Forgent Power Solutions Reports Exceptional Q3 Results, Raises Full-Year Guidance on Record Orders
FPS has more than doubled off its 52-week low of $25.95 on elevated volume (1.8× avg).
Summary
Forgent Power Solutions announced exceptional Q3 2026 financial results, including triple-digit revenue and profit growth, and raised its full-year guidance due to record orders and backlog.
Key Events · Earnings and Guidance · FPS
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Exceptional Q3 Financial Performance
Reported Q3 2026 revenues of $379 million, a 103% increase year-over-year. Net Income surged 190% to $24 million, and Adjusted EBITDA grew 96% to $85 million.
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Raised Full-Year Fiscal 2026 Guidance
Increased full-year revenue guidance to a range of $1,350 to $1,390 million (82% YoY growth at midpoint) and Adjusted EBITDA to $310 to $320 million (86% YoY growth at midpoint).
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Record Bookings and Backlog
Achieved record bookings of $867 million, up 308% year-over-year, resulting in a book-to-bill ratio of 2.3x. Backlog reached a record $1.98 billion, increasing 157% year-over-year.
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Improved Cash Flow from Operations
Cash flow from operations improved by $37 million year-over-year to $29 million in the third quarter, despite continued working capital investment for production expansion.
Analysis · FPS · Manufacturing
Forgent Power Solutions delivered exceptionally strong third-quarter results, significantly exceeding expectations with triple-digit year-over-year growth across key financial metrics. The company also raised its full-year fiscal 2026 guidance, signaling continued robust demand and strong operational execution. This performance is driven by record bookings and a substantial backlog, particularly from data center and power grid markets, reinforcing the company's growth trajectory and justifying its current valuation.
At the time of this filing, FPS was trading at $52.11 on NYSE in the Manufacturing sector, with a market capitalization of approximately $13.9B. The 52-week trading range was $25.95 to $46.10. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.