Powell Industries 2025 Q4 Earnings Beats Expectations, Net Income Surges 11.7%

Powell Industries (POWL) delivered Q4 2025 results that exceeded expectations, with earnings per share (EPS) of $4.22 outpacing the $3.76 forecast and revenue climbing 8.3% to $297.98 million. The company also raised guidance for fiscal 2026, projecting margins in the “upper 20s” and highlighting a $1.4 billion backlog with 60% deliverable in 2026.

Revenue

The total revenue of Powell Industries increased by 8.3% to $297.98 million in 2025 Q4, up from $275.06 million in 2024 Q4. This growth reflects sustained demand across key markets and operational efficiency.

Earnings/Net Income

Powell Industries's EPS rose 10.9% to $4.26 in 2025 Q4 from $3.84 in 2024 Q4, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $51.42 million in 2025 Q4, marking 11.7% growth from $46.05 million in 2024 Q4. Remarkably, in 2025 Q4, the company set a new record high for fiscal Q4 net income, the highest in over 20 years. The EPS and net income figures underscore the company’s strong profitability and operational effectiveness.

Price Action

The stock price of Powell Industries has plummeted 16.68% during the latest trading day, has plummeted 19.91% during the most recent full trading week, and has plummeted 18.30% month-to-date.

Post-Earnings Price Action Review

Despite surpassing earnings and revenue forecasts, Powell Industries’ stock declined over 11% post-announcement, closing at $321.66. This negative reaction contrasts with its robust financial performance, including $168 million in operating cash flow and $476 million in cash reserves. The market’s response may reflect broader investor caution or profit-taking following the stock’s 52-week high of $413. Management’s guidance for fiscal 2026, including margin expansion and backlog execution, aims to restore investor confidence.

CEO Commentary

Brett Cope, Chairman of the Board, President & CEO, highlighted Powell’s Q4 2025 performance, noting a “solid finish to another record year” with 16% gross profit growth, 8% revenue growth, and $61 million in operating cash flow. He emphasized strength in nonindustrial markets, including Electric Utility and Commercial sectors, which accounted for 41% of fiscal 2025 revenue and 48% of backlog. Cope cited strategic diversification efforts, remarking that these markets represented under 20% of backlog five years prior. He underscored the $1.4 billion backlog’s balanced composition across geographies and project sizes, while acknowledging “divergence” in end markets due to global economic imbalances. Cope expressed optimism about LNG, data center, and Electric Utility opportunities, stating the Jacintoport expansion would “support incoming LNG project development over the next 3 to 5 years.” He concluded with confidence in Powell’s “momentum continuing into the new year,” reflecting an upbeat tone.

Guidance

Brett Cope and Michael Metcalf outlined forward-looking expectations, including the Jacintoport expansion completion by fiscal 2026’s second half, with $12.4 million in CapEx plus $5–7 million for maintenance projects. Metcalf noted 60% of the $1.4 billion backlog is deliverable in 2026 and projected margins in the “upper 20s” for fiscal 2026. Cope highlighted sustained demand in Electric Utility, LNG, and data centers, while Metcalf affirmed “strong commercial momentum” and liquidity to support growth.

Additional News

Powell Industries recently acquired Remsdaq, a U.K.-based SCADA manufacturer, to bolster its electrical automation strategy. The company also announced a quarterly dividend of $0.2675, annualizing to $1.07 per share, with a yield of 0.3%. Additionally, insider transactions revealed executive vice president Michael Metcalf and director John Birchall sold significant shares, reducing their ownership by 11.07% and 30.93%, respectively. These developments highlight strategic expansion, shareholder returns, and insider activity impacting market perception.