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- **Revenue & Profit Growth**: FY2025 revenue up 9% to $1.1B, net income up 20% to $180.7M. Q4 EPS of $4.22 (+12% YoY).
- **Market Expansion Success**: Non-industrial markets now 48% of backlog; LNG-related revenue nearly doubled YoY.
- **Strategic Investments**: $12.4M Jacintoport expansion and $18.4M Remsdaq acquisition to support automation growth.
- **Strong Cash Flow**: $168M operating cash flow for the year, $476M cash on hand.
- **FY2026 Outlook**: 60% of $1.4B backlog expected to convert, with continued margin improvement from project execution.

**【CEO Summary Section】**
- **Record Fiscal Year 2025 Performance**: Revenue grew 8% YoY to $1.1 billion, with gross profit up 16% to $51 million. Q4 EPS of $4.22 marked a 12% YoY increase.
- **Market Diversification Success**: Non-industrial markets (Electric Utility, Commercial & Other Industrial) now account for 48% of backlog, up from 20% five years ago. LNG-related orders doubled YoY.
- **Strategic Investments**: $12.4 million expansion at Jacintoport to support LNG projects; $18.4 million acquisition of Remsdaq to enhance automation capabilities.
- **Backlog Strength**: $1.4 billion backlog at year-end, with 60% expected to convert in FY2026. Book-to-bill ratio of 1.0x for the year.

**【CFO Financial Commentary】**
- **Q4 Financial Highlights**: Revenue $298 million (+8% YoY), net income $51.4 million (+12% YoY), gross margin 31.4% (up 215bps YoY). Operating cash flow $61 million.
- **Full Year Results**: Revenue $1.1 billion (+9% YoY), net income $180.7 million (+20% YoY), gross margin 29.4% (up 240bps YoY).
- **Liquidity**: $476 million cash on hand, 0 debt, supporting $13 million in capital expenditures.
- **SG&A Management**: Q4 SG&A $27 million (9.1% of revenue), driven by variable compensation and M&A costs. Full year SG&A 8.6% of revenue.

**【Q&A Highlights】**
- **Data Center Growth**: C&I segment revenue driven by data centers, now 10% of backlog vs. 5% prior year. DC switchgear and rectifier R&D progressing.
- **LNG Market Outlook**: Despite delayed FIDs, confident in long-term LNG project pipeline. Jacintoport expansion on track for H2 2026 completion.
- **Margin Drivers**: 100bps margin improvement in Q4 from project closeouts; expect similar execution in FY2026.
- **Competitive Environment**: Utility and data center markets less price-sensitive; oil & gas subsectors more volatile.
- **R&D Pipeline**: $11 million spent in FY2025, with products expected to commercialize in FY2026.


Powell Industries, Inc. (POWL) Q4 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

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Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

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Income Tax Expense

Current Income Tax

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Income Tax Adjustments

Net Income from Continuing Operations

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Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

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Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

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Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

POWL

POWL fundamentals

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