| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 24 | 34.8x | 17.8x | Bottom tier | |
Growth | 85 | 7.0% | 7.1% | Top tier | |
Quality | 83 | 25.5% | 4.5% | Top tier | |
Safety | 86 | — | 2.6x | Top tier | |
Capital Return | 23 | 0.59% | 2.12% | Bottom tier | |
Momentum | 50 | 136.6% | 2.9% | Around median | |
Sentiment | 34 | 4 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Powell Industries designs and manufactures custom electrical distribution and control equipment for industrial projects, electric utilities, and commercial facilities. Its offerings include switchgear and control equipment, power control rooms, switches, automation solutions, and related services. Revenue generation depends on executing large, multi-year projects for the oil and gas, petrochemical, liquefied natural gas, electric utility, and data center markets; at the end of Q3 fiscal 2026, core industrial markets represented 30% of backlog, electric utilities 24%, and other commercial and industrial markets 40%.
In Q3 fiscal 2026, revenue increased 9% year over year to approximately $312 million, gross profit reached $95.3 million with a gross margin of 30.6%, while net income reached $52.2 million and diluted earnings per share reached $1.42. Net income increased from $48.2 million and earnings per share from $1.32 in the comparable quarter of fiscal 2025, but revenue and earnings per share fell short of market expectations of $1.47 per share, causing the stock to decline 13.4% in premarket trading on August 4, 2026.
Revenue growth was driven by a 54% increase in the other commercial and industrial markets segment and an 18% year-over-year increase in electric utilities, while oil and gas revenue was approximately flat and petrochemicals declined 49%. Domestic revenue increased 12%, or $26 million, while international revenue declined slightly to $61 million due to weakness in the Canadian market. On a trailing twelve-month basis in 2026 data, the company recorded revenue of $1.2 billion, gross profit of $348.2 million, and net income of $190.9 million.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus on POWL stock is Neutral, with an average price target of $284 and a wide range between $235 and $333; the average is below the 52-week range high of $328, while the highest target slightly exceeds that high. The breadth of the 52-week range between $83.85 and $328, alongside the stock's 13.4% decline after Q3 fiscal 2026 missed earnings and sales expectations, indicates that the market is balancing a revaluation driven by the record backlog against the risks of slow conversion and volatile quarterly results. The available data does not provide a valid comparable earnings multiple, so the range of analyst targets and the earnings and cash flow record remain the available valuation reference.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
The most prominent driver is record demand for electrical infrastructure for data centers, electric utilities, and energy projects. Powell Industries recorded new orders of $934 million in Q3 fiscal 2026, including more than $400 million for the first phase of a data center project. These orders raised backlog to approximately $2.4 billion, of which slightly less than $1.3 billion is expected to convert during the twelve months following the end of that quarter.
Earnings per share in Q3 fiscal 2026 came in at $1.42 versus expectations of $1.47, while revenue of approximately $312 million also fell short of market estimates. This caused the stock to decline 13.4% in premarket trading on August 4, 2026. This occurred despite orders reaching $934 million and backlog reaching $2.4 billion, highlighting the tension between the short-term results gap and strong long-term demand.
The project represents the first phase of a multi-phase on-site power generation design and is being executed across at least five facilities in North America. The company expects the current phase to take approximately two to two and a half years to convert into revenue, a pace similar to its other large projects. Management explained that future phases could replicate the first phase's design if the current phase is executed successfully, but it did not mention any confirmed additional award in the near term.
Cash and cash equivalents and short-term investments reached $634 million as of June 30, 2026, compared with $476 million as of September 30, 2025, and the company carries no debt. It also generated $100 million in operating cash flow in Q3 fiscal 2026, compared with capital expenditures of $6.5 million during the quarter. This liquidity supports the 335 thousand-square-foot Jacintoport expansion and the leased facility planned to become available for manufacturing in late Q2 or early Q3 fiscal 2027.
Gross margin reached 30.6% in Q3 fiscal 2026, supported by project mix, operating leverage, pricing stability, and execution. Project closeout settlements contributed approximately 100 basis points to margin during the first nine months of fiscal 2026, compared with approximately 130 basis points a year earlier. In contrast, the company is monitoring moderate inflation in copper, aluminum, steel, and engineered components, and the costs of preparing new facilities may pressure expenses before production begins.
At the end of Q3 fiscal 2026, backlog was approximately $2.4 billion, an increase of $967 million from the prior year and $619 million from the prior quarter. Other commercial and industrial markets represented 40% of the balance, core industrial markets in petrochemicals and oil and gas represented 30%, and electric utilities represented 24%. Execution of some awards extends into fiscal 2028, while approximately 54% of the balance is expected to convert during the twelve months following the end of the quarter.
