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A month has gone by since the last earnings report for Powell Industries (POWL - Free Report) . Shares have lost about 18.6% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Powell Industries due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Powell Industries, Inc. before we dive into how investors and analysts have reacted as of late.

Powell’s Q3 Earnings & Revenues Miss Estimates, Rise Y/YPowell reported third-quarter fiscal 2026 (ended June 2026) earnings of $1.42 per share, up 7.6% year over year, but missed the Zacks Consensus Estimate of $1.49. Revenues rose 9% year over year to $311.7 million but missed the consensus mark of $318 million.

Growth reflected strength in commercial and other industrial and electric utility markets, partly offset by weakness in petrochemicals.

Revenue Mix Shows Industrial StrengthCommercial and other industrial revenues increased 54% year over year in the fiscal third quarter. Electric utility revenues advanced 18%, showing broad demand across two of Powell’s core markets. However, Petrochemical revenues declined 49% from the prior-year period and partly offset the gains.

Margin Profile Stays ResilientGross profit increased 8% year over year to $95.3 million as higher volumes and a strong, stable pricing environment supported profitability. Gross margin was 30.6% compared with 30.7% a year earlier.

On a sequential basis, gross profit rose 8% to $95.3 million. Gross margin improved 100 basis points from 29.6% in the preceding quarter, indicating stronger conversion on the higher revenue base despite ongoing investment needs.

Powell’s Orders Reach a Quarterly RecordNew orders totaled $934 million, up 158% from $362 million in the year-ago quarter and well above $490 million in the fiscal second quarter. The book-to-bill ratio was 3.0, indicating orders were three times the quarter’s revenues.

The company secured three mega orders, defined as contracts above $50 million. These included a data center award of more than $400 million, a petrochemical fertilizer project of about $75 million and an LNG project of roughly $60 million in the U.S. Gulf Coast.

Powell’s Backlog Expands Across Core MarketsBacklog reached $2.4 billion, up 69% year over year, supported by record quarterly orders. Improved bookings were concentrated in commercial and other industrial, oil and gas, and petrochemical markets, broadening the project base beyond the quarter’s reported revenue mix.

Profit Growth ContinuesNet income increased 8% year over year to $52.2 million from $48.2 million. Higher revenues and strong gross margins drove the increase, while operating income rose to $64.1 million from $60.1 million.

Cost of goods sold grew 9.1% to $216.4 million. Selling, general and administrative expenses were $26.7 million, while research and development expenses totaled $4.3 million in the quarter, reflecting an increase of 6.3% and 61.7% year over year, respectively.

Powell’s Balance Sheet Supports Capacity PlansCash, cash equivalents and short-term investments totaled $633.6 million as of June 30, 2026, up from $475.5 million at the end of fiscal 2025. Working capital stood at $606.5 million, while stockholders’ equity was $756.2 million.

Capital expenditures were $6.5 million in the quarter and dividends paid totaled $3.3 million, reflecting continued investment alongside shareholder distributions.

Outlook Remains FavorableManagement expects activity across the company’s core markets to remain robust. Demand drivers include the continued role of U.S. LNG, utility generation, grid-strengthening projects and rising requirements tied to data centers and AI capacity.

Powell expects gross margins to remain consistent with the trailing-12-month level as it adds capacity to serve the expanding backlog. The company expects the Jacintoport fabrication yard expansion project to be completed by the end of fiscal 2026, with production then ramping to support recent industrial awards.

Powell Evaluates Further ExpansionThe company is assessing greenfield capacity additions beyond recently added leased capacity in Houston and Ohio. Powell expects another solid year of financial results as it closes fiscal 2026 (ending September 2026) and looks toward fiscal 2027 (ending September 2027). The outlook rests on project execution, backlog composition and measured capacity additions across its manufacturing network.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -6.95% due to these changes.

VGM ScoresAt this time, Powell Industries has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a score of F on the value side, putting it in the fifth quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Powell Industries has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Powell Industries, Inc. (POWL) Presents at 17th Annual Midwest IDEAS Conference Transcript

Abacus FCF Advisors LLC purchased a new stake in Powell Industries, Inc. (NASDAQ:POWL – Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 26,037 shares of the industrial products company’s stock, valued at approximately $7,456,000. Abacus FCF Advisors LLC owned 0.07% of Powell Industries at the end of the most recent reporting period.

Other hedge funds have also recently made changes to their positions in the company. Capital World Investors purchased a new position in shares of Powell Industries in the 4th quarter worth about $20,704,000. Private Advisory Group LLC purchased a new stake in Powell Industries during the 2nd quarter valued at about $14,158,000. Voss Capital LP boosted its holdings in Powell Industries by 18.6% during the 4th quarter. Voss Capital LP now owns 350,000 shares of the industrial products company’s stock valued at $111,573,000 after acquiring an additional 55,000 shares during the period. Rock Creek Group LP grew its position in Powell Industries by 1,900.0% during the 4th quarter. Rock Creek Group LP now owns 150,000 shares of the industrial products company’s stock worth $47,817,000 after acquiring an additional 142,500 shares during the last quarter. Finally, GW&K Investment Management LLC grew its position in Powell Industries by 13.4% during the 4th quarter. GW&K Investment Management LLC now owns 254,520 shares of the industrial products company’s stock worth $81,137,000 after acquiring an additional 30,013 shares during the last quarter. 89.77% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions at Powell Industries In other Powell Industries news, EVP Michael William Metcalf sold 4,500 shares of the business’s stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $284.64, for a total value of $1,280,880.00. Following the sale, the executive vice president directly owned 78,900 shares of the company’s stock, valued at approximately $22,458,096. The trade was a 5.40% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Thomas W. Powell sold 33,958 shares of the firm’s stock in a transaction on Thursday, June 25th. The shares were sold at an average price of $294.49, for a total value of $10,000,291.42. Following the transaction, the insider owned 564,736 shares of the company’s stock, valued at $166,309,104.64. The trade was a 5.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 42,898 shares of company stock valued at $12,353,653 in the last three months. 2.20% of the stock is currently owned by company insiders.

Analysts Set New Price Targets A number of equities research analysts have issued reports on POWL shares. Weiss Ratings lowered shares of Powell Industries from a “buy (b)” rating to a “buy (b-)” rating in a report on Thursday, July 16th. Zacks Research lowered shares of Powell Industries from a “strong-buy” rating to a “hold” rating in a report on Monday, May 11th. Cantor Fitzgerald dropped their target price on shares of Powell Industries from $320.00 to $235.00 and set a “neutral” rating for the company in a report on Friday, August 14th. JPMorgan Chase & Co. raised their target price on Powell Industries from $310.00 to $360.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 6th. Finally, Glj Research raised Powell Industries from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, July 14th. Two equities research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, Powell Industries presently has an average rating of “Buy” and a consensus price target of $215.42. Read Our Latest Report on Powell Industries

Powell Industries Price Performance Shares of POWL opened at $198.21 on Thursday. The company has a 50-day simple moving average of $243.36 and a two-hundred day simple moving average of $230.31. The firm has a market capitalization of $7.22 billion, a PE ratio of 38.04, a price-to-earnings-growth ratio of 2.71 and a beta of 1.18. Powell Industries, Inc. has a one year low of $78.50 and a one year high of $328.00.

Powell Industries (NASDAQ:POWL – Get Free Report) last posted its earnings results on Monday, August 3rd. The industrial products company reported $1.42 earnings per share for the quarter, missing analysts’ consensus estimates of $1.49 by ($0.07). The firm had revenue of $311.74 million for the quarter, compared to analysts’ expectations of $316.70 million. Powell Industries had a return on equity of 27.51% and a net margin of 16.49%.The firm’s revenue was up 8.9% on a year-over-year basis. During the same quarter last year, the company posted $3.96 EPS. Analysts expect that Powell Industries, Inc. will post 5.36 EPS for the current fiscal year.

Powell Industries Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Wednesday, August 19th will be given a $0.09 dividend. The ex-dividend date of this dividend is Wednesday, August 19th. This represents a $0.36 dividend on an annualized basis and a dividend yield of 0.2%. Powell Industries’s dividend payout ratio is currently 6.91%.

Powell Industries Profile (Free Report)

Powell Industries, Inc is an industrial electrical engineering company specializing in the design, manufacture and integration of customized power control and distribution solutions. The firm’s offerings range from medium‐voltage switchgear and power control centers to bus duct, motor control centers and specialty transformers. Powell also provides automation systems, protective relaying, metering, supervisory control and data acquisition (SCADA) platforms, and turnkey engineering services to help clients manage critical power infrastructure.

Serving the oil and gas, petrochemical, refining, utility, mining and industrial sectors, Powell’s products are engineered to meet demanding performance, safety and reliability requirements.

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Decelerating growth pains have negated Powell's growing backlog and richer margins, with the expensive P/E of 40x also contributing to its mixed investment thesis. Capacity expansion is underway, with management targeting over 20% YoY growth by FY2026 as they evaluate a new facility for further upside from H2'27 onwards. FQ4'26 is unlikely to enjoy a similar new order profile as that of FQ3'26, as POWL hints at smaller pipelines along the sub-$100M to $200M ranges.

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Key Takeaways Powell Industries' fiscal Q3 earnings and revenues missed estimates despite year-over-year growth.POWL's orders surged 158% to a record $934 million, lifting backlog 69% to $2.4 billion.Powell expects robust core-market activity and stable margins as it expands capacity. Powell Industries, Inc. (POWL - Free Report) reported third-quarter fiscal 2026 (ended June 2026) earnings of $1.42 per share, up 7.6% year over year, but missed the Zacks Consensus Estimate of $1.49. Revenues rose 9% year over year to $311.7 million but missed the consensus mark of $318 million.
Growth reflected strength in commercial and other industrial and electric utility markets, partly offset by weakness in petrochemicals.

POWL Revenue Mix Shows Industrial StrengthCommercial and other industrial revenues increased 54% year over year in the fiscal third quarter. Electric utility revenues advanced 18%, showing broad demand across two of Powell’s core markets. However, Petrochemical revenues declined 49% from the prior-year period and partly offset the gains.

Powell Industries’ Margin Profile Stays ResilientGross profit increased 8% year over year to $95.3 million as higher volumes and a strong, stable pricing environment supported profitability. Gross margin was 30.6% compared with 30.7% a year earlier.

On a sequential basis, gross profit rose 8% from $87.9 million. Gross margin improved 100 basis points from 29.6% in the preceding quarter, indicating stronger conversion on the higher revenue base despite ongoing investment needs.

POWL Orders Reach a Quarterly RecordNew orders totaled $934 million, up 158% from $362 million in the year-ago quarter and well above $490 million in the fiscal second quarter. The book-to-bill ratio was 3.0, indicating orders were three times the quarter’s revenues.

The company secured three mega orders, defined as contracts above $50 million. These included a data center award of more than $400 million, a petrochemical fertilizer project of about $75 million and an LNG project of roughly $60 million in the U.S. Gulf Coast.

Powell Industries Backlog Expands Across Core MarketsBacklog reached $2.4 billion, up 69% year over year, supported by record quarterly orders. Improved bookings were concentrated in commercial and other industrial, oil and gas, and petrochemical markets, broadening the project base beyond the quarter’s reported revenue mix.

POWL Profit Growth ContinuesNet income increased 8% year over year to $52.2 million from $48.2 million. Higher revenues and strong gross margins drove the increase, while operating income rose to $64.1 million from $60.1 million.

Net income advanced 8% year over year to $52.2 million. Cost of goods sold grew 9.1% to $311.7 million. Selling, general and administrative expenses were $26.7 million, while research and development expenses totaled $4.3 million in the quarter, reflecting an increase of 6.4% and 61.7% year over year, respectively.

Powell Industries Balance Sheet Supports Capacity PlansCash, cash equivalents and short-term investments totaled $633.6 million as of June 30, 2026, up from $475.5 million at the end of fiscal 2025. Working capital stood at $606.5 million, while stockholders’ equity was $756.2 million.

Capital expenditures were $6.5 million in the quarter and dividends paid totaled $3.3 million, reflecting continued investment alongside shareholder distributions.

POWL Outlook Remains FavorableManagement expects activity across the company’s core markets to remain robust. Demand drivers include the continued role of U.S. LNG, utility generation, grid-strengthening projects and rising requirements tied to data centers and AI capacity.

Powell Industries expects gross margins to remain consistent with trailing-12-month level as it adds capacity to serve the expanding backlog. The company expects the Jacintoport fabrication yard expansion project to be completed by the end of fiscal 2026, with production then ramping to support recent industrial awards.

Powell Industries Evaluates Further ExpansionThe company is assessing greenfield capacity additions beyond recently added leased capacity in Houston and Ohio. Powell Industries expects another solid year of financial results as it closes fiscal 2026 (ending September 2026) and looks toward fiscal 2027 (ending September 2027). The outlook rests on project execution, backlog composition and measured capacity additions across its manufacturing network.

Zacks Rank and Stocks to ConsiderThe company currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are discussed below:

Applied Industrial Technologies (AIT - Free Report) carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Applied Industrial’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 4.0%.  In the past 60 days, the Zacks Consensus Estimate for Applied Industrial’s fiscal 2026 bottom line has inched up 0.1%.

IDEX Corporation (IEX - Free Report) presently carries a Zacks Rank of 2. IDEX’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 7.7%. In the past 60 days, the Zacks Consensus Estimate for IEX’s 2026 earnings has increased 1.4%.

The Middleby Corporation (MIDD - Free Report) currently carries a Zacks Rank of 2. Middleby’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 10.4%. In the past 60 days, the Zacks Consensus Estimate for MIDD’s 2026 earnings has increased 0.3%.

U.S. stock futures were higher this morning, with the Nasdaq 100 futures gaining around 150 points on Tuesday.

Powell Industries reported quarterly earnings of $1.42 per share which missed the analyst consensus estimate of $1.47 per share. The company reported quarterly sales of $312.000 million which missed the analyst consensus estimate of $315.168 million.

Powell Industries shares dipped 13.4% to $190.02 in pre-market trading.

Here are some other stocks moving lower in pre-market trading.

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August 03, 2026 16:05 ET  | Source: Powell Industries, Inc.

HOUSTON, Aug. 03, 2026 (GLOBE NEWSWIRE) -- Powell Industries, Inc. (NASDAQ: POWL) (“Powell” or the “Company”), a leading supplier of custom-engineered solutions for the management, control and distribution of electrical energy, today announced results for the third quarter Fiscal 2026 ended June 30, 2026. All comparisons are to the third quarter of Fiscal 2025, unless otherwise noted.

Key Highlights: 

Revenues of $312 million increased 9%;Gross profit of $95 million, or 30.6% of revenue, increased 8%;Net income of $52 million, or $1.42 per diluted share(1), increased 8%;New orders(2) totaled $934 million, an increase of 158%;Backlog(3) as of June 30, 2026 totaled $2.4 billion, an increase of 69%;Cash and short-term investments as of June 30, 2026 totaled $634 million;Powell was awarded three mega(4) orders during the fiscal third quarter, including the previously announced data center order with a value exceeding $400 million, as well as orders in the Petrochemical market and the LNG end market. Brett A. Cope, Powell’s Chairman and Chief Executive Officer, stated, “Commercial momentum across our key end markets continues to accelerate as Powell was awarded a record $934 million of new orders(2) in the quarter and reported a book-to-bill ratio of 3.0x. Activity levels across Oil and Gas, Electric Utility and Commercial and Industrial end markets have remained very robust, highlighted in this most recent quarter by our previously announced mega(4) data center order with a value in excess of $400 million, as well as two additional mega(4) orders; one within the LNG end market that approximated $60 million and the other a Petrochemical order for roughly $75 million. The Powell team also continues to focus on strong project execution as we deliver our record backlog(3), demonstrated by a strong gross margin performance of 30.6%.”

Third Quarter Fiscal 2026 Results
Revenues totaled $312 million, an increase of 9% compared to $286.3 million in the prior year, and a sequential increase of 5% compared to $296.6 million in the second quarter of Fiscal 2026. The growth compared to the prior year was driven by higher revenue levels from the Commercial & Other Industrial market, which grew 54%, as well as from the Electric Utility market, which grew 18%. This was partially offset by lower revenue within the Petrochemical market, which declined 49%.

Gross profit of $95.3 million, or 30.6% of revenue, increased 8% compared to $87.9 million, or 30.7% of revenue, in the prior year and increased sequentially by 8% compared to $87.9 million, or 29.6% of revenue in the second quarter of Fiscal 2026. The increases in gross profit were primarily driven by higher volume levels and a continued strong and stable pricing environment.

New orders(2) totaled $934 million compared to $362 million in the prior year and $490 million in the second quarter of Fiscal 2026. The increases were driven by improved bookings predominantly within the Commercial & Other Industrial, Oil & Gas, and Petrochemical markets. During the quarter, the Company was awarded three mega(4) orders; one for a data center with a value exceeding $400 million related to a behind-the-meter design of on-site generation assets, a Petrochemical order with a value of approximately $75 million in the fertilizer industry, and a LNG order with a value of approximately $60 million to support the liquefaction and export of LNG along the U.S. Gulf Coast.

 Backlog(3) totaled $2.4 billion as of June 30, 2026, an increase of 69% compared to $1.4 billion as of June 30, 2025, and a sequential increase of 35% compared to $1.8 billion as of March 31, 2026.

Net income of $52.2 million, or $1.42 per diluted share(1), increased 8% compared to $48.2 million, or $1.32 per diluted share(1) in the prior year. The increase was the result of higher revenues coupled with strong gross margins during the quarter. Net income in the quarter increased sequentially by 14% compared to $45.9 million, or $1.25 per diluted share(1) in the second quarter of Fiscal 2026.

 On April 2, 2026, Powell effected a three-for-one forward split of our common stock and proportionately increased the number of authorized common stock from 30,000,000 to 90,000,000. Each shareholder of record as of the close of trading on March 20, 2026 (the “Record Date”) received, after the close of trading on April 2, 2026, two additional shares for every one share held on the Record Date. Trading began on a split-adjusted basis at market open on April 6, 2026.

OUTLOOK
Commenting on the Company’s expectations for the remainder of Fiscal 2026, Cope added, “The outlook for each of our core end markets are highly favorable, supported by durable and diverse demand drivers, including the continuation of U.S. LNG in the global energy landscape, growth in utility generation coupled with ongoing grid strengthening initiatives, as well as increasing demand to support data centers and related AI capacity demand. We anticipate activity across each of our core markets will remain robust. Our near-to-midterm focus remains on ensuring that Powell is adequately positioned to address these thematic, secular tailwinds driving the growing demand for electrical distribution equipment and custom, engineered-to-order solutions.”

Michael Metcalf, Powell’s Chief Financial Officer, commented, “Our strong project execution levels, combined with our growing backlog(3) and its overall composition across our core end markets, make us confident that Powell will deliver another very strong year of financial results as we close out Fiscal 2026 and look ahead to Fiscal 2027. We expect that gross margins will maintain levels consistent to the trailing twelve months, while prudently adding capacity to support the acceleration in our backlog(3). The expansion of our Jacintoport fabrication yard is expected to be completed by the close of Fiscal 2026, and we anticipate production to ramp up as we leverage this additional capacity to support recent core industrial project awards. We are also evaluating greenfield capacity expansions incremental to our added leased capacity in Houston and Ohio, while prioritizing adequate returns and ensuring the optimal manufacturing footprint for Powell over the long term.”

CONFERENCE CALL
Powell Industries has scheduled a conference call for Tuesday, August 4, 2026 at 11:00 a.m. Eastern time. To participate in the conference call, dial 1-833-953-2431 (domestic) or 1-412-317-5760 (international) at least 10 minutes before the call begins and ask for the Powell Industries conference call. A telephonic replay of the conference call will be available through August 11, 2026 and may be accessed by calling 1-855-669-9658 (domestic) or 1-412-317-0088 (international) and using passcode 3105582#.

 Investors, analysts and the general public will also have the opportunity to listen to the conference call over the Internet by visiting powellind.com. To listen to the live call on the web, please visit the website at least 15 minutes before the call begins to register, download and install any necessary audio software. For those who cannot listen to the live webcast, an archive will be available shortly after the call and will remain available for approximately twelve months at powellind.com.

About Powell Industries
Powell Industries, Inc., headquartered in Houston, Texas, develops, designs, manufactures and services custom-engineered equipment and systems that distribute, control and monitor the flow of electrical energy and provide protection to motors, transformers and other electrically powered equipment. Powell Industries, Inc. primarily serves the oil and gas and petrochemical markets, the electric utility market, and commercial and other industrial markets. Beyond these major markets, we also provide products and services to the light rail traction power market and other markets that include universities and government entities. We are continuously developing new channels to electrical markets through original equipment manufacturers and distribution market channels. For more information, please visit powellind.com.

Any forward-looking statements in the preceding paragraphs of this release, including those related to our outlook, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties in that actual results may differ materially from those projected in the forward-looking statements. In the course of operations, we are subject to certain risk factors, competition and competitive pressures, sensitivity to general economic and industrial conditions, international political and economic risks, availability and price of raw materials, the impact of tariffs and execution of business strategy. In addition, our backlog(3) may not be indicative of future operating results as orders may be cancelled or modified by our customers and associated backlog may not be recognized as revenue on the timeline we expect or at all. For further information, please refer to the Company’s filings with the Securities and Exchange Commission (the “SEC”), copies of which are available from the Company without charge. 

Investors should note that we announce material financial information in SEC filings, press releases and public conference calls. Based on guidance from the SEC, we may use the Investors section of our website to communicate with investors. It is possible that the financial and other information posted there could be deemed to be material information. The information on our website is not part of, and is not incorporated to, this release.

POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
     Three Months Ended
June 30, Nine Months Ended
June 30, 2026 2025 2026 2025(In thousands, except per share data)        (Unaudited)        Revenues$311,740  $286,273  $859,539  $806,335 Cost of goods sold216,441  198,374  604,886  575,480 Gross profit95,299 87,899 254,653 230,855        Selling, general and administrative expenses26,702  25,116  77,703  68,359 Research and development expenses4,300  2,659  11,856  7,881 Amortization of intangible assets221  —  666  — Operating income64,076  60,124  164,428  154,615         Other expenses (income):       Interest income, net(5,047) (3,977) (13,515) (11,397)Income before income taxes69,123  64,101  177,943  166,012 Income tax provision16,963  15,867  38,506  36,685 Net income$52,160  $48,234  $139,437  $129,327         Earnings per share(1):       Basic$1.43  $1.33  $3.83  $3.57 Diluted$1.42  $1.32  $3.81  $3.54         Weighted average shares(1):       Basic36,432  36,212  36,396  36,176 Diluted36,604  36,525  36,566  36,497                 SELECTED FINANCIAL DATA:               Depreciation and Amortization$2,165  $1,742  $6,496  $5,215 Capital Expenditures$6,525  $5,117  $10,386  $11,380 Dividends Paid$3,279  $3,228  $9,792  $9,640  POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS     June 30, 2026 September 30, 2025(In thousands)  (Unaudited)  Assets:       Cash, cash equivalents and short-term investments$633,561  $475,527     All other current assets597,610  456,189     Property, plant and equipment, net118,634  111,049     Long-term assets56,893  66,219     Total assets$1,406,698  $1,108,984         Liabilities and equity:       Current liabilities$624,650  $446,387     Deferred and other long-term liabilities................................25,864 21,827    Stockholders’ equity.756,184  640,770     Total liabilities and stockholders’ equity$1,406,698  $1,108,984     SELECTED FINANCIAL DATA:       Working capital(5)$606,521  $485,329  (1) On April 2, 2026, the Company effected a three-for-one forward split of its common stock (the “Stock Split”). Share and per-share amounts disclosed for all periods have been retroactively adjusted to reflect the effect of the Stock Split.(2) New orders (bookings) represent the estimated value of contracts added to existing backlog (unsatisfied performance obligations).(3) The amounts recorded in backlog may not be a reliable indicator of our future operating results and may not be indicative of continuing revenue performance over future fiscal quarters or years primarily due to unexpected contract adjustments, cancellations or scope reductions.(4) A mega order is defined as an order with a contract value exceeding $50 million.(5) Working capital is equal to current assets (including cash and short-term investments) minus current liabilities.    Contacts:Michael W. Metcalf, CFO Powell Industries, Inc. 713-947-4422   Robert Winters Alpha IR Group [email protected] 312-445-2870

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Powell Industries (POWL - Free Report) .

Powell Industries currently has an average brokerage recommendation (ABR) of 1.67, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by six brokerage firms. An ABR of 1.67 approximates between Strong Buy and Buy.

Of the six recommendations that derive the current ABR, four are Strong Buy, representing 66.7% of all recommendations.

Brokerage Recommendation Trends for POWL

Check price target & stock forecast for Powell Industries here>>>

While the ABR calls for buying Powell Industries, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is POWL a Good Investment?Looking at the earnings estimate revisions for Powell Industries, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $5.47.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Powell Industries. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Powell Industries.

Powell Industries (POWL - Free Report) closed at $201.00 in the latest trading session, marking a -8.32% move from the prior day. This change lagged the S&P 500's daily gain of 0.21%. On the other hand, the Dow registered a gain of 1.03%, and the technology-centric Nasdaq decreased by 0.22%.

The energy equipment company's shares have seen a decrease of 22.01% over the last month, not keeping up with the Industrial Products sector's loss of 3.42% and the S&P 500's gain of 1.7%.

Investors will be eagerly watching for the performance of Powell Industries in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 3, 2026. It is anticipated that the company will report an EPS of $1.49, marking a 12.88% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $318.25 million, up 11.17% from the prior-year quarter.

POWL's full-year Zacks Consensus Estimates are calling for earnings of $5.47 per share and revenue of $1.2 billion. These results would represent year-over-year changes of +10.51% and +8.73%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Powell Industries. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Powell Industries holds a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Powell Industries has a Forward P/E ratio of 40.08 right now. This denotes a premium relative to the industry average Forward P/E of 23.59.

We can additionally observe that POWL currently boasts a PEG ratio of 2.86. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Manufacturing - Electronics industry had an average PEG ratio of 1.69 as trading concluded yesterday.

The Manufacturing - Electronics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 98, positioning it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Powell Industries shares dropped 22%, creating a compelling re-entry point given robust backlog and AI-driven demand. Q3 expectations include $1.49 adjusted EPS on $316.9 million revenue, with potential for a double beat as backlog and new orders surge. Backlog strength, especially from data center projects, is a key growth driver; Q3 backlog could exceed $2.2 billion with new orders possibly near triple-digit y/y growth.

July 20, 2026 16:15 ET  | Source: Powell Industries, Inc.

HOUSTON, July 20, 2026 (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 that it will release results for the fiscal third quarter ended June 30, 2026 on Monday, August 3, 2026 after the market closes. In conjunction with the release, Powell Industries has scheduled a conference call, which will be broadcast live within the Investor Relations section of the Company’s website, on Tuesday, August 4, 2026 at 11:00 a.m. eastern time.

What: Powell Industries Fiscal 2026 Q3 Earnings Conference CallWhen:Tuesday, August 4, 2026 – 11:00 a.m. eastern / 10:00 a.m. centralHow:Live via phone by dialing 1-833-953-2431 (domestic) or 1-412-317-5760 (international) and asking for the Powell Industries call at least 10 minutes prior to the start time, or live over the Internet by logging on to the web at the address belowWhere:powellind.com   A telephonic replay of the conference call will be available through August 11, 2026 and may be accessed by calling 1-855-669-9658 (domestic) or 1-412-317-0088 (international) and using passcode 3105582#. A webcast archive will also be available at powellind.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Robert Winters at Alpha IR Group at 312-445-2870 or email [email protected].

Powell Industries, Inc., headquartered in Houston, designs, manufactures and services custom-engineered equipment and systems for the distribution, control and monitoring of electrical energy.  Powell markets include large industrial customers such as utilities, oil and gas producers, refineries, petrochemical plants, pulp and paper producers, mining operations and commuter railways.   For more information, please visit powellind.com.

Contacts:Michael W. Metcalf, CFO Powell Industries, Inc. 713-947-4422   Robert Winters Alpha IR Group [email protected] 312-445-2870

Fifth Third Bancorp increased its holdings in Powell Industries, Inc. (NASDAQ: POWL) by 10,459.4% in the undefined quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 7,286 shares of the industrial products company's stock after buying an additional 7,217 shares during the period.

Powell Industries (POWL - Free Report) ended the recent trading session at $235.79, demonstrating a -4.54% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.51%. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, lost 1.47%.

The energy equipment company's stock has dropped by 15.99% in the past month, falling short of the Industrial Products sector's loss of 0.95% and the S&P 500's gain of 0.53%.

The investment community will be paying close attention to the earnings performance of Powell Industries in its upcoming release. The company is predicted to post an EPS of $1.49, indicating a 12.88% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $318.25 million, up 11.17% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.47 per share and a revenue of $1.2 billion, signifying shifts of +10.51% and +8.73%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Powell Industries. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Powell Industries presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Powell Industries is presently being traded at a Forward P/E ratio of 45.16. This signifies a premium in comparison to the average Forward P/E of 22.77 for its industry.

We can additionally observe that POWL currently boasts a PEG ratio of 3.23. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Manufacturing - Electronics industry stood at 1.68 at the close of the market yesterday.

The Manufacturing - Electronics industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 161, this industry ranks in the bottom 35% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Let's take a look at what these Wall Street heavyweights have to say about Powell Industries (POWL - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Powell Industries currently has an average brokerage recommendation (ABR) of 2.00, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by six brokerage firms. An ABR of 2.00 indicates Buy.

Of the six recommendations that derive the current ABR, three are Strong Buy, representing 50% of all recommendations.

Brokerage Recommendation Trends for POWL

Check price target & stock forecast for Powell Industries here>>>

The ABR suggests buying Powell Industries, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Should You Invest in POWL?In terms of earnings estimate revisions for Powell Industries, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $5.47.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Powell Industries. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Powell Industries.

Powell Industries (POWL - Free Report) closed the most recent trading day at $236.58, moving +2.04% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.81%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 1.3%.

The stock of energy equipment company has fallen by 11.62% in the past month, lagging the Industrial Products sector's gain of 0.86% and the S&P 500's gain of 1.13%.

Market participants will be closely following the financial results of Powell Industries in its upcoming release. The company's upcoming EPS is projected at $1.49, signifying a 12.88% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $318.25 million, showing a 11.17% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.47 per share and revenue of $1.2 billion. These totals would mark changes of +10.51% and +8.73%, respectively, from last year.

Any recent changes to analyst estimates for Powell Industries should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Powell Industries holds a Zacks Rank of #4 (Sell).

In terms of valuation, Powell Industries is currently trading at a Forward P/E ratio of 42.39. This represents a premium compared to its industry average Forward P/E of 22.4.

Also, we should mention that POWL has a PEG ratio of 3.03. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 1.67 based on yesterday's closing prices.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Key Takeaways Powell posted 14% utility revenue growth and 35% commercial & industrial growth in fiscal Q2 2026.POWL's backlog reached $1.8 billion, up 33% year over year and 12% sequentially.Strong bookings, liquidity and balance sheet support Powell's revenue and earnings outlook for fiscal 2026. Powell Industries, Inc. (POWL - Free Report) is benefiting from its strong foothold and healthy project activities across the electric utility and commercial & other industrial markets. In the second quarter of fiscal 2026 (ended March 2026), revenues from the electric utility sector increased 14% year over year, while those from the commercial & other industrial sector surged 35%.

Powell is strengthening its participation across the electrical power value chain and benefiting from momentum in the data center and utility markets. Notably, it witnessed strong bookings in these markets in the first six months of fiscal 2026. Also, significant project awards supported by high investments in LNG, related gas processing and petrochemical processes have set Powell apart as a leading supplier of critical electrical infrastructure.

This has led to a strong backlog level, which was $1.8 billion (up 33% year over year and 12% sequentially) while exiting second-quarter fiscal 2026 (ended March 2026). Exiting the quarter, Powell’s new orders totaled $490 million, much higher than $439 million at the end of the previous quarter.

Given the company’s robust backlog, solid liquidity and a strong balance sheet, it looks forward to witnessing solid revenues and earnings in fiscal 2026 (ending September 2026).

Segment Snapshot of POWL’s PeersFranklin Electric Co. (FELE - Free Report) is witnessing solid momentum in the Energy Systems segment. In first-quarter 2026, net sales from Franklin Electric’s Energy Systems segment increased 7% year over year to $71.8 million. The segmental results were driven by an increase in volumes and price realization.

EnerSys (ENS - Free Report) is benefiting from the expansion of U.S. communications networks, fueled by AI-driven data demand. Increased demand for products from industrial customers is driving the Energy Systems segment’s results. Revenues from EnerSys’ Energy Systems segment increased 7% to $425.7 million in fourth-quarter fiscal 2026 (ended March 31, 2026).

POWL’s Price Performance, Valuation and EstimatesShares of Powell have surged 45% in the past three months compared with the industry’s growth of 15.9%.

Image Source: Zacks Investment Research

From a valuation standpoint, POWL is trading at a forward price-to-earnings ratio of 40.73X, above the industry’s average of 24.99X. Powell carries a Value Score of F.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for POWL’s fiscal 2026 (ending September 2026) earnings has decreased 1.8% over the past 60 days. However, the consensus estimates for fiscal 2027 (ending September 2027) have increased 9.8%.

Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

POWL's utility, industrial growth and strong backlog support momentum, while higher costs and tariffs remain key concerns.

On June 26, 2026, Powell Industries Inc (POWL) shares fell 9.6%, bringing the current price to $278.79. The stock has experienced significant volatility within

Powell Industries (POWL - Free Report) closed the most recent trading day at $291.50, moving -5.3% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 1.44%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 2.22%.

Shares of the energy equipment company witnessed a gain of 10.24% over the previous month, beating the performance of the Industrial Products sector with its gain of 9.25%, and the S&P 500's gain of 0.08%.

Investors will be eagerly watching for the performance of Powell Industries in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.49, showcasing a 12.88% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $318.25 million, indicating a 11.17% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.47 per share and a revenue of $1.2 billion, indicating changes of +10.51% and +8.73%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Powell Industries. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Powell Industries is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Powell Industries is holding a Forward P/E ratio of 56.27. This denotes a premium relative to the industry average Forward P/E of 23.32.

We can additionally observe that POWL currently boasts a PEG ratio of 4.02. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Manufacturing - Electronics industry had an average PEG ratio of 1.85.

The Manufacturing - Electronics industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 39% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Powell Industries (POWL - Free Report) .

Powell Industries currently has an average brokerage recommendation (ABR) of 2.00, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by six brokerage firms. An ABR of 2.00 indicates Buy.

Of the six recommendations that derive the current ABR, three are Strong Buy, representing 50% of all recommendations.

Brokerage Recommendation Trends for POWL

Check price target & stock forecast for Powell Industries here>>>

The ABR suggests buying Powell Industries, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is POWL a Good Investment?Looking at the earnings estimate revisions for Powell Industries, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $5.47.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Powell Industries. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Powell Industries.

© yangphoto / Getty Images

Every dollar of AI capex eventually has to plug into a wall. By the time hyperscalers have signed off on GPU orders, the binding constraint stops being silicon and starts being substations, transformers, and turbines. That is the wager behind Tema Electrification ETF (NASDAQ:VOLT), a thematic fund that ignores AI software entirely and goes straight at the equipment and generation stack feeding the grid.

The math has gotten loud. VOLT is up 40.4% year-to-date through May 4, 2026, against 5.3% for the S&P 500 over the same stretch. One year out, the spread is about 80% for VOLT against 26.7% for SPY. The fund launched in December 2024, which makes long-term comparisons useless, but the post-launch period overlaps exactly with the window when AI power demand became a serious investment narrative.

What VOLT Is Built To Do VOLT’s job is picks-and-shovels exposure to the electrification supercycle. Tema designed it to invest in companies tied to rising electricity demand and the buildout around grid equipment, utilities, nuclear, and other power infrastructure. The top holdings skew toward utilities like NextEra Energy (NYSE:NEE | NEE Price Prediction), electrical equipment makers like Bel Fuse (NASDAQ:BELFB), and Powell Industries (NASDAQ:POWL), and infrastructure services such as Quanta Services (NYSE:PWR). The expense ratio is 75 basis points, on the higher end for thematics but typical for a specialized basket.

The return engine is cyclical. You get paid when long-cycle backlog converts into revenue at expanding margins, when independent power producers sign multi-decade contracts that lock in cash flows, and when nuclear production tax credits and capacity auction prices reprice upward. These companies sell capital equipment with multi-year lead times, so owning them is really a bet on what utilities and hyperscalers commit to through 2030, with quarterly AI headlines as noise around the contract economics.

Does the Strategy Actually Deliver? Take the four names this article centers on. GE Vernova (NYSE:GEV) is the cleanest example. In Q1 2026 the company booked $18.30 billion in orders, up 71% organically, with Electrification alone taking $2.4 billion in data center equipment orders, more than all of 2025. Backlog hit $150 billion at the end of FY 2025. CEO Scott Strazik called it an “electricity investment supercycle.” The stock is up about 65% year to date and about 172% over one year.

Eaton (NYSE:ETN) tells the same story from the electrical side. Q4 2025 produced record segment margins of 24.9% on Electrical Americas sales of $3.51 billion, up 21% YoY, with the Electrical sector backlog up 29% YoY. Constellation Energy (NASDAQ:CEG) closed its Calpine acquisition on January 7, 2026, creating the largest US private-sector power producer at 55 gigawatts, anchored by 20-year PPAs with Microsoft and Meta. Vistra (NYSE:VST) signed 20-year PPAs with Meta for more than 2,600 MW across its PJM nuclear fleet.

What You Are Actually Buying Three tradeoffs sit inside this fund.

Concentration in a hot theme. A thematic basket only works if the theme keeps working. The top holdings span utilities, equipment makers, and pipelines, but they all rhyme on the same thesis. If hyperscaler capex normalizes, the correlation cuts the other way. Valuation and earnings noise. Vistra’s FY 2025 GAAP net income fell to $944 million on an $808 million unrealized hedging loss. These names trade on backlog and PPAs, while the income statements stay bumpy. Higher cost of capital. The 10-year Treasury yield is around 4.4%, near the upper-middle of its 12-month range. Long-cycle equipment and nuclear restarts are duration-sensitive, and Eaton, GE Vernova, and Constellation all have multi-billion-dollar acquisitions to integrate (Boyd Thermal, Prolec GE, Calpine). VOLT fits as a 5-10% thematic sleeve for investors who want direct exposure to the AI power buildout without picking a single utility or equipment name, but the price you pay is concentration in a basket that has already run hard and will reprice fast if data-center demand cools.

Powell Industries, Inc. (POWL) Q2 2026 Earnings Call Transcript

Powell Industries (POWL - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Shares of this energy equipment company have returned +32.6% over the past month versus the Zacks S&P 500 composite's +11% change. The Zacks Manufacturing - Electronics industry, to which Powell Industries belongs, has gained 8.4% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Powell Industries is expected to post earnings of $1.49 per share, indicating a change of +12.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +3.7% over the last 30 days.

The consensus earnings estimate of $5.51 for the current fiscal year indicates a year-over-year change of +11.3%. This estimate has changed +0.4% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $6.51 indicates a change of +18.1% from what Powell Industries is expected to report a year ago. Over the past month, the estimate has changed +8.8%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Powell Industries is rated Zacks Rank #2 (Buy).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Powell Industries, the consensus sales estimate of $316.6 million for the current quarter points to a year-over-year change of +10.6%. The $1.2 billion and $1.37 billion estimates for the current and next fiscal years indicate changes of +8.7% and +14.1%, respectively.

Last Reported Results and Surprise HistoryPowell Industries reported revenues of $296.61 million in the last reported quarter, representing a year-over-year change of +6.5%. EPS of $1.25 for the same period compares with $1.27 a year ago.

Compared to the Zacks Consensus Estimate of $298.22 million, the reported revenues represent a surprise of -0.54%. The EPS surprise was -6.72%.

Over the last four quarters, Powell Industries surpassed consensus EPS estimates three times. The company topped consensus revenue estimates just once over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Powell Industries is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Powell Industries. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

On May 11, 2026, Powell Industries Inc POWL shares rose 4.0% to a current price of $322.05. Over the past year, the stock has experienced remarkable volatility, with a 52-week range between $54.75 and $325.94. The recent upward trend has seen the stock appreciate significantly, with year-to-date gains of 203.2% and a staggering 454.9% increase over the past year.

GF Value™ verdict: Current price of $322.05 is 328.3% overvalued compared to the GF Value™ of $75.19.GF Score™ of 81/100 indicates a strong overall performance.Most notable signal: Insiders sold $44.4M of stock in the last three months, with no reported buying activity. Is POWL Overvalued or Undervalued? According to GF Value™, Powell Industries Inc POWL is currently trading at a significant premium, with a price of $322.05 juxtaposed against an estimated fair value of $75.19. This represents an overvaluation of 328.3%, which raises concern regarding the stock's sustainability at current levels. The substantial gap between the current price and the GF Value™ suggests that the stock may lack a sufficient margin of safety for prospective buyers. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

The GF Valuation label categorizes POWL as "Significantly Overvalued," emphasizing the risks associated with purchasing shares at this inflated price. Investors should be cautious, as the high valuation may not be supported by underlying business fundamentals or future growth prospects, making it susceptible to price corrections.

How Does POWL's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 63.0x 22.7x (5-Year Median) Forward P/E 58.6x N/A The current P/E ratio of 63.0x is significantly above its 5-year median of 22.7x, indicating that the stock is trading at a much higher valuation than its historical norms. This analysis aligns with the GF Value™ verdict, further confirming that POWL is currently overvalued based on its historical performance metrics.

What Does POWL's GF Score™ Tell Us? Metric Rating GF Score™ 81/100 Financial Strength 8/10 Profitability 7/10 Growth 10/10 Valuation 1/10 Momentum 6/10 The GF Score™ of 81/100 signifies a strong overall performance for Powell Industries, with particularly high ratings in Growth (10/10) and Financial Strength (8/10). However, the Valuation rank of 1/10 indicates significant concerns regarding its current market price relative to its intrinsic value. This disparity highlights that, while the company may exhibit strong growth potential and financial stability, its current valuation presents a risk to investors.

What Are Insiders Doing with POWL Stock? Recent insider activity for Powell Industries shows that insiders have sold $44.4 million worth of shares in the last three months, with no buying activity reported. This trend raises questions about the insiders' confidence in the company's future performance and may suggest that they believe the stock is overvalued at its current price. Such selling could also reflect broader concerns about the sustainability of the recent price increases.

What This Means for Investors Based on the GF Value™ assessment, Powell Industries Inc POWL is currently deemed overvalued, with a price of $322.05 significantly exceeding its estimated fair value of $75.19. This overvaluation, coupled with concerning insider selling, suggests that investors should exercise caution when considering an investment in this stock.

For the complete analysis, visit the Powell Industries Inc POWL stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is POWL's GF Score™?

POWL's GF Score™ is 81/100, indicating a strong overall performance, particularly in terms of growth and financial strength.

Is POWL overvalued or undervalued?

POWL is currently overvalued, with a GF Value™ of $75.19 compared to a market price of $322.05, indicating a significant premium.

What is POWL's P/E ratio?

POWL's P/E ratio is 63.0x (TTM), which is substantially higher than its 5-year median of 22.7x, confirming its overvaluation based on historical metrics.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].