FPS · Forgent Power Solutions, Inc.

Summary

Forgent Power Solutions, Inc. is a leading designer and manufacturer of electrical distribution equipment for data centers, power grids, and energy-intensive industrial facilities. The company specializes in engineered-to-order Custom Products and Powertrain Solutions, generating 91% of fiscal 2025 revenues from these segments. Revenues grew 56% to $753.2 million in fiscal 2025 from pro forma $482.7 million in fiscal 2024, with Adjusted EBITDA of $169.2 million (22.5% margin). As of December 31, 2025, Backlog stood at $1.5 billion, up 100% year-over-year. The company operates via an Up-C structure post-IPO, with Forgent Power Solutions, Inc. (incorporated July 21, 2025) as the holding company owning ~76.65% of Opco LLC Interests. This offering includes 9,311,665 Class A shares from the company and 20,688,335 from selling stockholders (Forgent Parent I LP and IV LP), totaling 30 million shares (option for 4.5 million more). Net proceeds (~$300.6 million at $33.45/share) will fund purchase of 9.3 million Opco LLC Interests from Opco, which will redeem from Existing Opco LLC Owners. Investment thesis: Capitalize on 20% CAGR market growth to 2030 driven by data centers (42% revenues), grid expansion, and reshoring; recent $205 million capacity expansion to triple FY2025 volume; Neos-controlled (78.85% voting pre-offering).

Key takeaways

• Fiscal 2025 revenues $753.2 million, up 56% from pro forma fiscal 2024 $482.7 million; Adjusted EBITDA $169.2 million (22.5% margin).
• Backlog $1.5 billion as of December 31, 2025, up 100% YoY; 41% from first-time customers.
• Offering: 30 million Class A shares (9.3M from company, 20.7M from selling stockholders Forgent Parent I LP/IV LP); underwriters Goldman Sachs, Jefferies, Morgan Stanley; NYSE:FPS.
• Use of proceeds: Company buys 9.3M Opco LLC Interests from Opco at $33.45/unit (closing price March 20, 2026); Opco redeems from Existing Opco LLC Owners (Forgent Parent II/III LP).
• Up-C structure: Post-IPO, company indirectly owns 76.65% Opco economic interests; Neos controls 78.85% voting via Continuing Equity Owners.
• Growth drivers: Data centers (42% FY2025 revenue), grid (23%), industrial (19%); $205M capacity expansion to triple FY2025 volume by end-2026.
• Key risks: Supply chain disruptions (e.g., electrical steel shortages), capacity ramp delays, Tax Receivable Agreement payments (~$610M estimated over 15 years), controlled company status.