[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 |

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].

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].

Industry Overview - The Zacks Manufacturing - Electronics industry is poised for growth due to steady demand in electronic services, increased adoption of advanced manufacturing technologies, and product innovation efforts [1] - A surge in e-commerce activities is expected to further support the industry's growth [1] Current Challenges - A slowdown in manufacturing activities and a contraction in new orders may negatively impact industry performance [2] - The Manufacturing Purchasing Manager's Index fell to 48.7% in April, indicating contraction, while the New Orders Index registered 47.2% for the third consecutive month [4] Market Trends - Despite manufacturing slowdowns, demand remains stable in key end markets, particularly in medical and life sciences, driven by the integration of advanced electronic components [5] - The industry is benefiting from technological advancements and digitization, enhancing operational productivity and product quality [6] Industry Performance - The Zacks Manufacturing - Electronics industry currently holds a Zacks Industry Rank of 66, placing it in the top 27% of 246 Zacks industries, indicating bullish near-term prospects [7][8] - Over the past year, the industry has underperformed compared to the broader sector and the S&P 500, losing 17.7% against the sector's decline of 7% and the S&P 500's growth of 9.7% [10] - However, the industry rebounded in the past month with a 15.1% increase, outperforming both the sector's and S&P 500's growth [10] Valuation Metrics - The industry is currently trading at a forward 12-month Price-to-Earnings (P/E) ratio of 21.19X, slightly above the S&P 500's 20.97X and the sector's 17.94X [13] Notable Companies - **Eaton Corporation plc (ETN)**: Benefits from improving end market conditions and strong demand in AI data centers, with shares rebounding 18.3% in the past month [19][20] - **Emerson Electric Co. (EMR)**: Witnessing solid momentum in its Intelligent Devices and Software segments, with shares gaining 0.9% in the past year [23][25] - **EnerSys (ENS)**: Positioned to benefit from product innovation and trends like 5G expansion, with shares rebounding 11.9% in the past month [28][29] - **Powell Industries, Inc. (POWL)**: Experiencing favorable trends in oil, gas, and petrochemical markets, with shares gaining 21.1% in the past year [32][34]

Company Performance - Powell Industries (POWL) closed at $193.23, reflecting a +1.1% change from the previous trading day, which lagged behind the S&P 500's gain of 1.47% [1] - Over the past month, shares of Powell Industries have appreciated by 12.52%, outperforming the Industrial Products sector's loss of 1.14% and the S&P 500's loss of 0.47% [1] Upcoming Earnings - The upcoming earnings release for Powell Industries is scheduled for May 6, 2025, with an expected EPS of $3.34, indicating a 21.45% increase compared to the same quarter last year [2] - The Zacks Consensus Estimate for revenue is projecting net sales of $277.33 million, which is an 8.71% increase from the year-ago period [2] Full Year Projections - For the full year, the Zacks Consensus Estimates project earnings of $13.71 per share and revenue of $1.11 billion, reflecting changes of +11.55% and +9.6% respectively from the previous year [3] Analyst Estimates - Recent modifications to analyst estimates for Powell Industries indicate changing near-term business trends, with positive revisions suggesting optimism about the company's outlook [4] - The Zacks Rank system, which integrates estimate changes, currently ranks Powell Industries as 3 (Hold) [6] Valuation Metrics - Powell Industries is trading with a Forward P/E ratio of 13.95, compared to the industry average of 19.95, suggesting it is trading at a discount [7] - The company has a PEG ratio of 1, while the Manufacturing - Electronics industry has an average PEG ratio of 1.75 [8] Industry Context - The Manufacturing - Electronics industry, part of the Industrial Products sector, holds a Zacks Industry Rank of 44, placing it in the top 18% of over 250 industries [8] - The strength of individual industry groups is measured by the Zacks Industry Rank, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [9]

HOUSTON, April 22, 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 that it will release results for the fiscal second quarter ended March 31, 2025 on Tuesday, May 6, 2025 after the market closes. In conjunction with the release, Powell Industries has scheduled a conference call, which will be broadcast live within the Investor Relations section of the Company’ ...

The latest trading session saw Powell Industries (POWL) ending at $167.24, denoting a +0.17% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 0.13%. On the other hand, the Dow registered a loss of 1.33%, and the technology-centric Nasdaq decreased by 0.13%.Shares of the energy equipment company have depreciated by 8.02% over the course of the past month, outperforming the Industrial Products sector's loss of 10.03% and lagging the S&P 500's loss of 6.3%.Mark ...

I am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the ...

Group 1 - Powell Industries (NASDAQ: POWL) is identified as a key player in the reliable electrical power systems sector [1] - The stock has experienced a 20% decline since the last coverage, leading to a significant adjustment in valuation [1] - Despite the stock price drop, there have been no fundamental changes in the company's performance [1] Group 2 - The analysis emphasizes the importance of long-term fundamentals in driving share prices, suggesting a focus on predicting earnings per share [1]

Group 1: Stock Performance - Powell Industries (POWL) closed at $173.22, with a slight increase of +0.15% from the previous day, underperforming the S&P 500 which gained 1.81% [1] - Over the last month, POWL shares increased by 3.77%, outperforming the Industrial Products sector's decline of 11.25% and the S&P 500's loss of 6.14% [1] Group 2: Upcoming Financial Results - Powell Industries is projected to report earnings of $3.34 per share, reflecting a year-over-year growth of 21.45% [2] - The consensus estimate for revenue is $277.33 million, indicating an 8.71% increase from the same quarter last year [2] Group 3: Annual Forecast - For the entire year, Zacks Consensus Estimates forecast earnings of $13.71 per share and revenue of $1.11 billion, representing changes of +11.55% and +9.6% respectively compared to the previous year [3] Group 4: Analyst Estimates and Outlook - Recent modifications to analyst estimates for Powell Industries suggest a favorable outlook on the company's business health and profitability [4] - The Zacks Rank system, which evaluates these estimates, currently assigns Powell Industries a rank of 3 (Hold) [6] Group 5: Valuation Metrics - Powell Industries has a Forward P/E ratio of 12.62, which is lower than the industry average of 17.74, indicating it may be trading at a discount [7] - The company has a PEG ratio of 0.9, compared to the Manufacturing - Electronics industry's average PEG ratio of 1.65 [8] Group 6: Industry Performance - The Manufacturing - Electronics industry, part of the Industrial Products sector, holds a Zacks Industry Rank of 37, placing it in the top 15% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]