Powell Industries reported record fourth‑quarter and full‑year Fiscal 2025 results, with revenue rising 8% to $298.0 million and diluted earnings per share climbing to $4.22, a 12% increase over the $3.77 EPS reported a year earlier. Gross profit margin expanded to 31.4% from 29.2% year‑over‑year, driven by a higher mix of high‑margin utility and data‑center contracts and disciplined cost management. The company’s backlog stood at $1.4 billion as of September 30, 2025, up 3% from the prior year and flat versus the $1.4 billion reported on June 30, 2025; management estimates that 65% of the backlog will convert to revenue within the next 12 months, underscoring strong visibility into Fiscal 2026.
The quarter’s revenue growth was largely powered by the electric‑utility and light‑rail traction power markets, which grew 100% and 85% respectively. These gains offset declines in the oil‑and‑gas and petrochemical segments, which fell 10% and 25% respectively. The robust utility performance reflects continued investment in grid modernization and the company’s focus on high‑margin, recurring‑revenue projects, while the light‑rail growth aligns with expanding public‑transport electrification initiatives. The weaker oil‑and‑gas and petrochemical results are consistent with broader cyclical softness in those industries.
Powell’s earnings beat analysts’ consensus estimate of $3.76 per share by $0.46, a 12.2% over‑performance. The beat was driven by a combination of higher gross margin, efficient operating leverage, and a favorable product mix that favored the company’s higher‑margin utility and data‑center solutions. Revenue also beat consensus estimates, with $298 million reported versus an average estimate of $292.8 million, reflecting strong demand for the company’s electrical‑automation and control‑system offerings.
The company completed its acquisition of Remsdaq Ltd., a UK‑based SCADA remote‑terminal‑unit manufacturer, for approximately $16.3 million (£12.2 million). The deal expands Powell’s electrical‑automation platform, enabling the company to offer fully integrated, Powell‑built solutions for utilities and to accelerate its strategic shift toward higher‑margin utility and data‑center markets. Management highlighted that the acquisition will enhance the company’s competitive positioning and support future growth in the growing electrical‑automation segment.
Powell’s balance sheet remains robust, with zero debt and $476 million in cash and short‑term investments as of the quarter’s end. CEO Brett A. Cope emphasized that the company is “encouraged” by the strong order activity and that the “funnel of opportunities” across its markets remains very strong as it enters Fiscal 2026. The company’s outlook signals confidence in continued revenue growth, margin expansion, and the successful integration of Remsdaq’s technology into its product portfolio.
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