Forgent Power Solutions, Inc. Q4 2026 Earnings Recap

Forgent’s shares rose 21.6% after record Q4 results and a substantial expansion in demand visibility. The key positives were revenue and margin acceleration, bookings of $1.5 billion, and backlog reaching $3 billion as the company enters fiscal 2027.

Key Takeaways

• Q4 revenue increased 94% year over year to $462 million; adjusted EBITDA rose 163% to $113 million, with margin expanding 200 basis points sequentially to 24.4%.
• Adjusted net income increased 275% to $77 million. Full-year revenue reached $1.42 billion, up 89%, while adjusted EBITDA rose 91% to $323 million.
• Bookings reached a record $1.5 billion, up 375% year over year and 73% sequentially; the 3.3x book-to-bill ratio was also a company record.
• Year-end backlog increased 256% year over year and 53% sequentially to $3 billion, with Powertrain Solutions representing approximately 40% of backlog.
• Management plans additional capacity investment in Tijuana and accelerated hiring to support the expected production ramp, while citing direct orders from a Frontier AI lab and an MSA with a hyperscaler as new customer-access milestones.