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Investing.com -- Powell Industries Inc. (NASDAQ:POWL) reported third-quarter fiscal 2025 earnings that beat analyst expectations, but shares plunged 12.4% after the company’s revenue fell short of estimates.
The electrical energy management solutions provider posted adjusted earnings per share of $3.96 for the quarter ended June 30, exceeding analyst expectations of $3.88. However, revenue came in at $286 million, significantly below the consensus estimate of $307.21 million, despite being essentially flat compared to $288.2 million in the same quarter last year.
The revenue shortfall overshadowed the company’s improved profitability, with gross profit increasing 8% YoY to $87.9 million, representing 30.7% of revenue - an improvement of 230 basis points from the prior year. New orders totaled $362 million, resulting in a book-to-bill ratio of 1.3x and driving backlog to $1.4 billion, up 7% sequentially and 5% YoY.
"I am very proud of the Powell team as we delivered another strong quarter of results," said Brett A. Cope, Powell’s Chairman and Chief Executive Officer. "We continue to execute our project backlog at a high level, achieving a gross margin of 30.7% in the current quarter, an improvement of 230 basis points compared to the prior year."
The company saw mixed performance across its markets, with revenue from Oil & Gas and Petrochemical markets declining by 8% and 36% respectively. These decreases were largely offset by growth in Electric Utility (up 31%), Commercial & Other Industrial (up 18%), and Light Rail Traction Power (up 61%) markets.
Powell also announced the acquisition of Remsdaq Ltd., a U.K.-based manufacturer of SCADA Remote Terminal Units for electrical substation control and automation, as part of its strategy to strengthen its Electric Automation platform.
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