Powell Industries (NASDAQ:POWL) Trading 23.2% Higher After Better-Than-Expected Earnings

Powell Industries, Inc. (NASDAQ:POWL)’s share price traded up 23.2% during mid-day trading on Wednesday following a better than expected earnings announcement. The company traded as high as $540.00 and last traded at $558.5060. 64,255 shares traded hands during mid-day trading, a decline of 77% from the average session volume of 277,495 shares. The stock had previously closed at $453.24.

The industrial products company reported $3.40 EPS for the quarter, beating analysts’ consensus estimates of $2.85 by $0.55. The company had revenue of $251.18 million during the quarter, compared to analysts’ expectations of $255.34 million. Powell Industries had a return on equity of 30.64% and a net margin of 16.82%.Powell Industries’s revenue was up 4.1% on a year-over-year basis. During the same period in the prior year, the business posted $2.86 EPS.

Powell Industries Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, March 18th. Shareholders of record on Wednesday, February 18th will be issued a $0.27 dividend. This represents a $1.08 annualized dividend and a yield of 0.2%. This is a boost from Powell Industries’s previous quarterly dividend of $0.27. The ex-dividend date is Wednesday, February 18th. Powell Industries’s dividend payout ratio (DPR) is 6.95%.

Trending Headlines about Powell Industries

Here are the key news stories impacting Powell Industries this week:

• Positive Sentiment: Q1 EPS beat and margin expansion — Powell reported $3.40 EPS vs. $2.85 consensus, driving upside confidence in profitability and helping push the stock higher. Powell Industries tops earnings estimates but misses revenue in fiscal Q1
• Positive Sentiment: Record backlog and stronger-than-expected bookings — management highlighted elevated bookings/backlog that supports near-term revenue visibility, a key reason investors bought the dip after a modest revenue miss. Powell Industries Inc Q1 2026 Earnings Call Highlights
• Positive Sentiment: Dividend increase — Powell raised the quarterly payout slightly (next dividend $0.27; ex-div Feb 18), which supports income-focused holders and signals board confidence. Dividend and company overview
• Neutral Sentiment: Revenue miss — Q1 revenue slightly missed analyst estimates even as earnings beat, suggesting margin gains drove the beat rather than top-line acceleration. This tempers the enthusiasm until revenue growth reaccelerates. Powell Industries Q1 Earnings Surpass Estimates
• Neutral Sentiment: Regulatory risk disclosure — a TipRanks note flagged a new Regulation-category risk item; it doesn’t appear to be an immediate catalyst but is a watch item for risk-sensitive investors. Powell Industries regulatory risk disclosure
• Negative Sentiment: Cantor Fitzgerald raised its target to $481 but kept a Neutral rating — the new target still implies downside from the current share price, which could cap gains or prompt some profit-taking. Cantor Fitzgerald raises price target to $481
• Negative Sentiment: Other price-target updates remain below the market — one reported increase set a $375.81 target, still well under the share price and a potential headwind for further upside. Price target increased to $375.81

Wall Street Analysts Forecast Growth

POWL has been the topic of several research analyst reports. Roth Mkm reaffirmed a “buy” rating and set a $350.00 price objective on shares of Powell Industries in a research note on Wednesday, November 19th. Weiss Ratings restated a “buy (b-)” rating on shares of Powell Industries in a report on Monday, December 29th. Cantor Fitzgerald raised their price target on Powell Industries from $427.00 to $481.00 and gave the stock a “neutral” rating in a research report on Thursday. Finally, Wall Street Zen lowered Powell Industries from a “buy” rating to a “hold” rating in a research report on Monday, January 19th. Two equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, Powell Industries currently has a consensus rating of “Moderate Buy” and a consensus target price of $415.50.

Insider Buying and Selling at Powell Industries

In related news, VP William Marshall Mauney, Jr. sold 3,000 shares of the stock in a transaction dated Friday, December 19th. The stock was sold at an average price of $331.73, for a total transaction of $995,190.00. Following the completion of the transaction, the vice president directly owned 4,451 shares in the company, valued at approximately $1,476,530.23. This trade represents a 40.26% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 2.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Powell Industries

A number of large investors have recently bought and sold shares of POWL. Northwestern Mutual Wealth Management Co. raised its holdings in shares of Powell Industries by 1,230,312.7% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 775,160 shares of the industrial products company’s stock valued at $247,106,000 after purchasing an additional 775,097 shares during the last quarter. Kovitz Investment Group Partners LLC boosted its holdings in Powell Industries by 42.2% during the third quarter. Kovitz Investment Group Partners LLC now owns 2,314,474 shares of the industrial products company’s stock worth $705,475,000 after purchasing an additional 686,588 shares during the last quarter. First Trust Advisors LP grew its position in Powell Industries by 65.8% in the third quarter. First Trust Advisors LP now owns 615,067 shares of the industrial products company’s stock valued at $187,479,000 after purchasing an additional 244,051 shares in the last quarter. Voss Capital LP acquired a new stake in Powell Industries in the 2nd quarter valued at $38,904,000. Finally, Summit Partners Public Asset Management LLC bought a new stake in Powell Industries during the 3rd quarter worth about $43,515,000. Institutional investors and hedge funds own 89.77% of the company’s stock.

Powell Industries Stock Performance

The firm’s 50-day simple moving average is $375.93 and its 200 day simple moving average is $324.41. The stock has a market capitalization of $6.54 billion, a P/E ratio of 35.01, a PEG ratio of 2.44 and a beta of 0.85.

About Powell Industries

Powell Industries, Inc is an industrial electrical engineering company specializing in the design, manufacture and integration of customized power control and distribution solutions. The firm’s offerings range from medium‐voltage switchgear and power control centers to bus duct, motor control centers and specialty transformers. Powell also provides automation systems, protective relaying, metering, supervisory control and data acquisition (SCADA) platforms, and turnkey engineering services to help clients manage critical power infrastructure.

Serving the oil and gas, petrochemical, refining, utility, mining and industrial sectors, Powell’s products are engineered to meet demanding performance, safety and reliability requirements.