Powell Industries Announces First Quarter Fiscal 2026 Results

Rhea-AI Summary

Powell Industries (NASDAQ: POWL) reported first quarter Fiscal 2026 results for the period ended December 31, 2025, with revenues of $251.2M, gross profit $71.4M (28.4%), and net income $41.4M ($3.40 diluted EPS). New orders totaled $439M, backlog reached $1.6B, and cash and short-term investments were $501M.

Quarter-over-quarter declines reflect typical seasonality; year-over-year comparisons show stronger margins, higher orders, and backlog expansion driven by Electric Utility, LNG, and data center megaprojects.

Positive

• Gross profit up 20% YoY to 28.4% margin
• New orders +63% YoY to $439 million
• Backlog +16% YoY to $1.6 billion
• Net income +19% YoY to $41.4 million ($3.40 EPS)

Negative

• Revenue declined 16% sequentially vs Q4 Fiscal 2025
• Gross profit down 24% sequentially vs prior quarter
• EPS down 20% sequentially vs Q4 Fiscal 2025

Market Reaction

-4.66% $432.12

15m delay 11 alerts

-4.66% Since News

$432.12 Last Price

$427.48 $467.77 Day Range

-$269M Valuation Impact

$5.50B Market Cap

1.2x Rel. Volume

Following this news, POWL has declined 4.66%, reflecting a moderate negative market reaction. Our momentum scanner has triggered 11 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $432.12. This price movement has removed approximately $269M from the company's valuation.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.

Key Figures

Q1 2026 revenue: $251.2M Q1 2026 gross profit: $71.4M (28.4%) Q1 2026 net income: $41.4M ($3.40 diluted EPS) +5 more

8 metrics

Q1 2026 revenue $251.2M First quarter Fiscal 2026 vs $241.4M prior-year quarter

Q1 2026 gross profit $71.4M (28.4%) First quarter Fiscal 2026 vs $59.5M (24.7%) prior-year

Q1 2026 net income $41.4M ($3.40 diluted EPS) First quarter Fiscal 2026 vs $34.8M ($2.86) prior-year

New orders $439M Q1 2026 orders vs $269M prior-year; includes ~$75M data center order

Backlog $1.6B As of Dec 31, 2025; up 14% vs Sep 30, 2025 and 16% YoY

Cash & short-term investments $501M Balance as of Dec 31, 2025; company notes no debt

Data center megaproject order ≈$75M Single Q1 2026 order; total data center orders well above $100M

Book-to-bill ratio 1.7 Derived from $439M orders vs quarterly revenue in Q1 2026

Market Reality Check

Price: $453.24 Vol: Volume 455,463 vs 20-day ...

high vol

$453.24 Last Close

Volume Volume 455,463 vs 20-day average 285,988 (relative volume 1.59x), indicating elevated trading activity ahead of/around earnings. high

Technical Price $440.36 is trading above the 200-day MA of $278.38, reflecting a pre-existing uptrend into this earnings release.

Peers on Argus

POWL slipped 0.73% while peers were mixed: HAYW -0.12%, ENS +3.56%, AEIS +4.57%,...

POWL slipped 0.73% while peers were mixed: HAYW -0.12%, ENS +3.56%, AEIS +4.57%, ATKR +2.77%, EOSE -1.88%. Moves do not show a unified sector direction.

Common Catalyst ATKR also reported quarterly results today, suggesting an earnings-heavy news day for electrical equipment peers.

Historical Context

5 past events · Latest: Jan 20 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 20	Earnings call scheduling	Neutral	-1.5%	Set release and call date for Fiscal 2026 Q1 results and provided access details.
Nov 18	Earnings results	Positive	+1.2%	Reported Q4 and full-year 2025 growth in revenue, margins, net income and backlog.
Nov 04	Dividend declaration	Positive	+4.1%	Declared a quarterly cash dividend of $0.2675 per share with specified record and pay dates.
Nov 04	Earnings call scheduling	Neutral	+4.1%	Announced date and conference call details for Fiscal 2025 Q4 and full-year results.
Aug 20	Capacity expansion	Positive	+1.8%	Announced $12.4M investment to expand Jacintoport facility capacity and yard space.

Pattern Detected

Recent corporate updates (earnings, dividends, capacity expansion) have typically coincided with modest positive price moves, indicating the stock often trades in line with constructive news flow.

Recent Company History

Over the last six months, Powell has reported strong Fiscal 2025 results, increased its dividend, and announced a $12.4M expansion of its Jacintoport facility, alongside fiscal 2026 guidance confidence. Backlog stood at $1.4B as of September 30, 2025, with new orders of $1.2B for the year and healthy cash levels. Conference-call date announcements have also been regular. Against this backdrop, today’s first-quarter Fiscal 2026 results with higher revenues, margins, orders, and backlog extend the prior growth and execution narrative.

Market Pulse Summary

This announcement details Q1 Fiscal 2026 revenue of $251.2M, gross profit of $71.4M (28.4%), and net...

Analysis

This announcement details Q1 Fiscal 2026 revenue of $251.2M, gross profit of $71.4M (28.4%), and net income of $41.4M with $3.40 diluted EPS, alongside strong new orders of $439M and a $1.6B backlog. Management highlights significant data center and LNG megaproject wins and a cash balance of $501M with no debt. In context of prior backlog of $1.4B and capacity expansions, investors may watch order trends by end market, margin sustainability, and execution on large projects.

Key Terms

book-to-bill ratio, medium-voltage switchgear

2 terms

book-to-bill ratio financial

"…$439 million of awards booked was the highest quarterly total… and led to a book-to-bill ratio of 1.7."

The book-to-bill ratio compares the value of new orders a company receives to the value of products it ships out or bills for over a certain period. If the ratio is above 1, it means the company is getting more orders than it is completing, which can indicate growth. If it's below 1, it suggests demand is slowing down.

medium-voltage switchgear technical

"…market opportunity for our medium-voltage switchgear product to handle the power demands…"

Medium-voltage switchgear is the set of cabinets, breakers and control devices that route, protect and isolate electrical power on systems between roughly 1,000 and 35,000 volts. Think of it as a traffic-control center for high-power electricity that lets operators turn circuits on or off, prevent faults, and safely perform maintenance. Investors care because it is essential capital equipment that affects a facility’s reliability, safety, operating costs and regulatory compliance, and often represents significant, long-lived spending.

AI-generated analysis. Not financial advice.

HOUSTON, Feb. 03, 2026 (GLOBE NEWSWIRE) -- Powell Industries, Inc. (NASDAQ: POWL), a leading supplier of custom-engineered solutions for the management, control and distribution of electrical energy, today announced results for the first quarter Fiscal 2026 ended December 31, 2025. All comparisons are to the first quarter Fiscal 2025, unless otherwise noted.

First Quarter Key Highlights: 

• Revenues of $251 million increased 4%;
• Gross profit of $71 million, or 28.4% of revenue, increased 20%;
• Net income of $41 million, or $3.40 per diluted share, increased 19%;
• New orders⁽¹⁾ totaled $439 million, an increase of 63%;
• Backlog⁽²⁾ as of December 31, 2025 totaled $1.6 billion, an increase of 16%;
• Cash and short-term investments as of December 31, 2025 totaled $501 million.
  
  

Brett A. Cope, Powell’s Chairman and Chief Executive Officer, stated, “Ongoing levels of solid project execution drove a strong start to our fiscal year, as we delivered a gross margin of 28.4% despite the typical seasonality and lower volumes that define our first quarter. We also experienced high levels of order activity across most of the markets we serve, as the $439 million of awards booked was the highest quarterly total in over two years and led to a book-to-bill ratio of 1.7. Activity in our Commercial & Other Industrial market has accelerated considerably, as this market accounted for almost one-half of our awards in the quarter, and the average project size that we are pursuing and winning has grown substantially, highlighted by our first megaproject⁽³⁾ order in the data center end market. Also, we won a very large LNG award to support a project along the U.S. Gulf Coast, as this market continues to exhibit favorable dynamics. Overall, our fiscal year is off to a great start, and our results continue to demonstrate both the breadth of investment in electrical infrastructure, as well as Powell’s unique ability to deliver engineered-to-order solutions.”

First Quarter Fiscal 2026 Results
Revenues totaled $251.2 million, an increase of 4% compared to $241.4 million in the prior year, and a sequential decline of 16% compared to $298.0 million in the fourth quarter of Fiscal 2025. The growth compared to the prior year was driven by higher revenue levels from the Electric Utility and Oil & Gas markets, which increased by 35% and 2%, respectively, partially offset by lower revenue levels in the Petrochemical and Commercial & Other Industrial markets, which declined by 31% and 8%, respectively. The sequential decline was consistent with typical seasonality in the business and fewer working days.

Gross profit of $71.4 million, or 28.4% of revenue, increased 20% compared to $59.5 million, or 24.7% of revenue, in the prior year and decreased sequentially by 24% compared to $93.5 million, or 31.4% of revenue, in the fourth quarter of Fiscal 2025. The improvement compared to the prior year was primarily due to favorable volume leverage and strong project execution, while continuing to operate in a stable pricing environment. The sequential decline was the result of the seasonality compared to the fourth quarter of Fiscal 2025.

New orders totaled $439 million compared to $269 million in the prior year and $271 million in the fourth quarter of Fiscal 2025. The increases were driven primarily by higher bookings in the Commercial & Other Industrial sector, which included an approximately $75 million order supporting the data center end market – the Company’s first megaproject booking in data centers. In total, data center orders during the quarter were well in excess of $100 million. The Company was also awarded an LNG megaproject order during the quarter to support the liquefaction and export of LNG along the U.S. Gulf Coast. 

Backlog totaled $1.6 billion as of December 31, 2025, an increase of 14% compared to backlog as of September 30, 2025, and an increase of 16% compared to backlog as of December 31, 2024.

Net income of $41.4 million, or $3.40 per diluted share, increased 19% compared to $34.8 million, or $2.86 per diluted share, in the prior year and declined 20% compared to $51.4 million, or $4.22 per diluted share, in the fourth quarter of Fiscal 2025.

OUTLOOK
Commenting on the Company's expectations for Fiscal 2026, Cope added, “Our outlook for each of our major markets remains very encouraging. The growing demand for electrical energy and the response from our Electric Utility customers has continued to support very strong order activity which we expect will sustain itself for the foreseeable future. At the same time, we are beginning to see higher activity levels within the LNG market after what was a period of subdued order activity for much of 2024 and early 2025. We continue to believe that the favorable economics of the U.S. natural gas market will continue to drive international demand for domestic LNG exports as well as favorable market conditions conducive to sustained order activity for Powell. Lastly, the rapid pace of data center development and AI investment is leading to larger and more numerous opportunities for Powell in our Commercial & Other Industrial market, demonstrated by the growing market opportunity for our medium-voltage switchgear product to handle the power demands of larger data centers with greater computing power.”

Michael Metcalf, Powell’s Chief Financial Officer, commented, “Our first quarter supports our continued confidence in our ability to deliver another year of solid financial results in Fiscal 2026, including a gross margin that is expected to sustain the performance achieved in the prior year. Our backlog is well-balanced, the pricing environment remains stable, and the broader Powell team continues to execute projects effectively and efficiently. With a very strong cash balance and no debt, we are well-positioned to continue to create value for our customers, employees, and shareholders alike.”

CONFERENCE CALL
Powell Industries has scheduled a conference call for Wednesday, February 4, 2026 at 11:00 a.m. Eastern time. To participate in the conference call, dial 1-833-953-2431 (domestic) or 1-412-317-5760 (international) at least 10 minutes before the call begins and ask for the Powell Industries conference call. A telephonic replay of the conference call will be available through February 11, 2026 and may be accessed by calling 1-855-669-9658 (domestic) or 1-412-317-0088 (international) and using passcode 7746770#.

Investors, analysts and the general public will also have the opportunity to listen to the conference call over the Internet by visiting powellind.com. To listen to the live call on the web, please visit the website at least 15 minutes before the call begins to register, download and install any necessary audio software. For those who cannot listen to the live webcast, an archive will be available shortly after the call and will remain available for approximately 90 days at powellind.com.

About Powell Industries
Powell Industries, Inc., headquartered in Houston, Texas, develops, designs, manufactures and services custom-engineered equipment and systems that distribute, control and monitor the flow of electrical energy and provide protection to motors, transformers and other electrically powered equipment. Powell Industries, Inc. primarily serves the oil and gas and petrochemical markets, the electric utility market, and commercial and other industrial markets. Beyond these major markets, we also provide products and services to the light rail traction power market and other markets that include universities and government entities. We are continuously developing new channels to electrical markets through original equipment manufacturers and distribution market channels. For more information, please visit powellind.com.

Any forward-looking statements in the preceding paragraphs of this release, including those related to our outlook, 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.

POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
	Three Months Ended December 31,
	2025				2024
(In thousands, except per share data)
	(Unaudited)
Revenues	$	251,184			$	241,431
Cost of goods sold	179,766				181,907
Gross profit	71,418				59,524
Selling, general and administrative expenses	25,158				21,476
Research and development expenses	3,267				2,476
Amortization of intangible assets	222				—
Operating income	42,771				35,572
Other expenses (income):
Interest income, net	(4,265		)		(3,865		)
Income before income taxes	47,036				39,437
Income tax provision	5,646				4,674
Net income	$	41,390			$	34,763
Earnings per share:
Basic	$	3.42			$	2.89
Diluted	$	3.40			$	2.86
Weighted average shares:
Basic	12,109				12,037
Diluted	12,163				12,152
SELECTED FINANCIAL DATA:
Depreciation and Amortization	$	2,149			$	1,755
Capital Expenditures	$	2,029			$	2,189
Dividends Paid	$	3,235			$	3,185

POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
	December 31, 2025				September 30, 2025
(In thousands)
	(Unaudited)
Assets:
Cash, cash equivalents and short-term investments	$	500,843			$	475,527
All other current assets	419,243				456,189
Property, plant and equipment, net	111,832				111,049
Long-term assets	62,450				66,219
Total assets	$	1,094,368			$	1,108,984
Liabilities and equity:
Current liabilities	$	401,626			$	446,387
Deferred and other long-term liabilities	23,856				21,827
Stockholders’ equity	668,886				640,770
Total liabilities and stockholders’ equity	$	1,094,368			$	1,108,984
SELECTED FINANCIAL DATA:
Working capital(4)	$	518,460			$	485,329

(1)	New orders (bookings) represent the estimated value of contracts added to existing backlog (unsatisfied performance obligations).
(2)	The amounts recorded in backlog may not be a reliable indicator of our future operating results and may not be indicative of continuing revenue performance over future fiscal quarters or years primarily due to unexpected contract adjustments, cancellations or scope reductions.
(3)	A megaproject is defined as a project with a contract value exceeding $50 million.
(4)	Working capital is equal to current assets (including cash and short-term investments) minus current liabilities.

Contacts:	Michael W. Metcalf, CFO
	Powell Industries, Inc.
	713-947-4422
	Robert Winters or Ryan Coleman
	Alpha IR Group
	POWL@alpha-ir.com
	312-445-2870

FAQ

What were Powell Industries (POWL) Q1 Fiscal 2026 revenues and EPS?

Powell reported $251.2 million in Q1 Fiscal 2026 revenue and $3.40 diluted EPS. According to the company, revenue rose 4% year-over-year while EPS increased 19% from the prior-year quarter.

How large were Powell Industries (POWL) new orders in Q1 Fiscal 2026 and what drove them?

New orders totaled $439 million in Q1 Fiscal 2026, a 63% year-over-year increase. According to the company, higher bookings were driven by Commercial & Other Industrial activity, including data center megaprojects and an LNG megaproject award.

What is Powell Industries' (POWL) backlog and cash position as of December 31, 2025?

Backlog stood at $1.6 billion and cash plus short-term investments were $501 million as of December 31, 2025. According to the company, backlog increased year-over-year and supports visibility into upcoming revenue.

Why did Powell Industries (POWL) report a sequential decline in revenue in Q1 Fiscal 2026?

The sequential revenue decline of 16% reflects typical seasonality and fewer working days in the quarter. According to the company, reduced fourth-quarter activity versus the prior quarter explains the quarter-to-quarter comparison.

How did Powell Industries (POWL) gross margin perform in Q1 Fiscal 2026 and what drove it?

Gross margin was 28.4% in Q1 Fiscal 2026, up from 24.7% a year earlier. According to the company, improved margin resulted from favorable volume leverage and strong project execution amid stable pricing.