Powell Industries, Inc. POWL shares are trading lower on Wednesday after the company reported fourth-quarter results after the markets closed on Tuesday.
Revenues surged 32% year over year to $275 million, which missed the consensus of $286.49 million.
The revenue growth was led by the Petrochemical sector (+112% Y/Y), Oil & Gas sector (+23% Y/Y), and Commercial & Other Industrial sector (+66% Y/Y).
New orders rose to $267 million from $171 million a year ago, driven by strong demand in the Oil & Gas, Petrochemical, and Electric Utility sectors.
Gross profit increased 55% Y/Y to $80 million, with a margin of 29.2% vs. 24.9% a year ago quarter. EPS of $3.77 surpassed the consensus of $3.55.
Brett A. Cope, Powell’s Chairman and Chief Executive Officer, said, “We experienced tremendous growth in our largest markets, with our top line growing by 45% in fiscal 2024. We continue to execute at a high standard for both our customers and our shareholders as reflected by our gross margin, which improved 590 basis points compared to the prior year.”
”Having recorded our second consecutive year of more than $1.0 billion in new orders, we continue to grow in our traditional markets of oil & gas, petrochemical and electrical utilities, while further diversifying in markets such as data centers, hydrogen, carbon capture and other alternative fuels.”
As of September 30, 2024, cash and short-term investments totaled $358 million. Backlog remained steady at $1.3 billion as of September 30, 2024, consistent with levels at both June 30, 2024, and September 30, 2023.
Michael Metcalf, Chief Financial Officer, said, “As we look ahead to fiscal 2025, we expect continued strength across most of our end markets spanning across all of the geographies that we compete in.”
”We are pleased with our fiscal 2024 results and remain focused on carrying forward the strong operational execution and commercial momentum that we have experienced this year, into fiscal 2025.”
”Notwithstanding our seasonally slower fiscal first quarter, considering the healthy backdrop, robust backlog, strong liquidity, and a solid balance sheet, we anticipate that fiscal 2025 will be another successful year for Powell.“
Investors can gain exposure to the stock via Innovator IBD 50 ETF FFTY and Tidal ETF Trust Aztlan Global Stock Selection DM SMID ETF AZTD.
Price Action: POWL shares are down 15% at $265.63 at the last check Wednesday.
Image via Shutterstock
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