Dec. 10 at 3:25 PM
$POWL wrapped FY25 with another strong print.
Revenue was up high single digits, but the real story is margins. Gross margin is now knocking on 30% and Q4 hit 31% with EPS over
$4. The days of Powell as a low-margin oil & gas supplier are gone.
Backlog sits around
$1.4B and is shifting toward electric utilities, data centers and light rail. Oil & gas / petrochem had a slower year (tough comps), but LNG and grid projects still look healthy in the pipeline.
Balance sheet is a tank: lots of cash, no debt, manageable capex. They also added some automation/SCADA exposure with the Remsdaq deal, which should help with higher value substation and data center work.
2026 probably won’t be a hyper-growth year, more like steady low–mid single-digit revenue growth with high-20s margins. For me POWL is now a quality industrial compounder tied to grid + data center capex, with upside if the next LNG wave hits.
https://www.beatingthetide.com/p/powell-industries-q4-and-full-year-powl
