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Forgent Power Solutions, Inc. Class A (FPS)
NYSE:FPS
US Market
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Forgent Power Solutions, Inc. Class A (FPS) AI Stock Analysis

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FPS

Forgent Power Solutions, Inc. Class A

(NYSE:FPS)

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Neutral 50 (OpenAI - 5.2)
Rating:50Neutral
Price Target:
$59.00
â–²(75.13% Upside)
Action:Reiterated
Date:06/26/26
The score is held back primarily by elevated financial risk (higher leverage and materially negative free cash flow) despite improved profitability. Technicals are supportive with price above key moving averages and positive MACD, while valuation is a major negative due to an extremely high P/E and no dividend yield support. A positive refinancing event modestly improves the outlook by lowering borrowing costs.
Positive Factors
Profitability Turnaround
A sharp revenue recovery and a return to net profitability indicate durable demand recovery and operational scalability. Positive earnings create the foundation for reinvestment, debt reduction or strategic initiatives, improving the company’s ability to withstand cyclical shocks over coming months.
Negative Factors
Elevated Leverage
Significantly higher leverage raises solvency and refinancing vulnerability if earnings weaken. With debt materially above prior levels, the firm faces constrained strategic optionality and higher interest sensitivity, making sustained deleveraging or margin shocks a key risk over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Turnaround
A sharp revenue recovery and a return to net profitability indicate durable demand recovery and operational scalability. Positive earnings create the foundation for reinvestment, debt reduction or strategic initiatives, improving the company’s ability to withstand cyclical shocks over coming months.
Read all positive factors

Forgent Power Solutions, Inc. Class A (FPS) vs. SPDR S&P 500 ETF (SPY)

Forgent Power Solutions, Inc. Class A Business Overview & Revenue Model

Company Description
Forgent Power Solutions, Inc. specializes in the engineering and manufacturing of electrical power distribution systems. These critical solutions are vital for cutting-edge data centers, extensive power grids, and various energy-demanding industri...

Forgent Power Solutions, Inc. Class A Financial Statement Overview

Summary
FY2025 showed a strong profitability turnaround (revenue up sharply and net income positive), but risk remains elevated due to higher leverage (debt-to-equity ~1.68x) and weak cash conversion with free cash flow still meaningfully negative.
Income Statement
62
Positive
Balance Sheet
46
Neutral
Cash Flow
34
Negative
BreakdownTTMJun 2025Jun 2024
Income Statement
Total Revenue1.20B753.19M181.31M
Gross Profit370.54M278.07M67.74M
EBITDA131.99M142.43M18.00M
Net Income4.62M15.20M-17.82M
Balance Sheet
Total Assets1.85B1.54B1.35B
Cash, Cash Equivalents and Short-Term Investments93.83M111.32M186.40M
Total Debt707.56M630.48M523.37M
Total Liabilities1.27B963.40M759.06M
Stockholders Equity446.48M374.53M517.95M
Cash Flow
Free Cash Flow-94.40M-39.09M-7.54M
Operating Cash Flow31.23M45.02M-4.63M
Investing Cash Flow-125.63M-84.11M-744.65M
Financing Cash Flow12.94M-35.98M935.68M

Forgent Power Solutions, Inc. Class A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison

Forgent Power Solutions, Inc. Class A Corporate Events

Business Operations and StrategyPrivate Placements and Financing
Forgent Power Refinances Term Loans, Lowers Borrowing Costs
Positive
Jun 26, 2026
On June 23, 2026, Forgent Power LLC, a subsidiary of Forgent Power Solutions, Inc., amended its December 19, 2025 credit agreement, refinancing $600 million of initial term loans with new refinancing term loans at a reduced interest margin. The co...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 26, 2026