Powell Industries, Inc., along with its subsidiaries, designs, develops, manufactures, sells, and services custom-engineered equipment and systems. Its product portfolio includes integrated power control room substations, custom-engineered modules, electrical houses, traditional and arc-resistant distribution switchgears and control gears, medium-voltage circuit breakers, monitoring and control communications systems, motor control centers, switches, and bus duct systems. The company also offers field service inspection, installation, commissioning, modification, and repair services; spare parts; retrofit and retrofill components for existing systems; and replacement circuit breakers for switchgears. It serves onshore and offshore production, liquefied natural gas facilities and terminals, pipelines and refineries, petrochemical, electric utility, light rail traction power, mining and metals, pulp and paper, data centers, commercial construction, and other industrial markets, as well as universities and government entities. Powell Industries operates in the United States, Canada, the Middle East, Africa, Europe, Mexico, the Asia/Pacific, and Central and South America. Founded in 1947, the company is headquartered in Houston, Texas.
Powell's data-center order boom drives record backlog, with geopolitics a risk
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Record backlog and surging orders Powell booked $490 million of new orders in its fiscal second quarter, up 97% from a year earlier, and its backlog hit a record $1.8 billion. That means future revenue is already largely locked in, which is the core reason investors are bidding the stock up.
Order growth and record backlog are the fundamental force behind the stock's rise.
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Huge data-center win after quarter close After the quarter ended, Powell landed a single data-center order worth more than $400 million, plus two roughly $75 million orders in data centers and electric utilities. These wins show AI-driven power demand is translating into real contracts, supporting the bullish case.
The $400M+ order is the clearest new evidence of AI infrastructure demand flowing to Powell.
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Broad demand across utility, LNG and industrial Utility revenue rose 14% and commercial/industrial revenue jumped 35% year over year, with LNG and petrochemical projects adding to bookings. This spread of demand beyond data centers makes the growth less dependent on one market, which supports the stock.
Shows the demand driver is broad, not just a single AI-related order.
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Middle East attack and hawkish Fed hit industrials An Iranian missile attack on tankers near the Strait of Hormuz pushed oil prices up and revived inflation fears, just as the Fed turned hawkish. Powell and peers fell 6.4% as higher fuel and borrowing costs squeeze industrial companies, a real counterweight to the growth story.
This is the main risk pulling the stock down and balances the positive demand points.
Q3 2026
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Powell's data-center order boom drives record backlog, with geopolitics a risk
▲
Record backlog and surging orders Powell booked $490 million of new orders in its fiscal second quarter, up 97% from a year earlier, and its backlog hit a record $1.8 billion. That means future revenue is already largely locked in, which is the core reason investors are bidding the stock up.
Order growth and record backlog are the fundamental force behind the stock's rise.
▲
Huge data-center win after quarter close After the quarter ended, Powell landed a single data-center order worth more than $400 million, plus two roughly $75 million orders in data centers and electric utilities. These wins show AI-driven power demand is translating into real contracts, supporting the bullish case.
The $400M+ order is the clearest new evidence of AI infrastructure demand flowing to Powell.
▲
Broad demand across utility, LNG and industrial Utility revenue rose 14% and commercial/industrial revenue jumped 35% year over year, with LNG and petrochemical projects adding to bookings. This spread of demand beyond data centers makes the growth less dependent on one market, which supports the stock.
Shows the demand driver is broad, not just a single AI-related order.
▼
Middle East attack and hawkish Fed hit industrials An Iranian missile attack on tankers near the Strait of Hormuz pushed oil prices up and revived inflation fears, just as the Fed turned hawkish. Powell and peers fell 6.4% as higher fuel and borrowing costs squeeze industrial companies, a real counterweight to the growth story.
This is the main risk pulling the stock down and balances the positive demand points.
Garrett Motion reported second-quarter revenues of $976 million, up 6.9% year on year and 3.3% above analysts' expectations, with full-year EBITDA guidance also beating projections. Across the 14 electrical systems stocks tracked, group revenues beat consensus estimates by 2.3% while next-quarter revenue guidance came in 0.6% below, and share prices have fallen an average of 7% since the latest earnings results. Garrett Motion shares are down 12.1% since reporting and trade at $26.30. Among peers, Atkore posted revenues of $794.8 million, up 8.1% year on year and 4.7% above expectations, with its stock up 30.3% at $95.07, while Powell reported revenues of $311.7 million, up 8.9% but 1.6% short of estimates, and its stock is down 13.1% at $191.00. Verra Mobility reported revenues of $263.6 million, up 11.7% and 3.8% above expectations, but logged the weakest full-year guidance update of the group and saw its stock fall 46.2% to $3.02, while Sanmina reported revenues of $3.46 billion, up 69.7% and 1.8% above estimates, with its stock up 6.4% at $222.34.
AI-linked chip stocks rebound while Powell Industries tumbles premarket
U.S. stock index futures rose on Tuesday as semiconductor shares found support from another round of upbeat AI-related earnings. ON Semiconductor rose more than 7% after reporting second-quarter adjusted earnings of $0.74 per share on revenue of $1.60 billion, both ahead of Wall Street forecasts, reinforcing expectations that artificial intelligence infrastructure spending remains resilient. Ameresco surged 29.9% after beating second-quarter revenue expectations and raising its full-year earnings outlook, while Snap jumped nearly 9% following a broad earnings beat. Powell Industries tumbled 14.0% after missing Wall Street expectations on both earnings and revenue for a second consecutive quarter, despite record new orders and a sharply expanded backlog.
Palantir, Snap, and ON Semiconductor lead Tuesday's biggest stock movers
Palantir Technologies, Snap, and ON Semiconductor were among the biggest stock gainers on Tuesday, while Powell Industries led the losers. Palantir shares surged 15% after crushing second-quarter results and raising its full-year outlook, with revenue jumping 93% year-over-year to $1.94 billion and its fiscal 2026 revenue forecast lifted to $8.15 billion to $8.16 billion. Snap gained 9% on better-than-expected second-quarter earnings, 19% revenue growth to $1.6 billion, and daily active users reaching 493 million. ON Semiconductor climbed 7% after issuing stronger-than-expected third-quarter guidance, forecasting revenue of $1.65 billion to $1.75 billion and adjusted earnings per share of $0.81 to $0.93. Powell Industries fell 14% despite a 158% surge in new orders to $934 million, as its quarterly revenue of $312 million and earnings per share of $1.42 missed estimates.
Powell Industries plunges 13% after Q3 revenue miss despite record $2.4B backlog
Powell Industries shares fell about 13% in pre-market trading Tuesday after the electrical equipment manufacturer reported third-quarter fiscal 2026 revenue that missed analyst estimates. Revenue rose 9% year-over-year to $312 million but came in $4.88 million below the consensus forecast. The company posted record new orders of $934 million during the quarter, including a data center project valued at more than $400 million, lifting backlog to a record $2.4 billion as of June 30, 2026, compared with $1.7 billion a year earlier. Gross profit increased 7% to $86 million, while gross margin narrowed to 27.6% from 28.2%, and GAAP earnings per share of $1.42 missed estimates by $0.05. CEO Brett Cope said the outlook for core end markets remains highly favorable, citing demand from U.S. LNG, grid modernization, and data center and AI infrastructure, while CFO Michael Metcalf expressed confidence in delivering another very strong year of financial results in fiscal 2026.
Powell Industries Inc. reported a rise in its third-quarter bottom line. Net income increased to $52.160 million, or $1.42 per share, from $48.234 million, or $1.32 per share, in the same period last year. Revenue grew 8.9% to $311.740 million from $286.273 million a year earlier.
Powell Industries announced that its Board of Directors has declared a quarterly cash dividend of $0.09 per share on its common stock. The dividend is payable on September 16, 2026, to shareholders of record at the close of business on August 19, 2026.
Powell Industries Set to Report Q2 Earnings After Monday's Close
Powell Industries will announce its fiscal second-quarter earnings after the market closes on Monday. The company reported revenues of $296.6 million last quarter, up 6.5% year on year, but missed analysts' revenue expectations and significantly missed EPS estimates. For the upcoming quarter, analysts expect revenue to grow 10.7% year on year, an improvement from flat revenue in the same quarter last year. Powell has missed Wall Street's revenue estimates multiple times over the last two years, and its shares are down 15.3% over the past month, heading into earnings with an average analyst price target of $316.25 compared to the current share price of $209.72.
Eaton Raises 2026 Organic Growth Outlook to 9-11% on Data Center Surge
Eaton Corporation raised its 2026 organic growth outlook to 9-11%, driven by a roughly 50% year-over-year jump in Electrical Americas data-center revenues in the first quarter of 2026. The company highlighted its Eaton Beam Rubin DSX platform, developed with NVIDIA, as an end-to-end power blueprint for AI factories, and noted that the acquisition of Boyd Thermal adds liquid-cooling capabilities to its portfolio. Management sees AI data centers as a structural growth avenue rather than a short-term equipment cycle, supported by an expanding backlog and manufacturing-capacity investments. Peers Emerson Electric and Powell Industries are also benefiting from the AI infrastructure buildout through demand for automation, control solutions, and medium-voltage switchgear.
Two industrial stocks to buy and one to avoid for a $10,000 investment
An investment analysis recommends buying Eaton and Powell Industries while avoiding Boeing for a $10,000 allocation. Eaton, an electrical equipment maker, has seen data center orders jump roughly 240% year-over-year and holds a backlog representing about 11 years of construction at current build rates, with management raising its 2026 growth outlook and spending $1.5 billion on manufacturing expansion. Powell Industries, a smaller competitor with a debt-free balance sheet, reported new orders surging around 97%, a record backlog, and its largest single order ever worth more than $400 million tied to a data center. Boeing, by contrast, carries roughly $54 billion in debt against about $29 billion in cash, has delayed its 777X program into 2027 with a nearly $5 billion charge, and faces ongoing certification setbacks that make its turnaround too risky.
Money Rotates from Megacap Tech into Financials and Energy, Lifting JPMorgan, Devon Energy, and Others
A market rotation out of megacap technology stocks and into financials and energy is accelerating, with the Nasdaq-100 shedding 3.28% over the past month while the Russell 2000 gained 1.2%. JPMorgan Chase reported second-quarter 2026 earnings per share of $7.70, beating estimates by 32.76%, and authorized a new $50 billion buyback. Devon Energy raised its quarterly dividend 31% to $0.315 per share after closing its all-stock merger with Coterra Energy, targeting $1.0 billion in annual pre-tax synergies by year-end 2027. Powell Industries saw new orders surge 97% year over year to $490 million, driven by data center and AI infrastructure demand. TJX Companies posted a 19% earnings beat on a 6% rise in comparable sales, while Robinhood reported net deposits of $17.7 billion and a 320% jump in event contracts revenue.
Energy Transition & Power Demand › Grid, Transmission & Power Equipment ▲Demand
DVN · Capital · Positive Devon Energy raised its quarterly dividend 31% and closed its merger with Coterra Energy, targeting $1.0 billion in annual pre-tax synergies.
HOOD · Demand · Positive Robinhood reported net deposits of $17.7 billion and a 320% jump in event contracts revenue, indicating strong customer demand.
JPM · Capital · Positive JPMorgan Chase reported Q2 2026 EPS of $7.70, beating estimates by 32.76%, and authorized a new $50 billion buyback.
POWL · Demand · Positive Powell Industries saw new orders surge 97% year over year to $490 million, driven by data center and AI infrastructure demand.
TJX · Capital · Positive TJX Companies posted a 19% earnings beat on a 6% rise in comparable sales.
Northwest Pipe, Powell, and SPX Technologies Shares Fall on Iran Missile Attack and Hawkish Fed
Shares of Northwest Pipe, Powell, and SPX Technologies each fell 6.4% after Iran's missile attack on commercial tankers near the Strait of Hormuz pushed oil prices higher and revived inflation fears, a double blow for the industrial sector squeezed by rising fuel costs and rising borrowing costs. Brent crude rose toward $75 and WTI to around $71, while the Industrial Select Sector SPDR fell about 2%. The attack struck a Qatari LNG tanker and damaged a Saudi crude tanker, ending a brief truce and reasserting the fragility of the U.S.–Iran interim peace. The oil-driven inflation impulse landed just as new Fed Chair Kevin Warsh turned hawkish, with nine of eighteen officials penciling in a 2026 hike, pushing the 10-year Treasury yield to roughly 4.47%.
Powell Industries Reports Strong Q2 Fiscal 2026 Revenue Growth and Record Backlog
Powell Industries reported a 14% year-over-year increase in electric utility sector revenues and a 35% surge in commercial and other industrial sector revenues for the second quarter of fiscal 2026 ended March 2026. The company's backlog reached $1.8 billion, up 33% year over year and 12% sequentially, while new orders totaled $490 million, up from $439 million in the previous quarter. Powell is benefiting from strong bookings in data center and utility markets, as well as significant project awards in LNG and petrochemical sectors. The company expects solid revenues and earnings for fiscal 2026 ending September 2026, supported by its robust backlog and strong balance sheet.
Powell Industries declared a quarterly cash dividend of $0.09 per share, payable on June 17, 2026, to shareholders of record as of May 20, 2026. The company noted favorable market conditions across its core businesses, driven by investments in data center growth, AI capacity, and power infrastructure. Chief Financial Officer Michael Metcalf said year-to-date financial growth supports confidence in delivering another year of solid fiscal 2026 performance, with backlog composition helping margins remain consistent with the prior year. Accelerating backlog growth justifies further manufacturing capacity investments aided by commercial visibility. Powell Industries designs, develops, manufactures, sells, and services custom-engineered equipment and systems.
Zacks Adds Five Stocks to Strong Buy List on July 1st
Zacks Investment Research added five stocks to its Zacks Rank #1 (Strong Buy) List today. Powell Industries saw its current-year earnings consensus estimate rise 39.1% over the last 60 days. Delek US Holdings' estimate increased 44%, Alliance Laundry Holdings' rose 10.3%, Cenovus Energy's climbed 38.2%, and Legacy Housing Corporation's estimate grew 11.5% over the same period.
Powell Industries Posts Strong Q2 Fiscal 2026, Secures Major Data Center Orders
Powell Industries reported second-quarter fiscal 2026 revenue of $297 million, a 6% year-over-year increase, driven by strength in electric utility and commercial & industrial markets. The company booked new orders of $490 million in the quarter, up from $249 million a year earlier, and exited the period with a backlog of $1.8 billion. It secured a data center order and an electric utility order each worth about $75 million during the quarter, and after the quarter closed it landed another data center order exceeding $400 million. Powell also raised its quarterly dividend by approximately 0.9% in February 2026. However, operating costs remain a headwind, with selling, general and administrative expenses rising 17.9% in the first half of fiscal 2026, and tariff-related concerns on steel and aluminum could further inflate costs.
Powell Industries shares jump 5.8% on AI infrastructure optimism
Shares of Powell Industries rose 5.8% in morning trading after strong results from peer Micron reignited confidence in the long-term build-out of data center power systems, driving investors into AI-infrastructure names. The rally was also fueled by bets that Powell's role in supplying custom electrical gear will translate into a growing order backlog as AI projects ramp up, supported by several recent large data center wins and management's plans to expand production capacity. The stock later cooled to $307.19, up 4.3% from the previous close.
Artificial Intelligence › AI Power & Cooling ▲Demand
POWL · Demand · Positive Powell's role in supplying custom electrical gear for data centers, with recent large wins and growing order backlog, directly benefits from AI infrastructure build-out.
MU · Capital · Positive Strong results from peer Micron reignited confidence in AI infrastructure, indirectly boosting sentiment for Powell.
Powell Industries Gains on Data Center Wins and LNG Infrastructure Demand
Powell Industries was a leading contributor to the Carillon Eagle Small Cap Growth Fund in the first quarter of 2026, driven by large data center contract wins and steady utility awards. The company is well positioned to benefit from liquefied natural gas export infrastructure development along the Gulf Coast, and management announced plans to expand production capacity, signaling confidence in a meaningful demand ramp-up. Powell Industries shares gained 343.13% over the past 52 weeks, closing at $294.49 on June 24, 2026, with a market capitalization of $10.73 billion. The number of hedge funds holding the stock rose to 40 from 30 in the previous quarter.
Powell Shares Surge 163% in Six Months on Strong Revenue and Profit Growth
Powell shares have surged 163% over the past six months to $294.28, driven by robust financial performance. The company grew revenue at a 19.8% compound annual rate over five years, outpacing the average industrial firm. Earnings per share expanded at a 98.3% annual clip, reflecting improving profitability. Free cash flow margin widened by 22.8 percentage points over the same period, reaching 17% on a trailing 12-month basis. The stock now trades at 53 times forward earnings.
GE Vernova Q1 Revenue Rises 16.3% to $9.34 Billion, Beating Estimates
GE Vernova reported first-quarter revenues of $9.34 billion, a 16.3% year-on-year increase that exceeded analysts' expectations by 0.8%. The company, spun off from General Electric in 2023, also delivered an impressive beat on adjusted operating income and EPS estimates. Among the 14 electrical systems stocks tracked, the group collectively beat revenue consensus by 3.4% but issued next-quarter revenue guidance 3.3% below expectations. Garrett Motion posted the best performance with revenues of $985 million, up 12.2% and beating estimates by 9.3%, while Whirlpool was the weakest, with revenues falling 9.6% to $3.27 billion and missing estimates by 4.4%. Powell reported revenues of $296.6 million, up 6.5% but missing estimates by 0.8%, and Hubbell reported revenues of $1.52 billion, up 11.1% and beating estimates by 0.8%.
Powell, Howmet, and Dell Named as Market-Beating Stocks to Own for Decades
StockStory identified Powell, Howmet, and Dell as three market-beating stocks with strong sales growth, expanding margins, and rising returns on capital. Powell posted a five-year return of 2,588% and saw annual revenue growth of 15.4% over the last two years, while Howmet returned 763% with 12.3% annual revenue growth over five years. Dell delivered a 334% five-year return and 22.2% annual revenue growth over the past two years. All three companies benefited from market share gains, share repurchases, and expanding free cash flow margins.
DELL · Capital · Positive Article highlights Dell's strong sales growth, expanding margins, share repurchases, and rising returns on capital as market-beating qualities.
HWM · Capital · Positive Article highlights Howmet's strong sales growth, expanding margins, share repurchases, and rising returns on capital as market-beating qualities.
POWL · Capital · Positive Article highlights Powell's strong sales growth, expanding margins, share repurchases, and rising returns on capital as market-beating qualities.
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