Core Viewpoint - Powell Industries, Inc. has shown strong performance in the industrial products sector, particularly in electrical equipment and services, with a recent upgrade in stock rating reflecting positive market sentiment and growth potential [2][6]. Financial Performance - Powell reported earnings of $3.40 per share, exceeding the consensus estimate of $2.85 by $0.55, indicating strong profitability [4][6]. - The company achieved a return on equity of 31.63% and a net margin of 16.82%, showcasing effective management and operational efficiency [4][6]. - Revenue for the period was $251.18 million, which, while slightly below expectations, represented a 4.1% increase from the previous year [4]. Stock Performance - Following the earnings report, Powell's shares surged by 23.2%, reaching a high of $540 and last trading at $558.51, reflecting strong investor interest [3][6]. - The current stock price is $514, down 2.52% or $13.30 from the previous day, with fluctuations between $502.23 and $530 [5]. - Over the past year, the stock reached a high of $569.80 and a low of $146.02, with a current market capitalization of approximately $6.24 billion [5][6]. Analyst Ratings - Roth Capital upgraded Powell's stock to a "Buy" rating, increasing the price target from $450 to $585, indicating confidence in the company's future performance [2][6].

Net income was $41.4 million, or $3.40 per diluted share, compared with $34.8 million, or $2.86 per diluted share, in the prior-year quarter.SG&A expenses were $25.2 million, up $3.7 million from the prior-year quarter, driven by higher compensation expenses. As a percentage of revenue, SG&A increased 110 basis points to 10%.Gross profit rose $12 million year-over-year to $71 million, and gross margin increased 380 basis points to 28.4% of revenue. Metcalf attributed the margin improvement primarily to stro ...

Key Takeaways POWL posted Q1 adjusted EPS of $3.40, beating estimates and rising 19% year over year on strong margins.POWL revenues rose 4% year over year to $251.2M, driven by electric utility and oil & gas demand.POWL ended Q1 with $1.6B backlog, up 16% year over year, supported by strong new order activity.Powell Industries, Inc.’s (POWL) first-quarter fiscal 2026 (ended December 2025) adjusted earnings of $3.40 per share surpassed the Zacks Consensus Estimate of $2.85. The bottom line increased 19% year ...

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Shares of industrial power systems company Powell Industries (NASDAQ: POWL) rallied 12.7% on Wednesday as of 12:17 p.m. EDT. Powell held its earnings release last night, and while its top-line revenue figures appeared lackluster, the company did an excellent job of increasing its margins and profits. Furthermore, Powell delivered super-strong orders, giving investors visibility into future growth. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to ...

Financial Performance - In Q1 Fiscal 2026, the company reported revenues of $251.2 million, a 4% increase from the previous year, with net income of $41.4 million, or $3.40 per diluted share[105][119]. - Gross profit increased by 20% to $71.4 million, with gross profit margin rising to 28% from 25% year-over-year[116]. - Revenue from the electric utility market rose by 35% to $69.3 million, while revenue from the oil and gas market increased by 2% to $97.9 million[115]. - International revenues increased by 29% to $56.3 million, primarily due to increased activities in the Middle East, Africa, and Asia/Pacific regions[114]. Order and Backlog - The order backlog increased to $1.6 billion as of December 31, 2025, a 14% increase from $1.4 billion at September 30, 2025, with 32% from oil and gas, 30% from electric utility, and 22% from commercial and other industrial markets[120]. - Bookings increased by 63% in Q1 Fiscal 2026 to $438.8 million, compared to $268.6 million in Q1 Fiscal 2025, driven by improved activity in the commercial and other industrial market[121]. Expenses and Cash Flow - Selling, general and administrative expenses rose by 17% to $25.2 million, representing 10% of revenues, up from 9% in the previous year[117]. - Cash, cash equivalents, and short-term investments increased to $500.8 million as of December 31, 2025, from $475.5 million at September 30, 2025[123]. - Operating activities generated net cash of $43.6 million in Q1 Fiscal 2026, compared to $37.1 million in the same period of Fiscal 2025[129]. Strategic Focus - The company is focused on managing product pricing and improving factory efficiencies to mitigate supply chain challenges and rising costs[113]. Accounting and Risk - No material changes to critical accounting policies since the Annual Report for the fiscal year ended September 30, 2025[133]. - No material changes to market risks as of and for the three months ended December 31, 2025, compared to previous reports[134]. - Financial statements prepared in accordance with U.S. GAAP, requiring management estimates and assumptions affecting reported amounts[132].

Powell Industries (NasdaqGS:POWL) Q1 2026 Earnings call February 04, 2026 11:00 AM ET Company ParticipantsBrett Cope - Chairman, President, and CEOManish Somaiya - Managing DirectorMike Metcalf - EVP, CFO, Secretary, and TreasurerRyan Coleman - Head of Investor RelationsConference Call ParticipantsChip Moore - Managing Director and Senior Research AnalystJohn Braatz - Partner and Senior Equity AnalystJohn Franzreb - Senior Equity AnalystOperatorWelcome to the Powell Industries Fiscal First Quarter 2026 Earn ...

Financial Data and Key Metrics Changes - Revenue grew by 4% year-over-year, reaching $251 million compared to $241 million in the same period last year [5][15] - Gross profit increased by 20% to $71 million, resulting in a gross margin of 28.4%, an improvement of 380 basis points year-over-year [5][19] - Net income rose to $41.4 million, or $3.40 per diluted share, a 19% increase from $34.8 million, or $2.86 per diluted share, in the prior year [21] - New orders booked were $439 million, a 63% increase compared to the same period last year, with a book-to-bill ratio of 1.7 times [6][16] Business Line Data and Key Metrics Changes - The commercial and other industrial market accounted for nearly half of the order total, with data centers representing approximately 15% of the total backlog [7][8] - The utility sector saw a revenue increase of 35% compared to the same period last year, while the oil and gas sector increased by 2% [18] - The petrochemical sector experienced a decline of 31% due to the completion of a large project and softer commercial activity [18] Market Data and Key Metrics Changes - Domestic revenues slightly decreased by 1% to $195 million, while international revenues increased by 29% to $44 million, driven by projects in the Middle East, Africa, Asia Pacific, and Europe [17][18] - The backlog at the end of the quarter was $1.6 billion, a sequential growth of 14% and the highest in the company's history [10][17] Company Strategy and Development Direction - The company is focused on expanding productive capacity and optimizing manufacturing processes to meet growing market demand, particularly in the LNG and data center sectors [9][11] - Strategic investments are being made in new facilities and equipment to support growth in medium voltage distribution products [12][58] - The company aims to maintain a strong presence in the electric utility and commercial markets while adapting to new market dynamics [12][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining strong demand across all end markets, with expectations for continued growth in 2026 [22] - The company is actively addressing potential constraints related to skilled labor shortages, which could impact growth ambitions [99] - Management remains optimistic about the commercial environment and the ability to execute on the backlog while maintaining margin levels [22][21] Other Important Information - The expansion of the Jacintoport facility is on schedule and expected to be completed in the second half of fiscal 2026, which will enhance capacity for oil and gas customers [11] - The company has no debt and reported cash and short-term investments of $501 million [21] Q&A Session Summary Question: Comments on gross margin sustainability - Management indicated that the gross margin improvement was driven by strong project closeouts and productivity, with expectations to maintain upper 20s margin levels [26][27] Question: Concerns about backlog firmness - Management expressed confidence in the durability of the $1.6 billion backlog, noting ongoing discussions with customers about project timing and capacity [28][32] Question: Data center project cadence and follow-on orders - Management discussed the project nature of data center work and the potential for increased production flow and efficiency in upcoming quarters [36][37] Question: Pricing environment and raw material costs - Management noted stable pricing across verticals and strategies to manage raw material costs through hedging and locking in prices for engineered components [44][48] Question: Lead times on components and potential constraints - Management indicated that they are well-positioned regarding capacity for various product levels, with ongoing discussions about meeting client needs [50][51] Question: Capital expenditure plans for capacity expansion - Management is considering a new facility investment of around $100 million to support growth, with expectations for double-digit revenue growth from new capacity [58][59] Question: Competitive environment in the LNG market - Management acknowledged increased competition but emphasized their focus on core strategies and the importance of maintaining relationships with clients [60][64] Question: Future cash utilization and working capital - Management indicated that a portion of the cash on hand will be allocated to new facilities and potential M&A opportunities, with a significant portion of the backlog requiring working capital [76][80]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 increased by 4% year-over-year, reaching $251 million compared to $241 million in Q1 2025 [5][13] - Gross profit rose by 20% to $71 million, resulting in a gross margin of 28.4%, an improvement of 380 basis points year-over-year [5][18] - Net income for Q1 2026 was $41.4 million, or $3.40 per diluted share, a 19% increase from $34.8 million, or $2.86 per diluted share in Q1 2025 [20] Business Line Data and Key Metrics Changes - New orders booked in Q1 2026 totaled $439 million, a 63% increase from the same period last year, including significant orders in LNG and data centers [5][13] - The commercial and other industrial market accounted for nearly half of the total orders, with a notable mega order for a data center valued at approximately $75 million [6][15] - The backlog at the end of Q1 2026 was $1.6 billion, a sequential growth of 14% and the highest in the company's history [9][16] Market Data and Key Metrics Changes - Domestic revenues decreased slightly by 1% to $195 million, while international revenues increased by 29% to $44 million, driven by projects in the Middle East, Africa, Asia Pacific, and Europe [16][17] - Utility sector revenues increased by 35% year-over-year, while oil and gas sector revenues rose by 2%, contrasting with a 31% decline in the petrochemical sector [17] Company Strategy and Development Direction - The company is focused on expanding productive capacity and optimizing manufacturing processes to meet growing demand, particularly in the LNG and data center markets [8][10] - Strategic investments are being made in facilities and equipment to support growth in medium voltage distribution products and to enhance overall capacity [11][21] - The company aims to maintain a robust backlog and capitalize on favorable market conditions across all major end markets [12][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining strong revenue and earnings growth throughout fiscal 2026, supported by a healthy backlog and positive market dynamics [21] - The company anticipates continued investment in electrical infrastructure to meet rising demand levels, particularly in the LNG and data center sectors [12][21] - Concerns regarding skilled labor shortages were acknowledged, with management actively working to address these challenges [100] Other Important Information - The company has no debt and reported cash and short-term investments of $501 million at the end of Q1 2026 [20] - The expansion of the Jacintoport facility is on schedule, expected to be completed in the second half of fiscal 2026, which will enhance capacity for LNG project support [10] Q&A Session Summary Question: Comments on gross margin sustainability - Management indicated that the gross margin improvement was driven by strong project execution and favorable closeouts, with expectations to maintain margins in the upper 20s [26][27] Question: Concerns about backlog firmness - Management expressed confidence in the durability of the $1.6 billion backlog, noting ongoing discussions with customers about capacity reservations [28][30] Question: Data center project cadence and follow-on orders - Management highlighted the potential for increased production flow and efficiency in data center projects, with ongoing evaluations for additional facilities to support demand [38][39] Question: Pricing environment and raw material costs - Management noted stable pricing across verticals, with strategies in place to manage raw material costs through hedging and locking in prices for engineered components [46][50] Question: Capacity ramp-up and future revenue growth - Management discussed potential capital expenditures for new facilities and indicated that double-digit revenue growth is possible with the new capacity [61][62] Question: Competitive environment in the LNG market - Management acknowledged an intense competitive landscape but emphasized their focus on core strategies and the importance of maintaining relationships with clients [63][64] Question: Cash on the balance sheet and working capital - Management indicated that a portion of the cash would be allocated to new facilities and that approximately 40%-50% of the cash balance would be deployed to support the backlog [82][84]

Powell Industries (POWL) came out with quarterly earnings of $3.4 per share, beating the Zacks Consensus Estimate of $2.85 per share. This compares to earnings of $2.86 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +19.30%. A quarter ago, it was expected that this energy equipment company would post earnings of $3.76 per share when it actually produced earnings of $4.22, delivering a surprise of +12.23%.Over the last four qu ...