Forgent Power Solutions (FPS) investor relations material

Company overview and business model

• Designs and manufactures electrical distribution equipment for data centers, power grids, and industrial facilities, with a focus on engineered-to-order custom products and powertrain solutions for technically demanding applications.

• Offers a broad product portfolio including transformers, switchgear, panelboards, eHouses, power skids, and related services, serving data center, grid, and industrial end-markets.

• Operates ten manufacturing campuses in the US and Mexico, with significant recent capacity expansion to support growth and reduce industry bottlenecks.

• Business model emphasizes vertical integration, rapid engineering, and prefabricated solutions to address labor shortages and customer demand for customization and speed.

• Substantially all revenues are generated in North America, with plans for international expansion.

Financial performance and metrics

• Fiscal 2025 revenues grew 56% year-over-year to $753.2 million, with a 100% increase in backlog to $1.5 billion as of December 31, 2025.

• Adjusted EBITDA for the year ended June 30, 2025 was $169.2 million, with an Adjusted EBITDA margin of 22.5%.

• Net income for the year ended June 30, 2025 was $17.4 million; net income for the six months ended December 31, 2025 was $15.5 million.

• No single product category represented more than 13% of revenues, and no customer accounted for more than 9% of revenues in FY2025.

• As of December 31, 2025, cash and cash equivalents were $106.2 million, with $583.5 million in long-term debt and $250 million available under a revolving credit facility.

Use of proceeds and capital allocation

• Net proceeds from the offering will be used to purchase Opco LLC Interests from Opco, which will use the funds to redeem interests from existing owners.

• No proceeds from shares sold by selling stockholders will go to the company; company will bear offering expenses except underwriting discounts and commissions.

• Capital expenditures for capacity expansion are expected to total $205 million, with most spending completed by the end of fiscal 2026.