Forgent reports US$3bn backlog as it plans Tijuana expansion

Forgent Power Solutions reported fiscal fourth-quarter revenue of approximately US$462 million, up 94 per cent year on year, as bookings rose 375 per cent to US$1.503 billion. The company’s reported backlog stood at US$3 billion as at 30 June 2026, according to Yahoo Finance.

Forgent expects fiscal 2027 revenue of US$2.4 billion to US$2.6 billion. It has also forecast capital expenditure of approximately US$87 million for the year.

The company plans to spend US$35 million expanding its Tijuana campus to support its Modular Powertrain Solutions business. The project is expected to begin operating in the fourth quarter of fiscal 2027 and add approximately US$800 million in annual revenue capacity.

Modular Powertrain Solutions revenue increased 259 per cent in fiscal 2026 and accounted for nearly one-third of fourth-quarter revenue. Forgent reported quarterly operating income of US$91.9 million, compared with US$8.3 million a year earlier, while operating cash flow was US$74 million against US$31 million in capital expenditure.

The figures also point to the funding demands of expansion. Fiscal 2026 operating cash flow was US$109.1 million, compared with US$115.9 million in property and equipment purchases. Receivables and inventory absorbed a combined US$315.6 million of cash during the year.

Backlog represents outstanding contractual work rather than cash collected, and does not guarantee the timing of future revenue. Forgent’s capacity expectations remain dependent on demand, product mix and execution, while customers may delay or cancel projects and contracted work may carry different margins.