Forgent Power Solutions (NYSE:FPS) rallied for a second day on Wednesday, jumping 11.10 percent to close at $34.84 apiece after swinging to profits in the fourth quarter of fiscal year 2026.
In an earnings call on the same day, it said that it swung to a net income of $66.09 million during the period from a $4.76 million net loss in the same period last year, on the back of higher gross profit, partially offset by higher selling, general and administrative costs.
Revenues also soared by 94 percent to $461.67 million from $237.6 million year-on-year, on the back of strong momentum in electrical distribution equipment, while its products and solutions continued to gain traction.
“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,” Forgent Power Solutions CEO Gary Niederpruem said.
Photo by Tima Miroshnichenko on Pexels
FY26 Profits Surge by Sixfold; Further Growth for FY27
More notably, the solid results helped propel its full fiscal year 2026 profit by 508 percent to $106 million from $17.4 million in fiscal year 2025.
Revenues also cracked past the $1 billion territory, ending at $1.42 billion, or an 89 percent increase from $753.19 million year-on-year.
For fiscal year 2027, Forgent Power Solutions is targeting revenues of $2.4 billion to $2.6 billion, or an implied growth of 69 percent to 83 percent year-on-year.
Adjusted EBITDA is targeted at $575 million to $625 million, or an implied jump of 78 percent to 93.5 percent from the $322 million in fiscal year 2026.
Mexico Expansion
The listed firm also unveiled a $35 million investment to expand its Powertrain Solutions (PTS) manufacturing facility in Tijuana, Mexico.
The expansion, it said, is incremental to its previously disclosed capacity expansion, which began before its initial public offering, and is now substantially complete.
The PTS capacity expansion is expected to come online in the fourth quarter of fiscal year 2027 and increase its total revenue capacity to approximately $5.8 billion, representing an increase of approximately $800 million.
“Powertrain Solutions revenue grew 259 percent in fiscal 2026 and accounted for nearly one-third of fourth quarter revenue, significantly exceeding the demand assumptions underlying our initial capacity build-out,” Niederpruem said.
“We expect this investment to increase our Powertrain Solutions capacity by more than 50 percent, further strengthening Forgent’s modular solutions capabilities and providing a strong foundation to capture additional share in this rapidly growing segment,” he added.
Analyst Hikes PT
Following the strong results, investment firm TD Cowen signaled its bullish stance for the stock, having upgraded its price target to $76 from $73 previously—or an upside potential of 118 percent from its latest closing price.
It also maintained a buy recommendation for the stock.
TD Cowen said that the recent results reflected robust order momentum and backlog growth amid accelerating US data center demand, adding that it is positioned with excess and growing capacity.
It views a potential capacity agreement with either a hyperscaler or a large data center operator as the next key catalyst for the stock.
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