Forgent Power Solutions, Inc.

Forgent Intermediate LLC reported strong top-line growth in its Q2 fiscal 2026 10-Q for the three months ended December 31, 2025. Revenues reached $296.4 million, a 69% YoY increase from $175.3 million, driven by higher sales of custom products ($234.5 million) and powertrain solutions ($46.4 million), fueled by demand in data centers and power grid sectors, plus new manufacturing campuses. Gross profit rose 60% YoY to $101.8 million. Operating income grew 6% to $20.1 million, tempered by SG&A expenses doubling to $68.1 million from headcount and professional services growth. A net loss of $91 thousand emerged versus $6.4 million profit YoY, primarily due to $21.0 million interest expense including $10.0 million deferred financing cost write-off from refinancing the 2023 Credit Agreement with a new $600 million term loan. For the six months ended December 31, 2025, revenues hit $579.7 million (+76% YoY), net income $15.5 million (+12% YoY). Operating cash flow was $6.0 million (down from $59.7 million YoY) due to $91.5 million accounts receivable and $45.3 million inventory increases. Balance sheet shows $1.70 billion total assets, $106.2 million cash, $583.5 million net long-term debt. Post-period IPO of parent Forgent Power Solutions, Inc. raised $491.8 million net proceeds. Capacity expansions signal readiness for sustained data center and infrastructure demand.

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