Powell Industries 2025 Q4 Earnings Strong Performance with 11.7% Net Income Growth

Powell Industries (POWL) delivered a strong Q4 2025 performance, surpassing both revenue and EPS forecasts. The company reported $297.98 million in revenue and $4.26 EPS, marking 8.3% and 10.9% growth respectively. Management maintained a positive outlook, with 60% of the $1.4B backlog expected to convert in 2026.

Revenue

Total revenue rose 8.3% to $297.98 million in Q4 2025, driven by robust demand in electric utility and LNG sectors.

Earnings/Net Income

Net income surged 11.7% to $51.42 million, with EPS climbing 10.9% to $4.26. The EPS and net income growth underscore Powell’s strong earnings performance and operational efficiency.

Post-Earnings Price Action Review

Despite beating forecasts, POWL’s stock fell 11.04% post-earnings, reflecting short-term volatility. However, the company’s 100% EPS beat rate over two years and strategic investments, including a $12.4M Jacintoport expansion, position it for long-term resilience. Diversification into nonindustrial sectors and a debt-free balance sheet with $476M cash further support growth, though macroeconomic risks remain.

CEO Commentary

CEO Brett Cope highlighted 16% gross profit growth and $61M operating cash flow, emphasizing strength in electric utility and LNG. The acquisition of Remsdaq and Jacintoport expansion aim to boost automation capabilities and LNG project capacity.

Guidance

CFO Mike Metcalf outlined $12.4M in CapEx for Jacintoport and $5–7M for maintenance, with 60% of the $1.4B backlog expected to convert in 2026. Gross margins are projected to stay in the upper 20s.

Additional News

1. M&A Activity: Acquisition of Remsdaq, a UK-based SCADA solutions provider, to enhance automation offerings.

2. Expansion Plans: $12.4M investment in Jacintoport facility to boost LNG project capacity, expected to complete by late 2026.

3. Dividend: Announced a $0.2675 quarterly dividend, yielding 0.3%, with a 7.43% payout ratio.

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