Forgent Power Solutions, Inc.

Fourth-quarter revenue was $462 million, up 94% year over year and 22% sequentially. Q4 adjusted EBITDA was $113 million, up 163% year over year, with adjusted EBITDA margin of 24.4%, up 640 basis points year over year and 200 basis points sequentially. Adjusted net income was $77 million, up 275% year over year. For the full year, revenue was $1.42 billion, up 89%; adjusted EBITDA was $323 million, up 91%; and adjusted net income was $208 million, up 136%. Q4 bookings were $1.5 billion, up 375% year over year, book-to-bill was 3.3x, and backlog ended at $3 billion, up 256% year over year and 53% sequentially. Fiscal 2027 guidance calls for revenue of $2.4 billion to $2.6 billion, adjusted EBITDA of $575 million to $625 million, adjusted EBITDA margin of approximately 24%, and adjusted EPS of $1.26 to $1.40. For Q1 fiscal 2027, management guided to revenue of $445 million to $465 million and adjusted EBITDA of $90 million to $100 million.

Gary Niederpruem struck a confident tone and emphasized that the company is still early in its growth runway. He highlighted share gains, direct wins with Frontier AI labs and hyperscalers, and the shift toward modular solutions as major opportunities, saying demand visibility is the strongest in company history. He also framed fiscal 2026 as a year in which Forgent delivered on its IPO commitments across financials, commercial execution, operations, and hiring.

Ryan Fiedler focused on the financial bridge from rapid growth to margin expansion and cash generation. He noted Q4 adjusted EBITDA margin of 24.4%, gross profit up 109% on volume and mix, and SG&A rising in dollars but falling as a percentage of sales. For fiscal 2026, operating cash flow increased to $109 million from $45 million in fiscal 2025, and capex declined to 8% of sales from 11%; he said fiscal 2027 operating cash flow should be more than $300 million and capex should fall to roughly 3% of sales, including the new Powertrain investment.

Analysts pressed management on backlog quality, pricing, lead times, labor, and whether longer-term capacity agreements with hyperscalers could emerge. Management said backlog is comprised of firm purchase orders, pricing was stable, and they are not seeing meaningful pushouts or project delays; they also said they remain inside expected lead times across product lines. On customer engagement, management said it is in active discussions ranging from individual POs to longer-term commitments, and on Powertrain capacity they said the additional Tijuana investment is being made now because demand is already visible and would help preserve lead times. On M&A, management said future deals would need to fit strategically and financially, with service, product extensions, and geographic expansion cited as likely themes.