FPS earnings analysis
What we found in FPS's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Forgent Power Solutions reported exceptional performance for Q1 2026, with revenues soaring to $378.7 million, a significant 103% increase year-over-year. Net income reached $24.5 million, an increase of 190% compared to the previous year, strongly supported by rising demand for custom electrical distribution equipment.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth Surges
- Revenues increased by 103%, reaching $378.7 million, compared to $186.2 million in Q1 2025.
- Strong Net Income Boost
- Net income jumped 190% year-over-year, totaling $24.5 million, up from $8.4 million.
- Cost Management Challenges
- Despite the revenue increase, cost of goods sold rose 110%, emphasizing potential margin pressure.
- Significant Adjusted EBITDA Growth
- Adjusted EBITDA rose to $84.7 million from $43.3 million, reflecting effective operational performance.
- Segment Success in Custom Products
- Sales in Custom Products and Powertrain Solutions drove growth, highlighted by ramped-up production at new campuses.
- Robust Adjusted Net Income
- Adjusted Net Income increased to $55.3 million compared to $23.8 million YOY.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Rising Operating Expenses
- SG&A expenses surged to $78.5 million from $32.1 million, increasing 145%, which could pressure margins.
- Margin Compression from Costs
- Cost of revenues increased to $247.5 million, with under-absorbed costs impacting future profit margins.
- Dependence on Capex for Growth
- Significant investments in property and equipment ($84.6 million in YTD) present risks if cash flows decline.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.17
- Gross margin
- 34.6%
- Operating margin
- 10.4%
What they said about what is next.
The company raised its full-year revenue guidance due to strong market demand and orders.
The filing reads better than the one before it.
What came before.
- 10-Q · March 16, 2026
- Forgent Power Solutions reported strong Q2 2026 results, with revenues of $296.4 million, up 69% year-over-year. The company delivered an EPS of $0.15, exceeding estimates by 0.04, but net loss reached $(0.1) million…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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