Powell Industries, Inc.’s POWL diversification efforts beyond its core oil, gas and petrochemical markets have enhanced its market share across the electric utility, light rail traction power and commercial & other industrial markets. In second-quarter fiscal 2026 (ended March 2026), revenues from the commercial & other industrial sector and electric utility sector surged 35% and 14% year over year, respectively, while those from oil & gas increased 11%.
Several favorable trends across the oil and gas market, including growth in energy transition projects, have been proving beneficial for the company. Also, growing investments across power generation and electrical distribution markets have been driving demand for the company’s products. Its increased participation across the electrical power value chain has enabled it to generate solid bookings from the electric utility and commercial & other industrial markets.
This has led to impressive growth in the backlog level, which was $1.8 billion (up 12% sequentially) while exiting the fiscal second quarter. New orders totaled $490 million in the quarter, reflecting growth of 11.6% on a sequential basis. Importantly, the new orders consisted of awards across all key markets that reflected the company’s core competencies and well-balanced portfolio.
A strong pipeline of projects, particularly within the electric utility and commercial and other industrial markets, along with a solid backlog, is likely to support the company’s growth in the quarters ahead.
