FPS

- Carpenter Technology shares fell 22% today after first-quarter revenue of $798.2 million came in about 4% below consensus, even though EPS of $3.25 beat. - Operating income set a first-quarter record of $196.4 million, up 28%, and management kept its full-year profit outlook. - The selloff looks bigger than the miss, but Carpenter guided the second quarter flat, so it needs a much stronger back half. - TTM Technologies, Lam Research and Nokia also sank today despite beating estimates, and Forgent Power Solutions fell after announcing its CFO is leaving. Carpenter Technology (CRS:NYSE) just posted record first-quarter operating income, and its stock sank 22% today anyway. CEO Tony Thene said Carpenter "delivered another strong quarter" in its results before the bell. Investors looked at the sales line instead. For the quarter ended Sept. 30: - Revenue of $798.2 million, up 8.8% from a year ago but about 4% below the $830.7 million consensus - EPS of $3.25, ahead of the $3.03 consensus - Operating income of $196.4 million, up 28% Strip out surcharges, which pass raw-material costs on to customers, and sales grew just 5.3%. They also fell $44.9 million from the fourth quarter. Thene said on the call that the quarter was essentially at guidance, and the shortfall might come down to a single shipment that slipped past quarter-end. Operating income also landed near the low end of the $195 million to $200 million Carpenter guided for in July. For the second quarter, it expects $192 million to $197 million. Pricing and a richer mix keep fattening Carpenter's margins… The first quarter came in higher still, at nearly 25%. Wall Street also expects sales growth to speed up… That's about 12% growth this fiscal year, against 8.8% in the first quarter. At Wednesday's close, investors were paying 27x forward earnings for that growth. Today's drop takes it closer to 21x. TIKR tracks 8 analysts on Carpenter Technology. How many say "Buy"? See the full breakdown of Buy, Hold, and Sell ratings on Carpenter Technology, along with Wall Street's revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Carpenter Technology's Analyst Ratings Carpenter had company. TTM Technologies (TTMI:NASDAQ) sank [28%] despite a beat and record revenue, up 60%, because its fourth-quarter outlook only matched estimates. Lam Research (LRCX:NASDAQ) fell [10%] after a record quarter because its December-quarter guide only came in roughly in line. Nokia (NOK) fell [11%] as its revenue beat came with an unchanged full-year outlook and weaker cash flow expectations. And Forgent Power Solutions (FPS:NYSE) dropped [24%] after saying its CFO is stepping down. Carpenter kept its fiscal 2027 operating income outlook of $850 million to $880 million, up 21% to 25%. Thene also told analysts on the call, "My outlook on demand is stronger than it was a quarter ago." My take: a roughly 4% sales miss doesn't justify a [22%] drop when the profit outlook didn't budge. Of course, with the second quarter guided flat, Carpenter needs a much bigger back half to hit that outlook. Its next report, early next year, is the first check. TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR's valuation model and see what Carpenter Technology could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It's free to use. Value Carpenter Technology for free

- Kaiser Aluminum shares fell 23% today after third-quarter adjusted EPS of $1.89 missed estimates and its adjusted EBITDA margin slid to 19.1% from 23.2%. - Most of that margin drop traces to a roughly $29 million swing in metal price lag from a year ago, which Kaiser expected, while conversion revenue grew 25%. - Operational problems, including a planned plant outage and start-up costs, cost about 6.4 points of margin and helped push 2026 adjusted EBITDA growth toward the low end of Kaiser's 45% to 55% range. - TTM Technologies, Lam Research and Nokia also fell sharply today on reports that only held the line, and Forgent Power Solutions sank after its CFO stepped down. Kaiser Aluminum (KALU:NASDAQ) sank 23% today after third-quarter earnings missed estimates. Most of Kaiser's margin drop comes from a swing it saw coming. The "operational challenges" are the part to watch. Adjusted EPS of $1.89 edged past last year's $1.86 but missed estimates, and its adjusted EBITDA margin slid to 19.1% from 23.2%. Chairman, President and CEO Keith Harvey blamed metal price lag, the gap between the aluminum price Kaiser pays and the market's, which flattered last year's quarter: "Despite this headwind, as well as other operational challenges that impacted third quarter margins, the business delivered meaningful underlying improvement year over year." The numbers back him up. Metal price lag added about $28 million to EBITDA a year ago and cost about $1 million this quarter, a $29 million swing. Kaiser still grew adjusted EBITDA 3% to $84 million, as conversion revenue jumped 25% to $439 million. But the operational problems cost about 6.4 points of margin: higher metal costs from using less scrap, a planned outage at its Bellwood plant, and roll coat start-up costs in packaging. Since Harvey called the lag's disappearance expected, those look like the bigger surprise. They're part of why Kaiser now sees 2026 adjusted EBITDA growth near the low end of its 45% to 55% range. TIKR tracks 5 analysts on Kaiser Aluminum. How many say "Buy"? See the full breakdown of Buy, Hold, and Sell ratings on Kaiser Aluminum, along with Wall Street's revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Kaiser Aluminum's Analyst Ratings Heading into the report, analysts expected Kaiser's earnings to more than double this year… A low-end finish should trim that 2026 figure. And the stock already traded at 14x forward earnings at Wednesday's close, against a five-year average of 20x… After today's drop, it's closer to 11x, below even its five-year low of 13x. Kaiser had company. TTM Technologies (TTMI:NASDAQ) fell 29% despite a record quarter, on an outlook that only matched estimates. Lam Research (LRCX:NASDAQ) dropped 11% on an in-line guide as well. My take: this selloff looks overdone. The biggest hit was expected, much of the rest came from a planned outage and start-up costs, and the stock trades below its cheapest multiple in five years. Of course, the operational problems have to clear. Fred Stephan takes over as CEO on Nov. 1, and his first report early next year will show whether they have. TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR's valuation model and see what Kaiser Aluminum could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It's free to use. Value Kaiser Aluminum for free

DAYTON, Minn., October 22, 2026--(BUSINESS WIRE)--Forgent Power Solutions Inc. ("Forgent" or the "Company") (NYSE: FPS), a leading designer and manufacturer of electrical distribution equipment, will report financial results for its fiscal first quarter ended September 30, 2026, before the market opens on November 12, 2026. Management will host a conference call at 11:00 a.m. ET to discuss the results. The Company's fiscal first quarter 2027 revenues and Adjusted EBITDA will exceed the high end of its previously provided guidance ranges. A live webcast and replay of the conference call, along with the earnings press release and presentation materials, will be available on the investor relations section of the Company's website at ir.forgentpower.com. About Forgent Power Solutions Forgent (NYSE: FPS) is a leading U.S. designer and manufacturer of electrical distribution equipment used in data centers, the power grid and energy-intensive industrial facilities. The Company specializes in manufacturing custom products that are "engineered-to-order" for technically demanding applications. We believe Forgent is one of a small number of companies that can manufacture all of the electrical distribution equipment required for a data center or large manufacturing facility's powertrain with some of the highest levels of customization and shortest lead times available in the industry. For more information about Forgent, please visit us at forgentpower.com. Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements that are based on our management's beliefs, expectations and assumptions and currently available information. Forward-looking statements include information concerning our possible or assumed future results of operations. Because forward-looking statements relate to the future, by their nature, they are subject to inherent risks, uncertainties and other changes in circumstances we cannot predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements and you should not place undue reliance on such statements. For a further discussion of certain factors that could cause our actual results to differ from our expectations in any forward-looking statements, see our filings with the SEC. The forward-looking statements included in this press release represent our management's beliefs and assumptions only as of the date hereof. Except as required by law, we assume no obligation to update or revise these forward-looking statements as a result of new information, future events or otherwise. View source version on businesswire.com: https://www.businesswire.com/news/home/20261022083752/en/ Contacts Investor Contact Kate Africk - Investor Relations, VP [email protected] Media Contact [email protected]

Investing.com -- Industrial efficiency stocks broadly underperformed key benchmarks during the third quarter of 2026 as HVAC and machinery companies navigated higher interest rates, rising input costs, and weakness in the AI infrastructure trade. However, analysts at Oppenheimer see improved conditions ahead as the sector enters earnings season with lower expectations and reduced valuations. Still guessing which stocks will beat the market? Our AI portfolio updates monthly and is outperforming the S&P 500 by 118%. See this month's list » The sector has experienced significant multiple contraction since the mid-June Federal Reserve meeting, with industrial efficiency stocks declining 19% on average compared to a 10.7% drop for the XLI industrial index and a 7.9% decline for the S&P 500. Companies with greater exposure to data centers were generally more impacted by the selloff. With stocks reverting toward or below long-term forward multiples, Oppenheimer views the cautious sentiment as creating a better setup heading into the quarter. The broker notes that relative to second quarter earnings season, there appears to be a somewhat lower bar for stocks. Sentiment now factors in execution and political risks to a greater degree, while demand trends across most key verticals remain supportive of upward estimate revisions. Oppenheimer believes this setup could support a sector rally following earnings and midterm elections, though execution on elevated backlogs amid supply constraints and cost inflation is expected to drive performance dispersion during third quarter earnings. Unsure what to buy ahead of earnings? Our AI's recent pre-earnings calls delivered gains of +77% to +118% after results dropped. See this month's earnings picks » Here are Oppenheimer's top picks in the industrial efficiency sector: 1. Forgent Power Solutions - Following order acceleration in late 2025 and early 2026, Forgent Power Solutions shows the clearest potential for second-half 2026 data center revenue upside, according to Oppenheimer. Revenue growth trajectory analysis points to strong ramp execution as the sector focuses on substantial growth assumptions for the second half of 2026 and 2027 amid supply chain constraints. 2. Trane Technologies - Commercial HVAC pipeline commentary supports continued commercial orders growth in the third quarter of 2026 despite sequentially challenging comparisons. Within residential markets, quarter-to-date sell-in trends align with revised industry outlooks and exceed the company's mid-single-digit growth expectations, Oppenheimer noted. 3. Caterpillar - The company's data center ramp is viewed as more predictable, Oppenheimer said, with emphasis on synchronous growth across its portfolio. 4. Toro - Toro rounds out Oppenheimer's top picks in the industrial efficiency sector. Original Article Oppenheimer Lists Top Industrial Efficiency Stocks Into Q3 Earnings Buy the dip in Netflix stock as Q3 results show "no new negatives": DB Mobileye falls as RBC downgrades stock to Underperform on growth risks

Forgent Power Solutions has delivered a solid run so far in 2026, and the latest earnings headlines have put even more focus on whether the current share price lines up with what the business earns today. With the stock now in the spotlight, the key issue is how much of the recent excitement around its power solutions is already embedded in the valuation. The share price is up 20.1% year to date, which puts real pressure on the earnings case to explain how much of that move is grounded in current profitability rather than optimism alone. Recent reports highlight record results and a larger manufacturing build out, which can shape future margins and raise questions about how quickly those extra earnings might show up. There is a second opinion on Forgent Power Solutions worth weighing. See what analysts think Forgent Power Solutions's shares could be worth. For investors, the debate is whether Forgent Power Solutions' current price around US$34.84 is adequately supported by its present earnings profile or leans too heavily on future expectations. If you want to test the same earnings question that Forgent Power Solutions now faces across a broader set of AI infrastructure plays, start with 60 AI infrastructure stocks. The P/E ratio fits Forgent Power Solutions because investors are clearly focused on what its current earnings stream may justify at today's share price. On this metric, the stock trades on about 110.7x earnings, which is far above the Electrical industry average of roughly 33.2x and also well ahead of the peer group at about 24.7x. That is a steep premium for each dollar of profit. Record 2026 results and a US$3.0b backlog tied to AI data center demand help explain why buyers are willing to pay up. Yet the model that blends Forgent Power Solutions' growth profile, margins, size and risks still flags this as overvalued relative to the P/E level it would typically support. For anyone considering the shares, the key question is whether those earnings linked to AI infrastructure can compound fast enough to justify paying such a rich multiple today. Explore the numbers behind Forgent Power Solutions's P/E valuation. Simply Wall St Narratives for Forgent Power Solutions pick up where the P/E puzzle leaves off and clarify which paths for growth, profitability and earnings would need to hold for the stock to be worth materially more or materially less than it trades for today, based on investor expectations discussed on the Community page. Rather than relying on a single ratio or model output, they set out the future that number rests on so you can see over time whether reality is tracking that storyline. A written, number driven narrative on Forgent Power Solutions gives you a clear view of what level of earnings, margins and backlog conversion would need to materialise to make today's valuation look reasonable. It turns the recent record results, AI driven data center demand and US$3.0b backlog into specific assumptions that can be checked against each new update. Share your own Narrative for Forgent Power Solutions and set out the assumptions behind your valuation. Price and profits tell only part of the Forgent Power Solutions picture, because Simply Wall St's broader checks have also highlighted specific concerns that investors may want to review before making any next move. Take a closer look at 2 warning signs (1 major) before settling on a valuation. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include FPS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Tuesday, Sept. 15, 2026 at 11:00 a.m. ET Head of Investor Relations - Kate Africk Chief Executive Officer - Gary Niederpruem Chief Financial Officer - Ryan Fiedler Operator: Greetings, and welcome to the Forgent Power Solutions, Inc. Q4 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. [Operator Instructions] It's now my pleasure to turn the call over to Kate Africk, Head of Investor Relations. Kate, please go ahead. Kate Africk: Thank you, operator, and thank you, everyone, for joining us today for Forgent Power Solutions' Fiscal Fourth Quarter and Full Year 2026 Earnings Call. With me today are Gary Niederpruem, our Chief Executive Officer; and Ryan Fiedler, our Chief Financial Officer. On this call, management will be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect because of various factors, including those discussed in today's earnings release and during this conference call, and in our latest filings with the Securities and Exchange Commission, each of which can be found on our website. Today's presentation also includes references to non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted earnings per share. You should refer to the information contained in the company's earnings release and presentation for definitional information and reconciliations of historical non-GAAP measures to the comparable GAAP financial measures. With that, let me turn the call over to Gary. Gary Niederpruem: Thank you, Kate, and good morning, everyone. As is our practice, I'll begin with our fourth quarter financial highlights and a business update. Then since this is our year-end call, I'll spend a few minutes reviewing our full year results against the commitments and priorities we outlined during our IPO process earlier this year. After that, I'll turn it over to Ryan to walk through our fourth quarter and full year financial results in more detail. Then I'll conclude with a discussion of our strategic priorities for the coming year and provide our fiscal '27 guidance. Turning to Slide 5. We closed fiscal 2026 with the strongest quarter in Forgent's history, delivering record quarterly revenues, adjusted EBITDA and adjusted net income. Fourth quarter revenues increased 94% to a record $462 million. Adjusted EBITDA increased 163% to a record $113 million, and adjusted EBITDA margin expanded 200 basis points sequentially to 24.4%. Importantly, Q4 represented the second consecutive quarter of significant margin expansion which aligns with the expectations we set throughout the year. Adjusted net income increased 275% to $77 million. For the full year, revenues increased 89% to $1.42 billion. Adjusted EBITDA increased 91% to $323 million, and adjusted net income increased 136% to $208 million. These results reflect the strength of our value proposition and our team's unwavering commitment to delivering for our customers and our shareholders. Taking a company public, expanding manufacturing capacity fivefold and doubling revenue all in the same year, while continuing to meet our customer commitments is an extraordinary achievement. I'm incredibly proud of and grateful to our employees for their exceptional skill and dedication. Thank you, Forgent family. Turning to Slide 6. I'll frame our business update for the quarter around 7 takeaways. First, we continue to see strong demand for our products and solutions, and we are managing that demand effectively, that is reflected in our performance relative to guidance with each of our KPIs, all exceeding the high end of our guidance. Guidance that, as a reminder, we raised in just May. Second, our commercial strategy continues to drive growth well above the market, a clear indication that we are gaining share, and our rate of growth is still increasing despite our significantly larger scale. To put that in perspective, fourth quarter revenue growth exceeded our full year growth rate by approximately 500 basis points. We also booked more than $1.5 billion of orders in the quarter alone, that's more than our total revenue for all of fiscal '26. Third, we are delivering on the margin expansion we committed to. Adjusted EBITDA margin increased 200 basis points sequentially for the second consecutive quarter, primarily due to operating leverage as volumes grew. Fourth, our scale is beginning to drive significant cash generation, resulting in our operating cash flow increasingly approximately 2.5x in fiscal '26 versus fiscal '25. Fifth, demand for modular solutions is growing rapidly. Customers increasingly want to shift work from the field to the factory in order to reduce reliance on field labor and accelerate speed to power. This trend benefits Forgent in 2 important ways: it expands our addressable wallet by allowing us to capture value that historically would have been performed by contractors on site; and it plays directly to our strength as one of the few companies with the capability to deliver these types of integrated solutions at scale. Our momentum in this area is evident in our fourth quarter Powertrain Solutions booking and in our backlog, which is now approximately 40% Powertrain Solutions. Sixth, we already have sufficient demand visibility to justify adding manufacturing capacity beyond the expansion we recently completed. We plan to make an incremental investment at our Tijuana campus to increase Powertrain Solutions capacity, and we are again accelerating hiring in the first quarter to prepare for a significant production ramp in the quarters ahead. Finally, the quality and depth of our demand visibility are the strongest in our company's history. At this point last year, we entered fiscal 2026 with $850 million of backlog. Today, our backlog stands at $3 billion, more than 3.5x higher, placing us in a fundamentally stronger position as we enter fiscal '27 and providing substantially greater confidence in our outlook for the year ahead. Moving to Slide 7. Let me put some numbers around the demand environment. Fourth quarter bookings reached $1.5 billion, a new company record, increasing 375% year-over-year and 73% sequentially. Order strength was broad-based across all 3 of our end markets, led by data centers and extended across both custom products and Powertrain Solutions. Year-over-year bookings growth was higher in the fourth quarter than the third quarter despite comping to a much higher prior year result. Our book-to-bill ratio reached a new record of 3.3x also on a much larger revenue base. Backlog increased to $3 billion at year-end, an all-time high, up 256% year-over-year and 53% sequentially. The fact that Forgent set new records for bookings and backlog for 7 consecutive quarters underscores the durability of the demand we are seeing, our continued share gains and the strength of our visibility on future revenue growth. Turning to Slide 8. When I joined Forgent in 2025, our data center business was largely focused on selling point products, individual pieces of equipment and we primarily reach the market through EPCs, engineering firms and OEMs that acted as intermediaries. Since then, we have made deliberate investments in our sales and engineering capabilities to engage end customers directly and support a broader, more integrated set of solutions across the Powertrain. You can see that progression on the slide. We started with EPCs, engineering firms and OEMs, then expanded into regional co-location providers, national and international colos and Neocloud customers. Each step moved us closer to the end user and increased the portion of customer spend available to us. Our next major step is to enter the Frontier AI labs and hyperscalers shown on the right side of this slide. We received our first direct order from a Frontier AI lab in the fourth quarter, and we have also signed an MSA with the hyperscaler. We view these milestones as proof points and more than that as the foundation for meaningful direct orders from both of these customer types as fiscal '27 progresses. The key takeaway is that we are still in the early innings of expanding our direct customer base in the data center market. We have already demonstrated the ability to move upmarket from intermediated point product sales to direct engagement with some of the most technically demanding data center customer types in the world. But we believe the hyperscaler and Frontier AI lab opportunity remains largely untapped for Forgent and represents a significant organic growth opportunity for us over the next 24 months. Building on that progression, Slide 9 gives you a concrete example of what this move up market looks like in practice. This recent win with the Frontier AI lab demonstrates that Forgent now has a seat at the table with the largest electrical equipment providers in the industry. This customer is pursuing one of the largest AI infrastructure build-outs in the U.S. These programs are highly technical, qualification standards are rigorous and proper engagement is paramount. Securing this award reflects the strength of our engineering capabilities, the quality of our solutions and our growing credibility with the most demanding data center customers. Importantly, this is only the initial award. The customer's first campus alone is expected to exceed 1 gigawatt and the broader opportunity for additional orders is measured in multiple gigawatts. So while this win is meaningful on its own, we viewed it as even more important proof point of our ability to penetrate Frontier AI customers directly and build a foundation for significantly larger opportunities ahead. Turning to Slide 10. Let me zoom out to a shift that is reshaping how our customers build, the move towards more modular solutions. As a reminder, a modular solution is a prefabricated factory-built system such as power, cooling or compute modules that can be deployed on site much faster than traditional field built infrastructure. It shifts working from the construction site to a controlled manufacturing environment, reducing reliance on field labor, improving quality and scalability and accelerating speed to power. Our data center customers tell us that the modular construction can compress portions of the builds scheduled by roughly 30% to 50% versus traditional field built construction. The chart on the left highlights the shift that has already occurred and what is expected through 2030. In the cloud era, modular and prefabricated construction accounted for only 10% to 20% of data center construction. Today, it is approximately 40% and third-party research expected to grow to 60% by the end of the decade. That continued shift is a significant positive for Forgent. It expands our addressable wallet by allowing us to capture value that historically would have been performed by contractors on site, and it plays directly to our strengths as one of the few companies capable of delivering these types of integrated solutions at scale. We are winning in modular solutions for 3 reasons that are difficult for competitors to replicate. First, we are vertically integrated all the way back to sheet metal fabrication. That gives us a meaningful advantage on cost, lead times and customization compared with competitors to rely more heavily on third-party suppliers. Second, we have deep in-house engineering capabilities, which allow us to deliver highly customized solutions tailored to each customer-specific requirements. In other words, we can offer the speed and efficiency of a modular factory build solution without compromising the level of customization our customers need. And third, proximity matters. These are large complex systems and e-House can be approximately 60 feet long and weight as much as 50 tonnes. So having manufacturing capacity close to key customers can make a significant difference in delivering time, logistics complexity and shipping costs. With facilities located near every major data center hub in the country, we believe we are uniquely positioned to serve customers quickly, efficiently and at scale. The strength of those capabilities aligned with clear market demand is reflected in the Powertrain Solutions results shown in the middle of this page. Powertrain Solutions revenue grew 187% year-over-year and 48% sequentially to $147 million in the fourth quarter. Put simply, we nearly tripled the size of that business in just 6 months. That growth is well ahead of the demand assumptions that supported our original capacity expansion plans. In response to that momentum, today, we announced an incremental investment to build a dedicated 385,000 square foot Powertrain Solutions facility in our Tijuana, Mexico campus. To put that size in perspective, it will be roughly 80% the size of our largest plant today. So it's a very meaningful expansion. Once complete, the new facility will increase our Powertrain Solutions manufacturing capacity by more than 50% and bringing it to over 1 million square feet. It will also increase our total revenue capacity to approximately $5.8 billion, an increase of about $800 million. We expect the new facility to come online in the fourth quarter of fiscal '27. Moving to Slide 12. As I mentioned at the outset of the call, I want to spend a few minutes reflecting on where we were when we began our journey as a public company, where we stand today a little over 7 months later and what that progress means for our shareholders going forward. This page really highlights how far the company has come in just 1 year. Forgent is a bigger, broader and better positioned company today across nearly every dimension than it was in fiscal '25. We ended fiscal '26 with approximately $3 billion of backlog, more than 3.5x the $850 million we had at the end of fiscal '25. Just as importantly, our backlog now represents more than 2x our fiscal '26 revenue compared with roughly 1x revenue at the end of fiscal '25. That gives us a fundamentally stronger starting point and significantly greater visibility as we enter the new fiscal year. We also nearly doubled the size of the company in 12 months, with revenue increasing 89% to $1.4 billion and adjusted EBITDA increasing 91% to $323 million. Importantly, we delivered that growth while also expanding margins demonstrating the operating leverage in our model as we scale, even while absorbing the additional costs that naturally come with rapid growth. Our fastest growth came in data centers where demand remains exceptionally strong but we also continued to deliver growth across each of our end markets, data center, grid and industrial. This is an important point because it reinforces one of the key messages from our IPO. Forgent has multiple ways to win. We are not dependent on a single end market customer or growth factor. Finally, we meaningfully expanded the breadth of our offering, Powertrain Solutions increased from 13% of revenue in fiscal '25 to 25% in fiscal '26, reflecting strong customer demand for more integrated modular solutions. We also continue to expand our service businesses by attaching start-up and commissioning work to a meaningful portion of the equipment orders in our backlog. At year-end, our service backlog was approximately 3x our FY '26 service revenue, underscoring the significant growth opportunity ahead for this business. Together, these shifts expand our addressable market, deepen our customer relationship and position Forgent to capture more value across the life cycle of the infrastructure we provide. So the takeaway from this side is pretty slight forward, compared with where we stood a year ago, Forgent is bigger, more profitable, more visible and better positioned for sustained growth. Turning to Slide 13. Internally, we place a lot of emphasis on doing what we say we're going to do. We hold ourselves accountable to the commitments we make to one another, and we believe shareholders should hold us to the same standards on the commitments we make externally. Over the next 4 slides, we will walk through the commitments we made during the IPO process and what we have delivered since then, financially, commercially, operationally and with our people. Starting with financial performance. As is customary, we shared a fiscal '26 forecast with research analysts in conjunction with our IPO process in December '25. Those forecast figures are shown in the gray area on this slide and our actual results are shown in blue. We meaningfully exceeded that forecast on both revenue and adjusted EBITDA, and we did so while scaling the business at an unprecedented pace, expanding our manufacturing footprint, adding head count and building the SG&A infrastructure required to operate as a public company. For fiscal '26, revenue was $150 million or 12% above that forecast. Adjusted EBITDA was $18 million or 6% above that forecast. And excluding start-up costs and the under-absorbed labor and overhead associated with bringing new capacity online, adjusted EBITDA was $34 million or 11% above that forecast. These results also exceeded the high end of the guidance we initiated in March and raised in May. So from a financial standpoint, the scorecard is clear. We exceeded our commitments. Turning to Slide 14. During the IPO process, we outlined a very deliberate commercial strategy designed to deliver growth in excess of our underlying markets. The strategy was straightforward: focus on attractive end markets supported by long-term mega trends; expand the customer wallet available to us; win a larger share of that wallet; and take share from competitors by delivering shorter lead times and greater engineering value. In fiscal '26, we executed that strategy exceptionally well. The chart on the right breaks down our growth by end market, showing the contribution from both customer count and average revenue per customer and then compares our revenue growth to the estimated growth rate of the underlying market. Starting with data centers. Revenue grew 161% year-over-year. That growth was driven by an increase of 18% in customer count and 121% increase in average revenue per customer. Said differently, we added customers, but more importantly, we significantly expanded the scope of what we are delivering to those customers. That resulted in growth that was roughly 4x the market, which we estimate grew approximately 37%. In grid, revenue grew 69%, driven by a 7% increase in the customer count and a 58% increase in average revenue per customer. That represents approximately 7x the market growth rate based on our estimate that the grid market grew about 10%. And in industrial and other revenue grew 11%, approximately 300 basis points faster than the market growth rate. Our customer count declined as we high graded our mix of customers but average revenue per customer increased 28%, demonstrating our ability to deepen relationships with our largest industrial customers. The pattern across all 3 end markets is consistent, we are not simply benefiting from market growth. We are adding customers, expanding our share of wallet with existing customers and increasingly selling more complex, higher-value solutions. That includes more prefabricated and integrated offerings and engineering offerings across the full Powertrain rather than delivering individual point products. This is exactly what we said we would do. We positioned Forgent end markets with powerful secular tailwinds and then we executed commercially to grow well in Texas of those markets. So from a commercial standpoint, the scorecard is very clear. We delivered on the strategy we laid out to investors and we are meaningfully outperforming the market. Next on to Slide 15. Let's turn to operations and assess what we delivered against the commitments we made during the IPO process. We said we would invest in capacity to capture demand, offer some of the shortest lead times in the industry and deliver customization at scale through vertically integrated flexible manufacturing, and that is exactly what we did. Across fiscal '25 and '26, we invested approximately $190 million to bring more than 1.8 million square feet of new manufacturing capacity online across multiple campuses. In total, we expanded our footprint from roughly 480,000 square feet to 2.3 million square feet, roughly equating to a fivefold increase in manufacturing capacity. Just as importantly, this was not capacity added in just 1 location or for just 1 product line. We expanded in each of our 5 campuses, giving us a broader, more flexible and more geographically advantaged manufacturing network. That matters because proximity to customers, particularly in large-scale modular solutions can have a meaningful impact on lead times, logistics costs and execution certainty. The execution required to do this was significant. We were building facilities, hiring and training employees, ramping production and adding new operational infrastructure, all while delivering for our customers in a period of exceptional demand growth, and we did all that while limiting the impact on margins as we scale. Today, construction is complete or nearing completion across the major expansion of the projects, and we are progressing toward our target production rates at each campus. As those facilities continue to ramp, they provide the capacity, flexibility and speed we need to support the demand we are seeing as well as give us opportunities to increase our margins through economies of scale. So from an operational standpoint, the scorecard is also clear. We delivered on what we said we would do. We added the capacity, we scaled the organization. We protected customers' executions and materially strengthened the manufacturing platform that will support Forgent's next phase of growth. Slide 16 covers our people. And in many ways, this may be the most important page in the deck. Scaling the business at this pace requires more than physical manufacturing capacity. It requires the ability to recruit, train, develop and retain the talent needed to execute. During the IPO process, we committed to recruiting and retaining the direct labor required to match our expanded manufacturing capacity. Growing the engineering resources needed to deliver customization at scale, maintaining a flat accountable organization built for speed and operating leverage and attracting A+ leadership talent to help take Forgent through its next phase of growth. In fiscal '26, we delivered against each one of those commitments. We nearly doubled our manufacturing headcount. We made significant investments in engineering talent, application engineering headcount grew 54% and process field and design engineering head count increased 78%. Those hires really matter because our ability to deliver custom engineered, integrated solutions at scale is one of the core differentiators of our business. We also strengthened our leadership team with exceptional industry talent. We recently welcomed Juan Macias as President of Solutions & Services; Dan Eslinger, as Executive Vice President of Engineering; and Joe Reele as Senior Vice President of Technical Business Development. Each brings decades of relevant experience and a strong track record from leading companies in our industry. Their expertise will help us continue executing at a high level for customers as we look to double our business again. Talent is a known constraint across our industry, particularly in manufacturing and engineering. Our focus on making Forgent an employer of choice has allowed us to scale rapidly without workforce constraints limiting our growth. That is a real competitive advantage, and it reflects the strength of our culture, the opportunity we offer people and the commitment of our teams across the company. So from a people perspective, the scorecard is clear. We invested ahead of the opportunity, expanded the talent base required to support our growth, added critical leadership capabilities and strengthened the organization for the next stage of Forgent's evolution. This is our scorecard for fiscal '26, commitments made and commitments met or exceeded, that matters to us, and we know it matters to our shareholders. It also raises the bar. The year ahead is more ambitious than the one we just completed, and we are starting from a base that is nearly twice as large. But we enter fiscal '27 better positioned, better resourced and more confident in our ability to execute than at any point in our history. With that, I'll turn it over to Ryan to walk through our fourth quarter and full year financials in more detail. Then I'll come back and cover our priorities and outlook for fiscal '27. Ryan Fiedler: Thanks, Gary, and good morning, everyone. Turning to Slide 18. Fourth quarter revenues were $462 million, up 94% year-over-year and 22% sequentially. All of that growth was organic. Revenue growth in the quarter was led by Custom Products and Powertrain Solutions for data center customers. Powertrain Solutions revenues increased 187% to $147 million, custom Products revenues increased 73% to $292 million. Services revenue grew 69% to $12 million and Standard Products revenues grew 3% to $11 million. Moving on to adjusted EBITDA on Slide 19. Adjusted EBITDA in the fourth quarter was $113 million, more than double the prior year on higher revenues and margin expansion. In total, adjusted EBITDA grew 163%. Breaking that down, gross profit increased 109% on volume growth and favorable product mix. SG&A increased in absolute dollars, reflecting continued investment across sales, operations and engineering to support growth but declined as a percentage of sales as revenue growth outpaced operated cost growth. The result was adjusted EBITDA margin of 24.4%, up 200 basis points sequentially and 640 basis points year-over-year. That represents our second consecutive quarter of 200 basis points of sequential margin expansion. On to Slide 20 for a summary of the full year, we set records across every key metric in fiscal 2026. Revenues increased $667 million or 89% to $1.42 billion. Adjusted EBITDA increased $154 million or 91% to $323 million. And adjusted net income increased $120 million or 136% to $208 million. Each of those finished above the high end of the guidance we provided in May, well above the guidance we initiated in March. With that, I'll turn it back to Gary to discuss our key priorities and outlook for fiscal 2027. Gary Niederpruem: Thanks, Ryan. Turning to Slide 22. Let me frame how we are thinking about the year ahead. We see 4 major themes shaping our markets in fiscal '27 and each one ties directly to a strategic priority for Forgent. First, robust demand continues for our products and solutions. Our conversations with customers indicate that capital spending plans are being revised upward from where they were even just 6 months ago, and our backlog is clear evidence of that momentum. Our first priority is to make sure we have a team and leadership capacity to capture the opportunity in front of us. That means hiring ahead of the demand and continuing to add the talent and infrastructure required to support growth, just as we did successfully this past year. Second, we continue to see opportunities to take share. In this market, customers need partners with the engineering depth to solve complex problems in the available manufacturing capacity to deliver with speed and certainty. Companies that can do both have a real opportunity to displace incumbents. That is exactly what Forgent was built to do, and we will continue to use that formula to compound market growth with share gains. Third, the shift toward modular solution continues to gain momentum. We are one of a few companies capable of delivering customized modular solutions at scale and with the planned expansion of our Powertrain Solutions capacity, we will have even greater ability to support that demand. Fourth, we expect M&A-driven consolidation across our industry to continue. Over the next several years, we believe there will be fewer, larger and more capable players serving these markets, and we certainly intend for Forgent to be one of them. Historically, our growth has been entirely organic, driven by investments in capacity and commercial execution. In fiscal '27, we are also beginning to look outward at acquisition opportunities that could further accelerate our growth broaden our capabilities and strengthen our market position. Taken together, those 4 priorities, talent, share gains, capacity and acquisitions form the foundation of our fiscal '27 plan. Turning to Slide 23. I'll walk through our fiscal 2017 guidance. We expect revenue of $2.4 billion to $2.6 billion, representing 76% growth at the midpoint. We expect adjusted EBITDA of $575 million to $625 million, representing 86% growth at the midpoint and implying an adjusted EBITDA margin of approximately 24%, up from 22.7% in fiscal '26. We also expect adjusted EPS of $1.26 to $1.40, representing approximately 95% growth at the midpoint. There are a few key points I'd highlight in terms of how to think about this outlook. First, with production slots allocated across fiscal '27, our backlog covers more than 90% of our revenue guidance with the remainder of our backlog scheduled to deliver in fiscal '28. We also continued to reserve a modest amount of capacity for strategic book-and-ship orders, which enables us to maintain short lead times support priority customers and capture incremental demand as it emerges. Second, we expect adjusted EBITDA margins to expand by more than 100 basis points year-over-year. The primary driver is operating leverage as higher volumes move through the capacity we already have put in place. We expect that operating leverage to more than offset any of the under-absorption associated with accelerated hiring and the start-up costs for the next phase of capacity expansion that we will experience early in the year. As production ramps through the year, we expect both revenue and adjusted EBITDA to increase sequentially. Finally, we expect adjusted EPS to grow faster than adjusted EBITDA as interest expense becomes a smaller percentage of our pretax income. Taken together, fiscal '27 is expected to be another year of compounding growth for Forgent, continued market growth and share gains driving the top line with operating leverage supporting margin expansion and even stronger earnings growth. Flipping to Slide 24. Given the pace of evolution in our business, we continue to assess how best to align our disclosure and guidance practices with the information investors need to understand the company's underlying trajectory. As a result, beginning in fiscal '27, we are making two changes to our reporting and guidance cadence. First, as we've discussed earlier, our average order size has continued to increase. As a result, quarterly orders are becoming less representative of our underlying run rate than they have been historically because a single order can have a significant impact. In some orders -- in some quarters, order activity may suggest growth that is above full year trend, while in others, it may understate the momentum we are seeing in the business. With that in mind, we will no longer report orders and backlog on a quarterly basis. We will continue to provide orders and backlog annually as part of our year-end disclosures. Second, in place of quarterly orders and backlog, we will begin providing quarterly revenue and adjusted EBITDA guidance for the next fiscal quarter on a rolling basis. Consistent with that change, today, we are providing guidance for the first quarter of fiscal '27 in addition to the full year guidance I just discussed. I would also note that this approach is consistent with the disclosure practices of many of our peers. Before walking through the specific Q1 guidance ranges, I want to highlight 2 key factors that shaped our outlook for the quarter. First, as I mentioned on the prior slide, nearly all of our full year revenue guidance is already covered in backlog. Delivering against that backlog while also positioning Forgent for continued growth requires us to make investments early in the year. In Q1, that will translate to approximately $10 million of one-time costs that we do not expect to fully absorb until production ramps in subsequent quarters. In many ways, this is similar to what we experienced in the second quarter of fiscal '26. Demand for our products and solutions is growing faster than originally planned, and we are investing in people and capacity to capture that incremental opportunity. Second, a significant portion of our backlog is scheduled for delivery in Q2, Q3 and Q4, as a result, revenue is expected to be more heavily weighted towards those quarters than Q1. Together, those factors translate guidance for Q1 revenues of $445 million to $465 million and adjusted EBITDA of $90 million to $100 million. At the midpoint, that is 61% revenue growth and 46% adjusted EBITDA growth year-over-year. Turning to Slide 25. We are transitioning to significant cash generation. Operating cash flow increased approximately 2.5x in fiscal '26 to $109 million from $45 million in fiscal '25. We expect another substantial step-up in fiscal '27 with operating cash flow of more than $300 million. Cash flow will be weighted more heavily towards the second half of the year, reflecting first half investments in working capital and facilities required to support the production ramp. At the same time, capital intensity is declining meaningfully as the major capacity investments we made over the last 2 years begin to scale. Capital expenditures were 11% of sales in fiscal '25, declined to 8% in fiscal '26 and are expected to step down to roughly 3% of sales in fiscal '27 inclusive of the incremental Powertrain Solutions investment we announced this morning. As free cash flow builds, our first priority for capital allocation will be M&A opportunities that complement our product portfolio, expand our capabilities and accelerate our long-term growth. Finally, on Slide 26, I wanted to frame our fiscal '27 guidance against the same December forecast we talked about earlier that we had provided to research analysts for our IPO. At the midpoint, our fiscal '27 guidance is around 30% above that forecast with revenues of $2.5 billion versus $1.8 billion and adjusted EBITDA of $600 million versus $469 million. Our outperformance is not only continuing in fiscal '27, it is widening. And more importantly, the midpoint of our fiscal '27 revenue guidance corresponds to our forecast for fiscal '28 from our IPO model, a little more than 7 months post-IPO and Forgent is a full year ahead of the plan. Let me close with a few thoughts before we open it up for questions. We entered fiscal '26 with clear commitments to our customers and to our shareholders, and we delivered on both. And for this, I want to thank all of the Forgent team members around the company. Our customers needed a partner with the engineering depth, execution certainty and available capacity to support build-outs of unprecedented size and speed. We proved we could meet that standard, and that is what's driving our share gains and unlocking opportunities with the largest, highest growth and most technically demanding players in the market. We enter fiscal '27 in a fundamentally stronger position than we entered fiscal '26 with a record backlog, deeper in direct customer relationships, more capacity coming online and the team to execute against all of it and we are just getting started. With that, we're happy to take your questions. Operator? Operator: [Operator Instructions] Our first question today is coming from Andrew Obin from Bank of America. Andrew Obin: So maybe a question just about backlog quality and how it's changing as you are adding new customer types. And what I'm trying to get to, what's happening with pricing, terms and conditions? And also, how is the time line to conversion evolving given the evolution of your end markets? So that's my first question. Gary Niederpruem: Yes, for sure. So let me back that in a couple of different ways, Andrew. So first is backlog quality is unbelievably high, which it has been the entire duration of Forgent. So anything in our backlog is a firm purchase order. So there's no LOIs. There's no MRUs. We don't book that type of stuff when it enters into backlog. So backlog is 100% firm commitments and purchase orders from our customers. That's number one. Number two is, pricing remains very consistent. There isn't any great swings up or down from what we saw over the prior quarter. So that's the pricing piece. And then number three, in terms of, is anything in the market around slowdown, push outs, we have not heard of that for our products. Yes, in any given month or any quarter, is there -- a train didn't show up at sites if something gets delayed by a couple of weeks or something gets pulled in by a few weeks. That is the natural ebb and flow of the business is always that. But in terms of meaningful pushouts, we are not seeing that for our product set. And most importantly, we are not hearing anything about any massive projects being delayed or the market slowing by any means. So all of that portends to us that it's a healthy market, and we continue to participate in a really very, very meaningful way in that market. Operator: Next question is coming from Julien Dumoulin-Smith from Jefferies. Julien Dumoulin-Smith: Nicely done. Again, I got to reiterate that nice forceful statement here. Maybe just to follow up on that. Can you talk about the ramp through the course of '27 in terms of your margins, right? Obviously, starting out first quarter here, a little bit below. How do you think about ending the year? And then more importantly, how does that portend if you can give us a glimpse on how you think into longer-term EBITDA margin trajectory? Ryan Fiedler: Yes, Julien, really appreciate, good question. So overall, we do expect our margins to improve as the year progresses. The first quarter, we're coming in at about 21% is what we're guiding to for EBITDA margins. And that obviously does include the higher investments that Gary talked about on the call, and that's really going to help us achieve that significant step-up that we expect in Q2 and beyond. As we move through the year, we do expect that strong volume and top line growth as the year progresses. And with that, we do expect some strong operating leverage and improving margins. With a couple of hundred basis points of margin expansion in Q2 from Q1 and then as mentioned, 24% for the full year. So as you can imagine, that's going to continue to expand this year goes on. I think it's also important to note that if you think about 2026 from Q2 to Q4, we had a significant ramp during that time period as well. And we increased our adjusted EBITDA margins by about 400 basis points over those 2 quarters with that volume expansion. Operator: Next question is coming from Michael Elias from TD Cowen. Michael Elias: Great. I'll also say congratulations, and I'll raise one, congratulations on adding Joe Reele to the team, excellent addition. From my perspective, a quick question for you is when I have conversations with, let's say, hyperscalers and large data center operators, one thing that comes up is Forgent's lead time being faster than peers, which makes me think that there's probably some kind of potential for you to do a capacity agreement, a longer-term capacity agreement where there's a progression of orders over time that rolls throughout the function of the agreement. How do you think, or how should we think about the potential for a capacity agreement and as part of that, how should we think about the cost to Forgent setting that up? Gary Niederpruem: Michael, and thank you for the shout-out to Joe. We're really pleased that Dan and Joe and Juan, all joined us. One of the things we've talked about for a while continuing to add management talent and technical and engineering talent to the team and all 3 of those have hit the ground running, just thrilled with how they've evolved just in the 6 weeks they've been in the business. So thank you for that, number one. Yes, let's go back just a little bit. So if you go back just 18 months ago or so, we had really 2 primary routes to market which were the OEMs and then the EPCs. As you think about where we have evolved the business in the last 18 months and where we will over the course of the next quarter or 2, we will have all 6 to 7 major routes to market in cohorts covered. As part of that, certainly, depending on the maturation of where we are in the sales cycle with that customer, there's a spectrum of opportunities with all of those. It could be anything from selling point products, all the way up to integrated solutions. And some customers will want us to go right from a standstill all the way to a run. Some are going to be more in that crawl-walk-run mentality. But based on everything we see today, there is dialogue, meaningfully dialogue going on with all types of those cohorts around anything from individual POs all the way to making longer-term commitments. So we're in the throes of that conversation with several of those customers. And then from a cost standpoint, we think from what we see today for the year, we have covered that incremental cost that we may need to have in terms of adding more talent, adding more program management, certainly the people in the factory. We think we have that covered in the plan that we've laid out today. So if something drastically changes, then we'll revisit. But for right now, we feel really pretty comfortable around the cost that we have in the plan that we presented to be able to do business with all those cohorts. Operator: Next question is coming from Luke Junk from Baird. Luke Junk: Gary, hoping you could just double-click on recent order trends underpinning Powertrain Solutions now being 40% of the backlog and maybe broadening out a little bit, just what it says about repeat engagement with customers and building a more durable industry position overall? Maybe said differently, just how you think about the potential to more permanently displace some of the incumbents out there. Gary Niederpruem: Yes. Luke. Yes, look, we have grown the business here based on 2 things. One is adding additional customers to the fleet, but almost even more than that, the outsized growth has come from increasing the affluent revenue per customer. So historically, if we would have sold just a point product to a customer, we are now selling those customers either multiple product lines or selling them integrated solutions. So the fact that those customers that we did business with 1 year or 2 ago are our spending anywhere from 30% to 100% more with us, I think it's a true testament to us being able to not only expand the portfolio with them, but getting in a deeper engagement way by selling more and more of those integrated solutions. So really, really happy with how we've continued to progress and evolve existing customers by selling more of the share of that wallet. Operator: Next question is come from Joe Ritchie from Goldman Sachs. Joseph Ritchie: Kudos on the great end to the year. I wanted to ask about the PTS Capacity Expansion. So from what I remember from the IPO, you had at least like 4 locations where you had modular solutions. I guess clearly had capacity for up to $5 billion of revenue. I guess, why the decision to expand capacity now and then also specifically in Tijuana? Gary Niederpruem: Yes, Joe, you're 100% right on how we position it what you remembered in terms of what we added historically. We've been very open to say, while that $5 billion number, the incremental 1.8 million square feet, which took us to a total of 2.3 million square feet should take us a couple of years to fill up. But we also said that if there is a product line or 2 that's running hotter than we even anticipated, we would not be afraid to come back and add some additional growth capital to expand that footprint again, and that's exactly what we saw here from what we have seen historically, what is in the backlog and when we look at the pipeline out over the course of the next couple of years, Powertrain Solutions, whether that is in e-House, whether that's a modular skid really seems to be the dominant deployment mechanism for a lot of our customers. So at that point, we sort of said, why wait? We see it, we feel it, we hear it, we're in the conversations with those customers. And it's just it's the right thing to do now to stay ahead of the curve so we can keep those lead times inside of the market expected lead times and the rest of the competition. So that's -- those are the things that really brought us the greatest visibility as to why we'd want to do it out. Operator: Our next question is coming from Chigusa Katoku from JPMorgan. Chigusa Katoku: Congrats on a great quarter. So I wanted to ask on mix. As Powertrain Solutions grow as a percentage of your portfolio, how should we think about the impact to your margins? Are there increasing complexities and inefficiency, supply chain challenges that you have to deal with? Any color here would be great? Gary Niederpruem: Yes. Chigusa, thank you. So yes, look, no doubt Powertrain Solutions is a little bit more of a complex base than someone a point low voltage transformer or selling a point low voltage switch gear, no doubt about that. But the margin profile at this point from a product standpoint as well as from an end customer standpoint, is all sort of still within a standard deviation. We haven't seen too much change there, either by product or by customer segment. The one thing that we continue to educate people on is and a solutions-oriented portal there is sometimes the need to buy third-party gear -- sorry, your question got me chocked up clearly. Clearly, need to buy third-party gear, and sometimes that third part of the year, you can't mark up as much as you with your own organic content. So from time to time, we will take solutions business that has third-party year in it that just want to afford us the margin of an organic margin. But by and large, if you strip that phenomenon out when it is our content in an e-House or on a skid relative to some of the other point products that we have, the margin rates are really all within the standard deviation of each other. Operator: Next question is coming from Noah Kaye from Oppenheimer. Noah Kaye: There's such an incredibly dynamic aspect to how power architectures are shipping in this industry and specifically data center. And so as you start to generate meaningful cash flow, you focus on M&A as your strategic capital allocation priority, can you give us some parameters around how you're thinking about your technology-related portfolio needs. And can you give us any parameters around the financial criteria that you would target for potential acquisitions? Gary Niederpruem: Yes. Noah. Look, I think you're right. As we continue to transition to a business that generates not only cash but a meaningful amount of cash, we are simultaneously ramping up our inorganic activities. There's a number of different things we were looking at. We've been pretty consistent in saying that there are some things in our portfolio. We think we can round out with product line extensions. Certainly, service is very clearly at the top of their list. And they're also -- I wouldn't rule out some geographic expansion at some point as well. So I think those are going to continue to be the 3 themes that you see from us. And for us, yes, there needs to be a financial profile in metrics that are met. But most importantly, it has to be the right strategic fit. And so we're not going to do anything just for financial engineering and we're also not going to buy a business that is losing money just because it's strategic. So for us, it has to be both a strategic fit and past the financial parameters that we have outlined. Operator: Our next question is coming from Jeffrey Hammond from KeyBanc Capital Markets. David Tarantino: This is David Tarantino on for Jeff. Maybe just following up on the sales cadence for the year. It sounds like you have really strong visibility from the backlog. But can you frame for us how much does it depend on your ability to continue to ramp supply chain and labor and how you level set this within the guide? Gary Niederpruem: Yes. Sure, David. So I would say '27 is going to be a year much like '26. In terms of every quarter, we're going to have to continue to add hundreds of employees. If you take a look at the employee base, at the end of '25, it was probably roughly 18-ish hundred, 1,800 people. We finished '26 right around 3,500 and 3,600. So we've demonstrated. We almost effectively doubled the workforce over that 12-month period of time. I don't know if we will double it again by the end of '27. But the point is we have demonstrated that we can hire onboard, attract, retrain, train, retain, hundreds and hundreds and hundreds of people of every quarter. And I think that's the exact same playbook that we will execute at '27. So we've demonstrated we can do it. And I think it's going to be a continued rich to repeat every week, every month, every quarter. And we found that we've gotten that muscle pretty tough at this point in time. So I feel very good about all the work that we were doing there. And I think that will be the single biggest thing. Supply chain, like anything, there's always a few bumps in the road, but there isn't anything habitual that says this part went from 50 weeks out to 100 weeks, there's nothing like that. It's just more you've got to manage it, you got to stay on top of it. So it's hard, but I think we've demonstrated that we can do it, and we fight every day to make sure we continue to do it even better than we did the day before. Operator: Next question is coming from Nigel Coe from Wolfe Research. Nigel Coe: So Gary, I want to come back to the topic of lead times. I think the perception out there is that your lead times have been a big advantage versus competitors, and that's certainly what we hear as well. Just curious how lead times are tracking and your lead times in terms of your commitments to customers, how that's been tracking over the last 6 to 12 months? And how you think that compares to your competitors across your major product categories. And I'm actually wondering if you could just maybe double click into that. Are there any constraints in terms of labor or other constraints that limiting your ability or lengthening those lead times as we go over the next 6 to 12 months? Gary Niederpruem: Yes. Very good, Nigel. Thank you. Good to hear your voice. So I would say a few things. One is on the labor constraints, we have a number of different positions, obviously, we hire for both at the SG&A line as well as in the plants of the direct and indirect level. We are continually at the -- in the plant level, we have a massive training program and massive training dojos in every one of our facilities. So we don't really hire in people that have the skill sets that we need, we're typically hiring good people, and then we train them to do what we need to do. And depending on which department they're going to go in, that training could last anywhere from weeks to months to quarters depending on what we need to do there. So that's sort of the DL and IDL side. From an SG&A side, we worked hard. I think we had a stat in the slides that, we've hired a tremendous amount of application engineering solutions architects, process engineered, field engineers, design engineers, we put a huge emphasis on continuing to grow the engineering and technical rates of the company, so we're working really hard at that. I think you'll continue to see us pour gas on that fire as we get through '27. And then your first part about lead times, we still do believe that we are inside the expected lead times for every product line that we have in the industry. So even though the backlog number is much higher today than what it was, that's why we've doubled the workforce. That's why we've added the next to 800 -- or 350,000 square feet down in T.J. So our goal is to continue to always keep those lead times inside market expected lead times. And across the entire product category, we still are there today just like we would have been 9 months ago or 12 months ago. Operator: We've reached the end of our question-and-answer session. I'd like to turn the floor back over to Gary for any further closing comments. Gary Niederpruem: Yes. Thank you, operator. Thank you, everybody, for joining the call today. It was a little bit more of a lengthy prepared remarks, but we think it was important to -- there was a lot of goodness, a lot of richness in those slides, not only in terms of what Q4 ended up, how the year ended up and what that portends to what we believe is shaping up to be a great '27. Demand and commercial momentum continues at a very accelerated rate. We delivered the margin expansion that we wanted to. We continue to invest in the business not only for today and tomorrow that you can see that in the people that we've hired and the amount of clinical talent that we've hired. I would be remiss if I didn't thank the entire Forgent family for everything that you have done for us and will continue to do. And with that, I hope everybody has a great day and look forward to talking to you all over the course of the next couple of days and weeks. Thank you, folks. Operator: Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today. Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this. On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. 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Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Forgent Power Solutions. The Motley Fool has a disclosure policy. Forgent Power Solutions (FPS) Q4 2026 Earnings Call Transcript was originally published by The Motley Fool

Forgent Power Solutions, Inc. FPS reported fourth-quarter fiscal 2026 adjusted earnings of 25 cents per share, which beat the Zacks Consensus Estimate by 8.7%. Revenues of $462 million rose 94% year over year. Growth was led by custom products and Powertrain Solutions for data center customers. Backlog reached a record $3 billion. Powertrain Solutions revenues climbed 187% year over year to $147 million, while custom products revenues rose 73% to $292 million. Services revenues increased 69% to $12 million, and standard products revenues advanced 3% to $11 million. Management said the quarterly growth was fully organic, supported by market expansion, share gains and a faster-than-expected production ramp at new facilities. Powertrain Solutions accounted for nearly one-third of quarterly revenues. Forgent Power Solutions, Inc. price-consensus-eps-surprise-chart | Forgent Power Solutions, Inc. Quote Fourth-quarter bookings reached a record $1.50 billion, up 375% year over year and 73% sequentially. The book-to-bill ratio increased to 3.3x from 2.3x in the third quarter, marking the highest level in the company's history. Backlog increased 256% year over year and 53% sequentially to $3.02 billion. Management said backlog consists of firm purchase orders rather than letters of intent or memoranda of understanding, with pricing remaining broadly consistent. Gross profit rose 109% to $166.70 million. Adjusted EBITDA increased 163% year over year to $112.74 million. The adjusted EBITDA margin reached 24.4%, expanding 640 basis points year over year and 200 basis points sequentially as higher volumes improved operating leverage. Cash flow from operations was $74 million, while capital expenditures totaled $31 million. Most quarterly capital spending is related to the 2025-2026 capacity expansion. FPS received its first direct order from a frontier AI lab during the quarter and signed a master service agreement with a hyperscaler. The initial AI-lab award covers medium-voltage transformers and switchgear for a campus expected to exceed one gigawatt. Management also highlighted broader wallet-share gains as existing customers increasingly buy multiple product lines and integrated solutions. Powertrain Solutions represented about 40% of year-end backlog, while service backlog was approximately three times fiscal 2026 service revenues. Forgent announced a $35 million investment in a dedicated 385,000-square-foot Powertrain Solutions facility at its Tijuana campus. The project is expected to increase Powertrain Solutions manufacturing capacity by more than 50% and come online in the fourth quarter of fiscal 2027. The expansion is expected to raise total revenue capacity to approximately $5.8 billion, an increase of about $800 million. Management said modular solutions are becoming a larger part of customer deployment plans, supporting the decision to add capacity beyond the recently completed expansion. For fiscal 2027, Forgent expects revenues of $2.4-$2.6 billion, adjusted EBITDA of $575-$625 million and adjusted earnings of $1.26-$1.40 per share. At the midpoint, these ranges imply revenue growth of 76%, adjusted EBITDA growth of 86% and adjusted earnings growth of about 95%. For the first quarter of fiscal 2027, FPS projects revenues of $445-$465 million and adjusted EBITDA of $90-$100 million. The quarter is expected to include about $10 million of one-time hiring, training and startup costs. Management expects quarterly revenues and adjusted EBITDA to rise sequentially through fiscal 2027, with operating cash flow exceeding $300 million and capital expenditures totaling about $87 million. At present, FPS carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader Zacks Computer and Technology sector are Lumentum LITE, Applied Materials AMAT and Analog Devices ADI, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Shares of Lumentum have surged 127.8% year to date. The Zacks Consensus Estimate for LITE’s fiscal 2027 earnings is pegged at $21.30 per share, up by 3 cents over the past 30 days, indicating an increase of 145.7% year over year. Shares of Applied Materials have jumped 63.9% year to date. The Zacks Consensus Estimate for AMAT’s fiscal 2026 earnings is pegged at $12.76 per share, up by 1.3% over the past 30 days, indicating a rise of 35.5% year over year. Analog Devices shares have risen 33.6% year to date. The Zacks Consensus Estimate for ADI’s fiscal 2026 earnings is pegged at $12.96 per share, up by 4.3% cents over the past 30 days, indicating an increase of 66.4% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Forgent Power Solutions, Inc. (FPS) : Free Stock Analysis Report Analog Devices, Inc. (ADI) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Lumentum Holdings Inc. (LITE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Fiscal Fourth Quarter 2026 Highlights Revenues of $462 million, an increase of 94% year-over-year Bookings of $1,503 million, an increase of 375% year-over-year; 3.3x book-to-bill ratio Backlog of $3.0 billion, an increase of 256% year-over-year Net Income of $66 million, an increase of $71 million year-over-year Net Income margin of 14.3%, an increase of ~800 bps quarter-over-quarter Adjusted EBITDA of $113 million, an increase of 163% year-over-year Adjusted EBITDA margin of 24.4%, an increase of ~200 bps quarter-over-quarter Cash flow from operations of $74 million, an increase of $81 million year-over-year Revenue, Adjusted EBITDA and Adjusted Net Income all exceeded the high-end of May guidance Fiscal Year 2026 Highlights Revenues of $1,420 million, an increase of 89% year-over-year Net Income of $106 million, an increase of 508% year-over-year Adjusted EBITDA of $323 million, an increase of 91% year-over-year Revenue, Adjusted EBITDA and Adjusted Net Income all exceeded the high-end of May guidance Fiscal Year 2027 Guidance Revenues in the range of $2,400 to $2,600 million, representing 76% year-over-year growth at the midpoint Adjusted EBITDA in the range of $575 to $625 million, representing 86% year-over-year growth at the midpoint Adjusted EPS in the range of $1.26 to $1.40, representing 95% year-over-year growth at the midpoint DAYTON, Minn., September 15, 2026--(BUSINESS WIRE)--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 fourth quarter and full year ended June 30, 2026. Forgent reported fiscal fourth quarter revenues of $462 million, an increase of $224 million, or 94%, compared to the prior year's quarter. Bookings were $1.5 billion in the fourth quarter, establishing a new Company record and increasing 375% year-over-year and 73% quarter-over-quarter. Forgent’s book-to-bill ratio increased to 3.3x in the fourth quarter from 2.3x in the third quarter, reflecting accelerating demand for the Company’s products and continued market share gains. As of June 30, 2026, the Company’s backlog was $3.0 billion, representing an all-time high, increasing 256% and 53% versus June 30, 2025 and March 31, 2026, respectively. "Momentum in electrical distribution equipment remains robust, and Forgent’s products and solutions continue to gain traction with customers," said Gary Niederpruem, Chief Executive Officer of Forgent. "We booked more than $1.5 billion of orders in the fourth quarter — an amount that exceeded our total revenue for the full fiscal year — highlighting the strength of our offerings. Our performance demonstrates that Forgent is not only benefiting from industry growth, but also gaining share and significantly outpacing the broader market," added Mr. Niederpruem. The Company also announced a $35 million investment to expand Powertrain Solutions manufacturing capacity at its Tijuana, Mexico campus (the "2027 PTS Capacity Expansion") to meet growing demand for modular solutions. The PTS Capacity Expansion is incremental to Forgent’s previously disclosed capacity expansion, which began before the Company’s IPO and is now substantially complete (the "2025-2026 Capacity Expansion"). The PTS Capacity Expansion is expected to come online in the fourth quarter of fiscal 2027 and increase Forgent’s total revenue capacity to approximately $5.8 billion, representing an increase of approximately $800 million. "Powertrain Solutions revenue grew 259% in fiscal 2026 and accounted for nearly one-third of fourth quarter revenue, significantly exceeding the demand assumptions underlying our initial capacity build-out. To support growing customer adoption of modular solutions, we are making an incremental investment in dedicated e-House and Powerskid production in Tijuana. We expect this investment to increase our Powertrain Solutions capacity by more than 50%, further strengthening Forgent’s modular solutions capabilities and providing a strong foundation to capture additional share in this rapidly growing segment," said Mr. Niederpruem. Net Income for the fiscal fourth quarter was $66 million, an increase of $71 million compared to the prior year's quarter. Net Income increased primarily due to higher gross profit, partially offset by higher selling, general and administrative costs. Net income margin was 14.3%, approximately 800 bps higher quarter over quarter, as revenue growth outpaced operating cost growth and new campuses moved closer to their target production rates. Adjusted EBITDA for the fiscal fourth quarter was $113 million, the highest quarterly result in the Company’s history and an increase of $70 million or 163%, 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 margin was 24.4% in the quarter, representing an increase of approximately 200 basis points quarter-over-quarter, as revenue growth outpaced operating cost growth and our new campuses moved closer to their target production rates. Forgent’s revenues, Adjusted EBITDA and Adjusted Net Income in the quarter all exceeded the high-end of the Company’s May guidance. Cash flow from operations was $74 million in the fourth quarter, $81 million higher than the prior year's quarter, as higher earnings more than offset continued working capital investment to support the production ramp. Capital expenditures in the quarter were $31 million, substantially all of which related to the Company’s 2025-2026 Capacity Expansion. In fiscal 2027, the Company expects operating cash flow to increase compared to fiscal 2026, primarily driven by higher earnings. Fiscal 2027 capital expenditures are expected to total approximately $87 million, including remaining spend on the 2025-2026 Capacity Expansion, the 2027 PTS Capacity Expansion, and maintenance capital expenditures of approximately 1% of revenues. Mr. Niederpruem concluded, "Forgent entered fiscal 2026 with clear commitments to our customers and shareholders, and we delivered. Our customers needed a partner capable of providing engineering expertise, execution certainty and scalable capacity as they pursued unprecedented build-outs, and Forgent proved it could meet those requirements. That performance is driving share gains and expanding our role with customers facing some of the most complex power requirements in the market. At the same time, we delivered results for shareholders that exceeded the expectations we set during our IPO and through our guidance, while growing faster than the market and our peers. As we enter fiscal 2027, our record backlog, strong customer relationships and continued capacity investments position us to deliver even greater value for our customers and our shareholders in the year ahead." Summary of Key Performance IndicatorsThe table below summarizes our key performance indicators for the three months ended June 30, 2026 and 2025: The table below summarizes our key performance indicators for the years ended June 30, 2026 and 2025: Fiscal Year 2027 GuidanceForgent is initiating fiscal 2027 guidance that is significantly higher than the Company’s IPO forecast, reflecting accelerating demand for its products and strong execution on its production ramp. Based on backlog, expected production schedules, current business conditions and other factors, the Company expects its fiscal 2027 results to be in the following ranges: The Company expects quarterly revenue and Adjusted EBITDA to increase consecutively through the year. The Company’s first quarter results will include significant investments in personnel and facilities to support the production ramp in subsequent quarters. Conference Call InformationThe Company will host a conference call on September 15, 2026 at 11:00 a.m. Eastern Time to discuss its fiscal fourth quarter 2026 financial results and fiscal 2027 outlook. A webcast of the live conference call will be available on the Investor Relations section of the Company's website at ir.forgentpower.com. A replay of the conference call will be available for one year following the webcast. Annual Shareholder Meeting InformationThe Company has scheduled its 2027 Annual Meeting of Shareholders for January 28, 2027, which will be held virtually. Additional information, including access information, will be made available prior to the meeting. About Forgent Power SolutionsForgent (NYSE: FPS) is a leading U.S. designer and manufacturer of electrical distribution equipment used in data centers, the power grid and energy-intensive industrial facilities. The Company specializes in manufacturing custom products that are "engineered-to-order" for technically demanding applications. We believe Forgent is one of a small number of companies that can manufacture all of the electrical distribution equipment required for a data center or large manufacturing facility's powertrain with some of the highest levels of customization and shortest lead times available in the industry. For more information about Forgent, please visit us at forgentpower.com. Cautionary Note Regarding Forward-Looking StatementsThis press release and accompanying audio webcast contain forward-looking statements that are based on our management’s beliefs, expectations and assumptions and currently available information. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, technology developments, financing and investment plans, dividend policy, competitive position, industry and regulatory environment, potential growth opportunities and the effects of competition. Forward-looking statements include statements that are not historical facts and may be identified by terms such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "seek," "should," "will," "would" and similar expressions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent risks, uncertainties and other changes in circumstances we cannot predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements and you should not place undue reliance on such statements. Important factors that could cause actual results to differ materially from our expectations include if there is less demand for, or greater supply of, electrical distribution equipment in the future, the price of electrical distribution equipment could decline which would adversely impact both our revenue growth and profit margins; if the prices of raw materials, such as electrical steel, carbon steel, aluminum or copper, or labor costs increase in the future and we are unable to pass those increases on to our customers, our profit margins could be significantly impacted; our cost of and access to raw materials and components from international vendors could be adversely impacted by changes in government policies, including the imposition of additional duties, tariffs and other charges on imports and exports or restrictions on purchases of components from certain foreign countries; significant disruptions to our supply chain, including the high cost or unavailability of raw materials and components required to manufacture our products, and significant disruptions to our distribution networks could have a material adverse effect on our business, financial condition and results of operations; our growth depends in part on continued investment in new data centers, which depends in part on continued interest in developing artificial intelligence; demand for our products depends, in large part, on new construction activity which has declined significantly during past recessions; any delay or interruption in the operations of any of our manufacturing campuses could impair our ability to provide products to customers; if we are unable to complete our expansion in the timeframe we anticipate or the expansion does not give us the additional capacity that we expect, we may not be able to achieve our anticipated level of growth; amounts included in our backlog may not result in the revenue or generate profits in the amount we expect or on the timeframe that we anticipate; we operate in competitive environments, and our failure to compete successfully could cause us to lose market share; any failure of our products could subject us to substantial liability, including product liability claims, which could damage our reputation or the reputation of one or more of our brands; the long sales cycles for certain of our electrical distribution equipment, as well as unpredictable placing or canceling of customer orders, particularly large orders, may cause our revenues and operating results to vary significantly from quarter-to-quarter, which could make our future results of operations less predictable; if changing efficiency standards for transformers increases the cost of producing our transformer products and we are unable to pass these higher costs on to our customers, margins on our transformer products could decline; if we fail to motivate and retain our key personnel or if we fail to attract additional qualified personnel, we may not be able to achieve our anticipated level of growth; changes in technology or customer preferences could result in less demand for certain categories of electrical distribution equipment; large companies often require more favorable terms and conditions in our contracts, which could result in downward pricing pressures on our business, less desirable payment terms or greater warranty and contractual obligations; our strategy to increase our sales of Powertrain Solutions could result in a concentration of our sales with fewer customers and a significant reduction in orders from any one of these customers could adversely impact our business; our operations and quality control could be disrupted if we encounter problems with outside vendors, subcontractors and third-party suppliers; unexpected events, such as natural disasters, geopolitical conflicts, pandemics, a volatile global economic environment, inflation, high interest rates, a potential recession and other events beyond our control, may increase our cost of doing business or disrupt our operations; the integration of the business acquisitions poses risks to the operation of our business; environmental, health and safety laws and regulations could result in substantial costs and liabilities; the impact of import or export laws could have a material adverse effect on our business, financial condition and results of operations; our indebtedness may restrict our current and future operations; our organizational structure, including the Tax Receivable Agreement (as defined in our filings with the SEC), confers certain benefits upon the Continuing Equity Owners (as defined in our filings with the SEC) that will not benefit certain holders of our Class A common stock to the same extent it will benefit the Continuing Equity Owners; in certain cases, payments under the Tax Receivable Agreement to the Continuing Equity Owners may be accelerated or significantly exceed any actual benefits we realize in respect of the tax attributes subject to the Tax Receivable Agreement; Neos Partners, LP will have significant influence over us and its interests may conflict with our interests and the interest of other stockholders; Delaware law and anti-takeover provisions in our governing documents may have the effect of delaying or preventing a change of control or changes in our management and may deprive our investors of the opportunity to receive a premium for their shares; the requirements of being a public company may strain our resources, divert management’s attention and affect our ability to attract and retain qualified board members and officers; and the other factors discussed in the Company’s filings with the SEC. The forward-looking statements included in this document represent our management’s beliefs and assumptions only as of the date hereof. Except as required by law, we assume no obligation to update or revise these forward-looking statements as a result of new information, future events or otherwise. Non-GAAP MeasuresThis press release contains certain financial measures that are not calculated in accordance with generally accepted accounting principles (GAAP). These non-GAAP financial measures are presented as supplemental information to provide additional insight into our operating performance and to enhance the overall understanding of our financial results. We believe these non-GAAP measures are useful to investors because they facilitate comparisons of our core operating results across reporting periods and provide a clearer understanding of the factors and trends affecting our business. These non-GAAP financial measures should not be considered in isolation or as a substitute for financial information prepared in accordance with GAAP. There are limitations associated with the use of non-GAAP financial measures, including that they may not be comparable to similarly titled measures used by other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are provided within this press release except as follows. The Company does not reconcile its forward-looking non-GAAP financial measures to the corresponding U.S. GAAP measures, due to the variability and difficulty in making accurate forecasts and projections and/or certain information not being ascertainable or accessible; and because not all of the information, such as foreign currency impacts necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure, is available to the Company without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The Company provides non-GAAP financial measures that it believes will be achieved, however it cannot accurately predict all of the components of the adjusted calculations and the U.S. GAAP measures may be materially different than the non-GAAP measures. Defined TermsPlease see the Company’s filings with the SEC for definitions of defined terms that are used but not defined in this press release. Adjusted EBITDANon-GAAP Financial Measures The table below reconciles Net Income (the most directly comparable GAAP measure) to Adjusted EBITDA (a non-GAAP measure) for the periods presented (in thousands): Adjusted Net IncomeNon-GAAP Financial Measures The table below reconciles Net Income Attributable to Forgent Power Solutions, Inc. (the most directly comparable GAAP measure) to Adjusted Net Income (a non-GAAP measure) for the periods presented (in thousands): Adjusted Earnings Per ShareNon-GAAP Financial Measures The table below reconciles Weighted Average Shares Outstanding (the most directly comparable GAAP measure) to Adjusted Diluted Weighted Average Shares Outstanding for the periods presented (in thousands, except per share): View source version on businesswire.com: https://www.businesswire.com/news/home/20260915055250/en/ Contacts Investor Contact Kate Africk - Investor Relations, [email protected] Media Contact [email protected]

Interested in Forgent Power Solutions, Inc.? Here are five stocks we like better. Record fiscal 2026 performance: Fourth-quarter revenue surged 94% to $462 million and adjusted EBITDA rose 163% to $113 million. Full-year revenue increased 89% to $1.42 billion, with adjusted EBITDA reaching $323 million. Demand and backlog remain exceptionally strong: Fourth-quarter bookings exceeded $1.5 billion, producing a 3.3x book-to-bill ratio and a record $3 billion backlog. Forgent is expanding its modular Powertrain Solutions capacity in Tijuana by more than 50% to serve data center, grid and industrial demand. Fiscal 2027 outlook calls for continued rapid growth: Management projects revenue of $2.4 billion to $2.6 billion and adjusted EBITDA of $575 million to $625 million, with more than 90% of the revenue outlook already covered by backlog. Near-term margins may be pressured by approximately $10 million in first-quarter hiring and capacity-investment costs. Forgent Power Solutions (NYSE:FPS) reported record fourth-quarter and full-year fiscal 2026 results, driven by demand across its data center, grid and industrial markets, as well as growth in its modular Powertrain Solutions business. Fourth-quarter revenue rose 94% year over year to $462 million, while adjusted EBITDA increased 163% to $113 million. Adjusted EBITDA margin reached 24.4%, up 200 basis points sequentially and 640 basis points from the prior-year quarter. Adjusted net income increased 275% to $77 million. → Why Bitcoin ETFs May Be Worth Another Look as Inflows Rebound For the full fiscal year, revenue climbed 89% to $1.42 billion, adjusted EBITDA rose 91% to $323 million, and adjusted net income increased 136% to $208 million. CEO Gary Niederpruem said the results exceeded the high end of guidance that the company had raised in May. Fourth-quarter bookings totaled more than $1.5 billion, increasing 375% year over year and 73% sequentially. The company’s book-to-bill ratio was 3.3 times, while year-end backlog rose to $3 billion, up 256% from a year earlier and 53% from the prior quarter. → Nasdaq’s $100 Million Kraken Bet Prepares It for a Market That Never Closes Niederpruem said the backlog consisted entirely of firm customer purchase orders, rather than letters of intent or memoranda of understanding. He also said pricing has remained consistent and that the company has not experienced meaningful project delays or customer push-outs for its products. “We are not hearing anything about any massive projects being delayed or the market slowing by any means,” Niederpruem said during the question-and-answer session. → 3 Small-Cap Biotechs With Binary Catalysts on the Calendar The company said its backlog was approximately 40% Powertrain Solutions at the end of fiscal 2026. Powertrain Solutions encompasses prefabricated, factory-built systems designed to shift work from construction sites into manufacturing facilities. Powertrain Solutions revenue rose 187% year over year and 48% sequentially to $147 million in the fourth quarter. Custom products revenue increased 73% to $292 million, services revenue rose 69% to $12 million, and standard products revenue increased 3% to $11 million. Forgent said customers are increasingly adopting modular construction to reduce dependence on field labor and accelerate infrastructure deployment. Niederpruem said modular construction can compress portions of data center construction schedules by roughly 30% to 50% compared with traditional field-built approaches, based on customer feedback. To support demand, the company announced plans to build a dedicated 385,000-square-foot Powertrain Solutions facility at its Tijuana, Mexico campus. The project is expected to increase Powertrain Solutions manufacturing capacity by more than 50% to more than 1 million square feet and raise total revenue capacity by approximately $800 million to $5.8 billion. The facility is expected to begin operations in the fourth quarter of fiscal 2027. Niederpruem said the company elected to add capacity sooner because modular solutions appear to be the “dominant deployment mechanism” for many customers. The company also cited progress in broadening its direct data center customer base. It received its first direct order from a frontier artificial intelligence lab during the fourth quarter and signed a master services agreement with a hyperscaler. Niederpruem described the initial AI lab award as a proof point, noting that the customer’s first campus is expected to exceed one gigawatt and that the broader opportunity could span multiple gigawatts. Forgent forecast fiscal 2027 revenue of $2.4 billion to $2.6 billion, representing 76% growth at the midpoint. It expects adjusted EBITDA of $575 million to $625 million, or 86% growth at the midpoint, with adjusted EBITDA margin of approximately 24%, compared with 22.7% in fiscal 2026. The company also projected adjusted earnings per share of $1.26 to $1.40, representing approximately 95% growth at the midpoint. Management said backlog covers more than 90% of its full-year revenue outlook, with the balance of backlog scheduled for fiscal 2028 delivery. For the first quarter of fiscal 2027, Forgent forecast revenue of $445 million to $465 million and adjusted EBITDA of $90 million to $100 million. The company expects approximately $10 million in one-time costs during the quarter associated with hiring and capacity investments that it does not expect to fully absorb until production increases in later quarters. CFO Ryan Fiedler said first-quarter adjusted EBITDA margin is expected to be about 21%, followed by margin improvement as volume rises. He said management expects “a couple of hundred basis points” of margin expansion in the second quarter from the first-quarter level. Operating cash flow increased to $109 million in fiscal 2026 from $45 million in fiscal 2025. Forgent expects operating cash flow to exceed $300 million in fiscal 2027, although it expects cash generation to be weighted toward the second half as the company invests in working capital and facilities early in the year. Capital expenditures declined from 11% of sales in fiscal 2025 to 8% in fiscal 2026 and are expected to fall to roughly 3% of sales in fiscal 2027, including the newly announced Tijuana investment. Management said its first capital-allocation priority as free cash flow grows will be acquisitions that complement its product portfolio, expand capabilities and support long-term growth. Niederpruem said the company is evaluating opportunities in product-line extensions, services and potentially geographic expansion, but said potential targets must meet both strategic and financial criteria. Beginning in fiscal 2027, Forgent will stop reporting orders and backlog quarterly, citing larger average order sizes that can make quarterly order activity less representative of its underlying run rate. Instead, it plans to disclose orders and backlog annually while providing rolling quarterly guidance for revenue and adjusted EBITDA. Forgent Power Solutions, Inc develops and manufactures products used in electric power transmission and distribution infrastructure. Its offerings support the generation, transmission, distribution and management of electrical power for utility and industrial applications. The company's product portfolio includes equipment and components used in overhead and underground power networks, including electrical connectors, fittings, line hardware and other engineered solutions designed to support the reliability and efficiency of power-delivery systems. Forgent Power Solutions serves electric utilities, distributors and industrial customers, primarily through markets connected to North American power infrastructure. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Forgent Power Solutions Q4 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.