Company Overview - Powell Industries, headquartered in Houston, TX, specializes in manufacturing and supplying custom-engineered equipment and systems for distributing, controlling, and monitoring electrical energy flow [11] - Founded in 1947, the company employs 2,748 individuals as of September 30, 2024 [11] - Key products include integrated power control room substations, electrical houses, medium-voltage circuit breakers, monitoring and control communications systems, switches, motor control centers, bus duct systems, and arc-resistant distribution switchgears [11] Investment Ratings - Powell Industries holds a Zacks Rank of 3 (Hold) with a VGM Score of A, indicating a solid overall performance [12] - The company has a Value Style Score of B, supported by attractive valuation metrics such as a forward P/E ratio of 12.65, which may appeal to value investors [12] - For fiscal 2025, one analyst has revised their earnings estimate upwards in the last 60 days, with the Zacks Consensus Estimate increasing by $0.01 to $13.71 per share [12] Performance Metrics - Powell Industries has demonstrated an average earnings surprise of 33.3%, suggesting a strong potential for exceeding earnings expectations [12] - With a solid Zacks Rank and top-tier Value and VGM Style Scores, Powell Industries is recommended for investors' consideration [13]

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Core Viewpoint - Powell Industries (NASDAQ: POWL) has experienced significant declines due to market volatility and economic uncertainty related to Trump's policies, presenting a potential investment opportunity for long-term investors [1]. Company Analysis - The company has retreated considerably in its stock price, which may attract value-focused investors looking for opportunities in the current market environment [1]. - The investment strategy discussed emphasizes a mix of growth, value, and dividend-paying stocks, with a particular focus on value investments [1]. Market Context - The overall market volatility and economic uncertainty have impacted Powell Industries, reflecting broader trends in the economy that may affect investor sentiment and stock performance [1].

HOUSTON , March 06, 2025 (GLOBE NEWSWIRE) -- Powell Industries, Inc. (NASDAQ: POWL), a leading supplier of custom engineered solutions for the management, control and distribution of electrical energy, today announced its participation in upcoming investor events. Cantor Technology ConferenceChairman and Chief Executive Officer Brett Cope and Chief Financial Officer Michael Metcalf will attend the Cantor Technology Conference in New York City on Wednesday, March 12, 2025. Mr. Cope will participate on a pane ...

Core Viewpoint - Powell Industries, Inc. is experiencing growth driven by energy transition projects and has established itself as a leading supplier of critical electrical infrastructure due to a solid project pipeline and high investments in LNG and related sectors [1]. Financial Performance - For the first quarter of fiscal 2025, Powell Industries reported a revenue increase of 24.4% year-over-year, reaching $241.4 million, attributed to strong project activity across its markets [2]. - The company ended the fiscal first quarter with a backlog of $1.3 billion, with new orders totaling $269 million compared to $198 million in the same quarter of the previous year [3]. Shareholder Returns - Powell Industries is committed to rewarding shareholders, distributing $3.2 million in dividends in the first three months of 2025, and increasing its total dividends for fiscal 2024 to $12.7 million, a 2.4% increase year-over-year [4]. Cost and Expense Challenges - The company faced challenges with high operating costs, as the cost of sales rose 24.8% year-over-year in the first quarter of fiscal 2025, driven by increased raw material costs, with the cost of sales representing 75.3% of revenues [7]. - Selling, general, and administrative expenses also increased by 5.6% during the same period [7]. Supply Chain Issues - Powell Industries utilizes various raw materials, including steel, copper, and aluminum, and is experiencing supply-chain constraints for engineered components, which may lead to increased costs and delivery delays [8].

Company Overview - Powell Industries is headquartered in Houston, TX, and specializes in manufacturing and supplying custom-engineered equipment and systems for distributing, controlling, and monitoring electrical energy flow [11] - The company was founded in 1947 and employs 2,748 individuals as of September 30, 2024 [11] - Key products include integrated power control room substations, electrical houses, medium-voltage circuit breakers, monitoring and control communications systems, switches, motor control centers, bus duct systems, and arc-resistant distribution switchgears [11] Investment Ratings - Powell Industries currently holds a Zacks Rank of 3 (Hold) and has a VGM Score of A, indicating strong overall performance [12] - The company has a Value Style Score of A, supported by attractive valuation metrics such as a forward P/E ratio of 12.67, making it appealing to value investors [12] - An analyst has revised the earnings estimate higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.01 to $13.71 per share [12] Performance Metrics - Powell Industries has demonstrated an average earnings surprise of 33.3%, indicating a strong track record of exceeding earnings expectations [12] - With a solid Zacks Rank and top-tier Value and VGM Style Scores, Powell Industries is recommended for investors' consideration [13]

Powell Industries, Inc. (POWL) stock has lost 23.5% in the year-to-date period, wider than the broader electronics manufacturing industry’s 6.3% decline. The stock has also underperformed the Industrial Products sector’s decline of 0.6% and the S&P 500’s growth of 2%.POWL stock also shows a downside against its industry peers like ESCO Technologies Inc. (ESE) and EnerSys (ENS) , which have gained 19.3% and 9.2%, respectively, in the same period.POWL Stock Price PerformanceImage Source: Zacks Investment Rese ...

Core Insights - Powell Industries (NASDAQ: POWL) reported a quarter with double-digit topline growth as it enters the first quarter of FY25, indicating a strong performance in revenue generation [1] - Despite the positive earnings, the market reacted negatively due to moderated growth compared to the previous year, leading to a decline in stock performance [1] Financial Performance - The company achieved decent double-digit growth in revenue, showcasing its ability to generate significant sales [1] - The earnings report reflects a solid financial foundation, although the growth rate has slowed compared to prior year levels [1]

Group 1 - Powell Industries (NASDAQ: POWL) is positioned to benefit from growth trends in electrical power systems, particularly due to the increasing demand from data centers essential for artificial intelligence and cloud computing [1] - The company also has exposure to the oil and gas industry, which is another significant area of growth [1]

Core Insights - Powell Industries, Inc. reported adjusted earnings of $2.86 per share for Q1 fiscal 2025, exceeding the Zacks Consensus Estimate of $2.83, marking a 44.3% year-over-year increase [1] - Total revenues for the quarter were $241.4 million, slightly below the consensus estimate of $244 million, but reflecting a 24.4% year-over-year growth driven by strong performance across various sectors [2] Revenue Breakdown - The electric utility sector generated revenues of $51.2 million, up 26% year over year [3] - Revenues from the oil & gas sector reached $95.7 million, a 14% increase year over year [3] - The commercial & other industrial sector saw revenues rise by 80% to $44.3 million [3] Order and Backlog - New orders totaled $269 million, compared to $198 million in the same quarter last year, driven by strong activity in the oil & gas and electric utility sectors [4] - The backlog at the end of the quarter stood at $1.3 billion, remaining relatively flat both sequentially and year-over-year [4] Margin and Expenses - Cost of sales increased by 24.8% year over year to $181.9 million, while gross profit rose 23.4% to $59.5 million, resulting in a slight contraction of gross margin to 24.7% [5] - Selling, general and administrative expenses were $21.5 million, up 5.9% year over year [5] - Operating income increased by 37.5% year over year to $35.6 million, with an operating margin of 14.7%, up 130 basis points [5] Balance Sheet and Cash Flow - As of the end of Q1 fiscal 2025, cash equivalents and short-term investments totaled $373.4 million, an increase from $358.4 million at the end of fiscal 2024 [6] - Current liabilities decreased to $396.7 million from $428 million at the end of fiscal 2024 [6] - Stockholders' equity was reported at $496.3 million, with capital expenditures of $2.2 million, up 83.3% year over year [6] Dividend and Guidance - The company distributed $3.2 million in dividends, remaining stable year over year [7] - Powell anticipates continued strength across most end markets and expects strong revenues and earnings for fiscal 2025, supported by a robust backlog and solid liquidity [8]