Powell’s first quarter results sparked a positive market reaction, with the company’s backlog growth and robust order activity offsetting headline misses on revenue and non-GAAP profitability. Management attributed the quarter’s performance to elevated order volumes across core end markets, particularly from large-scale data center and electric utility projects. CEO Brett Cope emphasized that the business benefited from a balanced mix of small and mega projects, highlighting improved project execution as a key driver. Additionally, new orders nearly doubled year over year, underscoring ongoing momentum in commercial and industrial segments.
Is now the time to buy POWL? Find out in our full research report (it’s free for active Edge members).
Powell (POWL) Q1 CY2026 Highlights:
- Revenue: $296.6 million vs analyst estimates of $299.1 million (6.5% year-on-year growth, 0.8% miss)
- Adjusted EPS: $1.25 vs analyst expectations of $1.36 (8.3% miss)
- Adjusted EBITDA: $59.32 million vs analyst estimates of $62.9 million (20% margin, 5.7% miss)
- Operating Margin: 19.4%, down from 21.1% in the same quarter last year
- Backlog: $1.8 billion at quarter end, up 38.5% year on year
- Market Capitalization: $11.27 billion
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 Q1 Earnings Call
- Tomo Sano (JPMorgan): Asked about Q3 order outlook and cost management, particularly with SG&A and R&D. CEO Brett Cope highlighted continued strong activity and described targeted investments in engineering and service, while CFO Michael Metcalf said SG&A will remain in the upper single digits as a percentage of revenue.
- Chip Moore (Truist): Inquired about the $400 million data center order’s execution timeline and margin implications. Cope explained the order’s two-year execution window and noted opportunities for margin improvement as product-centric models scale across divisions.
- Manish Mahawar (Wolfe Research): Questioned Powell’s pricing power given robust demand. Cope acknowledged incremental pricing gains and indicated that efficiency improvements are expected to yield further pricing benefits.
- Alex Rygiel (Texas Capital): Asked about the breadth of sales efforts in the data center segment. Cope described the expansion of both direct and partner channels, noting increasing direct engagement with end customers and contractors.
- John Franzreb (Sidoti & Company): Asked about handling rising metal prices and gross margin impact. Metcalf detailed Powell’s proactive hedging strategy for copper and ongoing supply chain efforts to manage input cost volatility.
Catalysts in Upcoming Quarters
Moving forward, our analysts will focus on (1) the pace of backlog conversion into revenue as Powell begins work on recently awarded mega projects, (2) the company’s ability to manage supply chain and staffing challenges amid rapid expansion, and (3) the impact of new facility investments on operational efficiency and margins. Progress on government and defense-related opportunities will also be watched as a potential long-term growth lever.
Powell currently trades at $311.57, up from $269.95 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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