Company overview

Forgent Power Solutions Inc (FPS) designs and manufactures electrical distribution equipment used in data centers, the power grid, and energy-intensive industrial facilities. Headquartered in Dayton, Minnesota, the company’s principal manufacturing campuses are located in Minnesota, Texas, Maryland, California, and Mexico. Forgent employed approximately 2,000 full-time workers as of September 30, 2025.

The company was assembled by private equity firm Neos Partners LP through four acquisitions over an eight-month period: MGM Transformer Co. (October 31, 2023), PwrQ (March 13, 2024), States Manufacturing (May 31, 2024), and VanTran Industries (June 14, 2024). The Forgent parent brand was formally launched in August 2025. Neos followed the acquisitions with an approximately $205 million USD, 1.8-million-square-foot manufacturing capacity expansion across five new campuses, which management believes will support up to $5 billion USD in annual revenue.

Gary J. Niederpruem, who led the carve-out of Emerson Network Power from Emerson Electric Company and its transformation into Vertiv Holdings Co., serves as Chief Executive Officer. Chief Financial Officer Ryan S. Fiedler was previously a senior leader at Caterpillar Inc. for over 14 years, and Chief Commercial Officer Bobby Rogers spent more than 16 years at Schneider Electric SE leading North American data center sales. The company positions itself as a pure-play provider of mission-critical electrical infrastructure at a time when artificial intelligence-driven data center construction and grid modernization are creating unprecedented demand for power equipment.

Products and services

Forgent specializes in engineered-to-order electrical distribution equipment, which accounted for approximately 91% of fiscal 2025 revenue (78% Custom Products and 13% Powertrain Solutions). Standard Products contributed 5% and services 4%. Custom Products are designed for specific projects involving significant consultation with Forgent’s in-house engineering team. Powertrain Solutions are combinations of Custom Products integrated together, skidded, or designed to work as a system. The company typically produces more than 1,500 unique designs each year, with an average batch count of just 15 units per design.

The product portfolio spans four primary families, together constituting the complete electrical powertrain for a facility.

No single product category represented more than 13% of fiscal 2025 revenues, and no single customer accounted for more than 9%. Data centers represented the largest end market at 42% of fiscal 2025 revenue, followed by grid and utility customers at 23%, industrial facilities at 19%, and other markets at 16%. Sales are supported by a dedicated team of more than 150 engineers who work with customers to define system requirements, leveraging a proprietary database of over 50,000 reference designs.

Financial performance

Forgent has demonstrated rapid revenue growth since its formation, though investors should note that much of the year-over-year increase reflects the impact of acquisitions being consolidated into the pro forma figures. Revenue reached $753.2 million USD in fiscal 2025 (ended June 30, 2025), up 56% from pro forma revenue of approximately $482.7 million USD in fiscal 2024. Approximately 85% of the $270.5 million USD increase was driven by organic growth, with the balance from higher pricing reflecting mix shift toward more complex engineered-to-order products.

Growth accelerated into fiscal 2026. First-quarter revenue (ended September 30, 2025) reached $283.3 million USD, an 84% year-over-year organic increase driven by higher shipments of custom equipment for data center builds and grid projects. On a last-twelve-month basis through September 30, 2025, revenue was $882 million USD and Adjusted EBITDA was $191 million USD, representing a 22% margin.

The company is profitable on a net income basis, reporting $17.4 million USD in fiscal 2025, though net margins remain thin at approximately 2.3%. The gap between the 22.5% Adjusted EBITDA margin and the modest net margin reflects $58.7 million USD in amortization of intangibles from the Business Acquisitions, $54.8 million USD in interest expense on acquisition-related debt, and $15.2 million USD in sponsor fees and public company readiness costs.

Backlog provides meaningful forward visibility. As of September 30, 2025, the order book stood at $1,027.1 million USD — exceeding the company’s entire fiscal 2025 revenue — and was up 44% year-over-year. The book-to-bill ratio was 1.6x in Q1 FY2026. Approximately 47% of backlog was attributable to Data Center, 30% to Grid, 13% to Industrial, and 10% to other markets. Over 35% of the backlog comprised orders from first-time Forgent customers. Average customer spend increased 65% from approximately $493,000 USD in fiscal 2024 to approximately $814,000 USD in fiscal 2025, and the company added more than 200 new customers during the year.

IPO details

Forgent Power Solutions filed its S-1 registration statement with the Securities and Exchange Commission (SEC) on January 9, 2026. The offering is structured as an “umbrella partnership-C-corporation” (Up-C), a tax-efficient arrangement common among private equity-backed IPOs. The publicly traded entity will be a holding company whose principal asset consists of all limited liability company interests of Forgent Intermediate LLC, the operating subsidiary.

Notably, the company will not receive proceeds from the 39.4 million shares sold by existing stockholders controlled by Neos Partners. Forgent’s own net proceeds of approximately $427.7 million USD will be used to redeem Opco LLC Interests from the Existing Opco LLC Owners — not for general corporate purposes or growth investment.

Ownership and funding

Forgent was built through a roll-up strategy executed by Neos Partners LP, a San Diego-based private equity firm. Neos completed four acquisitions over eight months at an aggregate purchase price of $604.2 million USD: MGM Transformer Co. (October 31, 2023), PwrQ (March 13, 2024), States Manufacturing (May 31, 2024), and VanTran Industries (June 14, 2024). The acquisitions were funded primarily through capital contributions and borrowings under the 2023 Debt Facilities.

As of September 30, 2025, Forgent carried $509.8 million USD in outstanding borrowings under its 2023 Term Loan Facility, with $56.4 million USD available under a revolving facility. On December 19, 2025, the company entered into a new Senior Credit Agreement providing a $600 million USD term loan and a $250 million USD revolving credit facility, refinancing the prior debt.

Following the IPO, Neos Partners will retain majority voting control through a dual-class share structure. Existing Opco LLC Owners hold Class B shares paired with Opco LLC Interests, giving them voting rights without economic interest in Forgent Power Solutions Inc itself — their economic exposure flows through the operating company. As a result, Forgent qualifies as a “controlled company” under NYSE rules, allowing it to rely on certain corporate governance exemptions, including reduced board independence requirements.

The IPO also includes a Tax Receivable Agreement (TRA) under which Forgent will pay TRA Participants 85% of the amount of tax savings that result from redemptions or exchanges of Opco LLC Interests for Class A common stock or cash. Management expects these cash payments to be substantial and to continue for more than fifteen years after all existing owners have exchanged or redeemed their interests.

Key risks

Customer and end-market concentration. Data centers represented 42% of fiscal 2025 revenue and 47% of backlog as of September 30, 2025. Any pullback in hyperscaler capital expenditure — whether from an economic downturn, shifts in artificial intelligence investment sentiment, or supply chain disruption — could materially impact demand. The company’s growth depends in part on continued investment in new data centers, which in turn depends on continued interest in developing AI.

Commodity price and tariff exposure. Forgent’s products rely heavily on electrical steel, carbon steel, aluminum, copper, and specialized insulation materials. The S-1 discloses that the company does not enter into hedging arrangements to mitigate commodity risk, and a 100 basis point increase in interest rates would impact annual interest expense by approximately $5.1 million USD. Additionally, manufacturing operations in Mexico expose the company to tariff and trade policy risk, although Forgent notes the flexibility to shift production between U.S. and Mexican campuses.

Elevated leverage. As of September 30, 2025, long-term debt totaled $509.8 million USD. The December 2025 refinancing increased total debt facilities to $850 million USD ($600 million term loan plus $250 million revolver). The combination of debt service costs, $205 million USD in ongoing capacity expansion, and TRA payments to pre-IPO owners could constrain financial flexibility. Interest expense was $54.8 million USD in fiscal 2025.

MGM ownership litigation. A lawsuit filed by Abbie Gougerchian asserts a 50% ownership claim over MGM Transformers, alleging he was squeezed out of the company’s $400 million USD sale to Neos in 2023. If successful, the claim could obligate Neos and MGM to pay up to $200 million USD.

Controlled company structure. The Up-C arrangement and dual-class shares mean Neos Partners retains majority voting control, limiting public shareholders’ influence over corporate governance, capital allocation, and strategic decisions. The Tax Receivable Agreement — under which Forgent will pay 85% of tax savings to pre-IPO owners — further shifts economic value toward existing equity holders. The S-1 notes that in certain cases, TRA payments may be accelerated and could significantly exceed the actual benefits realized.