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Powell Industries (POWL) Recently Broke Out Above the 50-Day Moving Average
ZACKS· 2025-05-13 14:31
Core Viewpoint - Powell Industries (POWL) is showing potential for investment as it has recently reached a key support level and surpassed the 50-day moving average, indicating a short-term bullish trend [1][2]. Technical Analysis - The 50-day simple moving average is a significant indicator for traders and analysts to identify support or resistance levels, and POWL's recent movement suggests it may be on the verge of another rally after increasing by 9.3% over the last four weeks [2]. - The current Zacks Rank for POWL is 3 (Hold), indicating a neutral outlook [2]. Earnings Estimates - Positive revisions in earnings estimates for POWL strengthen the bullish case, with no estimates decreasing in the past two months and two estimates increasing, leading to a rise in the consensus estimate [3]. - The combination of favorable earnings estimate revisions and positive technical indicators suggests that POWL may present further investment opportunities in the near future [3].
Powell Industries: Temporary Slowdown Creates An Attractive Entry Point
Seeking Alpha· 2025-05-10 06:30
Group 1 - The article emphasizes the importance of strong foundational companies in the technology, industrial, and conglomerate sectors for long-term success [1] - It highlights the dual approach of analyzing financial data while narrating the stories and strategies of businesses to provide insights into market performance [1] - The focus on both quantitative analysis and qualitative storytelling reflects a commitment to understanding and explaining the financial landscape [1]
Powell Industries Q2: A Great Buying Opportunity For Longs
Seeking Alpha· 2025-05-08 17:04
Core Viewpoint - Powell Industries, Inc. (POWL) reported a strong quarterly performance that was not positively received by the investing community, which overlooked significant earnings beats [1]. Financial Performance - The company achieved a substantial earnings beat, indicating strong operational performance [1]. Investment Perspective - The investing strategy focuses on a long-term horizon, typically between 5 to 10 years, emphasizing a balanced portfolio of growth, value, and dividend-paying stocks, with a preference for value investments [1].
Powell(POWL) - 2025 Q2 - Quarterly Report
2025-05-07 17:16
Part I — Financial Information This part presents the company's unaudited quarterly financial statements and management's analysis of performance [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the quarterly period ended March 31, 2025 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) Balance Sheet Summary | | March 31, 2025 (in thousands) | September 30, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $810,630 | $776,481 | | **Total Assets** | $965,368 | $928,180 | | **Total Current Liabilities** | $404,844 | $428,015 | | **Total Liabilities** | $424,005 | $445,107 | | **Total Stockholders' Equity** | $541,363 | $483,073 | - Cash and cash equivalents increased to **$359.5 million** as of March 31, 2025, from $315.3 million at September 30, 2024[9](index=9&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(Unaudited)) Three-Month Performance | Metric | Three Months Ended Mar 31, 2025 (in thousands) | Three Months Ended Mar 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Revenues** | $278,631 | $255,108 | | **Gross Profit** | $83,432 | $62,720 | | **Operating Income** | $58,919 | $39,489 | | **Net Income** | $46,330 | $33,488 | | **Diluted EPS** | $3.81 | $2.75 | Six-Month Performance | Metric | Six Months Ended Mar 31, 2025 (in thousands) | Six Months Ended Mar 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Revenues** | $520,062 | $449,125 | | **Net Income** | $81,093 | $57,573 | | **Diluted EPS** | $6.67 | $4.73 | [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Unaudited)) Comprehensive Income Summary | Metric | Three Months Ended Mar 31, 2025 (in thousands) | Three Months Ended Mar 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Net Income** | $46,330 | $33,488 | | **Comprehensive Income** | $47,267 | $31,219 | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Unaudited)) - Total stockholders' equity increased from **$483.1 million** at September 30, 2024, to **$541.4 million** at March 31, 2025, driven by net income of $81.1 million[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Cash Flow Summary | Cash Flow Activity (Six months ended Mar 31) | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $59,480 | $100,891 | | **Net cash provided by (used in) investing activities** | $4,564 | $(11,248) | | **Net cash used in financing activities** | $(18,407) | $(12,775) | | **Net increase in cash and cash equivalents** | $45,637 | $76,868 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) - The company develops, designs, manufactures, and services custom-engineered equipment for electrical energy distribution, primarily for industrial markets[22](index=22&type=chunk)[23](index=23&type=chunk) - Revenue from custom-engineered products and services, recognized over time, accounted for approximately **95% of total revenues** for the three months ended March 31, 2025[38](index=38&type=chunk) - As of March 31, 2025, the company's backlog of remaining unsatisfied performance obligations was **$1.3 billion**, with approximately **$831 million** expected to be recognized as revenue within the next twelve months[43](index=43&type=chunk)[44](index=44&type=chunk) Revenue by Market Sector | Revenue by Market Sector (Three months ended Mar 31, 2025) | Amount (in thousands) | | :--- | :--- | | Oil and gas | $101,167 | | Petrochemical | $43,704 | | Electric utility | $70,339 | | Commercial and other industrial | $40,369 | | Light rail traction power | $10,008 | | All others | $13,044 | - On May 6, 2025, the Board of Directors declared a quarterly cash dividend of **$0.2675 per share**[74](index=74&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, condition, and outlook for the second quarter of Fiscal 2025 [Executive Overview and Outlook](index=24&type=section&id=Executive%20Overview%20and%20Outlook) - The company's backlog remained strong at **$1.3 billion** as of March 31, 2025, with approximately **$831 million** expected to be recognized as revenue within the next twelve months[88](index=88&type=chunk) - Management sees continued investment opportunities driven by international demand for Liquefied Natural Gas (LNG) and expansion into clean energy markets[89](index=89&type=chunk) - Strong growth is being experienced in commercial and industrial markets, particularly from **data centers** supporting cloud computing and AI[91](index=91&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Q2 Fiscal 2025 vs Q2 Fiscal 2024 | Metric (Q2 FY25 vs Q2 FY24) | Change | Detail | | :--- | :--- | :--- | | **Revenues** | +9% | Increased by $23.5 million to $278.6 million | | **Gross Profit** | +33% | Increased by $20.7 million to $83.4 million | | **Gross Margin** | +500 bps | Increased to 30% from 25% | - For Q2 2025, revenue from the electric utility market grew **48%** and the light rail traction power market grew **122%**, reflecting strategic diversification efforts[97](index=97&type=chunk) Six Months Fiscal 2025 vs Fiscal 2024 | Metric (Six Months FY25 vs FY24) | Change | Detail | | :--- | :--- | :--- | | **Revenues** | +16% | Increased by $70.9 million to $520.1 million | | **Gross Profit** | +29% | Increased by $32.0 million to $143.0 million | | **Gross Margin** | +200 bps | Increased to 27% from 25% | - Bookings increased by **6%** in Q2 2025 and **20%** in the first six months of Fiscal 2025 compared to the same periods in the prior year[102](index=102&type=chunk)[109](index=109&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) - Cash, cash equivalents, and short-term investments increased to **$389.3 million** at March 31, 2025, from $358.4 million at September 30, 2024, driven by improved earnings[111](index=111&type=chunk) - The company has a **$150.0 million** U.S. Revolver with **$85.6 million** available as of March 31, 2025, with no amounts borrowed[113](index=113&type=chunk)[114](index=114&type=chunk) - Net cash from operating activities for the first six months of Fiscal 2025 was **$59.5 million**, a decrease from $100.9 million in the prior-year period due to working capital impacts[115](index=115&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Confirms no material changes to the company's market risks since the last annual report - No material changes to market risks were reported for the period ended March 31, 2025, as compared to the information in the last Form 10-K[121](index=121&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirms the effectiveness of disclosure controls and procedures as of the reporting period end - Based on an evaluation by management, the CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2025[123](index=123&type=chunk) - No changes in internal control over financial reporting occurred during the second quarter of Fiscal 2025 that have materially affected, or are reasonably likely to materially affect, internal controls[124](index=124&type=chunk) Part II — Other Information This part covers legal proceedings, risk factors, and other required corporate disclosures [Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) Reports no material adverse effect is expected from ongoing legal proceedings - Management believes that the ultimate liability from various ongoing legal proceedings will **not have a material adverse effect** on the company's consolidated financial position, results of operations, or liquidity[125](index=125&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) States no material changes from previously disclosed risk factors in the last annual report - There have been **no material changes** from the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2024[126](index=126&type=chunk) [Other Information](index=30&type=section&id=Item%205.%20Other%20Information) Notes no new Rule 10b5-1 trading arrangements were adopted by directors or officers during the quarter - During the second quarter of Fiscal 2025, none of the company's directors or officers adopted or terminated any "Rule 10b5-1 trading arrangements" or "non-Rule 10b5-1 trading arrangements"[127](index=127&type=chunk) [Exhibits](index=31&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the report, including required officer certifications and XBRL data - This section lists the exhibits filed with the report, which include certifications from the CEO and CFO, as well as financial statements formatted in Inline XBRL[129](index=129&type=chunk)
Powell Industries Q2 Earnings Surpass Estimates, Revenues Increase 9.2%
ZACKS· 2025-05-07 16:55
Core Insights - Powell Industries, Inc. reported adjusted earnings of $3.81 per share for Q2 fiscal 2025, exceeding the Zacks Consensus Estimate of $3.35, marking a year-over-year increase of 38.6% driven by higher revenues [1] - Total revenues for the quarter were $278.6 million, slightly missing the consensus estimate of $277 million, but reflecting a year-over-year growth of 9.2% primarily due to strength in the electric utility and commercial sectors [1] Revenue Breakdown - Revenues from the electric utility sector reached $70.3 million, a significant increase of 48% year over year [2] - The petrochemical sector generated $43.7 million in revenues, which is a decline of 13% year over year [2] - Revenues from the commercial and other industrial sectors increased by 16% to $40.4 million [2] Order and Backlog Performance - New orders totaled $249 million in the fiscal second quarter, down from $269 million in the same quarter last year, with robust activity noted in the oil & gas and commercial sectors [3] - The backlog at the end of the quarter stood at $1.3 billion, remaining relatively flat both sequentially and year-over-year [3] Margin and Cost Analysis - Cost of sales increased by 1.5% year over year to $195.2 million, while gross profit rose by 33% to $83.4 million, resulting in a gross margin increase of 530 basis points to 29.9% [4] - Operating income surged by 49.2% year over year to $58.9 million, with an operating margin of 21.1%, up 560 basis points year over year [4] Financial Position - As of the end of Q2 fiscal 2025, Powell Industries had cash equivalents and short-term investments of $389.3 million, up from $358.4 million at the end of fiscal 2024 [5] - Current liabilities decreased to $404.8 million from $428 million at the end of fiscal 2024, while stockholders' equity totaled $541.4 million [5] - Capital expenditures for the first six months of fiscal 2025 amounted to $6.3 million, reflecting a substantial increase of 192.9% year over year [5] Dividend and Guidance - The company distributed $6.4 million in dividends, marking a year-over-year increase of 1.8% [6] - Powell Industries anticipates strong revenues and earnings for fiscal 2025, supported by a robust backlog and solid liquidity [7]
Powell(POWL) - 2025 Q2 - Earnings Call Transcript
2025-05-07 16:00
Financial Data and Key Metrics Changes - The company reported a gross profit dollar growth of 33% on revenue growth of 9%, resulting in record earnings per diluted share of $3.81 for the quarter [6][10] - Net income for the second quarter was $46 million, a 38% increase compared to the prior year [9][22] - Total revenue for the second quarter was $279 million, up from $255 million, representing a 9% increase year-over-year [19][22] Business Line Data and Key Metrics Changes - The electric utility sector grew by 48% and the commercial and industrial sector grew by 16% compared to the same period last year [20] - New orders totaled $249 million, a 6% increase year-over-year, driven by commercial and industrial markets as well as the oil and gas sector [7][19] - The backlog at the end of the second quarter stood at $1.3 billion, reflecting a strong order book across sectors [10][20] Market Data and Key Metrics Changes - Domestic revenues improved by 5% to $228 million, while international revenues increased by 33% to $51 million, driven by project volume in Canada and increased activity in the Middle East and Africa [20][22] - The light rail traction power sector saw a substantial increase of 122% compared to the same quarter last year, albeit from a small revenue base [21] Company Strategy and Development Direction - The company is focused on expanding and diversifying its product portfolio, with several new products launched during the quarter [11][13] - The strategy includes increasing market share in the electric utility sector and enhancing capabilities in the data center market [64][66] - The company is also investing in capacity expansion at its electrical products facility to support new product commercialization [14][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive outlook for end markets, particularly in oil, gas, and petrochemical sectors [15][17] - The company anticipates continued strong performance for the remainder of fiscal 2025, supported by a well-balanced order book [18][23] - Management acknowledged macroeconomic uncertainties but believes the company is well-positioned to deliver strong results [24] Other Important Information - The company does not hold any debt and had cash and short-term investments of $389 million as of March 31, 2025 [23] - The company is considering potential capital investments and M&A opportunities to support growth [60][61] Q&A Session Summary Question: Impact of LNG award on industry - Management noted that overall activity in the LNG industry is up year-over-year, indicating a positive trend [28] Question: Concerns about commercial risks in LNG projects - Management acknowledged potential risks due to tariffs and costs but emphasized robust discussions with clients regarding future projects [30][34] Question: Gross margins and pricing strategy - Management indicated that while demand is stable, pricing opportunities are being monitored, and margins are expected to normalize around 26% to 27% [40][45] Question: Capacity expansion revenue expectations - Management expects modest revenue contributions in 2025, with a range of $20 million to $40 million anticipated as new projects launch [48][49] Question: Stock buyback considerations - Management discussed ongoing conversations about buybacks but emphasized the importance of organic growth opportunities [60][61] Question: Electric utility growth insights - Management highlighted the strategic focus on increasing market share in the electric utility sector, which currently accounts for 25% to 30% of revenue [64][66] Question: Data center market potential - Management confirmed that the data center market is growing and is expected to contribute significantly to future revenues [72][75]
Powell Industries (POWL) Surpasses Q2 Earnings and Revenue Estimates
ZACKS· 2025-05-06 22:50
Company Performance - Powell Industries reported quarterly earnings of $3.81 per share, exceeding the Zacks Consensus Estimate of $3.34 per share, and up from $2.75 per share a year ago, representing an earnings surprise of 14.07% [1] - The company posted revenues of $278.63 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.47%, compared to $255.11 million in the same quarter last year [2] - Over the last four quarters, Powell Industries has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance and Outlook - Powell Industries shares have declined approximately 13.4% since the beginning of the year, while the S&P 500 has decreased by 3.9% [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at $3.76 on revenues of $295.12 million, and for the current fiscal year at $13.71 on revenues of $1.11 billion [7] - The current Zacks Rank for Powell Industries is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Industry Context - The Manufacturing - Electronics industry, to which Powell Industries belongs, is currently ranked in the top 27% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]
Powell(POWL) - 2025 Q2 - Quarterly Results
2025-05-06 20:40
[Powell Industries Second Quarter Fiscal 2025 Earnings Release](index=1&type=section&id=Powell%20Industries%20Second%20Quarter%20Fiscal%202025%20Earnings%20Release) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company reported strong Q2 fiscal 2025 results with significant growth in revenue, net income, and gross margin Q2 Fiscal 2025 Key Financial Metrics | Metric | Q2 FY2025 | YoY Change | | :--- | :--- | :--- | | Revenues | $279 million | +9% | | Gross Profit | $83 million | +33% | | Gross Margin | 29.9% | +530 bps | | Net Income | $46 million | +38% | | Diluted EPS | $3.81 | +38.5% | | New Orders | $249 million | +6% | | Backlog | $1.3 billion | Unchanged | | Cash & Short-term Investments | $389 million | N/A | - The strong performance was attributed to solid project execution and robust operational efficiency, leading to **significant growth in gross profit dollars and margin improvement**[4](index=4&type=chunk)[5](index=5&type=chunk) [Detailed Financial Performance](index=2&type=section&id=Detailed%20Financial%20Performance) Revenue growth was driven by the Electric Utility and Industrial sectors, offsetting a decline in the Petrochemical sector Q2 FY2025 Revenue by Sector (YoY) | Sector | Revenue (Q2 FY2025) | YoY Change | | :--- | :--- | :--- | | Electric Utility | $70.3 million | +48% | | Commercial and Other Industrial | $40.4 million | +16% | | Petrochemical | $43.7 million | -13% | | **Total Revenue** | **$278.6 million** | **+9%** | - Gross profit increased by **33% YoY to $83.4 million**, with gross margin improving to **29.9%** from 24.6% in the prior year due to broad-based operating efficiencies and project closeouts[6](index=6&type=chunk) - New orders totaled **$249 million**, driven by strong bookings in the Commercial & Other Industrial and Oil & Gas sectors, keeping the backlog steady at **$1.3 billion**[7](index=7&type=chunk) Net Income and EPS Performance (Q2 FY2025 vs Q2 FY2024) | Metric | Q2 FY2025 | Q2 FY2024 | YoY Change | | :--- | :--- | :--- | :--- | | Net Income | $46.3 million | $33.5 million | +38% | | Diluted EPS | $3.81 | $2.75 | +38.5% | [Business Outlook and Strategic Initiatives](index=2&type=section&id=Business%20Outlook%20and%20Strategic%20Initiatives) The company focuses on facility expansion, new product commercialization, and execution discipline to drive future growth - The expansion of the Electrical Products facility in Houston is on schedule and is critical for servicing the current backlog and positioning for future growth[9](index=9&type=chunk) - A key strategic priority is to commercialize new products through organic R&D investment, aiming to capture greater share in key sectors like Electric Utilities and data centers[9](index=9&type=chunk) - The company's forward-looking focus is on execution discipline and cost efficiencies, with a healthy backlog positioning it for robust revenue and earnings in Fiscal 2025[10](index=10&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated statements of operations and balance sheets for Q2 and YTD 2025 [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company shows strong year-over-year growth in revenues, operating income, and net income for both Q2 and YTD periods Q2 Statement of Operations (Three Months Ended March 31) | (In thousands) | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenues | $278,631 | $255,108 | +9.2% | | Gross profit | $83,432 | $62,720 | +33.0% | | Operating income | $58,919 | $39,489 | +49.2% | | Net income | $46,330 | $33,488 | +38.3% | YTD Statement of Operations (Six Months Ended March 31) | (In thousands) | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenues | $520,062 | $449,125 | +15.8% | | Gross profit | $142,956 | $110,914 | +28.9% | | Operating income | $94,491 | $65,369 | +44.5% | | Net income | $81,093 | $57,573 | +40.8% | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet reflects increased total assets, cash, and working capital as of March 31, 2025 Selected Balance Sheet Data (In thousands) | Account | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Cash, cash equivalents and short-term investments | $389,292 | $358,392 | | Total assets | $965,368 | $928,180 | | Current liabilities | $404,844 | $428,015 | | Stockholders' equity | $541,363 | $483,073 | | Working capital | $405,786 | $348,466 |
Powell Industries Announces Second Quarter Fiscal 2025 Results
Globenewswire· 2025-05-06 20:15
Core Viewpoint - Powell Industries, Inc. reported strong financial results for the second quarter of Fiscal 2025, highlighting significant growth in gross profit and revenue, driven by operational efficiencies and strong order activity in key sectors [3][4][5]. Financial Performance - Revenues for the second quarter totaled $278.6 million, a 9% increase from $255.1 million in the prior year, and a 15% increase from $241.4 million in the first quarter of Fiscal 2025 [4][10]. - Gross profit reached $83.4 million, representing 29.9% of revenue, which is a 33% increase compared to $62.7 million (24.6% of revenue) in the prior year [5][10]. - Net income was $46.3 million, or $3.81 per diluted share, marking a 38% increase from $33.5 million ($2.75 per diluted share) in the prior year [7][10]. Sector Performance - The Electric Utility sector saw a revenue increase of 48% to $70.3 million, while the Commercial and Other Industrial sector grew by 16% to $40.4 million [4]. - The Petrochemical sector experienced a revenue decline of 13% to $43.7 million [4]. Order Activity and Backlog - New orders totaled $249 million, up from $235 million in the prior year, driven by strong bookings in the Commercial and Other Industrial sector and robust activity in the Oil & Gas sector [6]. - The backlog remained stable at $1.3 billion as of March 31, 2025, unchanged from both December 31, 2024, and March 31, 2024 [6]. Strategic Initiatives - The company is nearing completion of an expansion project at its Electrical Products facility in Houston, aimed at enhancing manufacturing capacity and supporting future growth [8]. - The focus remains on execution discipline, customer fulfillment, and driving cost efficiencies across the business [9]. Cash Position - As of March 31, 2025, cash and short-term investments totaled $389 million, reflecting a solid liquidity position [10][19].
Powell Gears Up to Report Q2 Earnings: Here's What to Expect
ZACKS· 2025-05-06 15:55
Core Viewpoint - Powell Industries, Inc. is expected to report strong second-quarter fiscal 2025 results, driven by solid momentum in petrochemical and oil and gas markets, alongside growth in energy transition projects [2][3]. Group 1: Earnings Expectations - The Zacks Consensus Estimate for Powell's fiscal second-quarter revenues is $277.3 million, reflecting an 8.7% increase from the previous year [3]. - The consensus estimate for adjusted earnings is $3.34 per share, indicating a 21.5% increase from the year-ago quarter [3]. - Powell has a history of earnings surprises, with an average beat of 33.3%, and last quarter's earnings of $2.86 per share exceeded the Zacks Consensus Estimate of $2.83 by 1.1% [1][3]. Group 2: Performance Drivers - Solid performance is anticipated due to the company's investments in energy transition projects, including biofuels, carbon capture, and hydrogen [2]. - The expansion of the Houston facility is expected to enhance fabrication and integration support for large power control rooms, contributing positively to top-line results [2]. Group 3: Challenges - High costs and expenses, particularly an increase in raw material costs, are likely to negatively impact Powell's performance in the upcoming quarter [4]. - The company's international operations expose it to risks from adverse currency fluctuations, which may also affect performance [4]. Group 4: Earnings Prediction Model - Powell has an Earnings ESP of 0.00%, as both the Most Accurate Estimate and the Zacks Consensus Estimate are at $3.34, indicating uncertainty in predicting an earnings beat this time [5][6]. - The company currently holds a Zacks Rank of 3, suggesting a neutral outlook [6].