Forgent Power Solutions announced financial results for the fiscal second quarter ended December 31, 2025.

Forgent Power Solutions, Inc. ("Forgent" or the "Company") (NYSE: FPS), a leading designer and manufacturer of electrical distribution equipment used in data centers, the power grid and energy-intensive industrial facilities, today announced financial results for its fiscal second quarter ended December 31, 2025.

Forgent reported fiscal second quarter revenues of $296 million, an increase of $121 million, or 69%, compared to the prior year's quarter. Order activity accelerated sharply in the quarter, led by data center and grid customers, with bookings increasing 268% year-over-year and the Company's book-to-bill ratio rising to 2.6x from 1.6x in the first quarter. As of December 31, 2025, the Company's backlog was $1.5 billion, representing an increase of 45% and 100%, versus September 30, 2025 and December 31, 2024, respectively.

"Our second quarter growth in revenues, bookings and backlog highlight the exceptional momentum we have across our business and reflects both market growth and share gains in all three of our primary end-markets," said Gary Niederpruem, Chief Executive Officer of Forgent. Mr. Niederpruem added, "Demand for our products is exceeding our expectations and it is clear that our unique value proposition of delivering customization-at-scale with some of the shortest lead times in our industry is resonating with customers."

Net Loss for the fiscal second quarter was $0.1 million, a decrease of $6.5 million compared to the prior year's quarter, primarily due to the write-off of $10 million of deferred financing costs related to the refinancing of the Company's term loan and higher selling, general and administrative expenses, partially offset by higher gross profit. Adjusted Net Income for the fiscal second quarter was $36 million, an increase of $14 million, or 66%, compared to the prior year's quarter, primarily due to higher gross profit, partially offset by higher selling, general and administrative expenses.

The Company's Adjusted EBITDA for the fiscal second quarter was $60 million, an increase of $21 million, or 51% compared to the prior year's quarter. Adjusted EBITDA increased primarily due to higher gross profit, partially offset by higher selling, general and administrative costs. Adjusted EBITDA in the quarter included the impact of under-absorbed labor costs related to accelerated headcount growth, under-absorbed fixed overhead relating to new campuses ramping toward their target production rates and one-time startup costs at new campuses that together totaled approximately $6 million.

"With demand for our products growing faster than we anticipated, we accelerated our hiring plans during the quarter to support higher production volumes in future quarters. We are continuing to add manufacturing headcount given the visibility we have into the remainder of this year as well as into fiscal 2027," said Ryan Fiedler, Chief Financial Officer of Forgent. Mr. Fiedler added, "We expect margins to expand sequentially in the third quarter and again in the fourth quarter as higher production volumes drive greater absorption of labor and overhead costs at our new campuses."

Cash flow from operations was neutral in the second quarter as a result of working capital investment to support higher production volumes planned for the second half of fiscal 2026. Capital expenditures in the quarter were $26 million and related almost entirely to the Company's capacity expansion plan, which is on track to be substantially completed by the end of fiscal 2026. Following completion of the capacity expansion plan, the Company believes it will have the footprint to support up to $5 billion of annual revenues and expects capital expenditures to fall significantly to maintenance levels. Going forward, the Company expects maintenance capital expenditures for the Company's campuses will be approximately 1% of revenues annually.

"We are pleased with our first reported quarter as a public company and are grateful for the strong support we received from investors in our initial public offering. Our successful public listing has added to our momentum in the marketplace and our team could not be more excited about the value we can create for our customers and shareholders in the years ahead," concluded Mr. Niederpruem.

Initial Public Offering

Forgent priced an initial public offering of its Class A common stock on February 4, 2026 at an initial public offering price of $27.00 per share. The Company's shares began trading on February 5, 2026 on the New York Stock Exchange under the ticker symbol "FPS." Including the exercise of the underwriters' over-allotment option, the total size of the offering was approximately $1.7 billion.

Conference Call Information

The Company will host a conference call on March 16, 2026 at 11:00 a.m. Eastern Time to discuss its fiscal second quarter 2026 financial results and outlook.

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