Powell Industries Announces $12.4 Million Investment to Expand Production Capacity

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

Insights

Industrial Manufacturing Analyst

Powell's $12.4M capacity expansion signals strong anticipated Oil & Gas demand, particularly from LNG projects, enhancing competitive positioning and growth potential.

Powell Industries' $12.4 million investment to expand its Jacintoport facility represents a strategic move to capitalize on anticipated strong demand from the Oil & Gas sector, particularly LNG projects. This expansion will increase the Power Control Room laydown area by 62% (adding 335,000 square feet) and double the shoreline bulkhead to 1,150 feet, significantly enhancing the company's production capabilities.

This investment brings Powell's total commitment to $20 million at Jacintoport over eight years and nearly $40 million across all Houston facilities, demonstrating a sustained organic growth strategy. The timing is particularly significant as it aligns with what management expects to be a "strong and durable cycle of Oil & Gas order activity" driven by LNG development over the next three to five years.

The capacity expansion strengthens Powell's competitive positioning in several ways. First, it enables the company to meet increased demand without supply constraints that might otherwise limit growth. Second, the enhanced shoreline infrastructure provides greater scheduling flexibility for customers with varied project timelines. Third, while primarily targeting Oil & Gas customers, the facility's versatility allows it to support all of Powell's market sectors, providing operational optionality.

The investment timeline, with construction beginning in Q1 fiscal 2026 and completion expected by late fiscal 2026, positions Powell to capture the anticipated uptick in LNG project development. This proactive capacity expansion suggests management has strong visibility into future order flows and is moving decisively to ensure Powell can fulfill increased demand, particularly as the U.S. continues to expand its role in global LNG exports.

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 $12.4 million investment to expand production capacity at its Jacintoport manufacturing facility in Houston. This announcement brings the cumulative investment in the Jacintoport fabrication yard to approximately $20 million over the past eight years, and nearly $40 million across Powell’s three Houston manufacturing facilities to support the Company’s organic growth plans.

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 62% increase from the current yard capacity. The investment will also double the length of the existing shoreline bulkhead to 1,150 feet to support increased schedule flexibility and multiple ship lanes for the varied needs and project timelines of Powell’s customers. The incremental capacity is initially expected to support the Company’s Oil & Gas customers but can be utilized to support each of Powell’s market sectors.

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

FAQ

How much is Powell Industries (POWL) investing in its Jacintoport facility expansion?

Powell Industries is investing $12.4 million in its Jacintoport facility expansion, bringing total investment in this facility to $20 million over the past eight years.

What is the expected completion date for Powell Industries' Jacintoport expansion?

Construction is expected to begin in Q1 2026 and be completed in late fiscal 2026.

How much additional capacity will POWL's Jacintoport expansion add?

The expansion will add 335,000 square feet of productive capacity for Power Control Room laydown area, representing a 62% increase from current yard capacity.

What markets will Powell Industries' expanded Jacintoport facility serve?

While primarily supporting Oil & Gas customers, the facility can be utilized to support all of Powell's market sectors, including utilities, refineries, petrochemical plants, mining operations, and commuter railways.

How much has Powell Industries invested in its Houston facilities?

Powell has invested nearly $40 million across its three Houston manufacturing facilities to support organic growth plans.