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Powell Industries saw strong demand in electric utility and oil & gas, boosting orders to $490M.
POWL backlog hit $1.8B, rising 33% year over year, supported by solid liquidity and balance sheet.
Powell Industries, Inc.’s (POWL - Free Report) second-quarter fiscal 2026 (ended March 2026) adjusted earnings of $1.25 per share missed the Zacks Consensus Estimate of $1.35. The bottom line decreased 1% year over year.
Powell Industries’ total revenues of $297 million missed the consensus estimate of $298 million. However, the top line increased 6% year over year. The year-over-year increase was primarily attributable to strength in the electric utility and oil & gas markets.
Inside the Headlines
In the fiscal second quarter, revenues from the electric utility sector increased 14% year over year. The oil & gas sector’s revenues increased 11%. Revenues from the commercial & other industrial sector increased 35% while the petrochemical sector declined 37%, respectively, on a year-over-year basis.
In the fiscal second quarter, new orders totaled $490 million compared with $249 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 $1.8 billion, up 12% on a sequential and 33% on a year-over-year basis.
Powell Industries, Inc. Price, Consensus and EPS Surprise
In the fiscal second quarter, Powell Industries’ cost of sales increased 6.9% year over year to $208.7 million. Gross profit increased 5.4% year over year to $87.9 million while the margin decreased 30 basis points (bps) to 29.6%. Selling, general and administrative expenses were $25.8 million, up 18.7% year over year.
Operating income decreased 2.3% year over year to $57.6 million. The operating margin was 19.4%, down 170 bps year over year.
Powell Industries’ Balance Sheet and Cash Flow
Exiting the second quarter of fiscal 2026, Powell Industries had cash equivalents and short-term investments of $544.9 million compared with $475.5 million at the end of fiscal 2025 (ended September 2025). Current liabilities were $447.3 million compared with $446.4 million at the end of fiscal 2025.
Stockholders’ equity totaled $709.1 million. In the first six months of fiscal 2026, capital expenditure totaled $3.9 million, down 38.4% year over year.
In the same period, the company used $6.51 million for distributing dividends, up 1.6% 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).
Graco Inc. (GGG - Free Report) posted quarterly earnings of 66 cents per share in the first quarter of 2026, missing the Zacks Consensus Estimate of 75 cents per share. This compares with earnings of 70 cents per share a year ago.
Graco posted revenues of $540.1 million for the quarter, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $528.3 million.
Stanley Black & Decker, Inc. (SWK - Free Report) reported first-quarter 2026 adjusted earnings of 80 cents per share, which beat the Zacks Consensus Estimate of 61 cents. The bottom line increased 6.7% year over year.
Stanley Black’s net sales of $3.85 billion beat the consensus estimate of $3.74 billion. The top line increased 2.7% from the year-ago quarter.
Ingersoll Rand Inc. (IR - Free Report) reported first-quarter 2026 adjusted earnings of 77 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents. The bottom line increased 7% year over year.
Total revenues of $1.85 billion beat the consensus estimate of $1.83 billion. The top line increased 7.6% year over year.
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Powell Industries Q2 Earnings & Revenues Miss Estimates
Key Takeaways
Powell Industries, Inc.’s (POWL - Free Report) second-quarter fiscal 2026 (ended March 2026) adjusted earnings of $1.25 per share missed the Zacks Consensus Estimate of $1.35. The bottom line decreased 1% year over year.
Powell Industries’ total revenues of $297 million missed the consensus estimate of $298 million. However, the top line increased 6% year over year. The year-over-year increase was primarily attributable to strength in the electric utility and oil & gas markets.
Inside the Headlines
In the fiscal second quarter, revenues from the electric utility sector increased 14% year over year. The oil & gas sector’s revenues increased 11%. Revenues from the commercial & other industrial sector increased 35% while the petrochemical sector declined 37%, respectively, on a year-over-year basis.
In the fiscal second quarter, new orders totaled $490 million compared with $249 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 $1.8 billion, up 12% on a sequential and 33% on a year-over-year basis.
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 6.9% year over year to $208.7 million. Gross profit increased 5.4% year over year to $87.9 million while the margin decreased 30 basis points (bps) to 29.6%. Selling, general and administrative expenses were $25.8 million, up 18.7% year over year.
Operating income decreased 2.3% year over year to $57.6 million. The operating margin was 19.4%, down 170 bps year over year.
Powell Industries’ Balance Sheet and Cash Flow
Exiting the second quarter of fiscal 2026, Powell Industries had cash equivalents and short-term investments of $544.9 million compared with $475.5 million at the end of fiscal 2025 (ended September 2025). Current liabilities were $447.3 million compared with $446.4 million at the end of fiscal 2025.
Stockholders’ equity totaled $709.1 million. In the first six months of fiscal 2026, capital expenditure totaled $3.9 million, down 38.4% year over year.
In the same period, the company used $6.51 million for distributing dividends, up 1.6% 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
Graco Inc. (GGG - Free Report) posted quarterly earnings of 66 cents per share in the first quarter of 2026, missing the Zacks Consensus Estimate of 75 cents per share. This compares with earnings of 70 cents per share a year ago.
Graco posted revenues of $540.1 million for the quarter, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $528.3 million.
Stanley Black & Decker, Inc. (SWK - Free Report) reported first-quarter 2026 adjusted earnings of 80 cents per share, which beat the Zacks Consensus Estimate of 61 cents. The bottom line increased 6.7% year over year.
Stanley Black’s net sales of $3.85 billion beat the consensus estimate of $3.74 billion. The top line increased 2.7% from the year-ago quarter.
Ingersoll Rand Inc. (IR - Free Report) reported first-quarter 2026 adjusted earnings of 77 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents. The bottom line increased 7% year over year.
Total revenues of $1.85 billion beat the consensus estimate of $1.83 billion. The top line increased 7.6% year over year.