Powell (POWL) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Mon, May 4, 2026 astatine 12:33 PM CDT 36 min read

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DATE

Wednesday, February 4, 2026 astatine 11 a.m. ET

CALL PARTICIPANTS

• President & Chief Executive Officer — Brett A. Cope

• Chief Financial Officer — Michael W. Metcalf

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Full Conference Call Transcript

Brett Cope: Thank you, Ryan. Good morning. Thank you for joining america contiguous to reappraisal Powell's fiscal 2026 1st 4th results. I volition marque a fewer comments and past crook the telephone implicit to Mike for much fiscal commentary earlier we instrumentality your questions. Our fiscal twelvemonth is disconnected to a beardown start.

As our archetypal 4th results proceed to show Powell's unsocial and advantaged presumption against a backdrop of what are secular and progressively durable maturation trends, the increasing and wide concern successful powerfulness procreation and grid modernization to enactment information halfway and AI capableness growth, home manufacturing, electrification and the nationally important export of vigor resources similar LNG, are validating our present astir decade-long strategical effort to alteration Powell into a much diversified shaper of electrical organisation products and systems. During the archetypal quarter, we saw gross turn 4% compared to the anterior year. And arsenic a reminder, our archetypal fiscal 4th typically exhibits immoderate level of seasonal disruptions associated with less moving days.

While ongoing precocious levels of task execution drove improved profitability compared to the anterior year. Gross nett expanded 20% to thrust a gross borderline of 28.4%, an betterment of 380 ground points year-over-year. We recorded $439 cardinal of caller orders, the highest quarterly full successful implicit 2 years, arsenic enactment was wide crossed lipid and gas, specifically LNG, information centers and the electrical utilities markets. Within our full bookings number, we were awarded a declaration for a ample LNG task that exceeds $100 cardinal to enactment state liquefaction and export on the U.S. Gulf Coast.

As the permitting process for LNG restarted a twelvemonth ago, enactment successful enactment of caller greenfield and brownfield trains resumed and Powell has and continues to enactment this strategical market. We expect enactment wrong the LNG marketplace to proceed successful 2026 comparative to the much humble enactment levels passim 2024 and astir of 2025. Commercial dynamics wrong our commercialized and different concern markets person accelerated successful caller quarters arsenic we proceed to spot accrued request wrong the information halfway market. During the archetypal quarter, our commercialized and different concern marketplace accounted for astir 1/2 of the bid full and included our archetypal mega task bid for a azygous information center, which totaled astir $75 million.