Powell Industries NASDAQ: POWL said it is on track to surpass the more than $1 billion in revenue it generated last year, supported by demand for medium-voltage electrical equipment from data centers, utilities and industrial customers.
Decelerating growth pains have negated Powell's growing backlog and richer margins, with the expensive P/E of 40x also contributing to its mixed investment thesis. Capacity expansion is underway, with management targeting over 20% YoY growth by FY2026 as they evaluate a new facility for further upside from H2'27 onwards. FQ4'26 is unlikely to enjoy a similar new order profile as that of FQ3'26, as POWL hints at smaller pipelines along the sub-$100M to $200M ranges.
Powell Industries' record orders lifted backlog to $2.4B, driving a capacity push as data center, utility and energy demand stays robust.
Powell Industries, Inc. (POWL) Q3 2026 Earnings Call Transcript
Powell Industries NASDAQ: POWL reported record third-quarter order bookings and a backlog that surpassed $2 billion for the first time in its 79-year history, as demand remained strong across data centers, electric utilities, LNG and other industrial markets.
POWL's fiscal Q3 earnings and revenues miss estimates, even as record orders and a $2.4 billion backlog strengthen its outlook.
Powell Industries (POWL) came out with quarterly earnings of $1.42 per share, missing the Zacks Consensus Estimate of $1.49 per share. This compares to earnings of $1.32 per share a year ago.
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POWL heads into Q3 earnings with expectations for double-digit growth, supported by a strong backlog and demand across utility and energy markets.
Powell Industries (POWL) concluded the recent trading session at $201, signifying a -8.32% move from its prior day's close.
In the closing of the recent trading day, Powell Industries (POWL) stood at $240.68, denoting a -1.52% move from the preceding trading day.
Powell Industries shares dropped 22%, creating a compelling re-entry point given robust backlog and AI-driven demand. Q3 expectations include $1.49 adjusted EPS on $316.9 million revenue, with potential for a double beat as backlog and new orders surge. Backlog strength, especially from data center projects, is a key growth driver; Q3 backlog could exceed $2.2 billion with new orders possibly near triple-digit y/y growth.