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Powell Industries Q4 Earnings & Revenues Top Estimates, Increase Y/Y

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Key Takeaways

  • POWL's Q4 earnings and revenues rose year over year and beat the consensus estimate.
  • Utility-sector revenues jumped 100%, offsetting declines in other end markets.
  • New orders increased to $271M, and backlog reached $1.4B, up 3% from last year.

Powell Industries, Inc.’s (POWL - Free Report) fourth-quarter fiscal 2025 (ended September 2025) adjusted earnings of $4.22 per share surpassed the Zacks Consensus Estimate of $3.76. The bottom line increased 12% year over year.

Powell Industries’ total revenues of $298 million beat the consensus estimate of $293 million. The top line increased 8% year over year. The year-over-year increase was primarily attributable to strength in the electric utility and light rail traction power markets.

Inside the Headlines

In the fiscal fourth quarter, revenues from the electric utility sector increased 100% year over year. The commercial & other industrial sector’s revenues decreased 9%. Revenues from the oil & gas and petrochemical sectors declined 10% and 25%, respectively, on a year-over-year basis.

In the fiscal fourth quarter, new orders totaled $271 million compared with $267 million in the year-ago quarter. The increase was driven by robust order activity in the electric utility, commercial and other industrial sectors. Exiting the quarter, its backlog totaled $1.4 billion, down 2% on a sequential and up 3% on a 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 fourth quarter, Powell Industries’ cost of sales increased 5% year over year to $204.5 million. Gross profit increased 16.3% year over year to $93.5 million while the margin increased 220 basis points (bps) to 31.4%. Selling, general and administrative expenses were $27 million, up 25.4% year over year.

Operating income increased 12.7% year over year to $63.2 million. The operating margin was 21.2%, up 80 bps year over year.

Powell Industries’ Balance Sheet and Cash Flow

Exiting the fourth quarter of fiscal 2025, Powell Industries had cash equivalents and short-term investments of $475.5 million compared with $358.4 million at the end of fiscal 2024 (ended September 2024). Current liabilities were $446.4 million compared with $428 million at the end of fiscal 2024.

Stockholders’ equity totaled $640.8 million. In fiscal 2025, capital expenditure totaled $13.1 million, up 9.7% year over year.

In the same period, the company used $12.9 million for distributing dividends, up 1.7% on a year-over-year basis.

Fiscal 2026 Guidance

Given Powell Industries’ robust backlog, solid liquidity and a strong balance sheet, it looks forward to witnessing solid revenues and earnings in fiscal 2026 (ending September 2026).

POWL’s Zacks Rank

The company currently carries a Zacks Rank #2 (Buy). 

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

Performance of Other Companies

Dover Corporation (DOV - Free Report) reported earnings of $2.62 per share in third-quarter 2025, beating the Zacks Consensus Estimate of $2.50. This compares with earnings of $2.27 per share a year ago.

Dover posted revenues of $2.08 billion in the quarter, missing the Zacks Consensus Estimate by 0.6%. This compares with year-ago revenues of $1.98 billion.

Ardagh Metal Packaging S.A. (AMBP - Free Report) came out with earnings of eight cents per share in the third quarter of 2025, beating the Zacks Consensus Estimate of seven cents. This compares with earnings of eight cents per share a year ago.

Ardagh Metal posted revenues of $1.43 billion in the quarter, beating the Zacks Consensus Estimate by 2.7%. This compares with year-ago revenues of $1.31 billion. 

Packaging Corporation of America (PKG - Free Report) reported earnings of $2.73 per share in the third quarter, missing the Zacks Consensus Estimate of $2.83. This compares with earnings of $2.65 per share a year ago.

Packaging Corp. posted revenues of $2.31 billion in the quarter, surpassing the Zacks Consensus Estimate by 2.2%. This compares with year-ago revenues of $2.18 billion.

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