Forgent Power Solutions Reports 94% Fourth-Quarter Revenue Growth, Record $3.0 Billion Backlog, Guides Fiscal 2027 Revenue to $2.4–$2.6 Billion

Forgent Power Solutions reported fiscal fourth-quarter revenue of $461.7 million, up 94% from $237.6 million a year earlier, and closed fiscal 2026 with a backlog described as an all-time high of $3.0 billion. The company, whose results were distributed before the market opened on September 15, 2026 with a management call scheduled for 11:00 a.m. Eastern Time, also introduced fiscal 2027 revenue guidance of $2.4 billion to $2.6 billion, which it said is significantly higher than the forecast it gave at the time of its IPO.

Fourth-Quarter and Full-Year Results

For the quarter ended June 30, 2026, Forgent posted net income of $66.1 million, reversing a net loss of $4.8 million in the prior-year quarter. Adjusted EBITDA rose 163% year over year to $112.7 million from $42.8 million, and Adjusted Net Income climbed 275% to $77.3 million from $20.6 million, according to figures reported via Forgent's SEC filing distributed through StockTitan.

Full fiscal 2026 revenue reached $1.42 billion, up 89% from $753.2 million in fiscal 2025. Full-year net income was $106.0 million versus $17.4 million a year earlier, Adjusted EBITDA was $322.9 million versus $169.2 million, and Adjusted Net Income was $207.6 million versus $88.1 million. Gross profit for the year was $497.6 million, up from $278.1 million.

Fourth-quarter net income margin was 14.3%, roughly 800 basis points higher than the prior quarter, and Adjusted EBITDA margin was 24.4%, roughly 200 basis points higher quarter over quarter, the company said. Forgent attributed both improvements to revenue growth outpacing operating cost growth as new manufacturing campuses moved closer to target production rates. The 10.1-percentage-point spread between the two figures (14.3 minus 24.4) reflects the difference between GAAP net income and the company's non-GAAP Adjusted EBITDA measure rather than any separate disclosure.

Fourth-quarter cash flow from operations was $74 million, $81 million higher than the prior-year quarter, as higher earnings more than offset continued working-capital investment tied to the production ramp. Quarterly capital expenditures were $31 million, substantially all related to the company's 2025-2026 capacity expansion.

Chief Executive Officer Gary Niederpruem said the company booked more than $1.5 billion of orders in the fourth quarter alone, an amount he said exceeded Forgent's total revenue for the full fiscal year, and said the company's revenue, Adjusted EBITDA and Adjusted Net Income in the quarter all exceeded the high end of the guidance it had issued in May, per the Business Wire release distributed via StockTitan.

Record $3.0 Billion Backlog

Forgent said its backlog stood at $3.0 billion as of June 30, 2026, an all-time high that rose 256% from June 30, 2025 and 53% from March 31, 2026, according to the company's filing. The pace of sequential growth in a single quarter is notable, though the release does not break down how much of the current backlog is attributable to data-center or hyperscaler customers specifically.

Earlier company disclosures ahead of its IPO, reported by greenstocksresearch.com, showed data centers representing 47% of backlog as of September 30, 2025, versus 30% for grid customers, 13% for industrial and 10% for other markets; data centers also made up 42% of fiscal 2025 revenue. That mix is a September 30, 2025 snapshot and predates the 256% year-over-year backlog increase reported for June 30, 2026, so it should not be read as a current breakdown of the $3.0 billion figure. The same pre-IPO commentary flagged that any pullback in hyperscaler capital expenditure, whether from an economic downturn, a shift in artificial intelligence investment sentiment, or supply-chain disruption, could materially affect demand.

Forgent's own risk disclosure, cited in the fourth-quarter filing, cautions that amounts included in backlog may not result in the revenue or profits the company expects, or on the timeframe it anticipates, and that its growth depends in part on continued investment in new data centers, which in turn depends on continued interest in developing artificial intelligence.

Fiscal 2027 Guidance and Capacity Expansion

Forgent's initial fiscal 2027 revenue guidance of $2.4 billion to $2.6 billion implies growth of roughly 69% to 83% from the $1.42 billion reported in fiscal 2026 ($2.4 billion and $2.6 billion each divided by $1.420 billion). The company's release did not provide fiscal 2027 Adjusted EBITDA margin or Adjusted EBITDA dollar guidance.

To support the guided growth, Forgent announced a $35 million investment to expand Powertrain Solutions manufacturing capacity at its Tijuana, Mexico campus. The expansion, known internally as the 2027 PTS Capacity Expansion, is expected to come online in the fourth quarter of fiscal 2027 and to lift the company's total revenue capacity to approximately $5.8 billion, an increase of roughly $800 million. Forgent said it expects the investment to increase Powertrain Solutions capacity by more than 50%.

The company said Powertrain Solutions revenue grew 259% in fiscal 2026 and accounted for nearly one-third of fourth-quarter revenue, exceeding the demand assumptions underlying its initial capacity build-out and prompting the additional investment.

Fiscal 2027 capital expenditures are expected to total approximately $87 million, covering remaining spend on the 2025-2026 capacity expansion, the new PTS expansion, and maintenance capital expenditures of roughly 1% of revenues. The company said it expects operating cash flow to increase in fiscal 2027 compared with fiscal 2026, primarily driven by higher earnings.

Market Context

The fourth-quarter print follows a pattern of outsized growth reported earlier in fiscal 2026. Investor's Business Daily reported that Forgent shares gapped up to an all-time high on May 14, 2026 after the company posted March-quarter revenue of $379 million, up 103% year over year and above analysts' estimates, alongside raised guidance at the time.

Bottom Line

Forgent closed fiscal 2026 with sharply higher revenue, profitability and a record backlog, and the company said its initial fiscal 2027 revenue guidance is significantly higher than the forecast it issued at the time of its IPO, while it commits further capital to expand Powertrain Solutions capacity. Forgent's own disclosures, however, underscore that backlog conversion is not guaranteed and that its growth remains tied to continued data-center investment linked to artificial intelligence demand, a dependency that pre-IPO commentary on hyperscaler concentration had already flagged as a risk.