Powell Industries (POWL) Q3 2026 earnings summary

Executive summary

• Q3 FY2026 revenue reached $312 million, up 9% year-over-year, with net income of $52.2 million and record new orders of $934 million, driving backlog to an all-time high of $2.4 billion.

• Three mega orders, including a $400M+ data center project, $75M petrochemical, and $60M LNG project, contributed to the surge in bookings.

• Major capacity expansions, such as Jacintoport and new leased/owned facilities, are underway to support sustained demand and backlog execution.

• The Remsdaq acquisition enhanced automation and SCADA capabilities, expanding presence in the UK and North American utility markets.

• Completed a three-for-one forward stock split in April 2026.

Financial highlights

• Q3 2026 revenue was $311.7M–$312M, up 9% year-over-year; domestic revenue up 12%, international slightly down.

• Net income for Q3 2026 was $52.2M ($1.42 per diluted share), up from $48.2M ($1.32) in Q3 2025.

• Gross profit for Q3 2026 was $95.3M, with gross margin at 30.6%–31%, flat year-over-year and up sequentially.

• Operating cash flow for Q3 2026 was $100M, with cash and equivalents at $634M and no debt.

• Book-to-bill ratio reached 3.0x for Q3 2026, with YTD bookings at $1.9B.

Outlook and guidance

• Strong momentum expected into fiscal 2027 and beyond, supported by robust demand in electric utility, data center, and LNG markets.

• Approximately $1.3B of backlog expected to convert to revenue over the next 12 months.

• Stable pricing and disciplined execution anticipated to sustain financial performance.

• Backlog convertibility typically 12–18 months, supporting visibility into future revenues.