Powell Industries Q4 Earnings & Revenues Top Estimates, Increase Y/Y

Core Insights - Powell Industries, Inc. (POWL) reported adjusted earnings of $4.22 per share for Q4 fiscal 2025, exceeding the Zacks Consensus Estimate of $3.76, marking a 12% year-over-year increase [1] - Total revenues reached $298 million, surpassing the consensus estimate of $293 million, with an 8% year-over-year growth driven by the electric utility and light rail traction power markets [1] Revenue Breakdown - Revenues from the electric utility sector surged 100% year over year, while the commercial and other industrial sector saw a 9% decline [2] - The oil and gas sector's revenues decreased by 10%, and the petrochemical sector experienced a 25% decline year over year [2] Orders and Backlog - New orders totaled $271 million, up from $267 million in the same quarter last year, driven by strong activity in the electric utility and commercial sectors [3] - The backlog at the end of the quarter was $1.4 billion, reflecting a 2% sequential decline but a 3% year-over-year increase [3] Margin Profile - Cost of sales increased by 5% year over year to $204.5 million, while gross profit rose by 16.3% to $93.5 million, resulting in a gross margin increase of 220 basis points to 31.4% [4] - Selling, general, and administrative expenses rose by 25.4% year over year to $27 million, with operating income increasing by 12.7% to $63.2 million and an operating margin of 21.2%, up 80 basis points year over year [4] Balance Sheet and Cash Flow - As of the end of Q4 fiscal 2025, Powell Industries had cash equivalents and short-term investments of $475.5 million, up from $358.4 million at the end of fiscal 2024 [5] - Current liabilities were $446.4 million compared to $428 million at the end of fiscal 2024, with stockholders' equity totaling $640.8 million [5] - Capital expenditure for fiscal 2025 was $13.1 million, reflecting a 9.7% year-over-year increase [5] Dividend Distribution - The company distributed $12.9 million in dividends, marking a 1.7% increase year over year [6] Fiscal 2026 Outlook - Powell Industries anticipates solid revenues and earnings in fiscal 2026, supported by a robust backlog, strong liquidity, and a solid balance sheet [7]