Powell Industries Announces $12.4 Million Investment to Expand Production Capacity
Powell Industries (NASDAQ: POWL) has announced a significant $12.4 million investment to expand its Jacintoport manufacturing facility in Houston.
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Rhea-AI Summary
Powell Industries (NASDAQ: POWL) has announced a significant $12.4 million investment to expand its Jacintoport manufacturing facility in Houston. The expansion will increase the facility's productive capacity by adding 335,000 square feet of Power Control Room laydown area, representing a 62% increase in yard capacity.
The project will double the shoreline bulkhead length to 1,150 feet, enhancing schedule flexibility and multiple ship lanes. This investment brings Powell's total investment in Jacintoport to $20 million over eight years, and $40 million across its three Houston facilities. Construction is scheduled to begin in Q1 2026 and complete in late 2026, primarily supporting Oil & Gas customers but available for all market sectors.
Positive
- Significant expansion adding 335,000 square feet (62% increase) in production capacity
- Strategic investment of $12.4 million to capture expected growth in LNG projects
- Doubled shoreline bulkhead length to 1,150 feet for improved operational flexibility
- Facility improvements position company for 3-5 year growth cycle in Oil & Gas sector
Negative
- Significant capital expenditure may impact short-term cash position
- Construction completion not expected until late 2026
- Heavy dependence on Oil & Gas sector performance
- Execution risks associated with facility expansion
Details
News Market Reaction – POWL
On Aug 21, the first trading day after this news, POWL closed 1.79% above the previous close.
Data tracked by StockTitan Argus for the Aug 21 session.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Expansion of Jacintoport facility to support expectations of increased Oil & Gas order activity driven by LNG
HOUSTON, Aug. 20, 2025 (GLOBE NEWSWIRE) -- Powell Industries, Inc. (NASDAQ: POWL) (“Powell” or the “Company”), a leading supplier of custom engineered solutions for the management, control and distribution of electrical energy, today announced a
Brett A. Cope, Powell’s Chairman and Chief Executive Officer, stated, “This next expansion phase of our Jacintoport facility is a critical step to support what we expect will be a strong and durable cycle of Oil & Gas order activity driven by LNG project development and execution work over the next three to five years. The yard provides our customers with a premier facility to build both onshore and offshore Power Distribution solutions to meet the critical dates of their projects, further strengthening Powell’s leading position in this market, as we continue to play a vital role in supporting the production and export of U.S. LNG and the essential role it will play in the global energy landscape.”
The investment will add an incremental 335,000 square feet of productive capacity for Power Control Room laydown area, a
Construction is expected to begin during the first quarter of Fiscal 2026 and is expected to be completed in late Fiscal 2026.
About Powell
Powell Industries, Inc., headquartered in Houston, designs, manufactures and services custom-engineered equipment and systems for the distribution, control and monitoring of electrical energy. Powell markets include large industrial customers such as utilities, oil and gas producers, refineries, petrochemical plants, pulp and paper producers, mining operations and commuter railways. For more information, please visit powellind.com.
Any forward-looking statements in the preceding paragraphs of this release, including those related to the timing, costs and benefits of our expanded production capacity, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties in that actual results may differ materially from those projected in the forward-looking statements. In the course of operations, we are subject to certain risk factors, competition and competitive pressures, sensitivity to general economic and industrial conditions, international political and economic risks, availability and price of raw materials, the impact of tariffs and execution of business strategy. For further information, please refer to the Company's filings with the Securities and Exchange Commission, copies of which are available from the Company without charge.
Contact:
Michael Metcalf, CFO
Powell Industries, Inc.
713-947-4422
Robert Winters or Ryan Coleman
Alpha IR Group
POWL@alpha-ir.com
312-445-2870
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