POWL

Powell Industries designs custom electrical distribution and control equipment for oil & gas, utility, and industrial markets, and it is in the sweet spot of several demand waves. FY2025 revenue rose 9.1% to $1.10B and net income jumped 20.6% to $181M, capping an extraordinary multi-year ramp (net income up from $13.7M in FY2022 to $181M). Margins expanded — gross margin 29.4%, operating margin 19.7%, net margin 16.4% — and ROE is a standout 28.2%. EPS climbed 20.9% to $14.86.

The balance sheet is fortress-like: no long-term debt, $451M cash (+42.9%), and 0.73x liabilities/equity, with operating cash flow up 54.6% to $168M. Crucially, the outlook is visible: management reports backlog of $1.4B (with ~$824M expected to convert in FY2026), driven by 'two large, domestic LNG project awards,' the largest electric-utility award in company history, and 'expansion of data centers that support cloud computing and increasing investments in artificial intelligence.' The Remsdaq acquisition extends the platform into SCADA/automation.