HOUSTON , March 06, 2025 (GLOBE NEWSWIRE) -- Powell Industries, Inc. (NASDAQ: POWL), a leading supplier of custom engineered solutions for the management, control and distribution of electrical energy, today announced its participation in upcoming investor events. Cantor Technology ConferenceChairman and Chief Executive Officer Brett Cope and Chief Financial Officer Michael Metcalf will attend the Cantor Technology Conference in New York City on Wednesday, March 12, 2025. Mr. Cope will participate on a pane ...

Core Viewpoint - Powell Industries, Inc. is experiencing growth driven by energy transition projects and has established itself as a leading supplier of critical electrical infrastructure due to a solid project pipeline and high investments in LNG and related sectors [1]. Financial Performance - For the first quarter of fiscal 2025, Powell Industries reported a revenue increase of 24.4% year-over-year, reaching $241.4 million, attributed to strong project activity across its markets [2]. - The company ended the fiscal first quarter with a backlog of $1.3 billion, with new orders totaling $269 million compared to $198 million in the same quarter of the previous year [3]. Shareholder Returns - Powell Industries is committed to rewarding shareholders, distributing $3.2 million in dividends in the first three months of 2025, and increasing its total dividends for fiscal 2024 to $12.7 million, a 2.4% increase year-over-year [4]. Cost and Expense Challenges - The company faced challenges with high operating costs, as the cost of sales rose 24.8% year-over-year in the first quarter of fiscal 2025, driven by increased raw material costs, with the cost of sales representing 75.3% of revenues [7]. - Selling, general, and administrative expenses also increased by 5.6% during the same period [7]. Supply Chain Issues - Powell Industries utilizes various raw materials, including steel, copper, and aluminum, and is experiencing supply-chain constraints for engineered components, which may lead to increased costs and delivery delays [8].

Company Overview - Powell Industries is headquartered in Houston, TX, and specializes in manufacturing and supplying custom-engineered equipment and systems for distributing, controlling, and monitoring electrical energy flow [11] - The company was founded in 1947 and employs 2,748 individuals as of September 30, 2024 [11] - Key products include integrated power control room substations, electrical houses, medium-voltage circuit breakers, monitoring and control communications systems, switches, motor control centers, bus duct systems, and arc-resistant distribution switchgears [11] Investment Ratings - Powell Industries currently holds a Zacks Rank of 3 (Hold) and has a VGM Score of A, indicating strong overall performance [12] - The company has a Value Style Score of A, supported by attractive valuation metrics such as a forward P/E ratio of 12.67, making it appealing to value investors [12] - An analyst has revised the earnings estimate higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.01 to $13.71 per share [12] Performance Metrics - Powell Industries has demonstrated an average earnings surprise of 33.3%, indicating a strong track record of exceeding earnings expectations [12] - With a solid Zacks Rank and top-tier Value and VGM Style Scores, Powell Industries is recommended for investors' consideration [13]

Powell Industries, Inc. (POWL) stock has lost 23.5% in the year-to-date period, wider than the broader electronics manufacturing industry’s 6.3% decline. The stock has also underperformed the Industrial Products sector’s decline of 0.6% and the S&P 500’s growth of 2%.POWL stock also shows a downside against its industry peers like ESCO Technologies Inc. (ESE) and EnerSys (ENS) , which have gained 19.3% and 9.2%, respectively, in the same period.POWL Stock Price PerformanceImage Source: Zacks Investment Rese ...

Core Insights - Powell Industries (NASDAQ: POWL) reported a quarter with double-digit topline growth as it enters the first quarter of FY25, indicating a strong performance in revenue generation [1] - Despite the positive earnings, the market reacted negatively due to moderated growth compared to the previous year, leading to a decline in stock performance [1] Financial Performance - The company achieved decent double-digit growth in revenue, showcasing its ability to generate significant sales [1] - The earnings report reflects a solid financial foundation, although the growth rate has slowed compared to prior year levels [1]

Group 1 - Powell Industries (NASDAQ: POWL) is positioned to benefit from growth trends in electrical power systems, particularly due to the increasing demand from data centers essential for artificial intelligence and cloud computing [1] - The company also has exposure to the oil and gas industry, which is another significant area of growth [1]

Core Insights - Powell Industries, Inc. reported adjusted earnings of $2.86 per share for Q1 fiscal 2025, exceeding the Zacks Consensus Estimate of $2.83, marking a 44.3% year-over-year increase [1] - Total revenues for the quarter were $241.4 million, slightly below the consensus estimate of $244 million, but reflecting a 24.4% year-over-year growth driven by strong performance across various sectors [2] Revenue Breakdown - The electric utility sector generated revenues of $51.2 million, up 26% year over year [3] - Revenues from the oil & gas sector reached $95.7 million, a 14% increase year over year [3] - The commercial & other industrial sector saw revenues rise by 80% to $44.3 million [3] Order and Backlog - New orders totaled $269 million, compared to $198 million in the same quarter last year, driven by strong activity in the oil & gas and electric utility sectors [4] - The backlog at the end of the quarter stood at $1.3 billion, remaining relatively flat both sequentially and year-over-year [4] Margin and Expenses - Cost of sales increased by 24.8% year over year to $181.9 million, while gross profit rose 23.4% to $59.5 million, resulting in a slight contraction of gross margin to 24.7% [5] - Selling, general and administrative expenses were $21.5 million, up 5.9% year over year [5] - Operating income increased by 37.5% year over year to $35.6 million, with an operating margin of 14.7%, up 130 basis points [5] Balance Sheet and Cash Flow - As of the end of Q1 fiscal 2025, cash equivalents and short-term investments totaled $373.4 million, an increase from $358.4 million at the end of fiscal 2024 [6] - Current liabilities decreased to $396.7 million from $428 million at the end of fiscal 2024 [6] - Stockholders' equity was reported at $496.3 million, with capital expenditures of $2.2 million, up 83.3% year over year [6] Dividend and Guidance - The company distributed $3.2 million in dividends, remaining stable year over year [7] - Powell anticipates continued strength across most end markets and expects strong revenues and earnings for fiscal 2025, supported by a robust backlog and solid liquidity [8]

Powell Industries, Inc. (NASDAQ:POWL) Q1 2025 Earnings Conference Call February 6, 2025 11:00 AM ET Company Participants Ryan Coleman - Alpha IR Brett Cope - Chairman, President & CEO Michael Metcalf - EVP, CFO, Secretary & Principal Accounting Officer Conference Call Participants Alfred Moore - Roth John Franzreb - Sidoti Jon Braatz - Kansas City Capital Operator Good day, and welcome to the Powell Industries Fiscal First Quarter 2025 Earnings Conference Call. All participants will be in a listen-only mode ...

Financial Performance - In Q1 Fiscal 2025, the company reported revenues of $241.4 million, a 24% increase from the previous year, with net income of $34.8 million, or $2.86 per diluted share[91][105]. - Gross profit increased by 24% to $59.5 million, maintaining a gross profit margin of 25%[102]. - Selling, general and administrative expenses increased by 6% to $21.5 million, but as a percentage of revenues decreased to 9%[103]. - The effective tax rate for Q1 Fiscal 2025 was 12%, down from 19% in the same quarter of the previous year[104]. - Operating cash flow provided $37.1 million, influenced by project volume and working capital requirements[112]. Revenue Breakdown - Revenue from the oil and gas market increased by 14% to $95.7 million, while revenue from the electric utility market rose by 26% to $51.2 million[101]. - The order backlog remained at $1.3 billion, with approximately $893 million expected to be recognized as revenue within the next twelve months[92][106]. - Bookings in Q1 Fiscal 2025 increased by 36% to $268.6 million compared to the same period last year[106]. Cash and Investments - Cash, cash equivalents, and short-term investments rose to $373.4 million, up from $358.4 million at the end of the previous fiscal year[108]. Future Plans - The company plans to spend approximately $11 million on a facility expansion project in Houston, scheduled for completion by mid-Fiscal 2025[116].

Core Insights - Powell Industries (POWL) reported quarterly earnings of $2.86 per share, exceeding the Zacks Consensus Estimate of $2.83 per share, and showing an increase from $1.98 per share a year ago, representing an earnings surprise of 1.06% [1] - The company posted revenues of $241.43 million for the quarter ended December 2024, which was below the Zacks Consensus Estimate by 1.12%, but an increase from $194.02 million year-over-year [2] - Powell Industries has outperformed the S&P 500 with a 10.5% gain since the beginning of the year compared to the S&P 500's 3.1% gain [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $3.37, with expected revenues of $277.33 million, and for the current fiscal year, the EPS estimate is $13.70 on revenues of $1.11 billion [7] - The estimate revisions trend for Powell Industries is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Manufacturing - Electronics industry, to which Powell Industries belongs, is currently in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, Plug Power (PLUG), is expected to report a quarterly loss of $0.23 per share, with revenues projected at $260.18 million, reflecting a year-over-year increase of 17.1% [9]