Powell Industries (NASDAQ:POWL) Trading 23.2% Higher After Better-Than-Expected Earnings

Powell Industries, Inc. (NASDAQ:POWL)’s share price rose 23.2% during mid-day trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $540.00 and last traded at $558.5060. Approximately 64,255 shares changed hands during mid-day trading, a decline of 77% from the average daily volume of 277,495 shares. The stock had previously closed at $453.24.

The industrial products company reported $3.40 earnings per share for the quarter, topping the consensus estimate of $2.85 by $0.55. The firm had revenue of $251.18 million for the quarter, compared to analyst estimates of $255.34 million. Powell Industries had a net margin of 16.37% and a return on equity of 31.80%. Powell Industries’s quarterly revenue was up 4.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.86 earnings per share.

Powell Industries Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 18th. Investors of record on Wednesday, February 18th will be issued a $0.27 dividend. This is a positive change from Powell Industries’s previous quarterly dividend of $0.27. The ex-dividend date of this dividend is Wednesday, February 18th. This represents a $1.08 dividend on an annualized basis and a yield of 0.2%. Powell Industries’s dividend payout ratio is currently 7.21%.

Trending Headlines about Powell Industries

Here are the key news stories impacting Powell Industries this week:

• Positive Sentiment: Q1 beat on earnings and margins—Powell reported $3.40 EPS vs. $2.85 consensus, net income +19% and gross margin improved to 28.4%, supporting profitability expectations. Powell Industries Announces First Quarter Fiscal 2026 Results
• Positive Sentiment: Big bookings and backlog expansion—new orders jumped ~63% to $439M and backlog rose to ~$1.6B (up ~16%), giving visible revenue runway and a 1.7 book‑to‑bill that supports forward revenue. Powell Industries Reports Strong First Quarter Fiscal 2026 Results
• Positive Sentiment: Strong balance sheet—cash and short‑term investments ~ $500M with no debt, which reduces execution risk and supports capital returns or opportunistic investments. Powell Industries Announces First Quarter Fiscal 2026 Results
• Neutral Sentiment: Dividend modestly raised—board increased the quarterly dividend to $0.27 (annualized $1.08), a small raise that supports income investors but is immaterial to growth investors. Powell Industries Declares an Increase to the Quarterly Cash Dividend
• Neutral Sentiment: Revenue slightly below consensus and seasonal sequential decline—Q1 revenue was $251.2M (miss vs. the ~$255M consensus) and down vs. prior quarter, reflecting seasonality even as y/y growth was positive. Powell Q1 Press Release (PDF)
• Negative Sentiment: Notable insider selling—public filings show multiple sizable insider sales over recent months, which can concern some investors about timing of exits. Quiver Quant: Dividend Increase & Insider Activity
• Negative Sentiment: Street price targets are mixed and some targets sit below the current market price, which could limit near‑term upside if analysts do not lift targets. Quiver Quant: Analyst Targets & Guidance

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on the stock. Wall Street Zen lowered shares of Powell Industries from a “buy” rating to a “hold” rating in a research report on Monday, January 19th. Weiss Ratings reiterated a “buy (b-)” rating on shares of Powell Industries in a report on Monday, December 29th. Roth Mkm reissued a “buy” rating and set a $350.00 target price on shares of Powell Industries in a research note on Wednesday, November 19th. Finally, Cantor Fitzgerald initiated coverage on shares of Powell Industries in a research report on Friday, January 23rd. They issued a “neutral” rating and a $427.00 price target on the stock. Two equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $388.50.

Insider Activity at Powell Industries

In related news, VP William Marshall Mauney, Jr. sold 3,000 shares of the firm’s stock in a transaction that occurred on Friday, December 19th. The shares were sold at an average price of $331.73, for a total value of $995,190.00. Following the completion of the transaction, the vice president owned 4,451 shares of the company’s stock, valued at approximately $1,476,530.23. This trade represents a 40.26% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 2.20% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Avanza Fonder AB purchased a new stake in Powell Industries in the 4th quarter worth about $30,000. Elevation Point Wealth Partners LLC acquired a new position in shares of Powell Industries in the 2nd quarter valued at about $33,000. State of Wyoming purchased a new stake in shares of Powell Industries in the second quarter worth approximately $33,000. First Horizon Corp acquired a new stake in shares of Powell Industries during the fourth quarter worth approximately $40,000. Finally, Manchester Capital Management LLC grew its position in Powell Industries by 42.9% during the second quarter. Manchester Capital Management LLC now owns 200 shares of the industrial products company’s stock valued at $42,000 after purchasing an additional 60 shares in the last quarter. Hedge funds and other institutional investors own 89.77% of the company’s stock.

Powell Industries Stock Performance

The stock has a market cap of $6.72 billion, a price-to-earnings ratio of 37.76, a price-to-earnings-growth ratio of 2.04 and a beta of 0.85. The company’s 50 day simple moving average is $367.47 and its two-hundred day simple moving average is $321.48.

Powell Industries Company Profile

Powell Industries, Inc is an industrial electrical engineering company specializing in the design, manufacture and integration of customized power control and distribution solutions. The firm’s offerings range from medium‐voltage switchgear and power control centers to bus duct, motor control centers and specialty transformers. Powell also provides automation systems, protective relaying, metering, supervisory control and data acquisition (SCADA) platforms, and turnkey engineering services to help clients manage critical power infrastructure.

Serving the oil and gas, petrochemical, refining, utility, mining and industrial sectors, Powell’s products are engineered to meet demanding performance, safety and reliability requirements.