Forgent Power Solutions (FPS) Q1 2027 earnings summary

Executive summary

• Q1 FY2027 revenue reached a record $478.6M, up 69% YoY; Adjusted EBITDA was $104.9M, up 61%, with results above the high end of guidance.

• Higher throughput, production-ramp execution and added capacity supported growth; Custom Products and Powertrain Solutions were key contributors.

• Strong Data Center and Industrial orders and backlog fully covering the updated FY2027 outlook supported raised guidance.

Financial highlights

• Revenue was $478.6M versus $283.3M YoY; net income was $54.8M versus $15.6M.

• Adjusted EBITDA was $104.9M versus $65.1M; Adjusted Net Income was $72.0M versus $39.3M.

• Gross profit was $158.3M versus $98.0M; operating income was $79.2M versus $31.2M.

• Diluted EPS was $0.18 and Adjusted EPS was $0.24; adjusted EPS rose 83% YoY on a pro forma comparison.

• Cost of revenues rose 73% YoY to $320.3M, reflecting labor and overhead under-absorption and new-campus startup costs.

Outlook and guidance

• FY2027 revenue guidance rose $50M to $2.45B–$2.65B, implying 80% growth at midpoint; backlog fully covers the outlook.

• FY2027 Adjusted EBITDA guidance rose $12M to $587M–$637M, implying 90% midpoint growth and a 24.0% margin.

• FY2027 Adjusted EPS guidance increased $0.04 to $1.30–$1.44, implying 101% midpoint growth.

• Q2 FY2027 guidance is $560M–$590M revenue and $127M–$137M Adjusted EBITDA; midpoint margins imply ~23%.

• Revenue and Adjusted EBITDA are expected to rise sequentially through FY2027, with margin expansion as production ramps.