Fact Summary
Powell Industries (POWL), founded in 1947 and headquartered in Houston, Texas, is a manufacturer of electrical distribution and control equipment (switchgear). In fiscal Q2 2026 (period ended 2026-03-31), the company reported revenue of $296.6 million (+6% YoY) and net income of $45.9 million, while backlog expanded to $1.8 billion (+33% YoY). After the Q2 close, the company disclosed its largest single order in company history — a data center contract worth over $400 million — extending through fiscal year 2028. The company completed a 3-for-1 stock split on 2026-04-02. Fiscal Q3 (period ended 2026-06-30) results are scheduled for release after market close on 2026-08-03 and had not yet been reported as of the reference date (2026-08-02).
Price Change Context Note
The reference-date closing price of $208.68 was down only -0.30% from the previous close, but the stock has fallen approximately -22% cumulatively over the past month (2026-07-02 to 2026-08-02), including two single-day drops of over 8% on 7/2 and 7/28. Over the same period, repeated share sale disclosures by the CEO and the largest shareholder were observed alongside cautious sentiment ahead of the upcoming Q3 earnings release (scheduled for 2026-08-03). The 7/31 trading volume of 692,515 shares was below the 20-day average volume of 785,063 shares, showing no unusual spike in trading activity.
Business Overview
Powell Industries, founded in 1947 in Houston, Texas, is a manufacturer of electrical distribution and control equipment (switchgear) that designs and manufactures power distribution and control systems for commercial and industrial applications. The company operates through two segments: Electrical Power Products (custom-engineered power distribution and control systems, arc-resistant switchgear, motor control centers, etc.) and Process Control Systems (a relatively smaller segment), covering an applicable voltage range of approximately 480V~38,000V. End markets are categorized as Oil & Gas (upstream, midstream), Electric Utilities, Commercial/Industrial (including data centers), Petrochemical, and Light Rail (traction).
Note: Only 3 confirmed end-market revenue mix items are shown (remainder includes petrochemical, light rail, etc.; not available)
5-Year Financial Trend
| Fiscal Year | Gross Margin | Net Income | EPS (Diluted, Pre-Split) |
|---|---|---|---|
| FY2021 | 14.65% | approx. $1 million | $0.05 |
| FY2022 | 16.27% | $14 million | $1.15 |
| FY2023 | 22.98% | $55 million | $4.50 |
| FY2024 | 26.91% | $149.8 million | $12.29 |
| FY2025 | 29.4% | $180.7 million | $14.86 |
Note: EPS as originally reported prior to the 3-for-1 stock split effective 2026-04-02 (not split-adjusted). Split-adjustment is required when calculating valuation against the current price (financials.md, Article 9, date-basis unification).
| Quarter | Revenue | Net Income | EPS (Diluted) | Backlog |
|---|---|---|---|---|
| Q1 (period ended 2025-12-31) | $251.2 million (+4%) | $41.4 million (+19%) | $3.40 (pre-split) | $1.6 billion (+16%) |
| Q2 (period ended 2026-03-31) | $296.6 million (+6%) | $45.9 million (-1%) | $1.25 (post-split) | $1.8 billion (+33%) |
| Q3 (period ending 2026-06-30) | Not available | Not available | Not available | Not available |
Q3 results are scheduled for release after market close on 2026-08-03. Consensus (E) is $318.3 million in revenue (+11.2%) and adjusted EPS of $1.49 (+12.9%) (based on Zacks, via Yahoo Finance).
Valuation (Factual Multiples)
Source: stockanalysis.com (as of 2026-08-02). Minor discrepancies may occur on re-query due to real-time updates from the same source.
Peer Comparison
| Ticker | Market Cap | P/E (TTM) | Recent Revenue |
|---|---|---|---|
| POWL | $7.60 billion | 40.73x | FY2025 annual revenue $1,104 million |
| Eaton (ETN) | $161.39 billion | 40.64x | Q2 2026 revenue $8.5 billion (+21%) |
| Hubbell (HUBB) | $25.03 billion | 28.62x | Trailing 12-month revenue $6.00 billion |
POWL is a relatively small, specialized player competing against large diversified electrical and industrial conglomerates such as ABB, Eaton, Schneider Electric, and Siemens, leveraging faster delivery times in its project-based model as a competitive edge.
Supply and Demand
As a U.S.-listed stock, Korean-style daily investor-type trading data is not disclosed; this report references FINRA short interest (biweekly), SEC 13F filings (quarterly), and Form 4 (insider) filings instead.
Institutional ownership figures vary widely across sources, from 26.16% to 76.76%, so no definitive figure was adopted (not available). Multiple sources consistently show short interest declining from 21.31% in early 2025 to the 6~8% range by mid-2026, but the exact figure and most recent settlement date cannot be confirmed due to inconsistencies across sources.
Governance and Ownership
| Shareholder | Shares Held | Ownership % | Basis |
|---|---|---|---|
| Thomas W. Powell (individual, incl. TWP Holdings) | 2,304,593 shares | 19.1% | DEF 14A (2026-01-06), as of 2025-12-19 |
| BlackRock, Inc. | 1,375,098 shares | 11.4% | 13F-HR (filed 2025-11-12) |
| First Trust affiliates | 715,605 shares | 5.9% | Cited in DEF 14A (original filing not independently verified) |
| Vanguard Group, Inc. | 700,223 shares | 5.8% | 13F-HR (filed 2025-11-07) |
The board consists of 9 members across 3 classes, with 8 outside directors and 1 inside director (CEO Brett A. Cope), representing approximately 88.9% independent directors. Cope serves as both Chairman of the Board and CEO; whether a separate lead independent director has been designated could not be confirmed (not available).
From March to July 2026, CEO Brett A. Cope repeatedly sold approximately 4,440 shares per month under a pre-arranged trading plan (Rule 10b5-1), and largest shareholder Thomas W. Powell sold a cumulative approximately 85,213 shares over the same period (SEC Form 4, filings from February to July 2026).
Macro Environment
| Factor | Value as of Reference Date | Relevance to POWL |
|---|---|---|
| U.S. Federal Funds Rate | 3.50~3.75% (2026-07-29, held for 5th consecutive meeting) | Utility capex expansion observed despite continued high rates |
| U.S. Data Center Power Demand | 31GW in 2025 → est. 41GW in 2026 (E) | Increased orders for power distribution/control equipment such as switchgear |
| U.S. Utility Capex | Approx. +17~30% YoY in 2026 | Increased substation/distribution equipment orders, driving growth in the Electric Utilities segment |
| WTI Crude Oil Price | $84.67/barrel (2026-07-31), +23.46% over 1 month | Incentive for upstream/midstream capex (Oil & Gas segment; details vary) |
| Baker Hughes Rig Count | 587 rigs (2026-07-24) | Correlated with upstream oil & gas capex |
| Commodity Prices (Copper, Steel, etc.) | Steel PPI +9%, copper wire/cable +9.1% (YoY) | Upward pressure on manufacturing costs (partially passed through via escalation clauses) |
Under Section 232 tariffs, a 15% tariff applies to grid equipment through 2027-12-31, and a 50% tariff applies to finished steel, aluminum, and copper products, creating simultaneous, offsetting effects: added cost pressure versus a relative pricing advantage from the company's U.S.-based manufacturing footprint.
Risk Factors
- Analysts note that the FY2025~FY2026 gross margin of approximately 29~31% is achievable only at high factory utilization rates, and margins could compress under fixed-cost pressure if demand slows.
- The cyclicality of end markets such as oil & gas, petrochemicals, and electric utilities is explicitly identified as a risk factor in the company's 10-K.
- Backlog growth is concentrated in a small number of large data center projects, which could increase earnings volatility tied to project timing and order fluctuations.
- The 10-K cites risk factors including cost-estimation failures and overruns on fixed-price contracts, tariff and inflation impacts, and supply chain disruptions from reliance on a limited number of suppliers.
- The P/E (TTM) of 40.73x represents a premium valuation similar to Eaton's, and share price volatility could increase if earnings fall short of market expectations or margins compress.
- Repeated share sales by the CEO and the largest shareholder were confirmed from March to July 2026, but most were made under pre-arranged trading plans (Rule 10b5-1), making it difficult to interpret them as discretionary signals.
Recent News Timeline
- 2026-07-20 — Company announced Q3 (period ended 2026-06-30) earnings schedule: results after market close on 2026-08-03, conference call on 2026-08-04 at 11:00 ET (company disclosure)
- 2026-07-28 — Shares fell 8.32%, closing at $201.00. Cumulative 1-month decline of -22.01% (secondary aggregation; cited factors: caution ahead of earnings release, prior-quarter consensus miss, cumulative insider share sales)
- 2026-07-02 — Shares fell 8.4%, with similar factors cited (secondary aggregation; identical wording repeatedly observed, indicating low reliability)
- 2026-07-01 — Board approved a special one-time grant of 36,000 RSUs to CEO Brett A. Cope, vesting on a back-loaded schedule from 2027~2029 (reported based on company 8-K)
- 2026-06-25 — Largest shareholder Thomas W. Powell sold 33,958 shares at $294.49 per share (total approx. $10 million) (SEC Form 4)
- 2026-05-04 — Alongside Q2 earnings release, company disclosed a Phase 1 contract worth over $400 million for a data center customer (the company's largest single order in its history), extending through fiscal year 2028
- 2026-02-03 — Q1 earnings release: revenue $251.2 million (+4%), backlog $1.6 billion (+16%), including a new order for a data center project worth approximately $75 million
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