Powell expects robust activity across core end markets for the remainder of fiscal 2026
Company expects gross margins to remain consistent with trailing twelve months
Powell is expanding capacity to support backlog and recent project awards
Overview
US electrical equipment supplier's fiscal Q3 revenue rose 9% yr/yr but missed analyst expectations
Net income for fiscal Q3 increased 8% yr/yr, driven by higher revenues and strong gross margins
Company secured $934 mln in new orders, including three mega contracts; backlog up 69% yr/yr
Result drivers
Market mix - Revenue growth was driven by higher sales in Commercial & Other Industrial and Electric Utility markets, partially offset by lower Petrochemical market revenue
Strong margins - Gross profit increase was primarily due to higher volume levels and continued strong and stable pricing environment
Mega contracts - Three mega orders in data centers, LNG, and petrochemicals boosted new orders and backlog
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electrical components & equipment peer group is "buy"
Wall Street's median 12-month price target for Powell Industries Inc is $320.00, about 53.3% above its July 31 closing price of $208.68
The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 47 three months ago
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