Forgent Power Solutions Revenue Jumps 76% to $579.7M in H1 FY2026

Forgent Power Solutions, a power solutions provider incorporated in Delaware, reported revenue of $579.7 million for the six months ending December 31, 2025, a 76% increase from $329.4 million in the same period a year earlier. The company posted net income of $10.3 million for the half, down 6% from $10.9 million in the prior-year period. Read more earnings reports.

For the quarter ending December 31, 2025, revenue reached $296.4 million, up 69% from $175.3 million in the same quarter of the prior year. Net income for the quarter totaled $246,000, down 95% from $4.6 million a year earlier.

Operating Performance

Operating income for the six months ending December 31, 2025 rose 23% to $51.3 million from $41.5 million in the prior-year period. Gross profit for the half came in at $199.7 million, up 53% from $130.2 million, though the gross margin compressed to 34.5% from 39.5%.

Cost of revenue climbed to $380.0 million from $199.2 million, while operating expenses nearly doubled to $148.5 million from $88.7 million. Selling, general and administrative expenses more than doubled to $121.7 million from $55.8 million.

Cash and Balance Sheet

Cash and cash equivalents stood at $106.2 million as of December 31, 2025, down from $111.3 million at the end of June 2025 and $215.8 million a year earlier. Total assets increased to $1.70 billion from $1.54 billion at June 30, 2025.

The company generated $6.0 million in cash from operations for the half, down sharply from $59.7 million in the prior-year period. Cash used in investing activities totaled $56.4 million, while financing activities provided $45.2 million.

Long-term debt rose to $579.0 million as of December 31, 2025 from $496.9 million six months earlier. Total liabilities climbed to $1.11 billion from $963.4 million.

Working Capital

Accounts receivable increased to $251.0 million from $160.0 million at June 30, 2025. Inventory rose to $160.5 million from $117.6 million. Accounts payable stood at $72.5 million compared to $61.9 million six months prior.

Property, plant and equipment increased to $157.6 million from $108.2 million. Goodwill remained flat at $516.6 million. The company reported 71.1 million shares outstanding.