Forgent Power Solutions saw its stock price climb sharply in premarket trading Thursday after the company reported a surge in third-quarter orders and raised its fiscal 2026 revenue outlook, underscoring the growing demand for electrical infrastructure to support artificial intelligence data centers.
The Dayton, Minnesota-based firm, which went public in February, posted a 308% year-over-year jump in bookings to $867 million, more than double its revenue of $378.7 million for the period. The company's backlog reached $1.98 billion as of March 31, up 157% from a year earlier and 33% higher than the previous quarter.
Forgent now expects fiscal 2026 revenue in the range of $1.35 billion to $1.39 billion, up from its prior forecast. Adjusted EBITDA is projected between $310 million and $320 million. For the fourth quarter, the company guided revenue of $392 million to $432 million, noting it is fully booked against those targets.
The strong performance highlights Forgent's position as a key supplier of electrical distribution equipment for data centers, grid infrastructure, and heavy industry. CEO Gary Niederpruem attributed the results to robust demand from data-center and grid customers, manufacturing ramp-ups, and faster lead times, adding that demand continues to outpace forecasts.
Net income rose to $24.5 million from $8.4 million a year ago, while adjusted EBITDA nearly doubled to $84.7 million, with margins reaching 22.4%. The company's book-to-bill ratio stood at 2.3, more than double the 1.1 recorded last year, indicating that customers are placing orders faster than Forgent can convert them into sales.
Shares traded at $45.52 before the bell, up $2.51 from the previous close. While premarket activity can be volatile, the move reflects investor optimism that Forgent's backlog will translate into revenue without eroding margins.
Forgent's IPO in February raised approximately $1.51 billion, with shares priced at $27 each. The listing gave the company a valuation near $8 billion, driven by investor appetite for AI infrastructure plays. The company competes with established names such as Vertiv, Hubbell, and Schneider Electric in data-center power management, and with Eaton, Hitachi Energy, and GE-Prolec in grid and industrial applications.
Despite the positive momentum, some caution remains. Gross margins were relatively flat in the quarter, and executives noted that hiring, fixed overhead from new facilities, and startup expenses continue to weigh on profitability. The company also warned that backlog may not always convert to revenue or profit as quickly as expected, and any delays in bringing new capacity online could impact growth.
Capital spending for the quarter totaled $28 million, primarily for capacity expansion. Management said the expansion plan remains on track for substantial completion by fiscal year-end, after which the company expects its footprint to support up to $5 billion in annual revenue, with a significant reduction in capital expenditures.
