3x in the third quarter. Chief Executive Officer Gary Niederpruem said the fourth-quarter order total exceeded the company’s revenue for the full fiscal year and that Forgent was gaining share and outpacing the broader market.
Backlog stood at $3.0 billion as of June 30, an all-time high and 53% above the $1.98 billion recorded at March 31.
Revenue was $462 million, up 94% from a year earlier. Year-over-year revenue growth had been 103% in the third quarter.
Net income was $66 million, $71 million higher than a year earlier. Net income margin was 14.3%, about 800 basis points higher than the 6.5% margin in the third quarter. The margin lift came as revenue growth outpaced operating cost growth and new campuses moved closer to target production rates.
Adjusted EBITDA was $113 million, the highest quarterly result in the company’s history, and 163% above the year-ago quarter. Adjusted EBITDA margin was 24.4%, about 200 basis points higher than the third quarter’s 22.4%. Revenue, Adjusted EBITDA and Adjusted Net Income all exceeded the high end of the May guidance ranges of $1,350 million to $1,390 million of revenue, $310 million to $320 million of Adjusted EBITDA and $197 million to $207 million of Adjusted Net Income.
Cash flow from operations was $74 million, $81 million higher than a year earlier, as higher earnings more than offset working-capital investment to support the production ramp. Capital expenditures in the quarter were $31 million, substantially all of which related to the 2025-2026 capacity expansion.
Powertrain Solutions revenue grew 259% in fiscal 2026 and accounted for nearly one-third of fourth-quarter revenue, Niederpruem said, significantly exceeding the demand assumptions behind the initial capacity build-out. The company announced a $35 million investment to expand Powertrain Solutions manufacturing at its Tijuana, Mexico campus, incremental to the substantially complete 2025-2026 expansion. The 2027 PTS Capacity Expansion is expected to come online in the fourth quarter of fiscal 2027 and increase total revenue capacity to approximately $5.8 billion, an increase of about $800 million.
For the full fiscal year ended June 30, 2026, revenue was $1,420 million, up 89% from a year earlier. Net income was $106 million. Adjusted EBITDA was $323 million.
Forgent is initiating fiscal 2027 guidance of revenue in the range of $2,400 million to $2,600 million, 76% year-over-year growth at the midpoint, Adjusted EBITDA of $575 million to $625 million, and Adjusted EPS of $1.26 to $1.40. The company described the outlook as significantly higher than its IPO forecast. It expects quarterly revenue and Adjusted EBITDA to increase consecutively through the year. First-quarter results will include significant investments in personnel and facilities to support the production ramp in subsequent quarters.
Fiscal 2027 capital expenditures are expected to total approximately $87 million, including remaining spend on the 2025-2026 expansion, the 2027 PTS Capacity Expansion and maintenance capital expenditures of about 1% of revenues. Operating cash flow is expected to increase compared with fiscal 2026, primarily driven by higher earnings.