Powell Industries 2025 Q4 Earnings Beats Expectations with 11.7% Net Income Growth

Powell Industries (POWL) reported fiscal 2025 Q4 earnings on Nov 19, 2025, surpassing expectations with an 8.3% revenue increase and 10.9% EPS growth. The CEO highlighted a "record year" driven by 16% gross profit growth and $61M operating cash flow.

Revenue

Total revenue rose 8.3% year-over-year to $297.98 million, exceeding 2024 Q4’s $275.06 million. This outperformance reflects strong demand for the company’s engineered electrical systems and diversified market exposure.

Earnings/Net Income

Earnings per share (EPS) surged 10.9% to $4.26, with net income hitting $51.42 million—a 11.7% increase from $46.05 million in 2024 Q4. The company’s profitability reached a 20-year high, underscoring operational efficiency and strategic cost management.

Price Action

Post-earnings, shares fell sharply: 16.68% in a single trading day, 19.91% for the week, and 18.30% month-to-date. Despite the decline, the stock remains within its 52-week range of $146.02–$413.00.

Post-Earnings Price Action Review

The strategy of buying POWL stock following revenue beats and holding for 30 days appears viable. Powell’s 8.4% revenue growth ($298M vs. $292.85M estimate) and $476M cash reserves signal robust financial health. Strategic investments, including the $12.4M Jacintoport expansion and the Remsdaq acquisition, position the company to capitalize on LNG and automation markets. Historically, Powell has consistently exceeded EPS and revenue forecasts, bolstering confidence in short-term gains. A 30-day holding period aligns with market reactions to earnings surprises and the company’s strong liquidity, which supports growth initiatives. However, investors must weigh risks against their tolerance for volatility.

CEO Commentary

CEO Brett Cope emphasized Powell’s diversified backlog, with nonindustrial markets (Electric Utility and Commercial & Other Industrial) contributing 41% of 2025 revenue. Strategic projects, including the Jacintoport expansion and Remsdaq integration, are poised to drive 2026 growth amid robust demand in LNG and data centers.

Guidance

Powell anticipates 60% of its $1.4B backlog to be deliverable in 2026, with gross margins remaining in the “upper 20s.” CapEx for the Jacintoport expansion is $12.4M, alongside $5–7M for maintenance. R&D spending is expected to yield product launches in 2026, while SGA expenses will remain stable.

Additional News

Powell completed the $12.4M Jacintoport expansion to boost LNG project capacity and acquired Remsdaq, a UK-based automation firm, to enhance electrical systems. The company also announced a quarterly dividend of $0.2675 (annualized $1.07), reflecting its strong liquidity. Institutional ownership remains robust, with hedge funds like Quest and Zacks increasing stakes in Q3.