10-Q · May 5, 2026
Powell Industries reported Q2 Fiscal 2026 revenues of $296.6 million and diluted EPS of $1.25, both slightly below analyst expectations. While net income fell by 1% year-over-year, notable growth in new orders (up 97%…
Earnings analysis · 10-Q
POWL earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Powell delivered Q3 revenue of $311.7 million, up 9% year over year and roughly 5% sequentially, while diluted EPS rose $0.10 year over year to $1.42 and gross margin remained 31%. Growth in commercial/industrial and…
Read full summary
Powell delivered Q3 revenue of $311.7 million, up 9% year over year and roughly 5% sequentially, while diluted EPS rose $0.10 year over year to $1.42 and gross margin remained 31%. Growth in commercial/industrial and electric utility revenue outweighed a 49% petrochemical decline, while $934.2 million of bookings expanded backlog 35% sequentially to $2.4 billion. Liquidity improved materially, with cash and short-term investments reaching $633.6 million and nine-month operating cash flow increasing to $195.0 million, although the filing provides no formal numeric revenue or EPS outlook.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.42
- Gross margin
- 31.0%
What stood out
-
Revenue resumed sequential growth
Q3 revenue rose 9% year over year, or $25.5 million, to $311.7 million. It also increased approximately 5% from $297 million in fiscal Q2 2026.
-
Margins held and EPS increased
Gross profit increased 8%, or $7.4 million, to $95.3 million, while gross margin held at 31% year over year. Net income increased to $52.2 million from $48.2 million, and diluted EPS rose to $1.42 from $1.32.
-
Utility and commercial end markets led
Commercial and other industrial revenue grew 54% to $76.3 million and electric-utility revenue grew 18% to $88.6 million. Management attributed the gains to backlog and robust bookings in these growth markets.
-
Bookings and backlog expanded sharply
Q3 bookings increased 158% to $934.2 million, driving backlog to $2.4 billion at June 30, 2026, up 35% from $1.8 billion at March 31, 2026. Commercial and other industrial represented 40% of backlog.
-
Operating cash conversion strengthened
The company generated $100.2 million of operating cash flow in Q3; nine-month operating cash flow was $195.0 million, up from $106.9 million in the prior-year period. Management cited improved earnings and higher customer milestone payments.
-
Liquidity remained substantial
Cash, cash equivalents and short-term investments increased $158.1 million to $633.6 million from $475.5 million at September 30, 2025. There were no U.S. revolver borrowings at June 30, 2026.
What to watch
-
Petrochemical revenue remains sharply lower
Petrochemical revenue fell 49%, or $17.9 million, to $18.5 million in Q3 because of lower backlog. Management says commercial activity in petrochemicals has remained subdued for several quarters despite a $75 million Q3 petrochemical mega-order.
-
International softness and supply-chain exposure
International revenue declined 1%, or $0.6 million, to $61.1 million in Q3. Management also cites continuing volatility in commodity prices and persistent supply-chain delays for specific engineered components during the first nine months of fiscal 2026.
-
Growing data-center concentration and timing risk
The $2.4 billion backlog is increasingly exposed to commercial/data-center projects, which represent 40% of backlog; management warns that data-center demand fluctuations, regulatory developments, product-mix changes and project timing could affect results.
-
No formal risk-factor update; revolver capacity used
There were no material changes to the risk factors disclosed in the fiscal 2025 Form 10-K. Separately, $103.9 million of letters of credit were outstanding under the $150.0 million U.S. revolver, leaving $46.1 million available for letters of credit and borrowings.
Management's outlook
The 10-Q provides no numerical revenue or EPS guidance. Management said approximately $1.3 billion of its $2.4 billion June 30, 2026 backlog is expected to convert to revenue over the next 12 months; it also plans to complete the Jacintoport fabrication-yard expansion by the end of fiscal 2026.
Earlier filings 4
10-Q · May 7, 2025
Powell Industries reported March 31, 2025 quarter revenue of $278,631,000 and diluted EPS of $3.81, driven by margin improvement and backlog conversion. Gross profit expanded to $83,432,000 (29.9% margin) and operating…
10-K · November 20, 2024
Powell Industries presents a backlog of $1.3 billion at September 30, 2024 and expects approximately $849 million of that backlog to be recognized as revenue in the fiscal year ending September 30, 2025, supporting…
10-Q · July 31, 2024
Powell Industries reported a strong quarter ended June 30, 2024 with revenue of $288,168,000 and diluted EPS of $3.79, driven by higher volumes and margin expansion. Gross margin increased to about 28.4% and operating…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.