Forgent Power Shares Jump After Revenue Surge and Upgraded Outlook (FPS)

Fiona Craig

Thu, May 14, 2026 astatine 7:36 AM CDT 2 min read

Forgent Power Solutions (NYSE:FPS) shares climbed much than 17% successful premarket trading connected Thursday aft the institution reported sharply higher third-quarter gross and raised its full-year fiscal 2026 guidance.

The electrical organisation instrumentality shaper posted fiscal third-quarter gross of $379 million, representing a 103% summation from $186 cardinal successful the aforesaid play a twelvemonth earlier.

Strong Demand Drives Earnings and Order Growth

Adjusted net for the 4th roseate to $55 million, up 132% twelvemonth implicit twelvemonth from $24 million.

Forgent besides reported grounds bookings of $867 million, a 308% summation compared with the anterior year, portion backlog expanded to $1.98 billion, rising 157% annually and 33% from the erstwhile quarter.

The company’s book-to-bill ratio reached 2.3x, highlighting continued spot successful lawsuit demand.

“Demand for our products continues to outpace our expectations,” said Gary Niederpruem, main enforcement serviceman of Forgent Power. “Year-over-year maturation successful some revenues and orders was higher successful the 3rd 4th than successful the second, contempt increasing disconnected a larger base.”

Company Raises Full-Year Revenue Forecast

Forgent accrued its fiscal 2026 gross guidance to a scope of $1.35 cardinal to $1.39 billion. The midpoint of $1.37 cardinal is supra expert expectations of $1.3 billion.

For the 4th quarter, the institution forecast gross betwixt $392 cardinal and $432 million, with the midpoint of $412 cardinal comfortably up of expert estimates of $341.9 million.

EBITDA Margins Expand arsenic Cash Flow Improves

The institution besides issued adjusted EBITDA guidance of betwixt $100 cardinal and $110 cardinal for the 4th quarter, and betwixt $310 cardinal and $320 cardinal for the afloat fiscal year.

Adjusted EBITDA for the 3rd 4th roseate 96% twelvemonth implicit twelvemonth to $85 million, portion EBITDA margins improved to 22.4% from 20.4% successful the erstwhile quarter.

Net income accrued 190% from a twelvemonth earlier to $24 million. Meanwhile, operating currency travel improved to $29 million, representing a year-over-year summation of $37 million.

Forgent Power Solutions banal price