Powell Industries (POWL) reported strong Q2 FY2025 results with revenues of $279 million, up 9% year-over-year. Net income reached $46.3 million, or $3.81 per diluted share, marking a 38% increase from the previous year. The company achieved a gross profit of $83.4 million, representing a 29.9% margin. Notable sector performance included Electric Utility growing 48% to $70.3 million and Commercial/Industrial rising 16% to $40.4 million. New orders totaled $249 million, including major projects for a Gulf Coast LNG facility and a Canadian mining project. The company maintains a robust backlog of $1.3 billion and strong cash position of $389 million. Powell's Houston facility expansion is progressing on schedule, aimed at enhancing manufacturing capacity and R&D capabilities.
Powell Industries (POWL) ha riportato risultati solidi per il Q2 FY2025 con ricavi di 279 milioni di dollari, in aumento del 9% rispetto all'anno precedente. L'utile netto ha raggiunto 46,3 milioni di dollari, pari a 3,81 dollari per azione diluita, segnando un incremento del 38% rispetto all'anno precedente. L'azienda ha ottenuto un margine lordo di 83,4 milioni di dollari, corrispondente al 29,9%. Tra i settori più performanti, il settore Electric Utility è cresciuto del 48% raggiungendo 70,3 milioni di dollari, mentre il Commerciale/Industriale è aumentato del 16% a 40,4 milioni di dollari. I nuovi ordini hanno totalizzato 249 milioni di dollari, comprendendo importanti progetti per una struttura LNG sulla Costa del Golfo e un progetto minerario canadese. L'azienda mantiene un solido portafoglio ordini di 1,3 miliardi di dollari e una forte posizione di cassa di 389 milioni di dollari. L'espansione dello stabilimento di Houston procede secondo i tempi previsti, con l'obiettivo di potenziare la capacità produttiva e le capacità di ricerca e sviluppo.
Powell Industries (POWL) reportó sólidos resultados en el Q2 FY2025 con ingresos de 279 millones de dólares, un aumento del 9% interanual. El ingreso neto alcanzó 46,3 millones de dólares, o 3,81 dólares por acción diluida, marcando un incremento del 38% respecto al año anterior. La empresa logró un beneficio bruto de 83,4 millones de dólares, representando un margen del 29,9%. Entre los sectores destacados, Electric Utility creció un 48% hasta 70,3 millones de dólares y Comercial/Industrial aumentó un 16% hasta 40,4 millones de dólares. Los nuevos pedidos totalizaron 249 millones de dólares, incluyendo proyectos importantes para una planta de GNL en la Costa del Golfo y un proyecto minero canadiense. La compañía mantiene una sólida cartera de pedidos de 1,3 mil millones de dólares y una fuerte posición de efectivo de 389 millones de dólares. La expansión de la planta en Houston avanza según lo previsto, con el objetivo de mejorar la capacidad de fabricación y las capacidades de I+D.
Powell Industries(POWL)는 2025 회계연도 2분기에 매출액 2억 7,900만 달러로 전년 대비 9% 증가한 강력한 실적을 보고했습니다. 순이익은 4,630만 달러, 희석 주당순이익은 3.81달러로 전년 대비 38% 증가했습니다. 회사는 8,340만 달러의 총이익을 달성했으며, 이는 29.9%의 마진을 나타냅니다. 주요 부문 성과로는 전력 유틸리티 부문이 48% 성장해 7,030만 달러를 기록했고, 상업/산업 부문은 16% 증가해 4,040만 달러를 기록했습니다. 신규 주문은 2억 4,900만 달러에 달했으며, 걸프 코스트 LNG 시설과 캐나다 광산 프로젝트를 포함한 주요 프로젝트가 포함되어 있습니다. 회사는 13억 달러의 견고한 수주 잔고와 3억 8,900만 달러의 강력한 현금 보유고를 유지하고 있습니다. 휴스턴 시설 확장은 제조 능력과 연구개발 역량 강화를 목표로 일정대로 진행 중입니다.
Powell Industries (POWL) a annoncé de solides résultats pour le 2e trimestre de l'exercice 2025 avec un chiffre d'affaires de 279 millions de dollars, en hausse de 9 % par rapport à l'année précédente. Le bénéfice net a atteint 46,3 millions de dollars, soit 3,81 dollars par action diluée, marquant une augmentation de 38 % par rapport à l'année précédente. La société a réalisé un bénéfice brut de 83,4 millions de dollars, représentant une marge de 29,9 %. Parmi les secteurs notables, le segment Electric Utility a progressé de 48 % pour atteindre 70,3 millions de dollars, tandis que le secteur Commercial/Industrial a augmenté de 16 % à 40,4 millions de dollars. Les nouvelles commandes ont totalisé 249 millions de dollars, incluant des projets majeurs pour une installation GNL sur la côte du Golfe et un projet minier canadien. La société maintient un carnet de commandes solide de 1,3 milliard de dollars et une trésorerie importante de 389 millions de dollars. L'expansion de l'usine de Houston progresse conformément au calendrier, visant à renforcer la capacité de production et les capacités de R&D.
Powell Industries (POWL) meldete starke Ergebnisse für das Q2 Geschäftsjahr 2025 mit Umsätzen von 279 Millionen US-Dollar, was einem Anstieg von 9 % gegenüber dem Vorjahr entspricht. Der Nettogewinn erreichte 46,3 Millionen US-Dollar bzw. 3,81 US-Dollar je verwässerter Aktie, was einer Steigerung von 38 % gegenüber dem Vorjahr entspricht. Das Unternehmen erzielte einen Bruttogewinn von 83,4 Millionen US-Dollar, was einer Marge von 29,9 % entspricht. Hervorzuheben sind die Sektoren Electric Utility mit einem Wachstum von 48 % auf 70,3 Millionen US-Dollar sowie Commercial/Industrial mit einem Anstieg von 16 % auf 40,4 Millionen US-Dollar. Die Auftragseingänge beliefen sich auf 249 Millionen US-Dollar und umfassen bedeutende Projekte für eine LNG-Anlage an der Golfküste und ein kanadisches Bergbauprojekt. Das Unternehmen verfügt über einen robusten Auftragsbestand von 1,3 Milliarden US-Dollar und eine starke Liquiditätsposition von 389 Millionen US-Dollar. Der Ausbau der Niederlassung in Houston verläuft planmäßig und soll die Fertigungskapazitäten sowie die Forschungs- und Entwicklungsmöglichkeiten verbessern.
Positive
Revenue increased 9% YoY to $279 million
Net income grew 38% YoY to $46.3 million ($3.81 per share)
Gross margin improved significantly to 29.9% (530 basis points increase)
Electric Utility sector revenue grew 48% to $70.3 million
Strong backlog maintained at $1.3 billion
Secured two major project awards in LNG and mining sectors
Healthy cash position of $389 million
Negative
Petrochemical sector revenue declined 13% to $43.7 million
New orders decreased sequentially from $269M to $249M
Insights
Exceptional quarter with 38% profit growth and dramatic margin expansion to 29.9% demonstrates superior operational efficiency.
Powell Industries posted exceptional Q2 FY2025 results with remarkable year-over-year improvements across key financial metrics. Revenue grew 9% to $278.6 million, while net income surged 38% to $46.3 million ($3.81 per diluted share).
The standout achievement was the dramatic gross margin expansion to 29.9%, a substantial 530 basis point improvement from 24.6% in the prior year period. This margin expansion, attributed to "broad-based operating efficiencies" and project closeouts, drove a 33% increase in gross profit dollars despite relatively modest revenue growth.
Sequential performance showed equally impressive momentum with 15% revenue growth and 40% gross profit growth compared to Q1 FY2025. The company maintained its robust backlog at $1.3 billion while securing $249 million in new orders, including two major projects - a greenfield LNG facility and a large Canadian mining project.
Sector performance revealed strategic shifts, with Electric Utility revenue surging 48% to $70.3 million and Commercial/Industrial growing 16% to $40.4 million, while Petrochemical declined 13% to $43.7 million.
With $389 million in cash and short-term investments, Powell maintains exceptional financial flexibility while completing its Houston facility expansion. Management's outlook emphasized continued execution discipline and cost efficiency initiatives, suggesting continued strong performance through the remainder of fiscal 2025.
Powell's margin surge demonstrates exceptional operational execution while strategic positioning in utilities and data centers drives diversified growth.
Powell's Q2 results showcase remarkable operational execution in the electrical equipment manufacturing sector. The company's ability to expand gross margins to nearly 30% demonstrates exceptional manufacturing discipline and production efficiency that significantly outpaces industry norms for custom-engineered electrical solutions.
The 48% growth in the Electric Utility sector reflects Powell's strategic alignment with accelerating grid modernization investments. Similarly, the 16% expansion in Commercial and Other Industrial sectors indicates successful market diversification, particularly as they target high-growth opportunities in data centers - a market experiencing unprecedented demand for electrical distribution infrastructure.
The strategic timing of Powell's Houston facility expansion positions the company to capitalize on both their substantial backlog and emerging opportunities in key growth markets. This manufacturing capacity enhancement serves dual purposes: supporting efficient execution of their $1.3 billion backlog while enabling increased R&D initiatives aimed at commercializing new products for Electric Utilities and Commercial Markets.
Powell's ability to secure major projects, including a new LNG facility along the U.S. Gulf Coast and a large mining operation in Canada, demonstrates continued industrial sector demand for their specialized electrical solutions across diverse applications. These project wins validate their technical leadership in mission-critical electrical systems while maintaining a balanced customer portfolio.
The operational efficiency improvements that drove gross margin expansion showcase a manufacturing operation running at peak performance, positioning Powell to maintain strong profitability even as they execute their substantial backlog through the remainder of FY2025.
HOUSTON, May 06, 2025 (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 second quarter of Fiscal 2025 ended March 31, 2025. All comparisons are to the second quarter of Fiscal 2024, unless otherwise noted.
Second Quarter Key Financial Highlights:
Revenues totaled $279 million, an increase of 9%;
Gross profit of $83 million, or 29.9% of revenue;
Net income of $46 million, or $3.81 per diluted share, increased 38%;
New orders(1) totaled $249 million;
Backlog(2) as of March 31, 2025 was unchanged at $1.3 billion;
Cash and short-term investments as of March 31, 2025 totaled $389 million.
Brett A. Cope, Powell’s Chairman and Chief Executive Officer, stated, “Our second quarter marked another solid quarter of project execution and robust operational efficiency. Powell delivered a 33% increase in gross profit dollar growth on revenue growth of 9%, leading to a gross margin improvement of 530 basis points compared to the prior year. Order activity in the quarter was also strong, highlighted by two large project awards which included a new greenfield LNG facility to be located along the U.S. Gulf Coast and a large mining project in Canada.”
Second Quarter Fiscal 2025 Results Revenues totaled $278.6 million, an increase of 9% compared to $255.1 million in the prior year, and a 15% increase compared to $241.4 million in the first quarter of Fiscal 2025. The increase compared to the prior year was driven by higher revenue levels across the Electric Utility sector which grew 48% to $70.3 million, and the Commercial and Other Industrial sector, which grew 16% to $40.4 million. This was partially offset by a revenue decline in the Petrochemical sector of 13% to $43.7 million.
Gross profit of $83.4 million, or 29.9% of revenue, increased by 33% compared to $62.7 million, or 24.6% of revenue in the prior year, and also increased by 40% compared to $59.5 million, or 24.7% of revenue, in the first quarter of Fiscal 2025. The improvement compared to the prior year was primarily due to broad-based operating efficiencies generating increased productivity, in addition to project closeouts.
New orders totaled $249 million compared to $235 million in the prior year and $269 million in the first quarter. The growth compared to the prior year was again driven by strong bookings in the Commercial and Other Industrial Sector as well as continued robust activity in the Oil & Gas sector.
Backlog totaled $1.3 billion as of March 31, 2025, essentially unchanged compared to backlog at both December 31, 2024 and March 31, 2024.
Net income of $46.3 million, or $3.81 per diluted share, increased 38% compared to $33.5 million, or $2.75 per diluted share, in the prior year, and increased 33% compared to $34.8 million, or $2.86 per diluted share, in the first quarter of Fiscal 2025.
Cope added, “The expansion project at our Electrical Products facility in Houston is nearing completion and on schedule as we continue to augment our manufacturing footprint to both service our project backlog and better position Powell for future growth. This incremental capacity will also play a critical role in advancing our key strategic priority to commercialize new products through organic investment in our R&D function, positioning us to better compete and capture greater share in key sectors like Electric Utilities and Commercial Markets including data centers.”
OUTLOOK Commenting on the Company's outlook, Michael Metcalf, Powell’s Chief Financial Officer, said, “Achieving gross profit of 29.9% of revenue in the second fiscal quarter marked a sequential 520 basis point improvement from our seasonally low first quarter of Fiscal 2025. As we look forward, our primary focus remains on execution discipline and customer fulfillment, while also continuing to drive cost efficiencies across the business. These initiatives, along with our healthy backlog, strong balance sheet, and proven operational excellence, have positioned Powell well to deliver robust revenue and earnings throughout the remainder of Fiscal 2025.”
CONFERENCE CALL Powell Industries has scheduled a conference call for Wednesday, May 7, 2025 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 May 14, 2025 and may be accessed by calling 1-877-344-7529 (domestic) or 1-412-317-0088 (international) and using passcode 9753600#.
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 March 31,
Six Months Ended March 31,
2025
2024
2025
2024
(In thousands, except per share data)
(Unaudited)
Revenues
$
278,631
$
255,108
$
520,062
$
449,125
Cost of goods sold
195,199
192,388
377,106
338,211
Gross profit
83,432
62,720
142,956
110,914
Selling, general and administrative expenses
21,767
20,947
43,243
41,294
Research and development expenses
2,746
2,284
5,222
4,251
Operating income
58,919
39,489
94,491
65,369
Other expenses (income):
Interest income, net
(3,555
)
(4,428
)
(7,420
)
(8,426
)
Income before income taxes
62,474
43,917
101,911
73,795
Income tax provision
16,144
10,429
20,818
16,222
Net income
$
46,330
$
33,488
$
81,093
$
57,573
Earnings per share:
Basic
$
3.84
$
2.79
$
6.73
$
4.81
Diluted
$
3.81
$
2.75
$
6.67
$
4.73
Weighted average shares:
Basic
12,069
11,992
12,053
11,966
Diluted
12,174
12,191
12,163
12,167
SELECTED FINANCIAL DATA:
Depreciation
$
1,718
$
1,724
$
3,473
$
3,365
Capital Expenditures
$
4,074
$
903
$
6,263
$
2,138
Dividends Paid
$
3,227
$
3,175
$
6,412
$
6,299
POWELL INDUSTRIES, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, 2025
September 30, 2024
(In thousands)
(Unaudited)
Assets:
Cash, cash equivalents and short-term investments
$
389,292
$
358,392
Other current assets
421,338
418,089
Property, plant and equipment, net
105,402
103,421
Long-term assets
49,336
48,278
Total assets
$
965,368
$
928,180
Liabilities and equity:
Current liabilities
$
404,844
$
428,015
Deferred and other long-term liabilities
19,161
17,092
Stockholders’ equity
541,363
483,073
Total liabilities and stockholders’ equity
$
965,368
$
928,180
SELECTED FINANCIAL DATA:
Working capital
$
405,786
$
348,466
(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.
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) earnings per share in Q2 2025?
Powell Industries reported earnings of $3.81 per diluted share in Q2 FY2025, up 38% from $2.75 in the prior year.
How much revenue did POWL generate in Q2 2025?
Powell Industries generated revenues of $278.6 million in Q2 FY2025, a 9% increase from $255.1 million in the prior year.
What is Powell Industries' current backlog as of Q2 2025?
Powell Industries maintained a backlog of $1.3 billion as of March 31, 2025, unchanged from both the previous quarter and year.
How much cash does Powell Industries have on hand?
Powell Industries reported cash and short-term investments of $389 million as of March 31, 2025.
What was POWL's gross profit margin in Q2 2025?
Powell Industries achieved a gross profit margin of 29.9% in Q2 FY2025, up from 24.6% in the prior year.
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