Forgent Power Solutions (NYSE:FPS) shares climbed more than 17% in premarket trading on Thursday after the company reported sharply higher third-quarter revenue and raised its full-year fiscal 2026 guidance.
The electrical distribution equipment manufacturer posted fiscal third-quarter revenue of $379 million, representing a 103% increase from $186 million in the same period a year earlier
Strong Demand Drives Earnings and Order Growth Adjusted earnings for the quarter rose to $55 million, up 132% year over year from $24 million. Forgent also reported record bookings of $867 million, a 308% increase compared with the prior year, while backlog expanded to $1.98 billion, rising 157% annually and 33% from the previous quarter. The company’s book-to-bill ratio reached 2.3x, highlighting continued strength in customer demand. “Demand for our products continues to outpace our expectations,” said Gary Niederpruem, chief executive officer of Forgent Power. “Year-over-year growth in both revenues and orders was higher in the third quarter than in the second, despite growing off a larger base.” Company Raises Full-Year Revenue Forecast Forgent increased its fiscal 2026 revenue guidance to a range of $1.35 billion to $1.39 billion.
The midpoint of $1.37 billion is above analyst expectations of $1.3 billion. For the fourth quarter, the company forecast revenue between $392 million and $432 million, with the midpoint of $412 million comfortably ahead of analyst estimates of $341.9 million. EBITDA Margins Expand as Cash Flow Improves The company also issued adjusted EBITDA guidance of between $100 million and $110 million for the fourth quarter, and between $310 million and $320 million for the full fiscal year.