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Powell Industries (POWL) investor relations material

Powell Industries Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary19 Nov, 2025

Executive summary

  • Achieved record financial results in fiscal 2025, with strong growth in Electric Utility and Light Rail Traction Power markets and strategic market diversification.

  • Fourth quarter saw 16% gross profit growth, 8% revenue growth, and $61 million in operating cash flow compared to the same quarter last year.

  • Non-industrial markets, especially electric utility and commercial/industrial, now comprise 41% of annual revenue and 48% of backlog, up from under 20% five years ago.

  • Booked $1.2 billion in new orders for the year, up 9% year-over-year, with a year-end backlog of $1.4 billion and a book-to-bill ratio of 1.0.

  • Completed the acquisition of Remsdaq Ltd., expanding automation offerings and integration into North American and UK markets.

Financial highlights

  • Fiscal Q4 2025 revenue rose 8% year-over-year to $298 million; full year revenue reached $1.1 billion, up 9%.

  • Q4 net income was $51.4 million ($4.22 per diluted share), up from $46 million ($3.77 per share) last year; full year net income was $180.7 million ($14.86 per share), up from $149.8 million ($12.29 per share) in 2024.

  • Q4 gross profit was $94 million (31.4% margin), up 16%; full year gross profit was $324 million (29.4% margin), up 19%.

  • Operating cash flow for the year was $168 million, up from $109 million in 2024; cash and equivalents at year-end: $476 million.

  • Working capital increased to $485 million from $348 million year-over-year.

Outlook and guidance

  • Management expects continued strong order activity and a sustainable margin profile for fiscal 2026, supported by robust backlog and stable pricing.

  • Margins in the upper 20% range anticipated for fiscal 2026, with project closeouts expected to continue contributing favorably.

  • About 60% of current backlog is expected to convert to revenue in 2026.

  • R&D spending to remain elevated, with new products expected to reach market in 2026 and further development ongoing into 2027-2028.

  • Investments in capacity expansion are underway, including Jacintoport, to support anticipated growth, particularly in LNG and utility markets.

Remsdaq: Address underserved market demand
O&G revenue decline vs. order increase
Jacintoport expansion: what capacity gains
What is the long-term outlook for non-industrial markets
How do Remsdaq and Jacintoport investments align
What factors will sustain high gross profit margins?
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Frequently asked questions

Powell Industries Inc designs, manufactures, and services equipment for the distribution, control, and monitoring of electrical energy. The company serves utilities, oil and gas, industrial, and infrastructure markets with switchgear, control systems, and automation solutions. It is headquartered in Houston, Texas, and its shares are listed on the NASDAQ.

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