Forgent Power Solutions Inc. (NYSE: FPS) stock is trading higher premarket Tuesday after the power infrastructure equipment maker reported strong fourth-quarter results and issued fiscal 2027 guidance above estimates.

Earnings Beat Estimates

Forgent reported adjusted earnings of 25 cents per share, beating the 24-cent estimate.

Sales surged 94% year over year to $461.67 million, topping the $429.94 million estimate.

Bookings jumped 375% to $1.50 billion, resulting in a 3.3-times book-to-bill ratio. Backlog increased 256% to $3 billion.

Adjusted EBITDA rose 163% to $113 million. Adjusted EBITDA margin expanded about 200 basis points sequentially to 24.4%. Revenue growth outpaced operating-cost growth, while new campuses moved closer to targeted production levels.

Operating cash flow increased by $81 million year over year to $74 million. Capital expenditures totaled $31 million, with nearly all spending tied to the 2025-2026 capacity expansion.

Forgent CEO Gary Niederpruem said demand for electrical distribution equipment remains strong, while the company's products continue to gain customer traction.

Fourth-quarter bookings topped $1.5 billion, exceeding Forgent's revenue for the entire fiscal year. He added that the results show Forgent is benefiting from industry growth while gaining market share and outperforming the broader market.

Powertrain Solutions Demand Surges

Powertrain Solutions revenue soared 259% in fiscal 2026 and accounted for nearly one-third of fourth-quarter revenue.

Forgent plans to invest $35 million to expand dedicated e-House and Powerskid production at its Tijuana, Mexico, campus. The project will increase Powertrain Solutions capacity by more than 50%.

The expansion is expected to become operational in the fourth quarter of fiscal 2027. It would boost Forgent's total revenue capacity by about $800 million to roughly $5.8 billion.

Fiscal 2027 Outlook Tops Estimates

Forgent expects fiscal 2027 sales of $2.4 billion to $2.6 billion, above the $2.078 billion analyst estimate. Adjusted earnings are projected at $1.26 to $1.40 per share, compared with the $1.14 estimate.

The company expects operating cash flow to increase from fiscal 2026. Capital expenditures are projected at about $87 million.

FPS Price Action: Forgent Power Solutions shares were up 9.29% at $31.30 during premarket trading on Tuesday, according to market data.