Powell Industries Q2 revenue up 6%, slightly misses estimates

Powell Industries

04/05/2026 21:31

Overview

US electrical equipment supplier's fiscal Q2 revenue grew 6% but slightly missed analyst expectations

Net income for fiscal Q2 declined 1% due to higher SG&A and R&D expenses

Company's new orders nearly doubled and backlog rose 33% on strong demand and large project wins

Outlook

Powell expects market activity across core markets to remain favorable in fiscal 2026

Company expects margins to remain consistent with prior-year performance levels

Powell says recent backlog growth supports further prudent capacity investments

Result Drivers

MARKET MIX - Revenue growth was driven by higher sales in Commercial & Other Industrial (up 35%), Electric Utility (up 14%), and Oil & Gas (up 11%) markets, partially offset by a 37% decline in Petrochemical sales

HIGHER OPERATING COSTS - Net income declined due to increased SG&A and R&D expenses, including higher compensation costs

PROJECT EXECUTION & PRICING - Gross profit improvement reflected higher revenues, favorable volume leverage, strong project execution, and a continued stable pricing environment

Company press release: ID:nGNXbmwDfC

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Miss*
$297 mln
$298.09 mln (6 Analysts)
Q2 Net Income
$45.90 mln
Q2 Gross Margin
29.60%
Q2 Gross Profit
$88 mln
Q2 Orders
$490 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the electrical components & equipment peer group is "buy"

Wall Street's median 12-month price target for Powell Industries Inc is $161.17, about 41.5% below its May 1 closing price of $275.33

The stock recently traded at 47 times the next 12-month earnings vs. a P/E of 28 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)