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Forgent Power Solutions, Inc. Class A
(NYSE:FPS)
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Rating:66Neutral
Price Target:
$41.00
▲(5.59% Upside)
Action:Reiterated
Date:09/18/26
The score is driven primarily by improving fundamentals (profitability rebound and sharply reduced leverage) and a very strong earnings-call outlook with high backlog coverage and expectations for higher operating cash flow. Offsetting these strengths are persistently negative free cash flow to date, a very high P/E that leaves little margin for error, and mixed technical momentum (negative MACD and below the 100-day average).
Positive Factors
Revenue and Profitability Turnaround
The return to solid profitability alongside accelerating revenue indicates meaningful operational improvement rather than merely cost cutting. Positive EBIT margins and stronger scale can support reinvestment, improve resilience, and provide a durable earnings base over the next several quarters.
Negative Factors
Persistently Negative Free Cash Flow
Negative free cash flow despite accounting profitability indicates that earnings have not yet converted consistently into deployable cash. Continued working-capital needs or investment spending could constrain self-funded growth, delay deleveraging, and increase reliance on operating improvement to strengthen financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Profitability Turnaround
The return to solid profitability alongside accelerating revenue indicates meaningful operational improvement rather than merely cost cutting. Positive EBIT margins and stronger scale can support reinvestment, improve resilience, and provide a durable earnings base over the next several quarters.
Read all positive factors
Forgent Power Solutions, Inc. Class A (FPS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.01B
Dividend YieldN/A
Average Volume (3M)7.64M
Price to Earnings (P/E)138.7
Beta (1Y)1.73
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees3,000
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)0.28
Shares Outstanding274,527,100
10 Day Avg. Volume13,314,400
30 Day Avg. Volume7,636,386
Financial Highlights & Ratios
PEG Ratio0.67
Price to Book (P/B)30.13
Price to Sales (P/S)11.98
P/FCF Ratio-561.64
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$60.75Price Target Upside56.45% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)1.13
Revenue Forecast (FY)$2.09B
Forgent Power Solutions, Inc. Class A Business Overview & Revenue Model
Company Description
Forgent Power Solutions, Inc. specializes in the engineering and manufacturing of electrical power distribution systems. These critical solutions are vital for cutting-edge data centers, extensive power grids, and various energy-demanding industri...
Forgent Power Solutions, Inc. Class A Earnings Call Summary
Earnings Call Date:Sep 15, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Mar 22, 2027
Earnings Call Sentiment Positive
The call was strongly positive. Forgent reported record quarterly and full-year financial results, substantial bookings and backlog growth, broad-based market share gains, expanding margins, rising cash generation and strong fiscal 2027 guidance with more than 90% of the revenue outlook covered by backlog. The main negatives were approximately $10 million of first-quarter one-time costs, lower initial-quarter margins, continued execution requirements around hiring and supply chain, and lower margin potential on some third-party content. These challenges were explicitly presented as manageable within the company's growth plan, so highlights significantly outweighed lowlights.Positive Updates
Record Fourth-Quarter Financial Results
Forgent closed fiscal 2026 with its strongest quarter in company history. Fourth-quarter revenue increased 94% year-over-year to a record $462 million, adjusted EBITDA increased 163% to a record $113 million, adjusted net income increased 275% to $77 million, and adjusted EBITDA margin expanded 200 basis points sequentially to 24.4%.
Negative Updates
First-Quarter Fiscal 2027 Cost Absorption
Forgent expects approximately $10 million of one-time costs in the first quarter of fiscal 2027 that it does not expect to fully absorb until production ramps in subsequent quarters.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Fourth-Quarter Financial Results
Forgent closed fiscal 2026 with its strongest quarter in company history. Fourth-quarter revenue increased 94% year-over-year to a record $462 million, adjusted EBITDA increased 163% to a record $113 million, adjusted net income increased 275% to $77 million, and adjusted EBITDA margin expanded 200 basis points sequentially to 24.4%.
Read all positive updates
Company Guidance
For fiscal 2017, Forgent expects revenue of $2.4 billion to $2.6 billion, representing 76% growth at the midpoint; adjusted EBITDA of $575 million to $625 million, representing 86% growth at the midpoint and implying an adjusted EBITDA margin of approximately 24%, up from 22.7% in fiscal '26; and adjusted EPS of $1.26 to $1.40, representing approximately 95% growth at the midpoint. Backlog covers more than 90% of revenue guidance, while Q1 revenue guidance is $445 million to $465 million and adjusted EBITDA guidance is $90 million to $100 million, with approximately $10 million of one-time costs; at the midpoint, that is 61% revenue growth and 46% adjusted EBITDA growth year-over-year. The company expects adjusted EBITDA margins to expand by more than 100 basis points year-over-year, operating cash flow of more than $300 million, and capital expenditures to step down to roughly 3% of sales in fiscal '27, inclusive of the incremental Powertrain Solutions investment.Forgent Power Solutions, Inc. Class A Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
45
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 |
|---|---|---|---|
Income Statement | |||
| Total Revenue | 1.42B | 753.19M | 181.31M |
| Gross Profit | 445.38M | 278.07M | 67.74M |
| EBITDA | 227.90M | 142.43M | 18.00M |
| Net Income | 81.84M | 15.20M | -17.82M |
Balance Sheet | |||
| Total Assets | 2.25B | 1.54B | 1.35B |
| Cash, Cash Equivalents and Short-Term Investments | 121.71M | 111.32M | 186.40M |
| Total Debt | 703.77M | 630.48M | 523.37M |
| Total Liabilities | 1.58B | 963.40M | 759.06M |
| Stockholders Equity | 564.32M | 374.53M | 517.95M |
Cash Flow | |||
| Free Cash Flow | -30.28M | -39.09M | -7.54M |
| Operating Cash Flow | 85.63M | 45.02M | -4.63M |
| Investing Cash Flow | -115.91M | -84.11M | -744.65M |
| Financing Cash Flow | 40.67M | -35.98M | 935.68M |
Forgent Power Solutions, Inc. Class A Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $23.61B | 26.37 | 23.65% | 1.27% | 10.61% | 9.52% | |
74 Outperform | $6.42B | 18.65 | 18.48% | 0.60% | 3.73% | 7.60% | |
74 Outperform | $6.70B | 35.04 | 27.51% | 0.19% | 7.04% | 8.18% | |
73 Outperform | $25.55B | 42.79 | 15.76% | 0.53% | 46.19% | 3.13% | |
66 Neutral | $12.01B | 138.73 | 18.39% | ― | ― | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $10.50B | 45.36 | 15.93% | 0.15% | 24.58% | 159.06% |
* Industrials Sector Average
FPS
Forgent Power Solutions, Inc. Class A
37.75
8.75
30.17%
AEIS
Advanced Energy
262.74
88.23
50.56%
ENS
EnerSys
178.58
67.25
60.41%
HUBB
Hubbell B
457.49
24.29
5.61%
POWL
Powell Industries
187.56
86.80
86.15%
NVT
nVent Electric
159.44
59.86
60.11%
Forgent Power Solutions, Inc. Class A Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Forgent Power Refinances Term Loans, Lowers Borrowing Costs
Positive
Jun 26, 2026
On June 23, 2026, Forgent Power LLC, a subsidiary of Forgent Power Solutions, Inc., amended its December 19, 2025 credit agreement, refinancing $600 million of initial term loans with new refinancing term loans at a reduced interest margin. The co...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.