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Forgent Power Solutions Q1 revenue beats estimates; raises outlook

By Reuters News


Overview

  • U.S. electrical equipment maker's fiscal Q1 revenue rose 69%, beating analyst expectations

  • Adjusted EPS for fiscal Q1 was $0.24, above consensus

  • Company raised full-year outlook on strong demand and production ramp execution


Outlook

  • Forgent raises fiscal 2027 revenue outlook to $2.45 bln-$2.65 bln from $2.4 bln-$2.6 bln

  • Company lifts fiscal 2027 adjusted EBITDA forecast to $587 mln-$637 mln from $575 mln-$625 mln

  • Forgent expects fiscal 2027 adjusted EPS of $1.30-$1.44, up from $1.26-$1.40 previously


Result Drivers

  • PRODUCTION RAMP EXECUTION - Higher throughput and better cost absorption from strong production ramp execution drove results, per company

  • ROBUST CUSTOMER DEMAND - Company cited strong demand, including traction with AI labs and hyperscalers, as a key driver

  • BACKLOG COVERAGE - Backlog fully covers fiscal 2027 guidance, supporting raised outlook, per CEO Gary Niederpruem


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Revenue

Beat

$478.60 mln

$462.36 mln (13 Analysts)

Q1 Adjusted EPS

Beat

$0.24

$0.20 (13 Analysts)


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the heavy electrical equipment peer group is "buy"

  • Wall Street's median 12-month price target for Forgent Power Solutions, Inc. is $52.00, about 111.6% above its November 11 closing price of $24.57

  • The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 29 three months ago


Reuters Recommended Reads

  • Nov 9 - Aaon Q3 revenue jumps 84%, beats analyst estimates on strong data-center demand

  • Nov 10 - CoreWeave Q3 revenue more than doubles, beats analyst estimates

  • Nov 12 - Siemens lifts mid-term outlook as AI-driven data centre demand boosts orders


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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