Powell Industries (POWL)
NASDAQ:POWL
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Powell Industries
(NASDAQ:POWL)
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Rating:81Outperform
Price Target:
$649.00
▲(15.80% Upside)
Action:ReiteratedDate:02/19/26
The score is driven primarily by exceptional financial strength (rapid growth, high and expanding margins, and near-zero leverage) and supportive earnings-call fundamentals (record backlog and strong bookings). Offsetting this are stretched technical momentum signals (overbought) and a relatively expensive valuation (P/E ~38 with a low dividend yield).
Positive Factors
Scale and Margin Expansion
POWL has materially larger scale and structurally higher margins versus recent years, reflecting operating leverage in project execution and pricing. Sustained revenue near $1.1B and mid-to-high twenties gross margins provide durable earnings power if management sustains project execution and pricing discipline.
Negative Factors
Backlog Conversion Risk
While backlog is large, only ~60% is expected to convert in 12 months, creating material timing and revenue visibility risk. Delays or non-conversion can produce lumpy results, unpredictability in cash flow and underutilized capacity, challenging investors' near-term growth expectations.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale and Margin Expansion
POWL has materially larger scale and structurally higher margins versus recent years, reflecting operating leverage in project execution and pricing. Sustained revenue near $1.1B and mid-to-high twenties gross margins provide durable earnings power if management sustains project execution and pricing discipline.
Read all positive factors
Powell Industries (POWL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.10B
Dividend Yield0.32%
Average Volume (3M)224.55K
Price to Earnings (P/E)23.3
Beta (1Y)2.09
Revenue Growth9.08%
EPS Growth19.86%
CountryUS
Employees2,748
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)3.40
Shares Outstanding12,142,283
10 Day Avg. Volume224,697
30 Day Avg. Volume224,549
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 Cap0.93
Enterprise Value/Revenue5.93
Enterprise Value/Gross Profit19.65
Enterprise Value/Ebitda27.89
Forecast
1Y Price Target
$505.33Price Target Upside-9.84% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)16.4
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 generates revenue through the sale of its electrical equipment, including switchgear and control systems, which are essential for managing electrical power in industrial settings. The company's revenue model is primarily based on...
Powell Industries Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call communicated strong commercial momentum and financial performance: revenue and orders grew, gross margin expanded substantially, net income and EPS improved, backlog reached a record $1.6B with a 1.7x book-to-bill, and the balance sheet remains strong with $501M cash and no debt. Management is actively investing in capacity (Jacintoport expansion, leased facilities) and pursuing data center and LNG opportunities, including recent mega orders. Key risks discussed include seasonal sequential softness, a notable decline in petrochemical revenue, SG&A increases, skilled labor and engineering constraints, raw material volatility, and backlog conversion/timing risk (only ~60% of backlog expected to convert in 12 months). Overall the positives (strong bookings, margin expansion, record backlog, solid cash position) outweigh the challenges, though execution of capacity expansion and skilled labor hiring will be important to sustain momentum.Positive Updates
Revenue Growth
Net revenue of $251.0M in Q1 FY2026, up 4% versus $241.0M in Q1 FY2025.
Negative Updates
Sequential Seasonal Softness
Gross profit was lower sequentially by ~300 basis points due to expected seasonal softness in Q1 (holiday period); Q1 historically the softest quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Net revenue of $251.0M in Q1 FY2026, up 4% versus $241.0M in Q1 FY2025.
Read all positive updates
Company Guidance
Powell guided toward a strong fiscal 2026, expecting to sustain revenue and earnings growth and maintain base gross margins in the upper‑20s while pursuing incremental upside from project closeouts; Q1 metrics that support that view included revenue of $251M (+4% YoY), new orders of $439M (+63% YoY) including two mega orders (one >$100M LNG and a ~ $75M single data center), a book‑to‑bill of 1.7x and a record backlog of $1.6B (14% sequential, +$219M YoY) that is ~30% oil & gas, ~30% utility and 22% commercial/other (data centers ~15%), with ~60% (~$933M) of backlog convertible in the next 12 months and a trailing quarterly revenue cadence of ~$65–70M; Q1 profitability and liquidity metrics were gross profit $71M, gross margin 28.4% (+380 bps YoY, ~300 bps of the improvement from project closeouts), trailing 12‑month margins around 30% (with ~175 bps closeout gains), net income $41.4M ($3.40 diluted EPS, +19% YoY), operating cash flow $43.6M, cash/short‑term investments $501M (no debt), CapEx $2M this quarter, while management is adding leased capacity (50,000 sq ft) and evaluating ~ $100M of potential facility investment and expects the Jacintoport expansion to be completed in H2 FY26.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
560.46
Price Trends
505.11
Positive
423.29
Positive
342.21
Positive
Market Momentum
11.83
Negative
65.38
Neutral
88.87
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 560.46 is above the 20-day moving average (MA) of 522.20, above the 50-day MA of 505.11, and above the 200-day MA of 342.21, indicating a bullish trend. The MACD of 11.83 indicates Negative momentum. The RSI at 65.38 is Neutral, neither overbought nor oversold. The STOCH value of 88.87 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $7.10B | 23.32 | 30.64% | 0.32% | 9.08% | 19.86% | |
78 Outperform | $6.54B | 15.10 | 16.61% | 0.67% | 6.17% | 20.86% | |
77 Outperform | $20.54B | 34.65 | 19.60% | 0.84% | 5.31% | 5.76% | |
71 Outperform | $1.35B | 28.81 | 7.68% | 0.35% | 15.93% | 12.72% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $1.81B | -0.66 | -249.07% | ― | ― | -394.37% | |
55 Neutral | $2.06B | 36.07 | -3.28% | 2.02% | -10.98% | -103.99% |
* Industrials Sector Average
POWL
Powell Industries
584.56
399.93
216.61%
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Powell Industries Corporate Events
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...
Business Operations and StrategyDividendsFinancial Disclosures
Powell Industries posts strong Q1 results, boosts backlog
Positive
Feb 3, 2026
On February 3, 2026, Powell Industries reported first-quarter fiscal 2026 results for the period ended December 31, 2025, posting revenues of $251.2 million, up 4% year on year, gross profit of $71.4 million or 28.4% of revenue, and net income of ...
Business Operations and StrategyExecutive/Board Changes
Powell Industries Enhances Executive Incentive Plan and Metrics
Positive
Jan 6, 2026
On January 2 and 3, 2026, Powell Industries’ board-level Compensation and Human Capital Committee approved supplemental restricted stock unit awards for CEO Brett A. Cope and CFO Michael W. Metcalf, augmenting their October 1, 2025 grants as...
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.