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.
Adjusted EBITDA for the third quarter rose 96% year over year to $85 million, while EBITDA margins improved to 22.4% from 20.4% in the previous quarter.
Net income increased 190% from a year earlier to $24 million. Meanwhile, operating cash flow improved to $29 million, representing a year-over-year increase of $37 million.