DAYTON, Minn. — Shares of Forgent Power Solutions Inc. jumped 10.09% to $31.53 in Tuesday trading, adding $2.89, after the electrical equipment manufacturer reported record fourth-quarter and full-year results that exceeded the high end of its own prior guidance and pushed its order backlog to an all-time high heading into the new fiscal year.
Forgent, which designs and manufactures electrical distribution equipment for data centers, the power grid and energy-intensive industrial facilities, reported fiscal fourth-quarter revenue of $462 million, up 94% from the same period a year earlier, comfortably surpassing the company’s own guidance range of $392 million to $432 million issued back in May. The company said revenue, adjusted EBITDA and adjusted net income all came in above the top end of that prior guidance.
Bookings for the quarter reached $1.503 billion, a 375% increase from a year earlier, producing a book-to-bill ratio of 3.3 times, meaning the company took in more than three dollars of new orders for every dollar of revenue recognized during the period. That surge in bookings pushed Forgent’s total backlog to $3.0 billion by the end of the fiscal year, up 256% from a year earlier, giving the company what it described as an all-time high level of order visibility heading into fiscal 2027.
Profitability improved sharply alongside the revenue growth. Forgent reported net income of $66 million for the quarter, an increase of $71 million from the prior-year period, when the company posted a net loss. Net income margin reached 14.3%, up roughly 800 basis points from the prior quarter. Adjusted EBITDA came in at $113 million, up 163% year-over-year, with an adjusted EBITDA margin of 24.4%, an improvement of roughly 200 basis points from the previous quarter. Cash flow from operations totaled $74 million for the quarter, an increase of $81 million from the same period last year.
The results cap a rapid first full fiscal year as a public company for Forgent, which began trading on the New York Stock Exchange under the ticker FPS on February 5, following an initial public offering that raised approximately $1.7 billion including the exercise of underwriters’ over-allotment option. The company has since returned to capital markets multiple times, including an $885 million follow-on equity offering and a separate upsized public offering of 35 million Class A shares, transactions that left the company with a net cash position of roughly $800 million and a share count of approximately 342 million heading into the latest results.
Forgent’s growth throughout fiscal 2026 has been driven by surging demand for the specialized, “engineered-to-order” electrical distribution equipment it supplies to data center operators and other energy-intensive industrial customers, positioning the company as a direct beneficiary of the broader boom in data center construction tied to artificial intelligence infrastructure spending. The company has described itself as one of a small number of manufacturers capable of producing all of the electrical distribution equipment required for a data center or large manufacturing facility’s powertrain, with some of the shortest lead times and highest levels of customization available in the industry.
That positioning showed up clearly in the company’s quarter-over-quarter trajectory throughout the fiscal year. Forgent’s fiscal third-quarter revenue, reported in May, came in at $379 million, up 103% year-over-year, with bookings of $867 million representing a 308% increase and a book-to-bill ratio of 2.3 times at the time, a level the company has now nearly matched again with Tuesday’s fourth-quarter figures. Speaking after the third-quarter results, Forgent Chief Financial Officer Ryan Fiedler said the company’s accelerating revenue growth was helping it absorb the costs associated with its rapid expansion. “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,” Fiedler said at the time. “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.” He added that startup-related costs at the company’s new manufacturing campuses had fallen to approximately 1.8% of revenue that quarter, down from about 2.0% the prior quarter, and said the company expected further sequential improvement in adjusted EBITDA margin in the fourth quarter, a prediction Tuesday’s results appear to have borne out.
Forgent’s rapid growth has not been without volatility for shareholders. Despite Tuesday’s sharp gain, the stock had declined nearly 30% since its previous earnings report heading into Tuesday’s release, according to data tracking the stock’s recent performance, and had fallen more than 42% over the trailing 90 days even as its year-to-date return remained positive. That volatility reflects a broader pattern among richly valued industrial suppliers tied to the AI infrastructure buildout, where investor expectations have at times run ahead of even strong underlying operational results, leaving shares vulnerable to sharp swings around each quarterly report.
Forgent has continued to invest heavily in expanding its manufacturing capacity to keep pace with demand, with a stated goal of reaching capacity capable of supporting up to $5 billion in annual revenue. With backlog now standing at $3.0 billion entering fiscal 2027 and demand from data center and energy-intensive industrial customers showing no signs of slowing, investors are likely to watch closely in the coming quarters for further guidance on how quickly the company’s capacity expansion can convert that backlog into recognized revenue, and whether Tuesday’s sharp rally can hold given the stock’s recent volatility heading into the print.
