Powell Industries

Powell Industries (POWL) Q3 2026 Earnings

Reported Aug 3, 2026 at 4:28 PM ET · SEC Source

Q3 26 EPS

$1.42

MISS 3.38%

Est. $1.47

Q3 26 Revenue

$311.7M

MISS 1.62%

Est. $316.9M

Did POWL Beat Earnings? Q3 2026 Results

Powell Industries delivered a mixed third quarter for fiscal 2026, posting earnings that fell short of Wall Street's expectations even as revenue climbed steadily higher. The Houston-based electrical equipment maker earned $1.42 per diluted share on … Read more Powell Industries delivered a mixed third quarter for fiscal 2026, posting earnings that fell short of Wall Street's expectations even as revenue climbed steadily higher. The Houston-based electrical equipment maker earned $1.42 per diluted share on revenue of $311.74 million, with EPS missing the $1.49 consensus estimate by 4.70% despite an 8.9% year-over-year revenue gain. The quarter's defining story, however, was not the slight earnings miss but a record-setting surge in new orders: Powell booked $934.00 million in the period, a 158% year-over-year increase anchored by a data center award exceeding $400.00 million for behind-the-meter generation assets, alongside a roughly $75.00 million petrochemical fertilizer order and a $60.00 million LNG contract. That demand wave drove backlog to $2.40 billion, up 69% from a year ago, raising investor questions about whether margins can hold as the company scales to meet it. Management expressed confidence that gross margins will remain consistent with trailing twelve-month levels, supported by ongoing capacity expansion at its Jacintoport fabrication yard.

Key Takeaways

  • Commercial & Other Industrial market revenue grew 54% year-over-year
  • Electric Utility market revenue grew 18% year-over-year
  • Strong and stable pricing environment supported gross margins
  • Higher volume levels drove gross profit increases
  • Record new orders of $934 million with 3.0x book-to-bill ratio

POWL Forward Guidance & Outlook

Management views the outlook for all core end markets as highly favorable, supported by durable demand drivers including U.S. LNG expansion, utility generation growth and grid strengthening, and increasing data center/AI capacity demand. The company expects gross margins to maintain levels consistent with the trailing twelve months while adding capacity to support backlog acceleration. The Jacintoport fabrication yard expansion is expected to be completed by the close of fiscal 2026 with production ramping up to support recent industrial project awards. Powell is also evaluating greenfield capacity expansions in Houston and Ohio. Management expressed confidence in delivering another very strong year of financial results as fiscal 2026 closes and looking ahead to fiscal 2027.

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POWL YoY Financials

Q3 2026 vs Q3 2025, source: SEC Filings

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POWL Revenue by Segment

Business unit performance breakdown

“Commercial momentum across our key end markets continues to accelerate as Powell was awarded a record $934 million of new orders in the quarter and reported a book-to-bill ratio of 3.0x. Activity levels across Oil and Gas, Electric Utility and Commercial and Industrial end markets have remained very robust, highlighted in this most recent quarter by our previously announced mega data center order with a value in excess of $400 million, as well as two additional mega orders; one within the LNG end market that approximated $60 million and the other a Petrochemical order for roughly $75 million. The Powell team also continues to focus on strong project execution as we deliver our record backlog, demonstrated by a strong gross margin performance of 30.6%.”

— Brett A. Cope, Q3 2026 Earnings Press Release