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Powell Industries
(NASDAQ:POWL)
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Rating:74Outperform
Price Target:
$191.00
▼(-0.80% Downside)
Action:Reiterated
Date:08/05/26
POWL scores well primarily due to outstanding financial strength (high margins, strong free cash flow quality, and near debt-free balance sheet) and a supportive earnings backdrop (record orders and all-time-high backlog). The overall score is held back by weak near-term technical momentum (below key moving averages with negative MACD) and a rich valuation (P/E ~40.5 with a minimal dividend yield).
Positive Factors
Record orders and backlog
Record orders and an all-time-high backlog provide substantial contracted demand for future periods. The strong book-to-bill ratio indicates that new awards are replenishing revenue faster than current execution, supporting visibility and utilization across the business over the next several quarters.
Negative Factors
Revenue growth is decelerating
The large historical step-up in revenue and profitability has not yet translated into the same pace of top-line growth in the latest period. Slower expansion increases dependence on converting major new awards successfully and raises the risk that earnings momentum moderates if demand or project timing weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Record orders and backlog
Record orders and an all-time-high backlog provide substantial contracted demand for future periods. The strong book-to-bill ratio indicates that new awards are replenishing revenue faster than current execution, supporting visibility and utilization across the business over the next several quarters.
Read all positive factors
Powell Industries (POWL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.21B
Dividend Yield0.21%
Average Volume (3M)604.12K
Price to Earnings (P/E)32.4
Beta (1Y)2.05
Revenue Growth7.04%
EPS Growth8.18%
CountryUS
Employees3,143
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)5.25
Shares Outstanding36,432,564
10 Day Avg. Volume774,523
30 Day Avg. Volume604,117
Financial Highlights & Ratios
PEG Ratio1.03
Price to Book (P/B)5.74
Price to Sales (P/S)3.33
P/FCF Ratio23.75
Enterprise Value/Market Cap1.59
Enterprise Value/Revenue8.51
Enterprise Value/Gross Profit28.29
Enterprise Value/Ebitda39.56
Forecast
1Y Price Target
$272.67Price Target Upside41.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)6.88
Revenue Forecast (FY)$1.50B
Powell Industries Business Overview & Revenue Model
Company Description
Powell Industries, Inc., operating with its subsidiaries, specializes in the comprehensive design, development, manufacturing, sales, and maintenance of customized electrical apparatus and systems. These advanced solutions are engineered to effici...
How the Company Makes Money
Powell Industries makes money primarily by selling engineered-to-order electrical power distribution and control solutions and related services. Revenue is largely generated from project-based contracts in which customers (e.g., refiners, petroche...
Powell Industries Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Dec 08, 2026
Earnings Call Sentiment Positive
The call emphasized strong commercial momentum and financial strength: record quarterly new orders ($934M), an all-time high backlog (~$2.4B), 9% revenue growth, healthy margins (30.6%), strong operating cash generation (~$100M) and a debt-free balance sheet with ~$634M in cash. Management is investing to expand capacity (leases, yard expansion, potential greenfield) and is integrating acquisitions (Remsdaq) to capture higher-content projects. Near-term challenges include a large YoY decline in petrochemical revenue (‑49%), some international softness (Canada), the lumpy nature of project revenues with only ~54% of backlog converting in the next 12 months, moderate commodity inflation, and potential labor and SG&A pressure during facility stand-up. On balance, the positives — record orders, backlog growth, margin stability, cash generation and strategic capacity moves — materially outweigh the manageable near-term headwinds.Positive Updates
Record Quarterly New Orders
New orders reached a record $934 million in the fiscal Q3, nearly 3x the prior year (up ~$572 million YoY) and up ~$445 million sequentially; the quarter included a $400M+ mega data center award, a ~$75M petrochemical award and a ~$60M LNG award.
Negative Updates
Petrochemical Revenue Decline
Revenue in the petrochemical market was down 49% YoY for the quarter, reflecting softness in that sector despite recent large petrochemical awards contributing to backlog.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Quarterly New Orders
New orders reached a record $934 million in the fiscal Q3, nearly 3x the prior year (up ~$572 million YoY) and up ~$445 million sequentially; the quarter included a $400M+ mega data center award, a ~$75M petrochemical award and a ~$60M LNG award.
Read all positive updates
Company Guidance
Powell’s guidance was directional rather than numerical: management said the company is “well positioned to deliver another year of strong financial performance” in fiscal 2027, supported by record Q3 new orders of $934M (nearly 3x year‑ago, +$445M sequential), a backlog near $2.4B (up $967M YoY and $619M sequential; >$1.8B booked over the past three quarters), a Q3 book‑to‑bill of 3.0x (FY‑to‑date 2.2x) and roughly $1.3B (≈54%) of backlog expected to convert in the next 12 months; Q3 revenue was $312M (+9% YoY) with gross margin 30.6% (gross profit $95M), net income $52.2M (EPS $1.42), operating cash flow $100M for the quarter, cash & short‑term investments $634M and no debt. Management cited capacity and capital plans to support growth (footprint +20% by end‑FY26; 30k and 50k sq ft leases, 335k sq ft Jacintoport expansion expected to support >$100M incremental annualized revenue when fully utilized; Board‑approved ~300k sq ft lease coming late FY27; potential $70–$100M greenfield CapEx for 250–300k sq ft), while noting modest commodity inflation and ~100 bps of YTD margin benefit from project closeouts.Powell Industries Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
96
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.16B | 1.10B | 1.01B | 699.31M | 532.58M | 470.56M |
| Gross Profit | 348.18M | 324.38M | 273.09M | 147.55M | 85.02M | 75.06M |
| EBITDA | 248.98M | 240.81M | 202.96M | 77.56M | 19.20M | 11.63M |
| Net Income | 190.86M | 180.75M | 149.85M | 54.52M | 13.74M | 631.00K |
Balance Sheet | ||||||
| Total Assets | 1.41B | 1.11B | 928.18M | 752.24M | 493.38M | 436.19M |
| Cash, Cash Equivalents and Short-Term Investments | 633.56M | 475.53M | 358.39M | 279.01M | 116.51M | 133.98M |
| Total Debt | 2.52M | 1.66M | 1.22M | 1.44M | 2.32M | 4.23M |
| Total Liabilities | 650.51M | 468.21M | 445.11M | 407.22M | 196.17M | 134.97M |
| Stockholders Equity | 756.18M | 640.77M | 483.07M | 345.03M | 297.21M | 301.22M |
Cash Flow | ||||||
| Free Cash Flow | 243.96M | 154.79M | 96.68M | 174.73M | -6.03M | -33.35M |
| Operating Cash Flow | 256.11M | 167.94M | 108.66M | 182.55M | -3.58M | -30.46M |
| Investing Cash Flow | 10.36M | -8.34M | -21.87M | -26.57M | 6.46M | -2.46M |
| Financing Cash Flow | -27.94M | -25.12M | -19.25M | -13.06M | -13.31M | -13.17M |
Powell Industries Technical Analysis
Negative
192.55
Price Trends
186.49
Negative
220.09
Negative
212.05
Negative
Market Momentum
-6.02
Positive
39.66
Neutral
31.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POWL, the sentiment is Negative. The current price of 192.55 is above the 20-day moving average (MA) of 184.21, above the 50-day MA of 186.49, and below the 200-day MA of 212.05, indicating a bearish trend. The MACD of -6.02 indicates Positive momentum. The RSI at 39.66 is Neutral, neither overbought nor oversold. The STOCH value of 31.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for POWL.
Powell Industries Risk Analysis
Powell Industries disclosed 13 risk factors in its most recent earnings report. Powell Industries reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Powell Industries Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $24.34B | 27.18 | 23.65% | 1.23% | 10.61% | 9.52% | |
76 Outperform | $148.36B | 39.95 | 19.56% | 1.10% | 15.53% | -1.21% | |
74 Outperform | $6.21B | 32.44 | 27.51% | 0.21% | 7.04% | 8.18% | |
73 Outperform | $22.62B | 39.60 | 15.76% | 0.57% | 46.19% | 3.13% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $9.67B | 111.71 | 18.39% | ― | ― | ― | |
57 Neutral | $3.21B | -19.62 | -12.14% | 1.39% | 1.63% | -253.37% |
* Industrials Sector Average
POWL
Powell Industries
150.71
37.07
32.62%
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Powell Industries Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Powell Industries Posts Strong Q3 Results and Dividend
Positive
Aug 3, 2026
Powell Industries, a leading supplier of custom-engineered electrical energy management and distribution solutions, reported solid third-quarter fiscal 2026 results for the period ended June 30, 2026, and declared a quarterly cash dividend of $0.0...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.