Powell Industries Reports Q3 Fiscal 2025 Results with $286.3M Revenue and $48.2M Net Income

Powell Industries, Inc. reported its financial results for the third quarter of Fiscal 2025, revealing revenues of $286.3 million, a slight decrease of 1% from $288.2 million in the same quarter of the previous year. The company’s net income for the quarter was $48.2 million, or $3.96 per diluted share, compared to $46.2 million, or $3.79 per diluted share, in the prior year. For the nine months ended June 30, 2025, revenues increased by 9% to $806.3 million, while net income rose to $129.3 million from $103.8 million in the same period last year.

The company experienced notable changes in its revenue streams, with domestic revenues declining by 8% to $224.5 million, while international revenues surged by 39% to $61.7 million, driven by increased project volume in Canada and the Middle East. The electric utility market saw a significant revenue increase of 31%, while the oil and gas sector, excluding petrochemical, experienced an 8% decline. The overall gross profit for the quarter improved by 8% to $87.9 million, reflecting a gross profit margin increase to 31%, up from 28% in the prior year, attributed to favorable project execution and volume leverage.

In terms of operational developments, Powell Industries reported a backlog of $1.4 billion as of June 30, 2025, a 7% increase from the previous quarter. This backlog is expected to contribute approximately $913 million in revenue over the next twelve months. The company’s bookings also increased by 2% to $362.1 million in the third quarter, indicating a positive trend in securing new contracts. The workforce remained stable, with no significant changes in employee headcount reported.

Strategically, Powell Industries announced its intention to acquire Remsdaq Ltd., a U.K.-based manufacturer, for approximately $16.3 million, which is expected to close in the fourth quarter of Fiscal 2025. This acquisition aligns with the company’s strategy to enhance its capabilities in electrical substation control and automation. Additionally, the company declared a quarterly cash dividend of $0.2675 per share, payable on September 17, 2025, reflecting its commitment to returning value to shareholders.

Looking ahead, Powell Industries remains optimistic about its growth prospects, particularly in the oil and gas and electric utility markets, driven by increased demand for liquefied natural gas and power generation investments. However, the company acknowledges potential challenges from global economic conditions, supply chain disruptions, and inflationary pressures that could impact future operations. The management is focused on maintaining operational efficiency and managing costs to navigate these challenges effectively.