NEW YORK, August 3, 2026, 18:59 EDT — Nasdaq regular trading ended; after-hours session sees increased activity.
- Powell dropped 13.8% to $189.50 in after-hours trading, wiping out a 5.3% increase from the regular session.
- Orders for the quarter hit an all-time high of $934 million, while the backlog rose 69% to $2.4 billion.
- Reported figures indicate the backlog represents 7.7 quarters of current sales; this does not reflect company guidance.
Shares of Powell Industries NASDAQ:POWL fell 13.8% to $189.50 in late Monday trading. The company reported higher revenue and profit. However, both results came in below FactSet forecasts.
The challenge for investors has moved from generating demand to fulfilling orders. Powell’s backlog totals $2.4 billion, an amount equivalent to 7.7 quarters of its present sales pace. A year ago, the ratio was about 4.9 quarters.
Ordinary shares rose 5.3% ahead of the announcement. Between July 24 and July 31, they declined by 10.1%. The after-hours quote was roughly 42% under the $328 peak.
| Selected electrical-power stock | Monday price | Session move | Trailing P/E |
|---|---|---|---|
| Powell Industries regular close | $219.72 | up 5.29% | 42.9x |
| Powell Industries after hours | $189.50 | down 13.75% | 36.9x |
| Eaton Corporation NYSE:ETN | $438.23 | up 5.50% | 44.6x |
| Hubbell (NYSE:HUBB) | $476.04 | up 0.73% | 28.2x |
| Vertiv Holdings NYSE:VRT | $263.05 | up 8.92% | 59.5x |
The after-hours price-to-earnings ratio is calculated by reporters using the same trailing EPS. Comparable companies listed are key players in electrification, though not direct business equivalents.
Powell posted quarterly revenue of $311.7 million, an increase of 9%. Diluted earnings climbed 8% to $1.42 per share. Analysts polled by FactSet had forecast $316.7 million in revenue and earnings of $1.46.
| Fiscal third-quarter measure | 2026 actual | 2025 actual | Change | FactSet estimate |
|---|---|---|---|---|
| Revenue | $311.7 million | $286.3 million | up 8.9% | $316.7 million |
| Diluted EPS | $1.42 | $1.32 | up 7.6% | $1.46 |
| Gross margin | 30.6% | 30.7% | down 0.1 point | — |
| New orders | $934 million | $362 million | higher by 158% | — |
| Ending backlog | $2.4 billion | $1.4 billion | up 69% | — |
Revenue came in around 1.6% below analyst expectations, while EPS was about 2.7% lower than anticipated. The shortfalls were slight, but valuation heightened their impact.
Chief Executive Brett Cope stated that commercial activity in major end markets is gaining speed. Powell recorded a book-to-bill ratio of 3.0 times.
At least 57% of quarterly bookings came from three large orders, with one data-center contract making up over 43%. This level of concentration heightens the significance of both customer timelines and delivering projects on schedule.
| Key third-quarter order | Estimated value | Portion of $934 million total bookings |
|---|---|---|
| Behind-the-meter data centre | Exceeds $400 million | Exceeds 42.8% |
| Fertilizer petrochemical contract | Roughly $75 million | Roughly 8.0% |
| U.S. Gulf Coast LNG contract | Approximately $60 million | Approximately 6.4% |
| Total | Above $535 million | Above 57.3% |
Reporter calculations for shares are based on contract values made public. Powell considers mega orders to be contracts worth more than $50 million.
Backlog climbed 35% compared to the previous quarter, while revenue posted a 5% sequential gain. As a result, the basic backlog-to-sales ratio expanded further.
| Reporting period | Backlog | Quarterly revenue | Backlog divided by quarterly revenue |
|---|---|---|---|
| Fiscal Q3 2025 | $1.4 billion | $286.3 million | 4.9 quarters |
| Fiscal Q2 2026 | $1.8 billion | $296.6 million | 6.1 quarters |
| Fiscal Q3 2026 | $2.4 billion | $311.7 million | 7.7 quarters |
The ratio does not indicate a delivery projection. Instead, it tracks confirmed orders relative to present output levels. Its increase highlights the growing importance of converting capacity over securing new orders.
Chief Financial Officer Michael Metcalf anticipates margins to remain close to the trailing-12-month range. Powell aims to complete the Jacintoport expansion before the end of the fiscal year. The management team is assessing further greenfield capacity options.
Following the decline, Powell’s implied trailing multiple stood at roughly 37 times. This surpassed Hubbell’s 28 times, but remained under Eaton and Vertiv. The valuation continues to reflect expectations for solid performance.
Cash and short-term investments totaled $633.6 million. Powell announced a quarterly dividend of $0.09. The record date is set for August 19, and payment will be made on September 16.
This week begins with a conference call scheduled for Tuesday at 11:00 a.m. EDT. Investors are expected to look for updates on backlog schedules, progress on capacity targets, and specifics regarding the project mix. The information provided could influence trading during Tuesday’s regular session.
Risks: Timelines for mega-projects may be adjusted. There is potential for customers to alter or withdraw orders. Margins and the pace of converting backlog might also face impacts from tariffs, rising material costs, or expansion delays.
