Forgent Power Reports $3 Billion Backlog Amid Rapid Growth
Forgent Power Solutions, Inc. (NYSE:FPS) reported a significant increase in revenue and bookings for its fiscal fourth quarter ending June 30, 2026. Revenue reached approximately $462 million, up 94% year-over-year, while bookings surged to $1.5 billion—a 375% rise—resulting in a backlog of $3 billion. The company forecasts revenue between $2.4 billion and $2.6 billion for fiscal 2027, implying continued strong growth. The challenge lies in whether Forgent can scale its manufacturing capabilities to meet demand without compromising cash flow or profitability. While the fourth-quarter operating income rose sharply from $8.3 million to $91.9 million year-over-year and operating cash flow exceeded capital expenditures for the quarter, concerns remain about working capital demands and execution risks. A new $35 million expansion at its Tijuana campus aims to boost capacity in a fast-growing product category by fiscal 2027's fourth quarter. However, actual sales will depend on demand and operational efficiency.
Tickers: $FPS
Topics: backlog book-to-bill ratio expansion manufacturing capacity revenue