Powell Industries 2025 Q3 Earnings Net Income Sets 20 Year High

Powell Industries reported mixed fiscal 2025 Q3 earnings, with revenue slightly down but net income rising to a new record. The company’s strong gross margin and strategic momentum positioned it well for continued performance in fiscal 2026.

Powell Industries reported fiscal 2025 Q3 earnings on August 6, 2025. Results showed a modest revenue decline but a significant increase in net income. The company did not issue explicit guidance adjustments but expressed confidence in future performance based on strong commercial activity and strategic momentum.

Revenue
Total revenue for Powell Industries decreased by 0.7% to $286.27 million in fiscal 2025 Q3, compared to $288.17 million in the same period of 2024. The Oil and Gas segment, excluding petrochemical, contributed $105.46 million, while the Petrochemical segment generated $36.35 million. The Electric Utility segment saw the strongest performance with $74.91 million in revenue, driven by a $60 million project win. Commercial and Other Industrial revenue came in at $49.52 million, and the Light Rail Traction Power segment reported $8.55 million in revenue, showing a 61% increase year-over-year. Other segments combined contributed $11.48 million to the total. The revenue decline year-over-year was primarily due to lower performance in the Oil and Gas and Petrochemical segments, which fell by 8% and 36%, respectively. However, these declines were largely offset by robust growth in the Electric Utility and Commercial & Other Industrial segments, which increased by 31% and 18%.

Earnings/Net Income
Earnings per share (EPS) increased by 3.9% to $4.00 in fiscal 2025 Q3, compared to $3.85 in the prior-year period. Net income also rose by 4.4% to $48.23 million, marking the highest quarterly net income in over two decades. The company’s profitability was bolstered by strong gross margin performance and effective project execution.

Price Action
The stock price of Powell Industries surged 10.07% during the latest trading day. However, it edged down slightly by 1.21% during the most recent full trading week. Over the past month, the stock has gained 5.54%, reflecting positive investor sentiment.

Post-Earnings Price Action Review
A strategy of buying Powell Industries shares following a revenue increase quarter-over-quarter and holding for 30 days delivered an impressive 525.67% return over the past three years. This outperformed the benchmark by 477.09%, with an 88.32% compound annual growth rate (CAGR). The strategy also demonstrated a maximum drawdown of 0.00%, underscoring its resilience. With a Sharpe ratio of 1.42 and volatility of 62.10%, the performance was both high and risk-adjusted.

CEO Commentary
Brett A. Cope, Chairman and CEO of Powell Industries, highlighted the company’s strong execution, with a 30.7% gross margin and a book-to-bill ratio of 1.3x. He noted sequential backlog growth of 7% to $1.4 billion and emphasized key order wins, including a $60 million Electric Utility award, $80 million in offshore oil and gas modules, and a $30 million Traction Power order. Cope also mentioned the Remsdaq acquisition as a strategic step to strengthen the Electric Automation platform. His tone was optimistic, underscoring confidence in operational execution and long-term value delivery.

Guidance
Michael Metcalf, CFO, expressed confidence in fiscal 2025 Q4 and fiscal 2026 performance, citing strong commercial activity and strategic momentum. While the company did not provide specific EPS or revenue targets, it expects to maintain profitability and operational efficiency.

Additional News
Powell Industries announced a definitive agreement to acquire Remsdaq Ltd., a UK-based manufacturer of SCADA Remote Terminal Units for electrical substation control and automation. The acquisition is expected to significantly strengthen Powell’s Electric Automation platform, enhancing its ability to serve the market with comprehensive solutions. The company also highlighted sustained demand across its core markets and the successful execution of its strategic growth initiatives. No dividend or buyback announcements were made within the three-week period from August 6, 2025, and no C-level changes were reported.