摩根大通复述Powell三季度小幅miss但新订单和在手订单创高

Powell’s F3Q26 results came in modestly below expectations, with revenue of $312M missing consensus ($314M) and EPS of $1.42 trailing consensus ($1.45), gross margin -13bps YoY to 30.6% and R&D as a percent of sales +45bps YoY. New orders of $934M included three mega orders and were up +158% YoY, driving a 3.0x book-to-bill. EBITDA margin decreased -40bps YoY to 21.2%, translating to EBITDA of $66M (consensus/JPMe $69M/$73M). POWL called for continued strong financial performance and 4Q26 gross margins consistent with TTM levels. While the F3Q26 miss may pressure shares in the near term, we are encouraged by the quarter’s results as orders were materially above our expectations with broad-based growth in-line with POWL’s strategy to diversify beyond data centers.
Strength in C&I & EU, Pressure in Petrochemical
Powell posted 3Q26 revenues of $312M (cons. $314M), led by Commercial & Other Industrial, (+54% YoY) and Electric Utility (+18% YoY). Petrochemical declined -49% YoY, with management noting it was the only segment to not see robust end market activity in the quarter. Gross profit increased +8% YoY to $95M, though margin compressed -10bps to 30.6%. Sequential improvement of +90bps reflected strong project execution. EPS of $1.42 trailed consensus of $1.45, as both revenue and margins came in slightly below street estimates.
Large Orders Drive Robust Book-to-Bill
New orders of $934M more than doubled the prior year’s $362M (+158% YoY) and rose +91% sequentially, yielding a 3.0x book-to-bill. In addition to the previously announced ~$400M data center order, POWL announced two additional new mega orders, each exceeding $60M: a ~$75M Petrochemical order servicing the fertilizer industry and a ~$60M order to support liquefaction and export of LNG along the U.S. Gulf Coast. Backlog reached $2.4B, +69% YoY and +35% QoQ.
Robust Demand and Steady Gross Margins
Management conveyed strong optimism that demand across POWL’s core end markets will sustain robust activity through the remainder of FY26. Strong project execution, combined with a growing and well-diversified backlog, underpins confidence in a solid setup heading into FY27. Gross margins are expected to hold consistent with TTM levels of 30.1%. The Jacintoport fabrication yard expansion remains on track for completion by year end, and management highlighted potential greenfield expansion to further support backlog conversion. The balance sheet remains strong, anchored by $634M in cash and $607M in working capital, providing ample flexibility for continued growth.
Under the Hood of the Backlog
The company will host its conference call on August 4, 2026, at 11 a.m. ET where our focus will be on the durability of core book-to-bill and backlog conversion, capital allocation, and weakness in Petrochemical. Book-to-bill, excluding the $400M previously announced data center project, was 1.7x and flat sequentially. An additional $89M was added to the cash balance, which is now up $183M since 4Q25. Understanding management’s plans for the latent cash and potential greenfield expansion would prove insightful. We would also like to hear management provide color around weakness in Petrochemical, which was down -49% YoY and notably absent from the markets management cited as experiencing strong demand.