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Forgent Power Solutions, Inc. Class A (FPS) Q4 2026 Earnings Report
FPS Q4 2026 EPS Results
- Actual EPS
- $0.25
- Consensus EPS
- $0.24
- Beat/Miss
- Beat by +$0.01
- One Year Ago EPS
- ―
FPS Q4 2026 Revenue Results
- Actual Revenue
- $461.67M
- Expected Revenue
- $429.94M
- Beat/Miss
- Beat by +$31.73M
- YoY Revenue Growth
- ―
Earnings Announcement Details
- Quarter
- Q4 2026
- Date
- 09/15/2026
- Time
- Before Open
- Conference Call
- Tuesday, September 15, 2026
Forgent Power Solutions, Inc. Class A's next earnings date is estimated for November 12, 2026, based on past reporting schedules.
Q4 2026 Earnings Call Audio
Q4 2026 Earnings Slide Deck
Q4 2026 Earnings Call Summary
The call was strongly positive. Forgent reported record quarterly and full-year financial results, substantial bookings and backlog growth, broad-based market share gains, expanding margins, rising cash generation and strong fiscal 2027 guidance with more than 90% of the revenue outlook covered by backlog. The main negatives were approximately $10 million of first-quarter one-time costs, lower initial-quarter margins, continued execution requirements around hiring and supply chain, and lower margin potential on some third-party content. These challenges were explicitly presented as manageable within the company's growth plan, so highlights significantly outweighed lowlights.
For fiscal 2017, Forgent expects revenue of $2.4 billion to $2.6 billion, representing 76% growth at the midpoint; adjusted EBITDA of $575 million to $625 million, representing 86% growth at the midpoint and implying an adjusted EBITDA margin of approximately 24%, up from 22.7% in fiscal '26; and adjusted EPS of $1.26 to $1.40, representing approximately 95% growth at the midpoint. Backlog covers more than 90% of revenue guidance, while Q1 revenue guidance is $445 million to $465 million and adjusted EBITDA guidance is $90 million to $100 million, with approximately $10 million of one-time costs; at the midpoint, that is 61% revenue growth and 46% adjusted EBITDA growth year-over-year. The company expects adjusted EBITDA margins to expand by more than 100 basis points year-over-year, operating cash flow of more than $300 million, and capital expenditures to step down to roughly 3% of sales in fiscal '27, inclusive of the incremental Powertrain Solutions investment.
- Record Fourth-Quarter Financial ResultsForgent closed fiscal 2026 with its strongest quarter in company history. Fourth-quarter revenue increased 94% year-over-year to a record $462 million, adjusted EBITDA increased 163% to a record $113 million, adjusted net income increased 275% to $77 million, and adjusted EBITDA margin expanded 200 basis points sequentially to 24.4%.
- Record Full-Year ResultsFor fiscal 2026, revenue increased 89% to $1.42 billion, adjusted EBITDA increased 91% to $323 million, and adjusted net income increased 136% to $208 million. Each metric finished above the high end of the guidance provided in May.
- Strong Bookings and Backlog GrowthFourth-quarter bookings reached a company-record $1.5 billion, increasing 375% year-over-year and 73% sequentially. The book-to-bill ratio reached a record 3.3x. Year-end backlog increased 256% year-over-year and 53% sequentially to $3 billion, more than 3.5x the $850 million backlog entering fiscal 2026.
- Broad-Based Demand and Share GainsOrder strength was broad-based across all three end markets, led by data centers and extending across Custom Products and Powertrain Solutions. Management stated that the commercial strategy is driving growth well above market rates and that the company is gaining share.
- Powertrain Solutions AccelerationPowertrain Solutions revenue grew 187% year-over-year and 48% sequentially to $147 million in the fourth quarter, nearly tripling the size of the business in six months. Powertrain Solutions represented approximately 40% of backlog at year-end, up from 13% of fiscal 2025 revenue to 25% of fiscal 2026 revenue.
- Data Center Growth and Direct Customer ExpansionFiscal 2026 data center revenue grew 161% year-over-year, driven by an 18% increase in customer count and a 121% increase in average revenue per customer. Management estimated that data center growth was roughly four times the approximately 37% market growth rate. Forgent received its first direct order from a Frontier AI lab in the fourth quarter and signed a master services agreement with a hyperscaler.
- Large Frontier AI OpportunityA recent Frontier AI lab award involved a customer pursuing one of the largest AI infrastructure build-outs in the U.S. The customer's first campus alone is expected to exceed 1 gigawatt, with the broader opportunity measured in multiple gigawatts.
- Growth Across Grid and Industrial MarketsFiscal 2026 grid revenue grew 69%, supported by a 7% increase in customer count and a 58% increase in average revenue per customer, compared with estimated market growth of about 10%. Industrial and other revenue grew 11%, approximately 300 basis points faster than the market, while average revenue per customer increased 28%.
- Margin Expansion and Operating LeverageFourth-quarter adjusted EBITDA margin increased 200 basis points sequentially for the second consecutive quarter and was up 640 basis points year-over-year to 24.4%. Gross profit increased 109% on volume growth and favorable product mix, while SG&A declined as a percentage of sales because revenue growth outpaced operating cost growth.
- Manufacturing Capacity ExpansionForgent invested approximately $190 million across fiscal 2025 and 2026 to bring more than 1.8 million square feet of manufacturing capacity online. Its footprint expanded from roughly 480,000 square feet to 2.3 million square feet, approximately a fivefold increase, across all five campuses.
- Incremental Tijuana Powertrain FacilityForgent announced a dedicated 385,000-square-foot Powertrain Solutions facility at its Tijuana campus. Once complete, the facility is expected to increase Powertrain Solutions manufacturing capacity by more than 50% to over 1 million square feet and increase total revenue capacity to approximately $5.8 billion, an increase of about $800 million. The facility is expected to come online in the fourth quarter of fiscal 2027.
- Workforce and Engineering ExpansionManufacturing headcount nearly doubled during fiscal 2026. Application engineering headcount grew 54%, while process, field and design engineering headcount increased 78%. Forgent also added Juan Macias as President of Solutions & Services, Dan Eslinger as Executive Vice President of Engineering, and Joe Reele as Senior Vice President of Technical Business Development.
- Modular Construction TailwindsManagement said modular and prefabricated construction represented approximately 40% of data center construction today, compared with 10% to 20% in the cloud era, and third-party research expects it to reach 60% by the end of the decade. Customers indicated that modular construction can compress portions of build schedules by roughly 30% to 50% versus traditional field-built construction.
- Strong Fiscal 2027 GuidanceFiscal 2027 revenue guidance is $2.4 billion to $2.6 billion, representing 76% growth at the midpoint. Adjusted EBITDA guidance is $575 million to $625 million, representing 86% growth at the midpoint and implying an adjusted EBITDA margin of approximately 24%, up from 22.7% in fiscal 2026. Adjusted EPS guidance is $1.26 to $1.40, representing approximately 95% growth at the midpoint.
- High Revenue VisibilityWith production slots allocated across fiscal 2027, management said backlog covers more than 90% of fiscal 2027 revenue guidance, with the remainder of backlog scheduled for delivery in fiscal 2028. The company also said its backlog consists entirely of firm purchase orders and that it has not seen meaningful pushouts or signs of a market slowdown for its products.
- Improving Cash Generation and Lower Capital IntensityOperating cash flow increased approximately 2.5x to $109 million in fiscal 2026 from $45 million in fiscal 2025, and management expects more than $300 million of operating cash flow in fiscal 2027. Capital expenditures declined from 11% of sales in fiscal 2025 to 8% in fiscal 2026 and are expected to be roughly 3% of sales in fiscal 2027, inclusive of the incremental Powertrain Solutions investment.
- M&A Becoming a Capital Allocation PriorityAs free cash flow builds, management said its first capital allocation priority will be M&A that complements the product portfolio, expands capabilities and accelerates long-term growth. Potential areas include product-line extensions, services and geographic expansion, subject to both strategic-fit and financial criteria.
- Continued Lead-Time AdvantageManagement stated that Forgent remains inside expected market lead times for every product line despite the larger backlog. The company plans to continue hiring, training employees and adding capacity to maintain that position.
FPS Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Nov 12, 2026 | 2027 (Q1) | 0.20- | 0.13 | ― | ― |
| Sep 15, 2026 | 2026 (Q4) | 0.240.25 | ― | ― | |
| May 14, 2026 | 2026 (Q3) | 0.160.18 | 0.02 | 682.61% (+0.16) | |
| Mar 16, 2026 | 2026 (Q2) | 0.120.12 | 0.01 | 700.00% (+0.10) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
