Powell Industries Q3 revenue rises 9% but misses estimates
Powell Industries Q3 revenue rises 9% but misses estimates
Overview
US electrical equipment supplier's fiscal Q3 revenue rose 9% yr/yr but missed analyst expectations
Net income for fiscal Q3 increased 8% yr/yr, driven by higher revenues and strong gross margins
Company secured $934 mln in new orders, including three mega contracts; backlog up 69% yr/yr
Outlook
Powell expects robust activity across core end markets for the remainder of fiscal 2026
Company expects gross margins to remain consistent with trailing twelve months
Powell is expanding capacity to support backlog and recent project awards
Result Drivers
MARKET MIX - Revenue growth was driven by higher sales in Commercial & Other Industrial and Electric Utility markets, partially offset by lower Petrochemical market revenue
STRONG MARGINS - Gross profit increase was primarily due to higher volume levels and continued strong and stable pricing environment
MEGA CONTRACTS - Three mega orders in data centers, LNG, and petrochemicals boosted new orders and backlog
Company press release: ID:nGNX5cD4Dw
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $312 mln | $315.17 mln (6 Analysts) |
Q3 Net Income |
| $52 mln |
|
Q3 Gross Profit |
| $95 mln |
|
Q3 Orders |
| $934 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "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 $320.00, about 53.3% above its July 31 closing price of $208.68
The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 47 three months ago
Reuters Recommended Reads
Aug 3 - Prysmian strikes $3.8 billion deal to buy Atkore in US electrical push
Aug 3 - Over 700 US power generation projects accepted in grid operator PJM's interconnection process
Aug 3 - US LNG exports stall in July despite higher LNG prices
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.)