Powell’s second quarter results fell short of Wall Street’s revenue expectations, with flat year-over-year sales and a 5.1% miss compared to analyst estimates. The share price declined over 4% following the release, as investors reacted to the top-line shortfall. Management attributed the muted revenue to project timing, particularly lower activity in oil and gas and petrochemical markets, which was offset by strength in electric utility and international segments. CEO Brett Cope described the quarter’s order activity as “well balanced across the end markets we serve,” citing notable wins in electric utility and offshore oil and gas projects.

Is now the time to buy POWL? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Powell’s Q2 Earnings Call

• John Edward Franzreb (Sidoti & Company) asked about the strength and breadth of Powell’s order pipeline. CEO Brett Cope emphasized that opportunity remains broad-based across utilities, oil and gas, and commercial markets, with no signs of slowing demand.
• John Edward Franzreb (Sidoti & Company) questioned revenue visibility. CFO Mike Metcalf clarified that current backlog extends into late 2027, with 65% slated to convert over the next year, providing strong forward visibility.
• John Edward Franzreb (Sidoti & Company) inquired about the contribution of project closeouts to gross margin gains. Metcalf detailed that, year-to-date, project closeouts contributed approximately 115-120 basis points to margin expansion.
• Alfred Shopland Moore (ROTH) sought clarity on the sustainability of electric utility momentum. Cope attributed continued strength to Powell’s trusted partner status and broader electrification trends, especially demand from data centers.
• Alfred Shopland Moore (ROTH) asked about the Remsdaq acquisition’s integration and product prospects. Cope described the acquisition as highly complementary and expects the next-generation SCADA product to quickly benefit Powell’s North American operations.

Catalysts in Upcoming Quarters

In the quarters ahead, the StockStory team will watch (1) the pace at which Powell converts its sizable backlog into revenue, (2) progress on integrating Remsdaq and scaling automation offerings in North America, and (3) whether new short-cycle product launches drive margin and revenue mix improvements. Continued wins in electric utility and data center markets will also be key indicators of sustainable growth.

Powell currently trades at $264.40, up from $237.42 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).

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