Start here if you're new
what it is
Powell builds the heavy electrical gear that keeps big industrial sites powered, controlled, and from catching on fire.
how it gets paid
Last year Powell Industries made $1.1B in revenue. medium-voltage switchgear was the main engine at $0.36B, or 33% of sales.
why it's growing
Revenue grew 9.1% last year. This move likely reflects the electrical equipment manufacturer’s solid financial results for the first quarter of fiscal 2026 and a surge in new orders.
what just happened
Powell posted $3.40 EPS in the latest quarter, up 19% vs. prior year, while revenue rose 4% to $251.2 million.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
20/100 earnings predictability — expect surprises
35.0x trailing p/e — you're paying up for this one
0.2% dividend yield — cash in your pocket every quarter
19.0% return on capital — nothing to write home about
xvary composite: 72/100 — average
What they do
Powell builds the heavy electrical gear that keeps big industrial sites powered, controlled, and from catching on fire.
Powell sells custom gear for ugly, expensive problems. If your refinery or data-heavy industrial site loses power, downtime costs more than the equipment. The company posted a 22.0% operating margin and a $1.4 billion backlog in fiscal 2025, which means orders already in hand cover more than a year of work against $1.1 billion of annual revenue.
How they make money
$1.1B
annual revenue · their business grew +9.1% last year
medium-voltage switchgear
$0.36B
electrical houses and packaged substations
$0.29B
motor control and drive systems
$0.20B
bus duct and power distribution systems
$0.15B
field service and retrofit work
$0.10B
The products that matter
engineered power distribution equipment
Custom Electrical Distribution
$1.1B revenue · entire business
it's the whole company: $1.1B in annual revenue tied to electrical systems sold into utilities, oil and gas, petrochemical, and industrial projects.
100% of revenue
utility-facing project work
Electric Utility Exposure
+35% in the latest quarter
utility demand was the standout, growing 35% in the latest quarter. That's the cleanest proof that not all of Powell's demand depends on oil prices.
current strength
petrochemical and industrial projects
Cyclical End Markets
-31% and -8%
petrochemical fell 31% and industrial fell 8% in the latest quarter. That's the reminder that this is still a project business, not a straight line.
volatility source
Key numbers
$1.4B
order backlog
Backlog means signed work waiting to be delivered, so this is your clearest proof demand is real, not theoretical.
22.0%
operating margin
Operating margin means profit after running the business, before interest and taxes, so Powell is converting sales into real earnings better than most manufacturers.
35.0x
trailing p/e
P/E means price compared with last year's profit, so you are paying a premium for results that already look unusually strong.
19.0%
return on capital
Return on capital means profit earned on money invested in the business, so Powell is still producing strong economics, not just flashy revenue.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 10 / 100
- net profit margin 20.8% — keeps 21 cents of every dollar in revenue
- return on equity 19% — $0.19 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in POWL 3 years ago → it's now worth $115,060.
The index would have given you $14,540.
source: institutional data · total return
What just happened
beat estimates
Powell posted $3.40 EPS in the latest quarter, up 19% vs. prior year, while revenue rose 4% to $251.2 million.
EPS beat the source estimate of $2.95 even though revenue came in slightly below the $255 million forecast. Gross margin held at 28.4%, which tells you profitability stayed strong even on lighter sales.
$251.2M
revenue
$3.40
eps
28.4%
gross margin
the number that mattered
The key number was 28.4% gross margin because it shows Powell is still pricing work well, even with revenue growth slowing to 4%.
-
powell industries has been riding a wave of momentum into fiscal 2026. (fiscal years conclude on september 30th.) shares of powl have advanced roughly 40% in price since our december review, compared to the s&p 500 index being flatlined over that span.
-
this move likely reflects the electrical equipment manufacturer’s solid financial results for the first quarter of fiscal 2026 and a surge in new orders.
-
share earnings of $3.40 jumped 19%, year to year, and beat our call of $2.95.
-
revenues rose 4%, to $251.2 million, slightly below our forecast of $255 million.
-
strength in both the electric utility (+35%) and oil & gas (+2%) end markets were partly offset by weakness in the petrochemical (-31%) and industrial (-8%) sectors.
source: company earnings report, 2026
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What could go wrong
the #1 risk is order normalization after a 37.0% revenue jump.
high
growth is already slowing
Powell grew revenue 37.0% for the full year, but the latest quarter rose just 4% from a year ago.
if that slowdown sticks, a 35.0x trailing p/e starts to look rich fast
high
end-market swings are real
Electric utility was up 35% in the latest quarter, but petrochemical was down 31% and industrial was down 8%.
you are not buying a smooth annuity — you are buying uneven project demand
med
earnings are hard to model
A 20/100 predictability score is the data telling you quarter-to-quarter results can surprise in both directions.
that usually means bigger stock reactions when numbers miss expectations
med
the stock has already priced in a lot
POWL moved from $146 to $520 over the last 52 weeks and still trades below a $568 midpoint target by only about 9%.
when upside is narrow on paper, execution has to keep doing the heavy lifting
After a 37.0% growth year, the latest quarter showed only 4% revenue growth on $251.2M in sales. That leaves a $6B stock priced for more than just "pretty good."
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
revenue growth vs. the 37.0% baseline
The next few quarters need to tell you whether 4% growth was a pause or the new normal.
trend
new orders and backlog direction
Management cited a surge in new orders. That's the earliest read on whether demand is still building or already cooling.
risk
petrochemical weakness
A 31% drop is not noise. If that end market stays weak, some of the recent margin story gets harder to repeat.
calendar
fiscal 2026 updates
Powell's fiscal year ends september 30. Each report matters because this stock is now being judged against a very high base.
Analyst rankings
short-term outlook
top 5%
Momentum score 1 — the highest rating. in human-speak, analysts think this stock still has better near-term performance potential than almost everything else they cover.
risk profile
average
Stability score 3. You're not looking at a bunker stock, but this also isn't a balance-sheet crisis story.
chart momentum
average
Technical score 3. The chart is no longer screaming the way the price action over the last year did.
earnings predictability
20 / 100
Low predictability means quarterly results can move around with project timing. If you own it, you need tolerance for noise.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 161 buyers vs. 156 sellers in 4q2025. total institutional holdings: 14.2M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$265
$870
$520
current price
$568
target midpoint · +9% from current · 3-5yr high: $580 (+10% · 3% ann'l return)
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