Forgent Power Solutions, Inc. Class A (FPS) AI Stock Analysis

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Forgent Power Solutions, Inc. Class A

(NYSE:FPS)

Select Model

Rating:63Neutral

Price Target:$19.50▼(-9.22% Downside)

Action:reiterated

Date:11/06/26

The score is driven primarily by improving fundamentals (profitability turnaround and sharply better leverage) and a very strong, high-visibility guidance/backlog message from the latest earnings call. These positives are tempered by persistently negative and deteriorating free cash flow, bearish technical momentum (despite oversold readings), and a high P/E that leaves less room for execution missteps.

Positive Factors

Profitability and Revenue GrowthThe return to profitability alongside accelerating revenue indicates stronger operating scale and demand capture. Positive EBIT margins and improved earnings provide a more durable base for reinvestment, while continued growth could support further operating leverage if gross-margin pressure remains manageable.

Negative Factors

Weak Free Cash Flow ConversionPersistent negative free cash flow shows that accounting profitability has not yet translated into consistent cash generation. Working-capital needs or investment spending continue to absorb funds, which can constrain internally funded growth and make execution more dependent on improving cash conversion.

Forgent Power Solutions, Inc. Class A (FPS) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $6.52B
Dividend Yield: ―
Average Volume (3M): 9.26M
Price to Earnings (P/E): 75.6
Beta (1Y): 2.53
Revenue Growth: ―
EPS Growth: ―
Country: US
Employees: 3,000
Sector: Industrials
Sector Strength: 63
Industry: Electrical Equipment & Parts

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 industrial...

Forgent Power Solutions, Inc. Class A Earnings Call Summary

Earnings Call Date:Sep 15, 2026(Q4-2026)|% Change Since:-25.00%|Next Earnings Date:Nov 12, 2026

Earnings Call SentimentPositive

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.

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

Strong operating turnaround and improved leverage (return to profitability, accelerating revenue growth, and sharply reduced debt) are partially offset by weak cash conversion. Free cash flow remained negative and worsened in 2026 despite positive net income, keeping execution and funding risk elevated.

Income Statement

78Positive

Balance Sheet

74Positive

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Jun 2026	Jun 2025	Jun 2024
Income Statement
Total Revenue	1.42B	1.42B	753.19M	181.31M
Gross Profit	445.38M	445.38M	278.07M	67.74M
EBITDA	238.10M	227.90M	142.43M	18.00M
Net Income	81.84M	81.84M	15.20M	-17.82M
Balance Sheet
Total Assets	2.25B	2.25B	1.54B	1.35B
Cash, Cash Equivalents and Short-Term Investments	121.71M	121.71M	111.32M	186.40M
Total Debt	703.77M	703.77M	630.48M	523.37M
Total Liabilities	1.58B	1.58B	963.40M	759.06M
Stockholders Equity	564.32M	564.32M	374.53M	517.95M
Cash Flow
Free Cash Flow	-27.01M	-30.28M	-39.09M	-7.54M
Operating Cash Flow	88.89M	85.63M	45.02M	-4.63M
Investing Cash Flow	-115.91M	-115.91M	-84.11M	-744.65M
Financing Cash Flow	37.41M	40.67M	-35.98M	935.68M

Forgent Power Solutions, Inc. Class A Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

FPS against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENS	73Outperform	$5.46B	15.85	18.48%	0.71%	3.73%	7.60%
HUBB	71Outperform	$23.13B	25.59	23.21%	1.30%	15.96%	5.54%
POWL	71Outperform	$5.04B	26.32	27.51%	0.26%	7.04%	8.18%
AEIS	70Outperform	$8.97B	29.80	19.94%	0.18%	31.66%	92.94%
NVT	68Neutral	$18.18B	26.78	17.35%	0.75%	47.96%	13.45%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FPS	63Neutral	$6.54B	75.55	18.39%	―	―	―

* Industrials Sector Average

Performance Comparison

FPS and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
FPS	Forgent Power Solutions, Inc. Class A	21.48	-7.52	-25.93%
AEIS	Advanced Energy Industries, Inc.	221.69	9.21	4.34%
ENS	EnerSys	151.33	13.36	9.68%
HUBB	Hubbell Incorporated B	437.79	-9.75	-2.18%
POWL	Powell Industries, Inc.	138.21	19.72	16.64%
NVT	Nvent Electric	112.48	1.72	1.56%

Forgent Power Solutions, Inc. Class A Corporate Events

Executive/Board Changes

Forgent Power Solutions Appoints Amy Ard as New CFO

Positive

Oct 22, 2026

On October 21, 2026, Forgent Power Solutions Inc. announced that Chief Financial Officer Ryan Fiedler agreed to step down from his role, with his employment ending on October 30, 2026 and compensation limited to accrued salary and vacation plus conti...

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.

Date of analysis: Nov 06, 2026

Forgent Power Solutions, Inc. Class A AI Stock Analysis