Powell Industries Reports 9% Revenue Growth to $278.6 Million in Q2 Fiscal 2025

Powell Industries, Inc. reported a notable increase in financial performance for the second quarter of Fiscal 2025, with revenues reaching $278.6 million, a 9% rise from $255.1 million in the same period last year. The company’s net income also saw significant growth, climbing to $46.3 million, or $3.81 per diluted share, compared to $33.5 million, or $2.75 per diluted share, in the prior year. This increase in profitability was primarily driven by higher revenues and improved gross profit margins, which rose to 30% from 25% year-over-year.

In the first half of Fiscal 2025, Powell Industries reported total revenues of $520.1 million, a 16% increase from $449.1 million in the same period of Fiscal 2024. The growth was attributed to strong project backlog and continued bookings, with domestic revenues increasing by 13% to $425.6 million and international revenues rising by 31% to $94.5 million. The company’s order backlog remained stable at $1.3 billion as of March 31, 2025, with approximately $831 million expected to be recognized as revenue within the next twelve months.

Operationally, Powell Industries has expanded its market presence, particularly in the electric utility and commercial sectors. Revenue from the electric utility market surged by 48% to $70.3 million, while commercial and other industrial market revenue increased by 16% to $40.4 million. The company has also made strategic moves to diversify its offerings, including entering the hydrogen production and carbon capture markets, in response to the growing demand for clean energy solutions.

The company’s financial health remains strong, with total assets increasing to $965.4 million as of March 31, 2025, up from $928.2 million at the end of the previous fiscal year. Current assets exceeded current liabilities by a ratio of 2.0 times, and cash and cash equivalents rose to $359.5 million, reflecting improved earnings and operational cash flow. Powell Industries continues to focus on managing costs and enhancing operational efficiencies amid ongoing supply chain challenges and inflationary pressures.

Looking ahead, Powell Industries remains optimistic about its growth trajectory, particularly in the oil and gas, petrochemical, and electric utility markets. The company is closely monitoring macroeconomic conditions and geopolitical events that could impact future market activity. With a solid backlog and strategic initiatives in place, Powell Industries is well-positioned to capitalize on emerging opportunities while navigating potential challenges in the evolving market landscape.