POWL earnings analysis
What we found in POWL's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.42
- Gross margin
- 31.0%
- Segment
- Commercial and other industrial revenue: $76.3 million, up 54% ($26.8 million) year over year.
- Segment
- Electric utility revenue: $88.6 million, up 18% ($13.7 million) year over year.
- Segment
- Oil and gas excluding petrochemical revenue: $106.3 million, up 1% ($0.8 million) year over year.
- Segment
- Petrochemical revenue: $18.5 million, down 49% ($17.9 million) year over year.
- Segment
- Light rail traction power revenue: $8.0 million, down 7% ($0.6 million) year over year.
- Segment
- All other markets revenue: $14.1 million, up 23% ($2.6 million) year over year.
What they said about what is next.
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.
The filing reads about the same as the one before it.
What came before.
- 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%…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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