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Powell Industries Q2 Earnings Surpass Estimates, Revenues Increase 9.2%

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Powell Industries, Inc.’s (POWL - Free Report) second-quarter fiscal 2025 (ended March 2025) adjusted earnings of $3.81 per share surpassed the Zacks Consensus Estimate of $3.35. The bottom line increased 38.6% year over year. Results benefited primarily from higher revenues generated in the quarter.

(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Powell’s total revenues of $278.6 million missed the consensus estimate of $277 million. The top line increased 9.2% year over year. The year-over-year increase was primarily driven by strength across electric utility and commercial & other industrial sectors.

Inside the Headlines for Powell Industries

In the fiscal second quarter, it generated revenues of $70.3 million from the electric utility sector, up 48% year over year. Revenues from the petrochemical sector amounted to $43.7 million, down 13% year over year. The commercial & other industrial sector’s revenues increased 16% to $40.4 million.

In the fiscal second quarter, new orders totaled $249 million compared with $269 million in the year-ago quarter. The increase was driven by robust order activity in the oil & gas and commercial and other industrial sectors. Exiting the quarter, its backlog totaled $1.3 billion, relatively flat on a sequential as well as year-over-year basis.

Powell Industries, Inc. Price, Consensus and EPS Surprise

Powell Industries, Inc. Price, Consensus and EPS Surprise

Powell Industries, Inc. price-consensus-eps-surprise-chart | Powell Industries, Inc. Quote

Margin Profile of POWL

In the fiscal second quarter, Powell Industries’ cost of sales increased 1.5% year over year to $195.2 million. Gross profit increased 33% year over year to $83.4 million while the margin increased 530 basis points (bps) to 29.9%. Selling, general and administrative expenses were $21.8 million, up 3.9% year over year.

Operating income increased 49.2% year over year to $58.9 million. The operating margin was 21.1%, up 560 bps year over year.

Powell Industries’ Balance Sheet and Cash Flow

Exiting the second quarter of fiscal 2025, Powell Industries had cash equivalents and short-term investments of $389.3 million compared with $358.4 million at the end of fiscal 2024 (ended September 2024). Current liabilities were $404.8 million compared with $428 million at the end of fiscal 2024.

Stockholders’ equity totaled $541.4 million. In the first six months of fiscal 2025, capital expenditure totaled $6.3 million, up 192.9% year over year.

In the same period, the company used $6.4 million for distributing dividends, up 1.8% on a year-over-year basis.

POWL's Fiscal 2025 Guidance

Given Powell Industries’ robust backlog, solid liquidity and a strong balance sheet, it looks forward to witnessing strong revenues and earnings in fiscal 2025 (ending September 2025).

POWL’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

AZZ Inc. (AZZ - Free Report) came out with quarterly earnings of $0.98 per share, beating the Zacks Consensus Estimate of $0.95. This compares with earnings of $0.93 per share a year ago.

AZZ reported revenues of $351.88 million, missing the consensus estimate by 3.77%. This compares with year-ago revenues of $366.5 million. 

Valmont Industries (VMI - Free Report) reported revenues of $969.31 million in the second quarter of 2025, declining 0.9% on a year-over-year basis. Earnings per share of $4.32 for the same period compare with $4.32 a year ago.

The reported revenues compare with the Zacks Consensus Estimate of $975.6 million. The company delivered an earnings surprise of 1.89%, with the consensus estimate being $4.24 per share.

Pentair plc (PNR - Free Report) came out with quarterly earnings of $1.11 per share in the second quarter of 2025, beating the Zacks Consensus Estimate of $1.01. This compares with earnings of $0.94 per share a year ago.

Pentair posted revenues of $1.01 billion for the quarter, surpassing the consensus estimate by 2.68%. This compares with year-ago revenues of $1.02 billion.

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