Powell(US:POWL)2025-05-06 20:40Powell Industries Second Quarter Fiscal 2025 Earnings Release Financial Highlights 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 improvement45 Detailed Financial Performance 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 closeouts6 - 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 billion7 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 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 growth9 - 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 centers9 - 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 202510 Consolidated Financial Statements This section presents the unaudited condensed consolidated statements of operations and balance sheets for Q2 and YTD 2025 Condensed Consolidated Statements of Operations 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 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 |