Forgent Power Solutions Inc (FPS): F4Q Wrap Follow Up

We update our published FY28 estimates to provide some more wiggle room for execution. Importantly, demand trends continue to be extremely strong and revenue upside is more a factor of the company ramping labor/capacity to keep up, which we have high confidence in (FPS is already instrumenting the company to deliver two consecutive years of 80-90% organic growth), while we continue to expect margin pressures (albeit moving in the right direction) as the company continues to invest to capture growth exploding to the upside. FPS is executing to deliver exponential growth, pulling revenue forward already by one year vs IPO model, a heavy lift for a manufacturing company. Near-term focus is clearly labor/capacity ramp to execute on demand already in backlog, while the company suggested potential M&A in FY27 citing industry consolidation, with the intent to maintain or grow content per MW over time through the 800VDC transition. Our PT of $56 continues to be based on the scenario published