Powell Industries Reports Strong Q1 2026 Earnings with Record Orders
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy POWL?
Source: seekingalpha
Powell Industries' stock surged 7.40% as it reached a 52-week high, reflecting positive investor sentiment following its recent earnings report.
The company reported Q1 2026 earnings with net revenue of $251 million, a 4% year-over-year increase, and a significant earnings per share of $3.40, exceeding estimates by $0.48. Additionally, Powell secured new orders totaling $439 million, a remarkable 63% increase from the previous year, showcasing robust market demand and a historic backlog of $1.6 billion, indicating strong growth potential.
This strong performance highlights Powell's competitive positioning and strategic expansion efforts, which are expected to further enhance its market presence and profitability in the coming quarters.
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Analyst Views on POWL
Wall Street analysts forecast POWL stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for POWL is 350.00 USD with a low forecast of 350.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 538.810
Low
350.00
Averages
350.00
High
350.00
Current: 538.810
Low
350.00
Averages
350.00
High
350.00
About POWL
Powell Industries, Inc. develops, designs, manufactures and services custom-engineered equipment and systems that distributes, controls and monitors the flow of electrical energy and provides protection to motors, transformers and other electrically powered equipment. The Company’s principal products include integrated power control room substations (PCRs), custom-engineered modules, electrical houses (E-Houses), traditional and arc-resistant distribution switchgear and control gear, medium-voltage circuit breakers, monitoring and control communications systems, motor control centers, switches and bus duct systems. Its products are designed for application in voltages ranging from approximately 480 volts to 38,000 volts. It serves the oil and gas and petrochemical markets, electric utility market, commercial and other industrial markets. It also provides products and services to the light rail traction power market and other markets that include universities and government entities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Record High Orders: The company secured new orders totaling $439 million this quarter, a 63% increase from the previous year, including a large LNG project exceeding $100 million and a $75 million data center project, showcasing robust and diversified market demand.
- Historic Backlog Levels: Powell's backlog reached $1.6 billion at quarter-end, up $191 million sequentially, marking the highest level in company history and reflecting strong growth potential in the electric utility and data center sectors.
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- Market Reaction: On February 5, 2026, Alphabet's stock prices were 2.42% and 2.46%, reflecting investor optimism regarding its future growth potential, which may drive stock prices higher.
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- Record High Orders: The company secured new orders totaling $439 million this quarter, a 63% increase from the previous year, including a large LNG project exceeding $100 million and a $75 million data center project, showcasing robust and diversified market demand.
- Historic Backlog Levels: Powell's backlog reached $1.6 billion at quarter-end, up $191 million sequentially, marking the highest level in company history and reflecting strong growth potential in the electric utility and data center sectors.
- Ongoing Strategic Expansion: The company is actively pursuing strategic capacity expansion, including leasing new facilities and increasing inventory to support future growth, with the Jacintoport facility expansion on track for completion in the second half of fiscal 2026, further enhancing competitive positioning.
See More
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- Earnings Beat Expectations: Powell Industries reported a modest 4% revenue growth to $251 million in Q1, falling short of expectations, yet its earnings per share soared 19% to $3.40, showcasing the company's strong execution in margin enhancement despite a 31% decline in the petrochemical segment limiting overall revenue.
- Margin Improvement: The company's gross margin increased from 24.7% to 28.4% year-over-year, attributed to a stable pricing environment and efficient execution, indicating significant improvements in manufacturing, installation, and service of power control switchgear equipment.
- Significant Order Growth: Powell's order book reached $439 million this quarter, a 63% year-over-year increase and the highest in over two years, driven by securing its first
See More
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- Sales Growth: The company achieved quarterly sales of $580.620 million, exceeding the analyst consensus estimate of $533.890 million, demonstrating strong market demand and driving sustained performance growth.
- Stock Surge: Following the positive earnings report, Cirrus Logic's shares jumped 7.6% to $134.10 on Wednesday, reflecting market optimism regarding the company's future growth potential.
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- Earnings Beat Expectations: Powell Industries reported Q1 GAAP EPS of $3.40, exceeding estimates by $0.48, indicating strong profitability that may attract more investor interest.
- Revenue Misses Slightly: Revenue reached $251 million, a 4.0% year-over-year increase, but fell short of expectations by $5.46 million, reflecting potential market demand fluctuations impacting revenue growth.
- Significant New Orders: The company secured new orders totaling $439 million, a remarkable 63% increase, demonstrating robust market demand and customer confidence, which is expected to support future revenue growth.
- Backlog Continues to Rise: As of December 31, 2025, backlog totaled $1.6 billion, up 16%, indicating strong future business growth potential for the company.
See More
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- Earnings Beat: Powell Industries reported a net income of $41.4 million for Q1, translating to $3.40 per share, surpassing Wall Street's consensus estimate of $2.92, indicating strong profitability.
- Revenue Miss: Despite a 4% year-over-year revenue increase to $251.2 million, it fell short of the expected $256.46 million, reflecting volatility in market demand.
- Surge in New Orders: New orders surged 63% to $439 million, resulting in a book-to-bill ratio of 1.7, highlighting robust demand in commercial and industrial projects, which bodes well for future growth.
- Strong Financial Position: At the end of the quarter, Powell reported $501 million in cash and short-term investments with no debt, demonstrating solid financial management and providing ample resources for future investments.
See More
