FPS Forgent Power Solutions (FPS) Q2 FY26 earnings call
Forgent Power Solutions reported a strong Q2 FY26, driven by robust demand from data centers and grid modernization, leading to significant revenue and order growth. The company is expanding capacity and accelerating hiring to meet this demand, which is causing temporary margin headwinds due to underabsorbed labor and start-up costs. Management expects sequential margin expansion in Q3 and Q4 as productivity ramps.
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FPS operating KPIs by quarter
| KPI | This call Dec 2025 Q2 FY26 | Mar 2026 Q3 FY26 | Jun 2026 Q4 FY26 | Change vs prior quarter |
|---|---|---|---|---|
| Backlog | $1.5BOver the last 12 months, we've generated $1 billion of revenue, $212 million of adjusted EBITDA, which is a 21% margin, and we had a $1.5 billion backlog at the end of December 31, 2025.Source: earnings call transcript | <$2BAs of March 31, 2026, backlog was at a record of nearly $2 billion, up 157% year-over-year and 33% sequentially.Source: earnings call transcript | $3BBacklog increased to $3 billion at year-end, an all-time high, up 256% year-over-year and 53% sequentially.Source: earnings call transcript | — |
| Orders | $762MIn the second quarter, we booked $762 million of orders.Source: earnings call transcript | $867MIn the third quarter, we delivered record bookings of $867 million, up 308% year-over-year and 14% sequentially, building on what was an already record level of bookings in the second quarter.Source: earnings call transcript | $1.5BFourth quarter bookings reached $1.5 billion, a new company record, increasing 375% year-over-year and 73% sequentially.Source: earnings call transcript | +73% |
| Book-to-bill ratio | 2.6 ratioOur book-to-bill ratio in the second quarter was 2.6x, reflecting the pace of the demand acceleration that we are seeing.Source: earnings call transcript | 2.3 ratioOur book-to-bill ratio was 2.3x in the quarter despite delivering record revenue.Source: earnings call transcript | 3.3 ratioOur book-to-bill ratio reached a new record of 3.3x also on a much larger revenue base.Source: earnings call transcript | +43.5% |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.