FPS Forgent Power Solutions, Inc.

Overview and Growth

Fiscal 2026 results for Forgent Power Solutions, Inc. combined $1.42B of revenue with net income of $81.84M and an operating cash inflow of $109.08M. Revenue of $1.42B sets the scale for evaluating how effectively sales translated into profit and cash during the year. The top line expanded 88.5% from $753.19M in fiscal 2025, increasing the company’s operating scale. The revenue-to-assets relationship was 0.64x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

After reported cost of revenue, the company retained $497.60M as gross profit before recognizing operating expenses and other items. Gross margin was 35.0%, so that share of each revenue unit remained after the cost of revenue reported for the period. Operations produced $182.49M of income after the reported operating expense base, before the remaining non-operating and tax effects. Operating margin measured 12.9%, showing the portion of revenue preserved after the full set of operating costs. After all reported below-operating-line items, the company recorded net income of $81.84M for the fiscal year. Net margin was 5.8%, meaning that this portion of revenue remained as net income after all recognized expenses. Pretax income was $127.40M, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Measured against revenue, pretax income equaled 9.0%, adding a pre-tax profitability layer between revenue and net income. Income tax expense totaled $21.36M, providing the reported tax component that separates pretax and after-tax earnings. The effective relationship between income tax and positive pretax income was 16.8%, without assuming a statutory-rate comparison. Return on period-end equity was 12.2%, relating annual net income to the equity capital on the balance sheet. The net-income-to-assets relationship measured 3.7%, showing earnings relative to the full balance sheet.

Liquidity and Capital Structure

Total assets were $2.23B, supported by $1.56B of liabilities and $671.40M of shareholder equity. Current assets were $818.09M against $531.29M of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. The current ratio was 1.54x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. The company held $97.48M in cash and equivalents, a narrower liquidity measure than total current assets. Cash and equivalents represented 18.3% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Total debt was $582.17M, establishing the amount of borrowing carried within the company’s capital structure. Against book equity, debt measured 0.87x, placing the company’s financial leverage in clear balance-sheet terms. The debt-to-assets relationship was 26.1%, comparing borrowing with the total asset balance. Liabilities represented 69.9% of total assets, quantifying the liability-funded share of the company’s resource base. The cash-to-assets relationship was 4.4%, comparing reported cash and equivalents with the full positive asset balance. Compared with $1.54B in fiscal 2025, the current asset base moved 45.2% and finished higher. Against $573.29M of equity in fiscal 2025, the current book-equity balance moved 17.1% and ended higher.

Cash Flow and Earnings Quality

The company reported $109.08M of operating cash flow, a cash inflow that shows the cash generated by operations. Against net income, operating cash flow measured 1.33x, showing the relationship between accrual earnings and operating cash. The cash-flow statement records $115.91M of capital expenditures, the investment amount considered after operating cash generation. Relative to operating cash flow, capital expenditures measured 106.3%, connecting investment intensity with the company’s cash-generation base. The company recorded a $6.82M cash deficit after capital spending for the period. The free-cash-flow deficit equaled 0.5% of revenue, showing the post-investment cash shortfall relative to sales. The cash deficit after capital spending represented 0.3% of the period-end asset base.

Based on the annual report for the fiscal year ending Jun 30, 2026. Analysis generated Oct 21, 2026.