FPS

Forgent Power Solutions, Inc.

Forgent Power Solutions, Inc.FPS

Industrials · Electrical Equipment & Parts

38.52USD

+2.04%

Sep 23, 2026

FPS overview ready

Engineered electrical distribution solutions powering high-density AI data centers

Forgent is an engineered-to-order electrical-distribution manufacturer serving data centers, utilities and energy-intensive industry, with panels and switchgear, transformers, transfer and connector systems, and prefabricated power solutions.

Strong narrative exposure

Exposed to the AI Compute Infrastructure Buildout narrative through AI Data Center Power and Thermal Systems — bottleneck supplier.

Price trend is broken

Longer-term context reads new trend, with a near-term setup of daily advance.

The tactical setup reads daily advance, but the weekly structure is broken.

Demanding valuation

The price embeds expectations that run ahead of the cash the business currently produces.

Fundamentals under pressure

Free cash flow yield is weak.

Primary risk

Exposure to capital expenditure cycles in data centers and utilities.

Market Sep 22Price action Sep 21

Conviction Level

Theme Heat has no canonical measurement for this company — a research-profile dimension, not an input to this score.

Price

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Price Action

Price trend is broken

Longer-term context reads new trend, with a near-term setup of daily advance.

The tactical setup reads daily advance, but the weekly structure is broken.

EntryReset + recovery

The recent reset toward the daily SMA100. Daily structure is recovering above the fast averages, improving the current entry location.

Key Financials

Market Cap: $10.3B
Avg Volume (60D): 8.4M
Revenue Growth YoY: +94.3%
Gross Margin: +35.0%
Operating Margin: +14.5%
Free Cash Flow Yield: -0.9%
P/E: 146.1x
EV / EBITDA: 43.1x
EV / Sales: 7.6x

Market metrics as of Sep 22, 2026

Fundamentals & Valuation

Both valuation perspectives agree this company is expensive.

Forgent Power Solutions, Inc. has an Expensive valuation stance because the price embeds expectations that run ahead of the cash the business currently produces. It trades at 43.1x EBITDA and 7.6x revenue, which require sustained delivery to be justified.

Company Research

Thesis

Opportunity

High opportunity

Hyperscaler, cloud and colocation investment in high-density AI data centers is increasing demand for electrical distribution, power-conversion, backup-power and thermal infrastructure that can energize and protect large compute clusters.

Key risk

Exposure to capital expenditure cycles in data centers and utilities.

Narrative & Theme

AI Compute Infrastructure Buildout

Part of AI Data Center Power and Thermal Systems, with strong fit.

It is a highly direct adjacent beneficiary of the same AI-data-center power-infrastructure demand system as POWL, MOD and VRT: it sells mission-critical distribution equipment used throughout a data center’s electrical powertrain.

Narrative HeatUnavailable

Theme HeatUnavailable

Business & Markets

Industrials · Electrical Equipment & Parts

What they do

Forgent Power Solutions designs and manufactures electrical distribution equipment for data centers, power grids, and energy-intensive industrial facilities, supplying a broad range of power management hardware.

How it earns

The company generates revenue primarily through transactional sales of electrical equipment and related products.

Products & services

Automatic transfer switches (ATS)

Medium voltage switchgear

Padmount transformers

Power distribution units

UPS eHouses

Customers & end markets

Data centers

Power grid operators

Energy-intensive industrial facilities

Market position

Niche player specializing in electrical distribution equipment for critical power applications.

Demand drivers

Medium cyclicality

Business is influenced by capital expenditure cycles in data centers and utilities but also benefits from ongoing infrastructure upgrades.