One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Forgent Power Solutions, Inc.
FPS · NYQ · Industrials · Electrical Equipment & Parts
Current price
$24.57
52-week range
$17.67 - $66.00
Market cap
$7.84B
Balance sheet
Stretched
3.19x Stretched
Net debt $606.29M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 13.8% last year.
- Reward Returns 17.0% on equity, ahead of 33% of its peers.
- Risk Insider ownership is only 0.2% (peer median: 0.8%).
What this company does
Forgent Power Solutions, Inc.
Forgent Power Solutions makes important electrical equipment for places that use a lot of power, like big computer centers and factories. Most of their money comes from selling these products, and their ability to keep those sales strong helps them grow and keep their business running smoothly.
How the company got here
Forgent Power Solutions, Inc. was founded in 2023 and quickly assembled through a series of acquisitions by private equity firm Neos Partners LP. This strategic consolidation brought together multiple equipment makers to create a larger, more comprehensive entity. The company's rapid growth and subsequent IPO in early 2026 reflect the surging demand for electrical distribution equipment, particularly driven by the expansion of data centers and the need for grid modernization. Forgent's business model is built on addressing supply chain bottlenecks and long lead times in the industry by offering custom-engineered, prefabricated solutions.
What it actually does
Forgent Power Solutions designs and manufactures electrical distribution equipment. This equipment is crucial for managing and distributing electricity in various settings, including data centers, the power grid, and industrial facilities. Think of it as the essential plumbing and wiring that ensures electricity gets where it needs to go, safely and efficiently. Their product line includes a wide array of components like transformers, switchgear, and power distribution units, often provided as integrated, ready-to-install systems.
Custom Products
This segment is the largest part of Forgent's business, making up about 78% of its revenue. It involves creating highly specialized electrical distribution equipment tailored to the unique needs of specific projects. This often requires close collaboration with Forgent's in-house engineering team to design solutions that meet precise technical requirements. These custom products are essential for customers with demanding applications where standard equipment won't suffice.
Powertrain Solutions
Accounting for roughly 13% of Forgent's revenue, Powertrain Solutions involve combining multiple custom-designed products into a single, integrated system. These are often pre-assembled and skidded, meaning they come ready to be installed as a complete unit. This approach is designed to simplify installation, reduce on-site labor, and speed up project timelines for customers, especially in complex or remote environments.
Standard Products
This segment represents a smaller portion of Forgent's revenue, about 5%. It includes more standardized electrical distribution equipment that can be produced in higher volumes. While not as customized as the 'Custom Products' segment, these items still meet the company's quality and performance standards and are crucial for customers who may have less specialized needs or require quicker delivery of more common components.
Services
Making up about 4% of revenue, Forgent's services segment includes crucial support functions like maintenance, testing, repair, and modernization of electrical distribution equipment. They also offer start-up and commissioning services, which ensure new equipment is installed and operating correctly. This segment helps customers maintain the longevity and optimal performance of their electrical infrastructure, providing ongoing support beyond the initial product sale.
What management is betting on now
Forgent's management is focused on expanding manufacturing capacity to meet the high demand for their products, especially from data centers. They are emphasizing 'engineered-to-order' solutions and prefabricated systems, which offer faster installation and reduced labor costs for customers. The company is also working to improve its operational efficiency and gross margins, aiming to balance rapid growth with profitability. A key strategic priority is to leverage their expertise in custom solutions to capture a larger share of the growing market for advanced power infrastructure.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$35.34M
FY2025 Q3
$-26.19M
FY2025 Q4
$-48.24M
FY2026 Q1
$-23.95M
FY2026 Q2
$-26.41M
FY2026 Q3
$937.00K
FY2026 Q4
$42.60M
FY2027 Q1
$104.41M
Revenue
$478.57M
Net income
$48.24M
Diluted EPS
—
Operating cash flow
$136.12M
Free cash flow
$104.41M
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Sources
Revenue
$461.67M
Net income
$53.30M
Diluted EPS
—
Operating cash flow
$73.90M
Free cash flow
$42.60M
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Sources
Revenue
$378.71M
Net income
$18.29M
Diluted EPS
—
Operating cash flow
$29.17M
Free cash flow
$937.00K
Fetching…
Sources
Revenue
$296.40M
Net income
$246.00K
Diluted EPS
—
Operating cash flow
$72.00K
Free cash flow
$-26.41M
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Sources
Revenue
$283.27M
Net income
$10.01M
Diluted EPS
—
Operating cash flow
$5.93M
Free cash flow
$-23.95M
Fetching…
Sources
Revenue
$753.19M
Net income
$15.20M
Diluted EPS
—
Operating cash flow
$-7.21M
Free cash flow
$-48.24M
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Sources
Revenue
$186.22M
Net income
$6.88M
Diluted EPS
—
Operating cash flow
$-7.48M
Free cash flow
$-26.19M
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Sources
Revenue
$175.34M
Net income
$4.59M
Diluted EPS
—
Operating cash flow
$59.71M
Free cash flow
$35.34M
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Sources
Is it cheap or expensive?
Fair value — vs current price $24.57
We couldn't calculate a fair value right now.
Is it drowning in debt?
Stretched
Net debt $606.3M. Interest coverage 3.2x.
Net debt
$606.29M
Interest coverage
3.19x
Forgent Power Solutions, Inc.'s profit covers its interest bill about 3.2 times over.
Stretched
Worse cushion
Baseline
Better cushion
FPS
BASELINE
Forgent Power Solutions, Inc.
Total debt $703.77M Interest coverage 3.19x This is the baseline the peer rows are being compared against.
Total debt $5.31B Interest coverage 18.86x +490% vs FPS Carries about 5.9x more debt cushion than FPS.
Total debt $2.35B Interest coverage 8.22x +157% vs FPS Carries about 2.6x more debt cushion than FPS.
Total debt $4.60B Interest coverage 1.96x -39% vs FPS Carries about 1.6x less debt cushion than FPS.
Total debt $1.42B Interest coverage 4.09x +28% vs FPS Carries about 1.3x more debt cushion than FPS.
Total debt $1.39B Interest coverage 13.27x +315% vs FPS Carries about 4.2x more debt cushion than FPS.
What you should know
The case for and against FPS
2 Rewards
1 Risk
Rewards
-
Revenue grew 13.8% last year.
-
Returns 17.0% on equity, ahead of 33% of its peers.
Risks
-
Insider ownership is only 0.2% (peer median: 0.8%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
81.90x
Forward P/E
12.14x
P/B
11.32x
P/S
5.52x
EV/EBITDA
29.93x
PEG ratio
0.20x
Profitability
How much profit each dollar creates
Gross margin
35.0%
Operating margin
12.8%
Net margin
5.8%
ROE
17.0%
ROA
6.0%
Health
Liquidity and balance-sheet strength
Debt / equity
1.05x
Current ratio
1.54x
Quick ratio
0.84x
Total debt
$703.77M
Total cash
$97.48M
Growth
How the business has been compounding
Revenue TTM
$1.62B
Revenue 5Y CAGR
369.3%
EPS TTM
0.30
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$239.26M
Free CF TTM
$-6.82M
FCF margin
-0.4%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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