Forgent Power Solutions combines 76% FY27 growth guidance, a $3.0 billion backlog, and a differentiated five-month delivery model with meaningful leverage and sponsor-overhang risk.
Overview
Forgent Power Solutions is a North American designer and manufacturer of custom electrical distribution equipment, operating through Forgent Power Solutions LLC. Its products—including switchgear, transformers, ATS systems, eHouses, Powerskids, PDUs, and related services—move and distribute power in data centers, utilities, and advanced industrial facilities. The company’s differentiation is vertical integration, deep customization, and delivery of fully integrated modular systems within five months, compared with longer lead times at global conglomerates. **FY26 ended with exceptional momentum:** Q4 revenue rose 94.3% to $461.7 million, gross margin reached 36.1%, Adjusted EBITDA rose 163% to $112.7 million, and bookings reached $1.503 billion, lifting backlog to $3.0 billion. FY26 revenue was $1,420.1 million and Adjusted EBITDA was $322.9 million. **FY27 guidance implies 76% midpoint revenue growth**, with $2.4 billion to $2.6 billion of revenue, $575 million to $625 million of Adjusted EBITDA, and $1.26 to $1.40 of adjusted EPS. The stock trades at approximately 23.8x forward adjusted EPS and 17.4x forward Adjusted EV/EBITDA. Near-term catalysts are the Q4 FY27 Tijuana ramp, declining capex, over $300 million of projected FY27 operating cash flow, and debt savings, offset by leverage, customer concentration, raw-material exposure, and sponsor dilution.