Powell Industries, Inc. Q2 2026 Earnings Recap

The stock surged 18.7% following Powell Industries’ earnings report, driven by stronger-than-expected order growth and backlog expansion supported by significant mega project awards and healthy activity across multiple end markets.

Key Takeaways

• New orders reached $490 million in the quarter, contributing to a midyear total of nearly $1 billion in awards.
• Backlog grew 12% sequentially and 33% year-over-year to $1.8 billion, providing visibility well into fiscal 2028.
• Two mega projects awarded this quarter exceeded $75 million each, with an additional $400 million mega project announced post-quarter that is now the company’s largest ever.
• Revenue increased 6% year-over-year, with gross margin maintained at 29.6%, reflecting continued solid project execution.
• Business diversification across electric utility (30% of backlog), oil and gas (29%), and commercial/industrial/data centers (29%) is reducing cyclicality and supporting capacity expansion efforts.