Powell Industries reported a record $934 million in third-quarter orders and a total backlog of $2.4 billion, driven by strong demand in data centers, utilities and core industrial sectors. Speaking at the 17th Annual Midwest IDEAS Conference in Chicago on Aug. 26, CFO Michael Metcalf underscored the company’s exposure to the AI and hyperscale data center cycle, which now accounts for roughly one-third of its backlog.
The Houston-based manufacturer, which operates five U.S. facilities, a Canadian plant and a U.K. site, posted $860 million in revenue during the first nine months of fiscal 2025, up from just over $1 billion in the prior full year. Cash on the balance sheet exceeded $600 million, with no debt and approximately $250 million available for acquisitions or organic growth. Operating cash flow for the period reached about $200 million.
A single $400 million data center order contributed to the company’s record quarterly bookings, while year-to-date orders totaled roughly $1.9 billion. Metcalf described the company’s liquidity position as "pristine," emphasizing its capacity to fund expansion without leverage. Capital expenditures include a 335,000-square-foot fabrication yard expansion nearing completion, expected to add capacity for 10 to 12 additional substations annually, each valued at $10 million to $15 million.
Powell’s backlog is split evenly between data centers and core industrial end markets, including oil and gas, LNG and refineries, with utilities comprising about 25%. Approximately 80% of revenue originates from the U.S., followed by Canada and the U.K. The company’s medium-voltage circuit breakers, spanning 1,000 volts to 38,000 volts, remain a key product line, with R&D spending rising to 1.5% of sales from 0.5% eight years ago.
Metcalf noted that while the data center cycle remains in an early-to-mid growth phase, industry peers differ on its duration, with some estimating three to five innings and others projecting five to six. Powell’s stock has gained 109% over the past year and 79% year-to-date, supported by a 28% return on equity and a "Great" financial health score from InvestingPro.
Looking ahead, the company’s fiscal 2027 backlog is effectively booked, with orders already being taken into 2028. Recent acquisitions, including a U.K.-based automation controller business integrated within a month of closing, have further strengthened its position in high-growth segments.
