Powell Industries Announces Second Quarter Fiscal 2026 Results
Rhea-AI Summary
Powell Industries (NASDAQ: POWL) reported second quarter Fiscal 2026 results for the quarter ended March 31, 2026. Revenues were $296.6 million (+6%), gross profit $87.9 million (29.6% margin), net income $45.9 million ($1.25 diluted). New orders were $490 million (+97%) and backlog reached $1.8 billion (+33%). Cash and short-term investments totaled $545 million. Subsequent to quarter end, the company received a >$400 million mega data center order.
AI-generated analysis. Not financial advice.
Positive
- New orders +97% totaling $490 million
- Backlog +33% to $1.8 billion as of March 31, 2026
- Mega data center order awarded post-quarter exceeding $400 million
- Cash & short-term investments $545M providing liquidity
Negative
- Petrochemical revenue -37% year-over-year in the quarter
- Higher SG&A and R&D drove net income down 1% year-over-year
News Market Reaction – POWL
On the day this news was published, POWL gained 9.16%, reflecting a notable positive market reaction. Argus tracked a peak move of +7.9% during that session. Argus tracked a trough of -14.8% from its starting point during tracking. Our momentum scanner triggered 15 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $953M to the company's valuation, bringing the market cap to $11.35B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
POWL was down 0.7% while peers were mixed: HAYW -0.27%, ENS -0.29%, AEIS +1.44% (but -9.57% on momentum scan), ATKR -4.84%, EOSE -3.59%. Only one peer appeared in momentum data, suggesting this move was more stock-specific than broad sector-driven.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 20 | Earnings call timing | Neutral | -0.3% | Announced date and conference call details for Q2 2026 results. |
| Mar 06 | Stock split | Positive | +7.5% | Three-for-one forward stock split and higher outstanding share count. |
| Feb 03 | Earnings results | Positive | +16.3% | Q1 2026 results with higher revenue, margins, orders and backlog. |
| Feb 03 | Dividend increase | Positive | +16.3% | Raised quarterly cash dividend to $0.27, boosting annual payout. |
| Jan 20 | Earnings call timing | Neutral | -1.5% | Set date and call details for Q1 2026 earnings release. |
Recent history shows POWL often reacting positively to concrete operational and capital return news (earnings, dividends, stock split), while earnings-date scheduling announcements draw muted moves.
Over the last few months, Powell reported first quarter Fiscal 2026 results on Feb 3, 2026 with higher revenues, margins, and backlog, alongside new orders of $439M and backlog of $1.6B. That same day it increased its quarterly dividend to $0.27 per share, which, like the Q1 release, coincided with a +16.34% move. A three-for-one stock split announced on Mar 6, 2026 preceded a +7.53% reaction. By contrast, simple earnings-date announcements in January and April saw modest negative moves, underscoring that substantive results and shareholder actions have driven the strongest reactions.
Market Pulse Summary
The stock moved +9.2% in the session following this news. A strong positive reaction aligns with Powell’s robust Q2 fundamentals: revenue of $296.6M, gross margin of 29.6%, and new orders of $490M driving backlog to $1.8B. Historically, solid earnings and capital return actions have coincided with sizeable gains. However, a high share price relative to the $134.77 200-day MA and existing insider selling activity could amplify volatility if expectations reset or order momentum slows.
Key Terms
book-to-bill ratio financial
backlog financial
behind-the-meter technical
AI-generated analysis. Not financial advice.
HOUSTON, May 04, 2026 (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 results for the second quarter Fiscal 2026 ended March 31, 2026. All comparisons are to the second quarter of Fiscal 2025, unless otherwise noted.
Key Highlights:
- Revenues of
$297 million increased6% ; - Gross profit of
$88 million , or29.6% of revenue, increased5% ; - Net income of
$45.9 million , or$1.25 per diluted share(1), declined1% ; - New orders(2) totaled
$490 million , an increase of97% ; - Backlog(3) as of March 31, 2026 totaled
$1.8 billion , an increase of33% ; - Cash and short-term investments as of March 31, 2026 totaled
$545 million ; - Subsequent to quarter end, Powell was awarded a mega(4) data center order with a value exceeding
$400 million .
Brett A. Cope, Powell’s Chairman and Chief Executive Officer, stated, “The commercial momentum we observed to start the fiscal year continued throughout the second quarter, driving a well-balanced and strong order total of
Second Quarter Fiscal 2026 Results
Revenues totaled
Gross profit of
New orders totaled
Backlog totaled
Net income of
On April 2, 2026, we effected a three-for-one forward split of our common stock and proportionately increased the number of authorized common stock from 30,000,000 to 90,000,000. Each shareholder of record as of the close of trading on March 20, 2026 (the “Record Date”) received, after the close of trading on April 2, 2026, two additional shares for every one share held on the Record Date. Trading began on a split-adjusted basis at market open on April 6, 2026.
OUTLOOK
Commenting on the Company’s expectations for Fiscal 2026, Cope added, “Market activity across each of our core markets remains favorable. We remain optimistic that the ongoing investment cycle to support data center build outs and AI capacity growth, in addition to addressing future power demand, will remain supportive of overall activity in our commercial and electric utility end markets. We also anticipate that activity within the gas market, including LNG, gas pipeline and gas-to-chemical end markets, will remain active, driven by the advantaged competitive position which we believe U.S.-based exporters currently maintain.”
Michael Metcalf, Powell’s Chief Financial Officer, commented, “Our year-to-date financial results show sustainable growth over the prior year and reinforce our conviction in delivering another year of solid financial performance in Fiscal 2026. Looking at the current composition of our backlog, we expect margins to remain consistent with the performance levels achieved in the prior year. The recent acceleration in backlog growth further strengthens our confidence to prudently invest in incremental capacity to complement our existing manufacturing footprint, including the most recent capacity expansion projects at our facilities. We continue to evaluate potential capacity investments with an emphasis on ensuring adequate returns, supported by the visibility provided by our backlog and the commercial outlook across our core markets.”
CONFERENCE CALL
Powell Industries has scheduled a conference call for Tuesday, May 5, 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 May 12, 2026 and may be accessed by calling 1-855-669-9658 (domestic) or 1-412-317-0088 (international) and using passcode 7179345#.
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 twelve months 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, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Revenues | $ | 296,615 | $ | 278,631 | $ | 547,799 | $ | 520,062 | ||||||||
| Cost of goods sold | 208,679 | 195,199 | 388,445 | 377,106 | ||||||||||||
| Gross profit | 87,936 | 83,432 | 159,354 | 142,956 | ||||||||||||
| Selling, general and administrative expenses | 25,843 | 21,767 | 51,001 | 43,243 | ||||||||||||
| Research and development expenses | 4,289 | 2,746 | 7,556 | 5,222 | ||||||||||||
| Amortization of intangible assets | 223 | — | 445 | — | ||||||||||||
| Operating income | 57,581 | 58,919 | 100,352 | 94,491 | ||||||||||||
| Other expenses (income): | ||||||||||||||||
| Interest income, net | (4,203 | ) | (3,555 | ) | (8,468 | ) | (7,420 | ) | ||||||||
| Income before income taxes | 61,784 | 62,474 | 108,820 | 101,911 | ||||||||||||
| Income tax provision | 15,897 | 16,144 | 21,543 | 20,818 | ||||||||||||
| Net income | $ | 45,887 | $ | 46,330 | $ | 87,277 | $ | 81,093 | ||||||||
| Earnings per share(1): | ||||||||||||||||
| Basic | $ | 1.26 | $ | 1.28 | $ | 2.40 | $ | 2.24 | ||||||||
| Diluted | $ | 1.25 | $ | 1.27 | $ | 2.39 | $ | 2.22 | ||||||||
| Weighted average shares(1): | ||||||||||||||||
| Basic | 36,429 | 36,206 | 36,378 | 36,159 | ||||||||||||
| Diluted | 36,584 | 36,523 | 36,543 | 36,489 | ||||||||||||
| SELECTED FINANCIAL DATA: | ||||||||||||||||
| Depreciation and Amortization | $ | 2,182 | $ | 1,718 | $ | 4,331 | $ | 3,473 | ||||||||
| Capital Expenditures | $ | 1,832 | $ | 4,074 | $ | 3,861 | $ | 6,263 | ||||||||
| Dividends Paid | $ | 3,278 | $ | 3,227 | $ | 6,513 | $ | 6,412 | ||||||||
| POWELL INDUSTRIES, INC. & SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| March 31, 2026 | September 30, 2025 | ||||||
| (In thousands) | |||||||
| (Unaudited) | |||||||
| Assets: | |||||||
| Cash, cash equivalents and short-term investments | $ | 544,889 | $ | 475,527 | |||
| All other current assets | 463,497 | 456,189 | |||||
| Property, plant and equipment, net | 111,822 | 111,049 | |||||
| Long-term assets | 59,831 | 66,219 | |||||
| Total assets | $ | 1,180,039 | $ | 1,108,984 | |||
| Liabilities and equity: | |||||||
| Current liabilities | $ | 447,280 | $ | 446,387 | |||
| Deferred and other long-term liabilities | 23,690 | 21,827 | |||||
| Stockholders’ equity | 709,069 | 640,770 | |||||
| Total liabilities and stockholders’ equity | $ | 1,180,039 | $ | 1,108,984 | |||
| SELECTED FINANCIAL DATA: | |||||||
| Working capital(5) | $ | 561,106 | $ | 485,329 | |||
| (1) | On April 2, 2026, the Company effected a three-for-one forward split of its common stock (the “Stock Split”). Share and per-share amounts disclosed for all periods have been retroactively adjusted to reflect the effect of the Stock Split. |
| (2) | New orders (bookings) represent the estimated value of contracts added to existing backlog (unsatisfied performance obligations). |
| (3) | 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. |
| (4) | A mega order is defined as an order with a contract value exceeding |
| (5) | 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
