POWL · Powell Industries, Inc.

Powell Industries reported solid Q2 FY2026 results with revenue of $296.6 million, up 6% year-over-year, driven by strong growth in the Commercial & Other Industrial market (+35%), Electric Utility (+14%), and Oil & Gas (+11%), partially offset by a 37% decline in Petrochemical. Gross profit rose 5% to $87.9 million, with gross margin of 29.6% slightly below the prior year's 29.9% but improving sequentially from 28.4% in Q1. Net income of $45.9 million decreased 1% from $46.3 million a year ago, as higher SG&A expenses (driven by compensation) and increased R&D spending offset revenue growth. Diluted EPS was $1.25 versus $1.27 in the prior year. New orders surged 97% to $490 million, including two mega orders (>$75 million each) in the quarter, resulting in a book-to-bill ratio of 1.7x. Backlog grew 33% year-over-year to $1.8 billion. Subsequent to quarter end, the company was awarded a mega data center order exceeding $400 million, the largest in its history. Management expressed optimism about demand across core markets, particularly data center buildouts and AI capacity growth, and expects margins to remain consistent with prior year levels. The company ended the quarter with $544.9 million in cash and short-term investments.