Powell Industries posts record orders as backlog tops $2.4 billion

Powell Industries reported fiscal third-quarter revenue of $312 million, up 9 percent, as record orders of $934 million lifted backlog to $2.4 billion.

"Powell delivered a very strong third quarter, highlighted by a record for new orders in a single quarter, which in turn has elevated our backlog to over $2 billion for the first time in our 79-year history," Chairman and Chief Executive Brett Cope said.

Net income rose to $52.2 million, or $1.42 per diluted share, from $48.2 million, or $1.32, a year earlier. Both revenue and earnings missed Wall Street forecasts — EPS came in $0.05 below the $1.47 consensus, while revenue fell $4.63 million short of the $316.63 million estimate. Gross margin held at 30.6 percent, up 90 basis points sequentially, on favorable project mix and operating leverage. The company ended the quarter with $634 million in cash and no debt.

The order total included a data center award exceeding $400 million for phase one of a behind-the-meter power-generation project, plus roughly $75 million in petrochemical and $60 million in LNG awards. About $1.3 billion, or 54 percent, of backlog is expected to convert to revenue over the next 12 months, with bookings now extending into fiscal 2028. Shares fell 3.24 percent to $212.60 after the release.

Commercial and other industrial revenue jumped 54 percent from a year earlier, while electric utility revenue rose 18 percent. Petrochemical revenue fell 49 percent and light rail traction power declined 7 percent, reflecting the lumpy nature of project-based work. Domestic revenue climbed 12 percent, while international slipped to $61 million on softer Canadian conditions.

The company is expanding its manufacturing footprint by more than 20 percent by the end of fiscal 2026, including a 335,000-square-foot expansion at its Jacintoport yard near Houston that should support well over $100 million in incremental annualized revenue at full utilization. Management is also evaluating a greenfield, company-owned plant requiring $70 million to $100 million of capital.

Chief Financial Officer Mike Metcalf said stable pricing, disciplined project execution and strong liquidity position Powell for another year of strong financial performance in fiscal 2027. The record order flow signals that demand for electrical infrastructure tied to data center buildout and electrification remains durable. Investors will watch the fiscal fourth-quarter call for updates on the $400 million data center project's execution and the greenfield facility decision.

This article is for informational purposes only and does not constitute investment advice.