A few months ago, I highlighted Forgent Power Solutions $FPS ( ▲ 11.86% ) as one of the more interesting under-the-radar beneficiaries of the AI infrastructure boom. The thesis was relatively straightforward: building more data centers doesn’t just require GPUs. Those facilities need enormous amounts of electricity, and that electricity has to be transformed, distributed and controlled before it ever reaches a server rack. Forgent provides much of the equipment sitting in the middle of that process.

The latest results suggest demand is accelerating even faster than expected. Orders exploded, backlog reached another record, margins expanded significantly and management issued an outlook for the new fiscal year that points toward another year of exceptional growth.

More importantly, the company continues expanding manufacturing capacity because customers are asking for more equipment than its existing footprint was originally designed to produce. Let’s take a deeper dive.