Powell Industries (POWL)
NASDAQ:POWL
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Powell Industries
(NASDAQ:POWL)
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Rating:83Outperform
Price Target:
$314.00
▲(30.29% Upside)
Action:ReiteratedDate:05/05/26
POWL scores high primarily on exceptional financial strength (rapid growth, strong margins, and near-zero leverage) and a very favorable demand outlook from the latest earnings call (record orders, expanding backlog, and a $400M+ mega win). The score is tempered by a premium valuation (P/E ~35.7 with minimal yield) and technically overbought signals that raise near-term pullback risk.
Positive Factors
Balance Sheet Strength
Near-zero leverage and large cash balances provide durable financial flexibility to fund capex, M&A, dividends, and absorb project timing variability. A conservative balance sheet reduces refinancing risk across cycles and enables selective investments to convert backlog into stable revenue over multiple years.
Negative Factors
End-market Concentration (Petrochemical Weakness)
Material exposure to cyclical petrochemical spend creates revenue volatility; a prolonged downturn in that sector could reduce utilization and delay project starts. Until diversification fully offsets this concentration, company performance remains sensitive to macro and capex cycles in core industrial markets.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Near-zero leverage and large cash balances provide durable financial flexibility to fund capex, M&A, dividends, and absorb project timing variability. A conservative balance sheet reduces refinancing risk across cycles and enables selective investments to convert backlog into stable revenue over multiple years.
Read all positive factors
Powell Industries (POWL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.67B
Dividend Yield0.32%
Average Volume (3M)645.39K
Price to Earnings (P/E)35.7
Beta (1Y)2.07
Revenue Growth4.50%
EPS Growth7.18%
CountryUS
Employees2,748
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)5.17
Shares Outstanding36,426,850
10 Day Avg. Volume676,741
30 Day Avg. Volume645,392
Financial Highlights & Ratios
PEG Ratio1.03
Price to Book (P/B)5.74
Price to Sales (P/S)3.33
P/FCF Ratio23.75
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue9.99
Enterprise Value/Gross Profit33.10
Enterprise Value/Ebitda46.97
Forecast
1Y Price Target
$243.99Price Target Upside1.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)5.53
Revenue Forecast (FY)$1.19B
Powell Industries Business Overview & Revenue Model
Company Description
Powell Industries, Inc., together with its subsidiaries, designs, develops, manufactures, sells, and services custom-engineered equipment and systems for the distribution, control, and monitoring of electrical energy. The company's principal produ...
How the Company Makes Money
Powell Industries primarily makes money by selling engineered-to-order electrical power distribution and control systems and related services. Revenue is largely project-based: customers (often EPC contractors, industrial operators, and utilities)...
Powell Industries Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
Overall the call was decidedly positive. The company delivered steady revenue growth (+6% YoY), materially stronger order intake ($490M in Q2, nearly double YoY) and a substantially larger backlog (+33% YoY to $1.8B), capped by a post-quarter $400M+ mega data center award (largest in company history). Profitability and cash generation remain solid (gross margin 29.6%, operating cash flow $51M, cash $545M, no debt). Key negatives include a sharp decline in petrochemical revenue (-37% YoY), a small YoY dip in net income and EPS, rising SG&A as investments are made, and capacity/supply-chain and talent constraints that could limit the pace of scaling for very large programs. On balance, the positives materially outweigh the negatives given record orders, backlog growth, diversification, and a strong balance sheet.Positive Updates
Revenue Growth
Total revenue of $297 million in Q2 FY2026, up 6% versus Q2 FY2025 ($279 million). Domestic revenue +2% YoY; international revenue increased to $64 million (up $14 million YoY).
Negative Updates
Petrochemical Market Softness
Petrochemical revenue declined 37% YoY in the quarter, reflecting ongoing softness in that end market despite management optimism about an early-stage cyclical inflection.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Total revenue of $297 million in Q2 FY2026, up 6% versus Q2 FY2025 ($279 million). Domestic revenue +2% YoY; international revenue increased to $64 million (up $14 million YoY).
Read all positive updates
Company Guidance
Management described the outlook as strong — they did not give an official FY numeric target but said Powell is well positioned to deliver “strong cash flows and earnings,” citing Q2 revenue of $297 million (+6% YoY), $490 million of Q2 new orders (bringing midyear new awards to nearly $1 billion), book‑to‑bill of 1.7x, and a backlog of $1.8 billion (up 33% YoY, 12% sequentially) that provides visibility into fiscal 2028; Q2 gross margin was 29.6% (‑30 bps YoY, +120 bps sequentially, with ~90 bps from favorable closeouts), net income was $45.9 million ($1.25 diluted), operating cash flow was $51 million, cash and short‑term investments totaled $545 million and the company has no debt. Management reiterated planned and potential capacity investments — Q2 capex $1.8 million, $12–13 million expected for the Jacinto Port upgrade this fiscal year, consideration of an ~$8 million fabrication equipment outlay for ~50k sq ft leased space, and evaluation of a $70–100 million greenfield (250–300k sq ft, ~2‑year build; leased option could be productive in ~6 months and could drive $100–250 million of incremental revenue) — noted R&D at ~1.4% of revenue (target ~1–1.5%) and SG&A of $20 million (8.7% of revenue), and disclosed a post‑quarter >$400 million data‑center mega order that will be included in Q3.Powell Industries Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
95
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.11B | 1.10B | 1.01B | 699.31M | 532.58M | 470.56M |
| Gross Profit | 336.27M | 324.38M | 273.09M | 147.55M | 85.02M | 75.06M |
| EBITDA | 236.98M | 240.81M | 185.64M | 71.13M | 16.58M | 11.35M |
| Net Income | 187.37M | 180.75M | 149.85M | 54.52M | 13.74M | 631.00K |
Balance Sheet | ||||||
| Total Assets | 1.09B | 1.11B | 928.18M | 752.24M | 493.38M | 436.19M |
| Cash, Cash Equivalents and Short-Term Investments | 500.84M | 475.53M | 358.39M | 279.01M | 116.51M | 133.98M |
| Total Debt | 1.46M | 1.66M | 1.22M | 1.44M | 2.32M | 4.23M |
| Total Liabilities | 425.48M | 468.21M | 445.11M | 407.22M | 196.17M | 134.97M |
| Stockholders Equity | 668.89M | 640.77M | 483.07M | 345.03M | 297.21M | 301.22M |
Cash Flow | ||||||
| Free Cash Flow | 161.51M | 154.79M | 96.68M | 174.73M | -6.03M | -33.35M |
| Operating Cash Flow | 174.50M | 167.94M | 108.66M | 182.55M | -3.58M | -30.46M |
| Investing Cash Flow | 14.08M | -8.34M | -21.87M | -26.57M | 6.46M | -2.46M |
| Financing Cash Flow | -27.21M | -25.12M | -19.25M | -13.06M | -13.31M | -13.17M |
Powell Industries Technical Analysis
Positive
241.01
Price Trends
188.14
Positive
155.37
Positive
125.48
Positive
Market Momentum
16.62
Negative
72.65
Negative
89.96
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POWL, the sentiment is Positive. The current price of 241.01 is above the 20-day moving average (MA) of 201.95, above the 50-day MA of 188.14, and above the 200-day MA of 125.48, indicating a bullish trend. The MACD of 16.62 indicates Negative momentum. The RSI at 72.65 is Negative, neither overbought nor oversold. The STOCH value of 89.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for POWL.
Powell Industries Risk Analysis
Powell Industries disclosed 13 risk factors in its most recent earnings report. Powell Industries reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Powell Industries Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $11.67B | 35.75 | 30.64% | 0.32% | 4.50% | 7.18% | |
78 Outperform | $8.26B | 15.10 | 16.61% | 0.67% | 5.20% | -0.12% | |
76 Outperform | $1.79B | 31.55 | 7.31% | 0.35% | 15.92% | -12.16% | |
72 Outperform | $27.90B | 33.98 | 13.36% | 0.84% | 34.18% | -15.12% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $2.57B | -3.97 | -8.68% | 2.02% | -3.36% | -167.93% | |
46 Neutral | $1.47B | -1.53 | -153.56% | ― | 25572.84% | 35.09% |
* Industrials Sector Average
POWL
Powell Industries
320.30
262.23
451.59%
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Powell Industries Corporate Events
Dividends
Powell Industries Declares Quarterly Dividend, Signaling Stability
Positive
May 5, 2026
On May 5, 2026, Powell Industries announced that its board declared a quarterly cash dividend of $0.09 per share on its common stock. The dividend will be paid on June 17, 2026, to shareholders of record as of the close of business on May 20, 2026...
Business Operations and StrategyRegulatory Filings and ComplianceStock Split
Powell Industries Implements Three-for-One Forward Stock Split
Positive
Mar 31, 2026
Powell Industries, Inc. announced on March 6, 2026, that it would implement a three-for-one forward stock split of its common stock, and on March 31, 2026, the company filed an amendment to its certificate of incorporation in Delaware to effect th...
Executive/Board ChangesShareholder Meetings
Powell Industries Shareholders Back Board, Executive Pay Plan
Positive
Feb 18, 2026
At its annual meeting of stockholders on February 18, 2026, Powell Industries shareholders re-elected directors Alaina K. Brooks and Katheryn B. Curtis to terms running through fiscal 2029 and approved, on an advisory basis, the company’s ex...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.