Powell Industries Invests $12.4 Million to Expand Production Capacity in Houston

Powell Industries plans a $12.4 million investment to expand production capacity at its Houston manufacturing facility. The expansion aims to support a strong cycle of Oil & Gas order activity driven by LNG project development and execution work. The investment will add 335,000 square feet of productive capacity and double the length of the existing shoreline bulkhead to support increased schedule flexibility and multiple ship lanes. Construction is expected to begin in Q1 2026 and be completed in late 2026.

Powell Industries, Inc. (NASDAQ: POWL), a leading supplier of custom-engineered solutions for the management, control, and distribution of electrical energy, has announced a significant investment of $12.4 million to expand production capacity at its Jacintoport manufacturing facility in Houston. This announcement brings the cumulative investment in the Jacintoport fabrication yard to approximately $20 million over the past eight years, and nearly $40 million across Powell’s three Houston manufacturing facilities to support the Company’s organic growth plans [2].

The investment aims to add an incremental 335,000 square feet of productive capacity for Power Control Room laydown area, representing a 62% increase from the current yard capacity. Additionally, the investment will double the length of the existing shoreline bulkhead to 1,150 feet, enhancing schedule flexibility and accommodating multiple ship lanes for the varied needs and project timelines of Powell’s customers [2].

The expansion is a critical step to support what Powell Industries expects to be a strong and durable cycle of Oil & Gas order activity driven by LNG project development and execution work over the next three to five years. The yard will provide customers with a premier facility to build both onshore and offshore Power Distribution solutions, further strengthening Powell’s leading position in this market [2].

Construction is expected to begin during the first quarter of Fiscal 2026 and is anticipated to be completed in late Fiscal 2026. The incremental capacity is initially expected to support Powell’s Oil & Gas customers but can be utilized to support each of Powell’s market sectors [2].

Powell Industries, Inc., headquartered in Houston, designs, manufactures, and services custom-engineered equipment and systems for the distribution, control, and monitoring of electrical energy. The company serves a wide range of industries, including utilities, oil and gas producers, refineries, petrochemical plants, pulp and paper producers, mining operations, commuter railways, and more [1].

References:
[1] https://finance.yahoo.com/quote/POWL/
[2] https://www.globenewswire.com/news-release/2025/08/20/3136726/0/en/Powell-Industries-Announces-12-4-Million-Investment-to-Expand-Production-Capacity.html