Powell Industries (POWL) AI Stock Analysis

• Market Cap: $5.37B
• Dividend Yield: 0.32%
• Average Volume (3M): 205.99K
• Price to Earnings (P/E): 29.8
• Beta (1Y): 2.27
• Revenue Growth: 9.08%
• EPS Growth: 19.86%
• Country: US
• Employees: 2,748
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 4.22
• Shares Outstanding: 12,140,483
• 10 Day Avg. Volume: 270,530
• 30 Day Avg. Volume: 205,990
• PEG Ratio: 1.03
• Price to Book (P/B): 5.74
• Price to Sales (P/S): 3.33
• P/FCF Ratio: 23.75
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 4.76
• Enterprise Value/Gross Profit: 16.54
• Enterprise Value/Ebitda: 23.65
• 1Y Price Target: $438.50
• Price Target Upside: -1.11% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 15.3
• Revenue Forecast (FY): $1.18B

• Rating: 78 Outperform
• Price Target: $504.00 ▲(13.66% Upside)

The score is driven primarily by strong financial fundamentals (high margins, robust cash flow growth, and very low leverage) and a positive earnings outlook supported by backlog and cash. Technicals are supportive with the stock trading above major moving averages, while valuation (P/E 24.33 and low dividend yield) and high volatility (beta 2.30) temper the overall rating.

Positive Factors

High and durable profit margins

Sustained gross and net margins near 30% and 16% reflect pricing power from custom engineered switchgear and controls. High margins support reinvestment, cushion cyclicality in industrial end markets, and provide a durable earnings base over the next 2–6 months.

Very strong balance sheet and cash generation

Extremely low leverage and a large cash build alongside FCF growth give Powell flexibility to fund capex, M&A, dividends, or weather order volatility. This financial strength reduces refinancing and liquidity risk and supports durable strategic optionality.

Backlog, strategic M&A, and sector diversification

A $1.4B year-end backlog, stronger Electric Utility and data center exposure, plus the Remsdaq acquisition and Jacintoport expansion anchor secular growth. These structural moves strengthen product offerings and reduce reliance on cyclic petrochemical projects.

Negative Factors

End-market weakness in Petrochemical and Oil & Gas

Material declines in two historically important verticals highlight exposure to cyclical energy markets. Continued softness would pressure order flow and utilization, making top-line stability dependent on successful diversification into utilities and data centers.

Rising SG&A reduces operating leverage

A meaningful rise in SG&A as a percent of sales—driven by compensation and acquisition costs—erodes margin upside. If elevated structurally, higher operating expenses could dampen margin sustainability and require revenue growth to justify the cost base.

Modest recent revenue growth and project concentration risk

Project-based contracts create lumpy revenues; a low single-digit growth rate signals limited near-term expansion. Sustained higher growth will depend on converting backlog, sector diversification, and winning new large projects amid competitive bidding.

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 products include integrated power control room substations, custom-engineered modules, electrical houses, medium-voltage circuit breakers, monitoring and control communications systems, motor control centers, and bus duct systems, as well as traditional and arc-resistant distribution switchgears and control gears. Its products have application in voltages ranging from 480 volts to 38,000 volts; and are used in oil and gas refining, onshore and offshore oil and gas production, petrochemical, liquid natural gas terminals, pipeline, terminal, mining and metals, light rail traction power, electric utility, pulp and paper, and other heavy industrial markets. It also provides value-added services, such as spare parts, field service inspection, installation, commissioning, modification and repair, retrofit and retrofill components for existing systems, and replacement circuit breakers for switchgear. The company has operations in the United States, Canada, the Middle East, Africa, Europe, Mexico, and Central and South America. Powell Industries, Inc. was founded in 1947 and is headquartered in Houston, Texas.

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 project-based contracts, where they provide engineering, procurement, and construction services to clients in their target sectors. Key revenue streams include the sale of custom-built electrical distribution systems, ongoing maintenance and support services, and aftermarket parts. Strategic partnerships with major industrial players and collaborations with engineering firms enhance their market reach and contribute to revenue growth. Additionally, as industries increasingly focus on safety and efficiency, Powell Industries benefits from increased demand for its high-quality, reliable electrical solutions.

Powell Industries Financial Statement Overview

Summary

Strong profitability (gross margin 29.37%, net margin 16.37%) and solid operating performance, supported by minimal leverage (debt-to-equity 0.0026) and strong cash generation (free cash flow up 91.01%). Revenue growth remains positive, though the latest year’s growth rate is modest (2.12%).

Income Statement

Powell Industries has demonstrated strong revenue growth with a consistent increase over the past few years, highlighted by a 2.12% growth in the latest year. The company maintains a robust gross profit margin of 29.37% and a net profit margin of 16.37%, indicating efficient cost management and profitability. The EBIT and EBITDA margins are also healthy, reflecting strong operational performance.

Balance Sheet

The balance sheet is solid with a very low debt-to-equity ratio of 0.0026, indicating minimal leverage and financial risk. The return on equity is impressive at 28.21%, showcasing effective use of equity to generate profits. The equity ratio of 57.78% suggests a stable financial structure with a significant portion of assets financed by equity.

Cash Flow

The cash flow statement reveals a significant growth in free cash flow by 91.01%, enhancing financial flexibility. The operating cash flow to net income ratio of 0.38 and free cash flow to net income ratio of 0.92 indicate strong cash generation relative to earnings, supporting ongoing operations and potential investments.

Breakdown	TTM	Dec 2025	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	1.08B	―	1.10B	1.01B	699.31M	532.58M
Gross Profit	311.29M	―	324.38M	273.09M	147.55M	85.02M
EBITDA	217.74M	―	240.81M	185.64M	71.13M	16.58M
Net Income	175.38M	―	180.75M	149.85M	54.52M	13.74M
Balance Sheet
Total Assets	1.04B	―	1.11B	928.18M	752.24M	493.38M
Cash, Cash Equivalents and Short-Term Investments	433.04M	―	475.53M	358.39M	279.01M	116.51M
Total Debt	1.22M	―	1.66M	1.22M	1.44M	2.32M
Total Liabilities	447.31M	―	468.21M	445.11M	407.22M	196.17M
Stockholders Equity	594.90M	―	640.77M	483.07M	345.03M	297.21M
Cash Flow
Free Cash Flow	81.03M	―	154.79M	96.68M	174.73M	-6.03M
Operating Cash Flow	100.87M	―	167.94M	108.66M	182.55M	-3.58M
Investing Cash Flow	-13.11M	―	-8.34M	-21.87M	-26.57M	6.46M
Financing Cash Flow	-24.97M	―	-25.12M	-19.25M	-13.06M	-13.31M

Powell Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 443.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 443.44 is above the 20-day moving average (MA) of 390.90, above the 50-day MA of 352.51, and above the 200-day MA of 273.98, indicating a bullish trend. The MACD of 25.18 indicates Negative momentum. The RSI at 74.63 is Negative, neither overbought nor oversold. The STOCH value of 78.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for POWL.

Powell Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENS	79 Outperform	$6.64B	21.03	18.22%	0.67%	6.17%	20.86%
POWL	78 Outperform	$5.37B	29.77	32.17%	0.32%	9.08%	19.86%
NVT	76 Outperform	$18.26B	31.18	8.57%	0.84%	5.31%	5.76%
PLPC	69 Neutral	$1.18B	31.93	8.33%	0.35%	15.93%	12.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TE	56 Neutral	$2.47B	-2.51	-55.98%	―	―	-394.37%
ATKR	52 Neutral	$2.39B	-130.04	-1.11%	2.02%	-10.98%	-103.99%

Powell Industries Corporate Events

Powell Industries Enhances Executive Incentive Plan and Metrics

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 part of a revised fiscal 2026 long‑term incentive program. The committee shifted to setting award size by fixed dollar targets rather than as a multiple of base salary, raising Cope’s target to $2.2 million and Metcalf’s to $600,000, and rebalanced Cope’s mix toward 60% performance-based and 40% time-based units, while keeping Metcalf’s at an even split. Although vesting terms largely mirror prior grants, the performance-based units now incorporate a three-year revenue compound annual growth rate metric alongside existing EBITDA and safety goals, signaling a stronger emphasis on growth and performance alignment in executive pay, with implications for how leadership incentives are tied to the company’s long-term financial and operational outcomes.

The most recent analyst rating on (POWL) stock is a Buy with a $387.00 price target. To see the full list of analyst forecasts on Powell Industries stock, see the POWL Stock Forecast page.

Powell Industries Declares Quarterly Cash Dividend

On November 4, 2025, Powell Industries announced that its Board of Directors declared a quarterly cash dividend of $0.2675 per share, payable on December 17, 2025, to shareholders of record as of November 19, 2025. This announcement underscores Powell Industries’ commitment to returning value to its shareholders and may positively impact its market positioning by reinforcing investor confidence.

The most recent analyst rating on (POWL) stock is a Buy with a $432.00 price target. To see the full list of analyst forecasts on Powell Industries stock, see the POWL Stock Forecast page.