Powell Industries, Inc. (POWL) AI Stock Analysis

Powell Industries, Inc. specializes in the design, development, manufacturing, sales, and servicing of custom-engineered equipment and systems that facilitate the distribution, control, and monitoring of electrical energy. Its product lineup includes integrated power control room substations, custom-engineered modules, electrical houses, medium-voltage circuit breakers, and monitoring and control communications systems. It also provides motor control centers, bus duct systems, and traditional and arc-resistant switchgears operating between 480 and 38,000 volts. Powell serves industries such as oil and gas, petrochemicals, LNG terminals, pipelines, mining, metals, light rail traction power, and electric utilities, while offering spare parts, inspection, installation, commissioning, repair, and retrofit services.

Powell has expanded revenue at a 5-year CAGR of 16.3% from FY2020 to FY2025. Annual revenue grew from $470.6M in FY2021 to $1.01B in FY2024 and $1.10B in FY2025. Over this period, gross margin improved from 16.0% in FY2021 to 29.4% in FY2025, while operating margin expanded from 0.2% to 19.7%. Net income rose from $631,000 in FY2021 to $180.7M in FY2025, bringing EPS to $4.95. For the trailing twelve months, revenue totaled $1.16B with EPS of $5.22. In the latest quarter ended June 30, 2026, quarterly revenue grew 8.9% year-over-year and quarterly earnings grew 7.6%.

As of June 30, 2026, Powell held $633.6M in cash and short-term investments against total debt of $2.5M, yielding net cash of $631.0M and a debt-to-equity ratio of 0.00. The current ratio stood at 1.97, and shareholders' equity was $756.2M. In FY2025, the company generated $167.9M in operating cash flow and $154.8M in free cash flow. Capital expenditures were $13.1M, share buybacks totaled $12.2M, and dividends paid were $12.9M.

POWL trades at a trailing P/E of 31.6x and a forward P/E of 29.3x, both higher than the median of its US-listed Industrials peers at 24.8x and 17.2x, respectively. Its price-to-sales of 5.2x and EV/EBITDA of 26.9x also sit above the peer medians of 1.5x and 13.9x. The stock has posted a 1-year return of 46.7%, outpacing the S&P 500 (SPY) return of 16.8%, and a 5-year return of 1905.1% compared to 83.0% for the index. However, at $165.14, the stock sits 21.8% below its 200-day average and off its 52-week high of $328.00.

Powell pays an annual forward dividend of $0.36 per share, representing a dividend yield of 0.22% with a payout ratio of 6.9%. The company distributes dividends quarterly and has paid dividends for 14 consecutive years. Its 5-year annualized dividend growth rate is 0.6%, and the last ex-dividend date was August 19, 2026.

Wall Street coverage includes 1 Strong Buy, 1 Buy, and 2 Holds, with no Sell ratings. The mean price target is $267.50, which is 62.0% above the last close of $165.14. For the fiscal year ending September 30, 2026, analysts estimate EPS of $5.37 on revenue of $1.19B. For the next fiscal year, 5 analysts project EPS of $6.82 on revenue of $1.48B. Powell has beat EPS estimates in 2 of the last 4 quarters, and its next earnings date is November 17, 2026.

This page is an AI-written research summary of Powell Industries, Inc. (POWL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: POWL income statement, POWL balance sheet, POWL key metrics, POWL analyst forecast, POWL chart. See the POWL stock overview for the latest quote and news.