Fiscal fourth quarter and full year 2026
Filed Sep 15, 2026Forgent Reports Record Fourth Quarter and Full Year 2026 Results, Exceeds High-End of Guidance and Enters Fiscal 2027 with All-Time High Backlog
Fourth-quarter revenue increased 94% year-over-year, bookings increased 375%, backlog increased 256%, and Adjusted EBITDA increased 163%. The company initiated fiscal 2027 guidance for revenue of $2,400 - $2,600 million and Adjusted EBITDA of $575 - $625 million while announcing additional manufacturing-capacity investment.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Fourth-quarter revenuesGAAP | $461.7M | – | 94% |
| Full-year revenuesGAAP | $1.42B | – | 89% |
| Fourth-quarter cost of revenuesGAAP | 295.0M | – | – |
| Full-year cost of revenuesGAAP | 922.5M | – | – |
| Fourth-quarter gross profitGAAP | 166.7M | – | – |
| Full-year gross profitGAAP | 497.6M | – | – |
| Fourth-quarter selling, general, and administrative expensesGAAP | 62.64M | – | – |
| Full-year selling, general, and administrative expensesGAAP | 262.9M | – | – |
| Fourth-quarter depreciation and amortizationGAAP | 12.16M | – | – |
| Full-year depreciation and amortizationGAAP | 52.23M | – | – |
| Fourth-quarter total operating expensesGAAP | 74.80M | – | – |
| Full-year total operating expensesGAAP | 315.1M | – | – |
| Fourth-quarter income from operationsGAAP | 91.90M | – | – |
| Full-year income from operationsGAAP | 182.5M | – | – |
| Fourth-quarter net incomeGAAP | $66.09M | – | NM |
| Full-year net incomeGAAP | $106.0M | – | 508% |
| Fourth-quarter net income attributable to Forgent Power Solutions, Inc.GAAP | $53.30M | – | – |
| Full-year net income attributable to Forgent Power Solutions, Inc.GAAP | $81.84M | – | – |
| Fourth-quarter net income marginGAAP | 14.3% | approximately 800 bps higher quarter over quarter | – |
| Full-year net income marginGAAP | 7.5% | – | – |
| Fourth-quarter diluted earnings per share of Class A common stockGAAP | $0.21 | – | – |
| Fourth-quarter basic earnings per share of Class A common stockGAAP | $0.21 | – | – |
| Full-year adjusted EBITDAnon-GAAP | $322.9M | – | 91% |
| Fourth-quarter adjusted EBITDAnon-GAAP | $112.7M | – | 163% |
| Fourth-quarter adjusted EBITDA marginnon-GAAP | 24.4% | approximately 200 basis points quarter-over-quarter | – |
| Full-year adjusted EBITDA marginnon-GAAP | 22.7% | – | – |
| Fourth-quarter adjusted net incomenon-GAAP | $77.34M | – | 275% |
| Full-year adjusted net incomenon-GAAP | $207.6M | – | 136% |
| Fourth-quarter adjusted EPSnon-GAAP | $0.25 | – | – |
| Full-year adjusted EPSnon-GAAP | $0.68 | – | – |
| Fourth-quarter bookingsother | $1.5B | 73% | 375% |
| Fourth-quarter book-to-bill ratioother | 3.3x | – | – |
| Backlog as of June 30, 2026other | $3B | 53% | 256% |
| Fourth-quarter cash flow from operationsGAAP | $74M | – | $81 million higher than the prior year's quarter |
| Full-year net cash provided by operating activitiesGAAP | 109.1M | – | – |
| Fourth-quarter capital expendituresGAAP | $31M | – | – |
| Full-year purchases of property and equipmentGAAP | −115.9M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fiscal 2027 outlook
- Revenue$2,400 - $2,600 million
- NoteAdjusted EBITDA (non-GAAP): $575 - $625 million
- NoteAdjusted EPS (non-GAAP): $1.26 - $1.40
- NoteRevenue: 76% year-over-year growth at the midpoint
- NoteAdjusted EBITDA: 86% year-over-year growth at the midpoint
- NoteAdjusted EPS: 95% year-over-year growth at the midpoint
- NoteFiscal 2027 capital expenditures: approximately $87 million
- NoteMaintenance capital expenditures: approximately 1% of revenues
- NoteOperating cash flow is expected to increase compared to fiscal 2026
- NoteQuarterly revenue and Adjusted EBITDA are expected to increase consecutively through the year
Capital returns
- Distributions to stockholders/members: $(1,440) (in thousands) for the year ended June 30, 2026
- Distribution to non-controlling Opco LLC Interests: $(8,588) (in thousands) for the year ended June 30, 2026
- No share repurchases or dividends were reported.
What drove it
- Bookings of $1.5 billion established a company record, with 375% year-over-year growth and 73% quarter-over-quarter growth.
- The book-to-bill ratio increased to 3.3x from 2.3x in the third quarter, which the company said reflected accelerating demand and continued market share gains.
- Backlog was $3.0 billion as of June 30, 2026, an all-time high.
- The company said net income and Adjusted EBITDA increased primarily due to higher gross profit, partly offset by higher selling, general and administrative costs.
- The company attributed quarter-over-quarter margin improvement to revenue growth outpacing operating-cost growth and new campuses moving closer to target production rates.
- Powertrain Solutions revenue grew 259% in fiscal 2026 and accounted for nearly one-third of fourth-quarter revenue.
Concerns
- Accounts receivable, net increased to 329,628 (in thousands) and inventory, net increased to 249,817 (in thousands) as of June 30, 2026.
- The company said continued working-capital investment was required to support the production ramp.
- The company expects significant first-quarter investments in personnel and facilities to support production ramp in subsequent quarters.
- Fiscal 2027 capital expenditures are expected to total approximately $87 million.
- The company identified risks from raw-material and labor costs, supply-chain disruption, pricing pressure, demand tied to new data-center construction and artificial-intelligence investment, order cancellations, and potential capacity-expansion delays.
What to watch
- Execution of the 2027 PTS Capacity Expansion, expected to come online in the fourth quarter of fiscal 2027.
- Whether total revenue capacity reaches approximately $5.8 billion following the approximately $800 million capacity increase.
- The expected consecutive quarterly increases in revenue and Adjusted EBITDA through fiscal 2027.
- Working-capital requirements associated with the production ramp.
- Conversion of the $3.0 billion backlog into revenue and profit on the anticipated timetable.
Balance sheet and cash flow
- Cash and cash equivalents: $97,477 (in thousands) as of June 30, 2026, compared with $111,322 (in thousands) as of June 30, 2025
- Cash, cash equivalents, and restricted cash: $121,713 (in thousands) at June 30, 2026, compared with $111,322 (in thousands) at June 30, 2025
- Accounts receivable, net: 329,628 (in thousands) as of June 30, 2026, compared with 159,970 (in thousands) as of June 30, 2025
- Inventory, net: 249,817 (in thousands) as of June 30, 2026, compared with 117,577 (in thousands) as of June 30, 2025
- Long-term debt, current portion: 6,000 (in thousands) as of June 30, 2026, compared with 5,173 (in thousands) as of June 30, 2025
- Long-term debt, net of discount and deferred financing costs, less current portion: 576,175 (in thousands) as of June 30, 2026, compared with 496,934 (in thousands) as of June 30, 2025
- Net cash used in investing activities: (115,905) (in thousands) for the year ended June 30, 2026, compared with (84,115) (in thousands) for the year ended June 30, 2025
- Net cash provided by financing activities: 17,215 (in thousands) for the year ended June 30, 2026, compared with net cash used in financing activities of (35,981) (in thousands) for the year ended June 30, 2025
- Net increase in cash, cash equivalents, and restricted cash: 10,391 (in thousands) for the year ended June 30, 2026, compared with net decrease of (75,074) (in thousands) for the year ended June 30, 2025
Analysis
Forgent closed fiscal 2026 with sharply higher fourth-quarter activity. Revenue was $461,672 (in thousands), up 94% from $237,613 (in thousands), while full-year revenue was $1,420,059 (in thousands), up 89% from $753,188 (in thousands). Bookings reached a record $1.5 billion in the quarter, up 375% year-over-year and 73% quarter-over-quarter. The resulting 3.3x book-to-bill ratio and $3.0 billion backlog provide the central evidence of accelerating demand described by management.
Profitability improved materially. Fourth-quarter gross profit was 166,695 (in thousands), compared with 79,701 (in thousands), and income from operations was 91,899 (in thousands), compared with 8,291 (in thousands). Net income was $66,094 (in thousands), versus a net loss of $(4,761) (in thousands), and net income margin was 14.3%, compared with (2.0)%. Adjusted EBITDA was $112,736 (in thousands), up 163%, with a 24.4% Adjusted EBITDA margin versus 18.0%. Management attributed the improvement to higher gross profit, revenue growth outpacing operating-cost growth, and newer campuses moving closer to target production rates.
Powertrain Solutions is a prominent mix and capacity driver. Management stated that its revenue grew 259% in fiscal 2026 and represented nearly one-third of fourth-quarter revenue. The company announced a $35 million investment in its Tijuana, Mexico campus for the 2027 PTS Capacity Expansion. This project is expected to come online in the fourth quarter of fiscal 2027, increase total revenue capacity to approximately $5.8 billion, and add approximately $800 million of capacity.
Cash generation expanded alongside the earnings increase, although working-capital needs remained substantial. Fourth-quarter cash flow from operations was $74 million, $81 million higher than the prior-year quarter. Full-year net cash provided by operating activities was 109,081 (in thousands), versus 45,022 (in thousands), while purchases of property and equipment were (115,905) (in thousands). Accounts receivable and inventory both rose substantially as of June 30, 2026, consistent with the company’s stated production ramp and working-capital investment.
Fiscal 2027 guidance calls for $2,400 - $2,600 million of revenue, $575 - $625 million of Adjusted EBITDA, and $1.26 - $1.40 of Adjusted EPS. The company expects quarterly revenue and Adjusted EBITDA to increase consecutively through the year, but stated that the first quarter will include significant personnel and facility investments. The filing says fourth-quarter revenue, Adjusted EBITDA, and Adjusted Net Income exceeded the high end of May guidance, but the prior outlook figures were not provided with this filing.
Management, verbatim
Momentum in electrical distribution equipment remains robust, and Forgent’s products and solutions continue to gain traction with customers.
Gary Niederpruem, Chief Executive Officer of Forgent
Powertrain Solutions revenue grew 259% in fiscal 2026 and accounted for nearly one-third of fourth quarter revenue, significantly exceeding the demand assumptions underlying our initial capacity build-out.
Gary Niederpruem, Chief Executive Officer of Forgent
As we enter fiscal 2027, our record backlog, strong customer relationships and continued capacity investments position us to deliver even greater value for our customers and our shareholders in the year ahead.
Gary Niederpruem, Chief Executive Officer of Forgent
Not in the filing
stated, not guessed- Prior-release outlook figures required to compare actual results with prior guidance
- Reported GAAP gross margin for the fourth quarter and full year
- Reported GAAP earnings per share for the full year
- Reported prior-year fourth-quarter GAAP earnings per share
- Reported quarterly revenue and Adjusted EBITDA figures for the prior quarter
- Reported quarterly segment revenue figures, including Powertrain Solutions revenue
- Reported free cash flow
- Reported quarterly cash, debt, accounts receivable, inventory, and total debt comparisons
- Reported share-repurchase amount, dividend amount, and dividend per share
- Fiscal 2027 GAAP revenue, EBITDA, EPS, gross-margin, operating-expense, and tax-rate guidance
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.