Powell Industries Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 3 August 2026: press release. The quarter’s numbers.

Key takeaways

Revenue rose 9% year over year: Revenue was $312 million, up 9% from $286.3 million a year earlier and up 5% from the second quarter's $296.6 million. Source
Net income and diluted EPS rose 8%: Net income was $52.2 million, or $1.42 per diluted share, up 8% from $48.2 million, or $1.32 a year earlier. Management attributed the increase to higher revenues and gross margins. Source
New orders reached $934 million: New orders were $934 million, against $362 million a year earlier and $490 million in the second quarter. Management described the total as a record, with a book-to-bill ratio of 3.0x. Source
Three mega orders booked in quarter: Three mega orders were awarded: a data center order above $400 million for behind-the-meter on-site generation, a petrochemical order of about $75 million in fertilizer, and an LNG order of about $60 million. Source
Backlog reached $2.4 billion: Backlog was $2.4 billion at June 30, 2026, up 69% from $1.4 billion a year earlier and up 35% from $1.8 billion at March 31, 2026. Source
Gross margin at 30.6% of revenue: Gross profit was $95.3 million, or 30.6% of revenue, up 8% from $87.9 million. The prior-year margin was 30.7% and the second-quarter margin was 29.6%. Source
Cash and short-term investments $634 million: Cash, cash equivalents and short-term investments were $633.6 million at June 30, 2026, up from $545 million at March 31, 2026 and $475.5 million at September 30, 2025. Source

“Commercial momentum across our key end markets continues to accelerate as Powell was awarded a record $934 million of new orders (2) in the quarter”
Brett A. Cope, Chairman and Chief Executive Officer

What changed from last quarter

Guidance kept: Gross margin expectation restated as consistent with the trailing twelve months. Source
New: Three mega orders were awarded in the quarter, including a petrochemical order and an LNG order. Source
New: Management is evaluating greenfield capacity expansions, incremental to leased capacity in Houston and Ohio. Source

Results and growth drivers

Revenue rose 9% year over year: Revenue was $312 million, up 9% from $286.3 million a year earlier and up 5% from the second quarter's $296.6 million. Source
Net income and diluted EPS rose 8%: Net income was $52.2 million, or $1.42 per diluted share, up 8% from $48.2 million, or $1.32 a year earlier. Management attributed the increase to higher revenues and gross margins. Source
Nine-month revenue, net income and EPS higher: Nine-month revenue was $859.5 million against $806.3 million, net income $139.4 million against $129.3 million, and diluted EPS $3.81 against $3.54. Per-share figures reflect the April 2026 split. Source
Operating and interest income increased: Operating income was $64.1 million against $60.1 million. Net interest income was $5.0 million against $4.0 million. The income tax provision was $17.0 million against $15.9 million. Source

Segments and end markets

Commercial and industrial revenue up 54%: Commercial & Other Industrial revenue grew 54% and Electric Utility revenue grew 18% compared with the prior year. Source
Petrochemical revenue down 49%: Petrochemical revenue declined 49% year over year, partly offsetting growth in the other two markets. Source
Oil and gas, utility and C&I activity high: Management said activity in Oil and Gas, Electric Utility and Commercial and Industrial remained at very high levels this quarter. Source

“We anticipate activity across each of our core markets will remain robust.”
Brett A. Cope, Chairman and Chief Executive Officer

Orders and backlog

New orders reached $934 million: New orders were $934 million, against $362 million a year earlier and $490 million in the second quarter. Management described the total as a record, with a book-to-bill ratio of 3.0x. Source
Three mega orders booked in quarter: Three mega orders were awarded: a data center order above $400 million for behind-the-meter on-site generation, a petrochemical order of about $75 million in fertilizer, and an LNG order of about $60 million. Source
Backlog reached $2.4 billion: Backlog was $2.4 billion at June 30, 2026, up 69% from $1.4 billion a year earlier and up 35% from $1.8 billion at March 31, 2026. Source
Bookings led by three end markets: Management said order increases came predominantly from the Commercial & Other Industrial, Oil & Gas, and Petrochemical markets. Source

Costs, margins and pricing

Gross margin at 30.6% of revenue: Gross profit was $95.3 million, or 30.6% of revenue, up 8% from $87.9 million. The prior-year margin was 30.7% and the second-quarter margin was 29.6%. Source
Volume and pricing lifted gross profit: Management attributed the gross profit increase primarily to higher volume levels and a stable pricing environment. Source
SG&A and R&D spending increased: SG&A was $26.7 million, up from $25.1 million. R&D expense was $4.3 million, up from $2.7 million. Amortization of intangibles was $0.2 million. Source

“Our strong project execution levels, combined with our growing backlog (3) and its overall composition across our core end markets, make us confident that Powell will deliver another very strong year of financial results”
Michael Metcalf, Chief Financial Officer

Capital, cash and returns

Cash and short-term investments $634 million: Cash, cash equivalents and short-term investments were $633.6 million at June 30, 2026, up from $545 million at March 31, 2026 and $475.5 million at September 30, 2025. Source
Working capital rose from year-end: Working capital was $606.5 million at June 30, 2026, against $485.3 million at September 30, 2025. Source
Stockholders' equity increased: Stockholders' equity was $756.2 million at June 30, 2026, against $640.8 million at September 30, 2025. Source
Capital expenditures higher in quarter: Capital expenditures were $6.5 million in the quarter, against $5.1 million a year earlier. Nine-month capital expenditures were $10.4 million, against $11.4 million. Source
Dividends paid rose slightly: Dividends paid were $3.3 million in the quarter, against $3.2 million a year earlier, and $9.8 million for nine months against $9.6 million. Source

Capacity and execution

Jacintoport production ramp planned: Management plans to ramp production at the Jacintoport yard to support recent core industrial project awards once the added capacity is in use. Source
Capacity spending judged on returns: Management said further capacity decisions prioritize adequate returns and the long-term manufacturing footprint. Source
Project execution kept as focus: Management said the team continues to focus on project execution while delivering the record backlog. Source

Demand and fiscal 2027 look-ahead

Core end-market demand drivers named: Management cited durable and diverse demand drivers across core markets, including continued US LNG exports. Source
Utility and AI demand cited: Management also cited utility generation growth with grid strengthening initiatives, and rising demand for data centers and related AI capacity. Source
Positioning for secular demand tailwinds: The near-to-midterm focus is on positioning Powell to address secular tailwinds driving demand for electrical distribution equipment and engineered-to-order solutions. Source

Figures management reported

Figure	Reported
Backlog Source	$2.4 billion at June 30, 2026
New orders Source	$934 million
Book-to-bill ratio Source	3.0x
Mega orders awarded in quarter Source	3

Earlier plans management reported on

Not stated: The prior release said incremental capacity investment would follow backlog acceleration. This release describes capacity being added prudently to support it.
Not stated: The prior release said management was focused on delivering on project schedules. This release cites project execution as a continuing focus.

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

POWELL INDUSTRIES ANNOUNCES THIRD QUARTER FISCAL 2026 RESULTS

HOUSTON - August 3, 2026 - Powell Industries, Inc. (NASDAQ: POWL) (“Powell” or the “Company”), a leading supplier of custom-engineered solutions for the management, control and distribution of electrical energy, today announced results for the third quarter Fiscal 2026 ended June 30, 2026. All comparisons are to the third quarter of Fiscal 2025, unless otherwise noted.

Key Highlights:

Revenues of $312 million increased 9%;
Gross profit of $95 million, or 30.6% of revenue, increased 8%;
Net income of $52 million, or $1.42 per diluted share, increased 8%;
New orders totaled $934 million, an increase of 158%;
Backlog as of June 30, 2026 totaled $2.4 billion, an increase of 69%;
Cash and short-term investments as of June 30, 2026 totaled $634 million;
Powell was awarded three mega orders during the fiscal third quarter, including the previously announced data center order with a value exceeding $400 million, as well as orders in the Petrochemical market and the LNG end market.

Brett A. Cope, Powell’s Chairman and Chief Executive Officer, stated, “Commercial momentum across our key end markets continues to accelerate as Powell was awarded a record $934 million of new orders in the quarter and reported a book-to-bill ratio of 3.0x. Activity levels across Oil and Gas, Electric Utility and Commercial and Industrial end markets have remained very robust, highlighted in this most recent quarter by our previously announced mega data center order with a value in excess of $400 million, as well as two additional megaorders; one within the LNG end market that approximated $60 million and the other a Petrochemical order for roughly $75 million. The Powell team also continues to focus on strong project execution as we deliver our record backlog, demonstrated by a strong gross margin performance of 30.6%.”

Third Quarter Fiscal 2026 Results

Revenues totaled $312 million, an increase of 9% compared to $286.3 million in the prior year, and a sequential increase of 5% compared to $296.6 million in the second quarter of Fiscal 2026. The growth compared to the prior year was driven by higher revenue levels from the Commercial & Other Industrial market, which grew 54%, as well as from the Electric Utility market, which grew 18%. This was partially offset by lower revenue within the Petrochemical market, which declined 49%.

Gross profit of $95.3 million, or 30.6% of revenue, increased 8% compared to $87.9 million, or 30.7% of revenue, in the prior year and increased sequentially by 8% compared to $87.9 million, or 29.6% of revenue in the second quarter of Fiscal 2026. The increases in gross profit were primarily driven by higher volume levels and a continued strong and stable pricing environment.

New orders totaled $934 million compared to $362 million in the prior year and $490 million in the second quarter of Fiscal 2026. The increases were driven by improved bookings predominantly within the Commercial & Other Industrial, Oil & Gas, and Petrochemical markets. During the quarter, the Company was awarded three mega orders; one for a data center with a value exceeding $400 million related to a behind-the-meter design of on-site generation assets, a Petrochemical order with a value of approximately $75 million in the fertilizer industry, and a LNG order with a value of approximately $60 million to support the liquefaction and export of LNG along the U.S. Gulf Coast.

Backlog totaled $2.4 billion as of June 30, 2026, an increase of 69% compared to $1.4 billion as of June 30, 2025, and a sequential increase of 35% compared to $1.8 billion as of March 31, 2026.

Net income of $52.2 million, or $1.42 per diluted share, increased 8% compared to $48.2 million, or $1.32 per diluted share in the prior year. The increase was the result of higher revenues coupled with strong gross margins during the quarter. Net income in the quarter increased sequentially by 14% compared to $45.9 million, or $1.25 per diluted share in the second quarter of Fiscal 2026.

On April 2, 2026, Powell effected a three-for-one forward split of our common stock and proportionately increased the number of authorized common stock from 30,000,000 to 90,000,000. Each shareholder of record as of the close of trading on March 20, 2026 (the “Record Date”) received, after the close of trading on April 2, 2026, two additional shares for every one share held on the Record Date. Trading began on a split-adjusted basis at market open on April 6, 2026.

OUTLOOK

Commenting on the Company’s expectations for the remainder of Fiscal 2026, Cope added, “The outlook for each of our core end markets are highly favorable, supported by durable and diverse demand drivers, including the continuation of U.S. LNG in the global energy landscape, growth in utility generation coupled with ongoing grid strengthening initiatives, as well as increasing demand to support data centers and related AI capacity demand. We anticipate activity across each of our core markets will remain robust. Our near-to-midterm focus remains on ensuring that Powell is adequately positioned to address these thematic, secular tailwinds driving the growing demand for electrical distribution equipment and custom, engineered-to-order solutions.”

Michael Metcalf, Powell’s Chief Financial Officer, commented, “Our strong project execution levels, combined with our growing backlog and its overall composition across our core end markets, make us confident that Powell will deliver another very strong year of financial results as we close out Fiscal 2026 and look ahead to Fiscal 2027. We expect that gross margins will maintain levels consistent to the trailing twelve months, while prudently adding capacity to support the acceleration in our backlog. The expansion of our Jacintoport fabrication yard is expected to be completed by the close of Fiscal 2026, and we anticipate production to ramp up as we leverage this additional capacity to support recent core industrial project awards. We are also evaluating greenfield capacity expansions incremental to our added leased capacity in Houston and Ohio, while prioritizing adequate returns and ensuring the optimal manufacturing footprint for Powell over the long term.”

CONFERENCE CALL

Powell Industries has scheduled a conference call for Tuesday, August 4, 2026 at 11:00 a.m. Eastern time. To participate in the conference call, dial 1-833-953-2431 (domestic) or 1-412-317-5760 (international) at least 10 minutes before the call begins and ask for the Powell Industries conference call. A telephonic replay of the conference call will be available through August 11, 2026 and may be accessed by calling 1-855-669-9658 (domestic) or 1-412-317-0088 (international) and using passcode 3105582#.

Investors, analysts and the general public will also have the opportunity to listen to the conference call over the Internet by visiting powellind.com. To listen to the live call on the web, please visit the website at least 15 minutes before the call begins to register, download and install any necessary audio software. For those who cannot listen to the live webcast, an archive will be available shortly after the call and will remain available for approximately twelve months at powellind.com.

About Powell Industries

Powell Industries, Inc., headquartered in Houston, Texas, develops, designs, manufactures and services custom-engineered equipment and systems that distribute, control and monitor the flow of electrical energy and provide protection to motors, transformers and other electrically powered equipment. Powell Industries, Inc. primarily serves the oil and gas and petrochemical markets, the electric utility market, and commercial and other industrial markets. Beyond these major markets, we also provide products and services to the light rail traction power market and other markets that include universities and government entities. We are continuously developing new channels to electrical markets through original equipment manufacturers and distribution market channels. For more information, please visit powellind.com.

Any forward-looking statements in the preceding paragraphs of this release, including those related to our outlook, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties in that actual results may differ materially from those projected in the forward-looking statements. In the course of operations, we are subject to certain risk factors, competition and competitive pressures, sensitivity to general economic and industrial conditions, international political and economic risks, availability and price of raw materials, the impact of tariffs and execution of business strategy. In addition, our backlog may not be indicative of future operating results as orders may be cancelled or modified by our customers and associated backlog may not be recognized as revenue on the timeline we expect or at all. For further information, please refer to the Company’s filings with the Securities and Exchange Commission (the “SEC”), copies of which are available from the Company without charge.

Investors should note that we announce material financial information in SEC filings, press releases and public conference calls. Based on guidance from the SEC, we may use the Investors section of our website to communicate with investors. It is possible that the financial and other information posted there could be deemed to be material information. The information on our website is not part of, and is not incorporated to, this release.

POWELL INDUSTRIES, INC. & SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months EndedJune 30,				Nine Months Ended June 30,
	2026		2025		2026		2025
	(Unaudited)
(In thousands, except per share data)
Revenues	$311,740		$286,273		$859,539		$806,335
Cost of goods sold	216,441		198,374		604,886		575,480
Gross profit		95,299		87,899		254,653		230,855
Selling, general and administrative expenses	26,702		25,116		77,703		68,359
Research and development expenses	4,300		2,659		11,856		7,881
Amortization of intangible assets	221		-		666		-
Operating income	64,076		60,124		164,428		154,615
Other expenses (income):
Interest income, net	(5,047)		(3,977)		(13,515)		(11,397)
Income before income taxes		69,123		64,101		177,943		166,012
Income tax provision	16,963		15,867		38,506		36,685
Net income	$52,160		$48,234		$139,437		$129,327
Earnings per share:
Basic	$1.43		$1.33		$3.83		$3.57
Diluted	$1.42		$1.32		$3.81		$3.54
Weighted average shares:
Basic	36,432		36,212		36,396		36,176
Diluted	36,604		36,525		36,566		36,497
SELECTED FINANCIAL DATA:
Depreciation and Amortization	$2,165		$1,742		$6,496		$5,215
Capital Expenditures	$6,525		$5,117		$10,386		$11,380
Dividends Paid	$3,279		$3,228		$9,792		$9,640

POWELL INDUSTRIES, INC. & SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30, 2026	September 30, 2025
	(Unaudited)
(In thousands)
Assets:
Cash, cash equivalents and short-term investments	$633,561	$475,527
All other current assets	597,610	456,189
Property, plant and equipment, net	118,634	111,049
Long-term assets	56,893	66,219
Total assets	$1,406,698	$1,108,984
Liabilities and equity:
Current liabilities	$624,650	$446,387
Deferred and other long-term liabilities	25,864	21,827
Stockholders’ equity	756,184	640,770
Total liabilities and stockholders’ equity	$1,406,698	$1,108,984
SELECTED FINANCIAL DATA:
Working capital	$606,521	$485,329

On April 2, 2026, the Company effected a three-for-one forward split of its common stock (the “Stock Split”). Share and per-share amounts disclosed for all periods have been retroactively adjusted to reflect the effect of the Stock Split.

New orders (bookings) represent the estimated value of contracts added to existing backlog (unsatisfied performance obligations).

The amounts recorded in backlog may not be a reliable indicator of our future operating results and may not be indicative of continuing revenue performance over future fiscal quarters or years primarily due to unexpected contract adjustments, cancellations or scope reductions.

A mega order is defined as an order with a contract value exceeding $50 million.

Working capital is equal to current assets (including cash and short-term investments) minus current liabilities.

Contacts
Michael W. Metcalf, CFO · Powell Industries, Inc. · 713-947-4422 · Robert Winters · Alpha IR Group · POWL@alpha-ir.com · 312-445-2870