Powell Industries Inc
🔔 Watch stock
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
The business works in principle, but one material question is open. As long as it stays open, our findings do not carry a quality verdict.
Why this colour
Whoever buys today is betting that the $1.8 billion order book turns into years of rising profits before the oil cycle, fixed-price contracts or the company's own capacity ceiling catch up with a valuation of 60 times earnings — and that the data center wave carries even though analyst estimates for fiscal 2026/2027 stagnate around $5 per share. Whoever waits checks three lines in every quarterly report (10-Q): the backlog (does it grow beyond $1.8 billion?), the cost ratios (does the build-out keep eating the profit, as in Q2 2026?) and the insider filings (Form 4: does anyone finally buy?). A textbook balance sheet does not run away — a textbook valuation has yet to arrive. The decision is yours.
What the thesis turns on
Assessment: Opportunities & Risks
Powell Industries is the rare case in which a Buffett filter and an AI boom point at the same stock: a debt-free balance sheet with half a billion in cash, a $1.8 billion order book that data center awards of more than $700 million filled within months, and a profit that has grown thirteenfold since fiscal 2022. Against that stand a quarterly profit that most recently shrank despite record revenue, an oil business as half the foundation, fixed-price and capacity risks, insiders who only sell — and a valuation near 60 times earnings on estimates that promise no profit surge. Whoever invests here is not buying yesterday's Buffett numbers but three more record years in advance. Not investment advice.
Balance sheet & financing
No drawn bank borrowings, $544.9 million in cash and short-term investments (March 31, 2026, after $475.5 million as of September 30, 2025), an equity ratio near 60 percent, an Altman Z-Score near 11 — the Buffett criteria (rank 5 of the U.S. selection, as of July 18, 2026) rest on this foundation (10-K FY2025; 10-Q as of 03/31/2026).
Order book & AI data centers
Backlog up from $1.3 billion (09/30/2024) via $1.4 billion (09/30/2025) to $1.8 billion (03/31/2026); per the 10-Q, more than $300 million in data center awards in the first half of fiscal 2026 plus a mega order in excess of $400 million after quarter-end; the mix is balanced across utilities, oil and gas and industry.
Earnings trajectory
Historically spectacular (net income up from $13.7 million to $180.7 million in three fiscal years, gross margin from 16 to 29 percent), but stalling of late: Q2 of fiscal 2026 delivered record revenue of $296.6 million yet slightly lower net income ($45.9 million after $46.3 million) on SG&A up 19 percent and R&D up 56 percent; the Piotroski F-Score is down to 4 of 9 (10-Q as of 03/31/2026; fundamental data 07/18/2026).
Cyclicality & concentration
Oil, gas and petrochemicals accounted for about 50 percent of fiscal 2025 revenue; fixed-price contracts with material costs near 45 percent of revenue (tariff risk), capacity and skilled-labor bottlenecks from the backlog growth — and the 10-K itself warns the backlog "may not be a reliable indicator" of future earnings (Item 1A).
Valuation
P/E near 60, price-sales near 10, price-book near 16, dividend yield near 0.1 percent (data as of July 18, 2026) against analyst estimates around $5 in earnings per share for fiscal 2026/2027 — the project manufacturer is priced like a software growth stock, even after trading roughly 50 percent below its 52-week high.
Insiders & governance
Zero reported insider buys against 18 sales (fundamental data, as of July 18, 2026); CEO Cope sold 4,440 shares at $241.55 on July 9, 2026 (Form 4), eight days after being granted a special RSU package of 36,000 shares as a stay incentive beyond retirement age 60 (8-K dated 07/06/2026) — key-person risk included.
Worth Noting
POWL made the research list as rank 5 of our in-house Buffett criteria scanner (U.S. selection, as of July 18, 2026) — part of our series on the top 20 of that selection.
All share and per-share figures are adjusted for the 3-for-1 split effective April 2, 2026, as retroactively presented in the quarterly report 10-Q as of March 31, 2026 (36,431,649 shares as of 05/04/2026; pre-split 12,092,083 as of 11/17/2025).
Scanner metrics (P/E, P/S, P/B, return on equity, Piotroski, Altman-Z) use trailing twelve-month figures at the July 18, 2026 data cut-off; the ~$11.3 billion market value is plausibility-checked against 36.4 million shares outstanding and a price near $309.
The stock was extremely volatile in the summer of 2026 (split-adjusted 52-week range ~$180–$610); the CEO's July 9 sale price ($241.55 per Form 4) and the July 18 feed price (~$309) differ accordingly — both figures are dated. Analyses are evergreen; daily prices are not a buy argument.
Stock Watch
This analysis is as of August 26, 2026. Stock Watch will tell you what's changed at POWL since then.
Later $1 a month per stock — signing up is free, and you'll be the first to know when it launches.
Price history
Chart
Interactive price chart (TradingView).
52-week range: 170.50 $ to 592.90 $ · Last price: 176.80 $ (As of: September 17, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 09/18/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
Quality & Screener
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Electrical Equipment & Parts
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| Powell Industries Inc POWL | 6.4 | 35.1 | 23.8 | 30.1 | 19.4 | 9.1 | 82.4 |
| Vertiv Holdings Co VRT | 104.3 | 55.5 | 38.8 | 38.0 | 16.4 | 27.7 | 76.7 |
| Bloom Energy Corp BE | 79.9 | – | 232.5 | 31.7 | 9.6 | 37.3 | 252.4 |
| nVent Electric PLC NVT | 24.5 | 48.7 | 23.6 | 36.4 | 16.0 | 29.5 | 54.5 |
| Hubbell Inc HUBB | 23.7 | 26.3 | 19.4 | 35.3 | 17.8 | 3.8 | 2.1 |
| Forgent Power Solutions, Inc. FPS | 11.6 | 1,906.0 | 68.3 | 34.3 | 10.4 | 315.4 | – |
| Advanced Energy Industries Inc AEIS | 10.8 | 50.1 | 31.6 | 40.0 | 14.3 | 21.4 | 61.5 |
| Acuity Brands Inc AYI | 9.1 | 20.1 | 11.7 | 48.7 | 16.1 | 13.1 | -11.6 |
| Enersys ENS | 6.7 | 22.6 | 11.4 | 29.8 | 13.4 | 3.7 | 63.7 |
| Median of companies shown | 11.6 | 41.9 | 23.8 | 35.3 | 16.0 | 21.4 | 62.6 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Revenue, operating income and net income per fiscal year $M
Revenue Operating income Net income
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2016 | 565 | 16 | 16 | 1.36 | 75 | 335 | 463 |
| 2017 | 396 | -19 | -9 | -0.83 | 37 | 321 | 415 |
| 2018 | 449 | -9 | -7 | -0.62 | -29 | 302 | 430 |
| 2019 | 517 | 11 | 10 | 0.85 | 69 | 299 | 467 |
| 2020 | 519 | 21 | 17 | 1.42 | 72 | 307 | 472 |
| 2021 | 471 | 1 | 1 | 0.02 | -30 | 301 | 436 |
| 2022 | 533 | 7 | 14 | 0.38 | -4 | 297 | 493 |
| 2023 | 699 | 63 | 55 | 1.50 | 183 | 345 | 752 |
| 2024 | 1,012 | 179 | 150 | 4.10 | 109 | 483 | 928 |
| 2025 | 1,104 | 218 | 181 | 4.95 | 168 | 641 | 1,109 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
None of the selected stocks reports this metric. Pick another metric or switch between annual and quarterly.
· Total · per year
These companies report in different currencies — switch on “Indexed” or pick a margin for a fair comparison.
The figures could not be loaded right now.
Source: fundamental data
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 0.95 | 44.60 | 241 | 24.40 | 14.40 | 37 | 35 |
| 2025: Q1 | 1.27 | 38.50 | 279 | 9.20 | 16.60 | 22 | 18 |
| 2025: Q2 | 1.32 | 4.60 | 286 | -0.70 | 16.80 | 47 | 42 |
| 2025: Q3 | 1.41 | 11.80 | 298 | 8.30 | 17.30 | 61 | 59 |
| 2025: Q4 | 1.13 | 19.00 | 251 | 4.00 | 16.50 | 44 | 42 |
| 2026: Q1 | 1.26 | -1.00 | 297 | 6.50 | 15.50 | 51 | 49 |
| 2026: Q2 | 1.42 | 7.60 | 312 | 8.90 | 16.70 | 100 | 94 |
What Do These Terms Mean?
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Screening
Appears in These Scanners
This stock currently matches 15 of our scanner strategies — each hit links to the scanner.
Backtested Scanners
Quality & Balance Sheet
Breakout & Setup
Momentum & Trend
- 21-EMA Trend
- Gary Antonacci: Dual Momentum (Stock Adaptation)
- High ADR (≥5%)
- Mark Minervini: Trend Criteria — 1 Month
- Mike Webster: Swing Trading List
- Oliver Kell: Doublers
- RS Leader (≥90)
- Richard Moglen: Top Performers 3/6 Month
- Stan Weinstein: Stage 2
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Outlook
Analysts & Price Target
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Distribution of Recommendations
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 09/30/2026 | 5.37 | 5.27 – 5.46 | 1,191 | 8.6% | 5 |
| 09/30/2027 | 6.82 | 6.13 – 7.34 | 1,483 | 29.9% | 5 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Valuation
What is priced in?
Instead of guessing what the stock is worth, we turn the question around: what free cash flow growth has to happen for today’s market value to add up? The assumptions behind it can be moved.
Today’s market value implies roughly 11.5% growth in free cash flow per year over ten years (assumptions: discount rate 10.0%, terminal growth 2.5%).
| Free cash flow (last twelve months) | $244.0M |
|---|---|
| Market cap | $6.44B |
| Free cash flow in year ten | $723.6M |
| Terminal value as a share of market value | 59.2% |
For comparison: over the past five years free cash flow grew by 18.1% per year.
It shows which assumption is built into today’s price, not whether that assumption will hold. Every assumption can be changed with the sliders; the figures move with them.
A simplified model calculation — not a forecast and not a recommendation.
AI classification
AI Rating
Eingestuft am 18.07.2026 gegen die Geschäftsberichte (10-K) für die Geschäftsjahre 2025 (per 30.09.2025, eingereicht 19.11.2025) und 2024 (20.11.2024) sowie die vier jüngsten Quartalsberichte (10-Q, zuletzt per 31.03.2026, eingereicht 05.05.2026). Powell verkauft keine KI — der Umsatz stammt aus maßgefertigten Schaltanlagen, Schutztechnik und Steuerungsräumen für Öl & Gas, Petrochemie, Stromversorger, Industrie und Bahnstrom. Nach der Vorrang-Regel greift „Bedroht“: Beide 10-K führen in Item 1A einen eigenen, konkret aufs Produktgeschäft bezogenen KI-Risikofaktor — Wettbewerber könnten KI in ihre Produkte integrieren und Powells bestehende Produkte und Fertigungsmethoden obsolet machen; das ist keine generische „AI may pose risks“-Floskel, sondern benennt den Obsoleszenz-Mechanismus im eigenen Markt (Automatisierungs-Nachfrage) und wird von einem zweiten Risikofaktor ergänzt, wonach die eigenen KI-Initiativen scheitern könnten. Zugleich ist KI auf der Nachfrageseite Powells größter Wachstumstreiber (kein Einstufungs-Kriterium, aber Kontext): Laut 10-Q zum 31.03.2026 gewann Powell im ersten Halbjahr des Geschäftsjahres 2026 Data-Center-Aufträge über zusammen mehr als 300 Mio. US-Dollar plus danach eine Mega-Order über mehr als 400 Mio. — die Expansion der Rechenzentren „that support cloud computing and increasing investments in artificial intelligence“ füllt das Auftragsbuch (1,8 Mrd. US-Dollar zum 31.03.2026). Einen operativen KI-Einsatz im eigenen Betrieb belegen die Filings nicht konkret (die „AI initiatives“ bleiben unspezifiziert), eine KI-Umsatzquelle existiert nicht — damit bleibt es nach dem Kriterienkatalog bei „Bedroht“ vor „Nutzt“/„Neutral“.
View the full file — quotes, sources, reviewed filings
„Technological innovations may make existing products and production methods obsolete. The development or use of Artificial Intelligence (AI) by our competitors or other third parties may impair our ability to compete effectively and adversely affect our business, financial condition and results of operations."
Technologische Innovationen können bestehende Produkte und Produktionsmethoden obsolet machen. Die Entwicklung oder Nutzung Künstlicher Intelligenz (KI) durch unsere Wettbewerber oder andere Dritte kann unsere Fähigkeit beeinträchtigen, wirksam zu konkurrieren, und unser Geschäft, unsere Finanzlage und unsere Ergebnisse negativ beeinflussen.
10-K · 2025-11-19 · View SEC filing
„Our competitors or other third parties may incorporate AI, including machine learning, data science and similar technologies, into their product development, product enhancement or product offerings more quickly or more successfully than us, which could impair our ability to compete effectively and adversely affect our business, financial condition and results of operations."
Unsere Wettbewerber oder andere Dritte könnten KI — einschließlich maschinellen Lernens, Data Science und ähnlicher Technologien — schneller oder erfolgreicher in ihre Produktentwicklung, Produktverbesserung oder ihr Produktangebot integrieren als wir, was unsere Fähigkeit beeinträchtigen könnte, wirksam zu konkurrieren, und unser Geschäft, unsere Finanzlage und unsere Ergebnisse negativ beeinflussen könnte.
10-K · 2025-11-19 · View SEC filing
„We may not be successful in our AI initiatives, which could adversely affect our business, reputation, and results of operations."
Unsere KI-Initiativen sind möglicherweise nicht erfolgreich, was unser Geschäft, unsere Reputation und unsere Ergebnisse negativ beeinflussen könnte.
10-K · 2025-11-19 · View SEC filing
„As a result of a mix of factors, we are experiencing strong growth in commercial facilities that provide for the production of various consumer goods and the expansion of data centers that support cloud computing and increasing investments in artificial intelligence."
Aufgrund mehrerer Faktoren erleben wir starkes Wachstum bei Gewerbebauten für die Produktion verschiedener Konsumgüter und bei der Expansion von Rechenzentren, die Cloud-Computing und die zunehmenden Investitionen in Künstliche Intelligenz tragen.
10-Q · 2026-05-05 · View SEC filing
Filings Reviewed: 10-Q 2026-05-05 · 10-Q 2026-02-04 · 10-Q 2025-08-06 · 10-Q 2025-05-07 · 10-K 2025-11-19 · 10-K 2024-11-20
Rated on July 18, 2026 · How the Rating Is Built
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years 27.5%
- More than 10% revenue growth is expected for the coming year 19.2%
- Share count grows by less than 3% a year 0.6%
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") 23.1%
- Gross margin at 40% or higher and without meaningful erosion 29.4%
- Goodwill from acquisitions does not grow faster than revenue 0.6%
- Net debt below twice EBITDA 474 m net cash
- Operating cash flow covers the profits of the last three years 74 m
- Return on capital at 15% or higher, or up versus two years ago 32.9%
- Insiders hold at least 10% or are net buyers 20.8%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
8/10The AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% 7.7%
- Exp. sales growth 3Y > 5% 15.9%
- EBIT growth 10Y > 5% 33.9%
- Exp. EBIT growth 3Y > 5% 17.3%
- Net debt < 4x EBIT -2.2x
- EBIT positive, 10Y straight 8
- Max. EBIT decline < 50% 100.0%
- Return on equity > 15% 28.8%
- ROCE > 15% 32.9%
- Expected return > 10% 20.2%
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
Insiders
Insider Transactions
Reportable transactions by officers and major shareholders from SEC Form 4 filings. "Other" includes things like stock grants and option exercises without a buy/sell character.
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| Aug 14, 2026 | Williams Richard E | Director | Sell | 2,250 | 203.05 | 456,863 |
| Aug 13, 2026 | Cope Brett Alan | President & CEO | Sell | 4,500 | 207.01 | 931,545 |
The company
About the Company
Powell Industries, Inc. entwirft, entwickelt, fertigt, verkauft und wartet mit ihren Tochtergesellschaften kundenspezifische technische Anlagen und Systeme.
- Employees
- 3,143
- Headquarters
- Houston, TX
- Address
- 8550 Mosley Road, 77075-1180 Houston, United States
- Phone
- 713 944 6900
- Website
- powellind.com
- IPO Date
- 03/26/1990
- ISIN
- US7391281067
- Stock Split
- 959692:319897 on 04/06/2026
Management
| Name | Title | Birth Year |
|---|---|---|
| Brett A. Cope | Chairman of the Board, President & CEO | 1968 |
| Michael W. Metcalf | Executive VP, CFO, Secretary & Principal Accounting Officer | 1968 |
| Davide Tuninetti | VP & Chief Human Resource Officer | – |
| Terry B. McKertcher | Vice President of Operations | – |
| Gary King | Director of Corporate Communications | – |
| David L. Eckenrode | Assistant Secretary & Treasurer | – |
| William Marshall Mauney Jr. | Vice President of R&D | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Filings
Company Filings (8-K)
An 8-K is the filing a US company must use to disclose material events immediately — takeovers, changes at the top, major contracts or payment troubles, for instance. The links open the original document at the US Securities and Exchange Commission (SEC).
- 08/03/2026 POWELL INDUSTRIES INC (POWL): Results of Operations and Financial Condition; Other Events; Financial Statements and Exhibits SEC ↗
- 07/06/2026 POWELL INDUSTRIES INC (POWL): Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers SEC ↗
Data as of: September 17, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.