Forgent Power Solutions IPO’d at $27 in February 2026. Five months later the stock trades near $47 and the backlog has grown to $2.4 billion. The company is fully booked for Q4 2026 and is operating at just 30% of its available production capacity. This is either the most asymmetric setup in AI infrastructure — or a warning about what happens when growth multiples meet a company that has never operated at scale.— SWP Equity Research, July 4, 2026
Most of you know Vertiv, most of you know Eaton. Almost nobody in retail investing is tracking Forgent Power Solutions (NYSE: FPS) — a custom electrical distribution equipment manufacturer that IPO’d in February 2026 and has since posted one of the most explosive growth trajectories of any industrial company to go public in the last decade. Here is the complete picture.
Vertiv makes power management and cooling. Eaton makes electrical distribution systems. Forgent makes the custom electrical switchgear, transformers, and power distribution units that sit between the utility grid and Vertiv’s equipment — the very first layer of the power chain inside every AI data center.
Without Forgent’s switchgear, the grid power cannot even enter the building. This is not a supporting role. It is the literal gateway through which all data center power must flow.
What Forgent actually makes
Data centers — 47% of backlog: Custom automatic transfer switches (ATS), gear eHouses, UPS eHouses, power distribution units, medium and low voltage switchgear, and substation transformers. Every AI data center that pulls more than 50 MW from the grid needs Forgent’s type of equipment to safely distribute that power at the rack level.
Power grid — utility and industrial Padmount transformers, switchboards, paralleling switchgear, and medium voltage VPI transformers for grid modernization, industrial facilities, EV charging infrastructure, and the broader energy transition. This is the grid modernization layer that complements the AI data center thesis.
The agile manufacturing edge: Forgent’s core competitive claim is industry-leading lead times on custom equipment. When hyperscalers need switchgear delivered in 12 weeks instead of 40, Forgent is the supplier they call. The book-to-bill of 2.3× in Q3 is direct evidence that this lead time advantage is being competitively recognized.
Every AI data center needs power delivered at scale from the utility grid. Before it reaches NVIDIA’s GPUs or Vertiv’s cooling systems, it passes through Forgent’s switchgear. This company is the first node in the AI power chain — and it is the least-followed name in the entire stack.
I want more exposure to the power grid theme behind AI.
The simple thesis is AI data centers need massive amounts of electricity before anything else. That means more demand for substations, transformers, switchgear, power systems and electrical equipment.
Forgent is benefiting from that bottleneck.
Last quarter earnings was strong:
Revenue: $379M, up 103% YoY
Bookings: $867M, up 308% YoY
Backlog: $1.98B, up 157% YoY
Book-to-bill: 2.3x
That means demand is coming in much faster than the company can ship.
What I like most is that Forgent is not just selling basic equipment. They are helping customers get power to data centers faster. In a market where delays can last 12–24 months, speed is a huge advantage.
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