Motley Fool Hidden Gems Investing When the Government Becomes Your Co-investor
18 snips
Sep 15, 2026 
Lou Whiteman, an analyst covering aerospace, defense, and infrastructure, joins Matt Frankel, a financial services and dividend investing specialist. They explore the rise of government equity stakes, how public ownership could reshape corporate priorities and capital allocation, and why defense partnerships are gaining momentum. They also discuss Forgent’s strong growth, Elmet’s defense investment, and staying disciplined through market volatility.
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Forgent Raises Guidance Despite Share Dilution
- Forgent Power Solutions beat earnings expectations and raised guidance while adding capacity for substantial growth.
- Fiscal 2027 guidance implies roughly 75% revenue growth, with higher EPS despite dilution from its June secondary offering.
Forgent Backlog Surges Ahead Of Revenue
- Forgent’s $1.5 billion quarterly bookings surge created a 3.3 book-to-bill ratio and pushed backlog above $3 billion.
- Its adjusted EBITDA margin exceeded 24%, well above comparable electrical-equipment companies’ upper-teens margins.
Test Forgent’s Backlog For Concentration Risk
- Treat Forgent’s backlog as an execution challenge, not guaranteed revenue, because supply chains and subcontractors remain risks.
- Investigate whether new bookings depend on one or two hyperscalers, since concentration could materially increase risk.