Powell Industries, Inc. (POWL): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of Powell Industries, Inc., and honestly, the numbers from fiscal 2025 tell a clear story of a company firing on all cylinders. Forget abstract strategy; the reality is a rock-solid balance sheet-$476 million in cash with zero debt-backing a massive $1.4 billion project backlog. This financial muscle is powering a smart pivot, with huge growth in the electric utility sector and light rail driving $1.1 billion in total revenue and a record $181 million in net income. If you want to see exactly how this engineering powerhouse is building its future across key activities and customer segments, check out the full Business Model Canvas breakdown below.

Powell Industries, Inc. (POWL) - Canvas Business Model: Key Partnerships

You're looking at how Powell Industries, Inc. (POWL) builds its value by leaning on external relationships, which is crucial for a custom-engineered equipment supplier like this. The partnerships here aren't just vendors; they are strategic enablers for growth in key sectors.

Acquisition of Remsdaq Ltd. for electrical automation technology

The most concrete partnership move as of late 2025 is the acquisition of Remsdaq Ltd., a U.K.-based manufacturer of Remote Terminal Units (RTUs) for electrical substation control and automation. This deal was announced on July 15, 2025, and was expected to close in the fourth quarter of Fiscal 2025.

The total consideration for Remsdaq Ltd. was set at £12.2 million, which translated to approximately $16.3 million USD. Powell Industries structured this to be low-risk, with an upfront payment of £9.2 million and the remaining £3 million contingent on Remsdaq meeting specific technical and financial milestones. Honestly, funding the entire deal with cash on hand, given Powell's strong balance sheet-holding $373 million in cash versus zero debt as of March 2025-shows they can make strategic moves without diluting equity or taking on new debt. This integration is designed to combine Powell's hardware and detection sensors with Remsdaq's Supervisory Control and Data Acquisition (SCADA) RTUs.

Here's a look at the financial context surrounding this strategic acquisition:

Suppliers for critical components like HVAC and fire/gas detection

Powell Industries designs, manufactures, and services custom-engineered equipment, meaning they rely on a deep supply chain for various components that go into their switchgear, motor control, and energy systems. While specific supplier names for HVAC or fire/gas detection aren't detailed in the latest filings, the company's core markets-Electric Utility, Oil & Gas, Petrochemical, and Commercial & Other Industrial-dictate the type of specialized, high-reliability components required. For instance, the acquisition of Remsdaq brings in SCADA RTUs, which are critical automation components.

The focus on utility modernization and data centers suggests strong reliance on suppliers for advanced sensing, control, and protection gear. The growth in the Electric Utility sector, which saw revenue surge 50% in Fiscal 2025, puts pressure on the entire component supply chain to deliver on time.

• Component sourcing must support ANSI and IEC standards, given Powell's facilities in North America (ANSI) and the UK (IEC).
• The integration of Remsdaq's technology implies new dependencies on suppliers for integrated hardware and detection sensors.

Regional fabricators and integrators for project execution

Project execution, especially for large-scale custom equipment, often involves regional partners for fabrication, assembly, installation, or commissioning support, particularly for geographically dispersed projects. Powell Industries has been actively investing in its own fabrication capacity to support this, which suggests that while external fabricators are used, internal capacity expansion is a key strategic action to manage project flow.

The company announced a $12.4 million investment for the next phase of expansion at its Jacintoport manufacturing facility in Houston. This investment is set to add 335,000 square feet of productive capacity, a 62% increase in yard capacity. This brings the cumulative investment in the Jacintoport yard to approximately $20 million over eight years, and nearly $40 million across all three Houston facilities. This internal expansion directly supports the execution of their growing backlog, which stood at $1.4 billion as of September 30, 2025.

The need for this capacity expansion is driven by strong demand, particularly from the Electric Utility market, which accounted for 48% of the backlog exiting Fiscal 2025.

Strategic alliances for new electrical technologies and PIDS

The Remsdaq acquisition is the primary documented strategic alliance for new electrical automation technology, specifically for SCADA RTUs and enhancing automation solutions. Beyond this, Powell's strategy involves organic investment in R&D to commercialize new products, which often requires collaboration with technology developers or specialized firms.

The focus on utility modernization and the growth in data center power demand suggest ongoing, though perhaps less formally announced, alliances in areas like predictive analytics, which the Remsdaq integration is expected to support. The company's overall growth is being driven by diversification, with non-industrial markets like Electric Utility and Commercial & Other Industrial making up 41% of annual revenue in Fiscal 2025.

You should keep an eye on how Powell leverages Remsdaq's technology to meet the growing and underserved demand for enhanced automation solutions in the electrical industry. Finance: draft 13-week cash view by Friday.

Powell Industries, Inc. (POWL) - Canvas Business Model: Key Activities

You're looking at the core engine of Powell Industries, Inc. (POWL), which is all about turning complex engineering requirements into physical, high-value electrical infrastructure. The key activities revolve around design, manufacturing, and disciplined project delivery, all while strategically expanding the physical footprint to meet surging demand.

Custom-engineering and design of electrical power systems is the starting point. This activity is what allows Powell Industries, Inc. to secure large, complex projects, evidenced by the strong financial results flowing from execution. For the full Fiscal Year 2025, the company delivered $1.1 billion in revenue, achieving a gross profit of $324 million, which translated to a gross margin of 29.4% of revenue. This margin reflects the value captured from specialized engineering work.

The next step is the Manufacturing of switchgear, control gear, and custom modules. This is where the engineering designs become tangible assets for customers in sectors like Electric Utility and Oil & Gas. The success of this manufacturing is seen in the fourth quarter of Fiscal 2025, where the gross margin hit 31.4% on $94 million in gross profit from $298 million in revenue.

A major current focus is Project execution and delivery against the $1.4 billion backlog. Managing this volume requires high operational efficiency. As of September 30, 2025, the total backlog stood at a robust $1.4 billion. The company noted that the book-to-bill ratio for the fourth quarter of Fiscal 2025 was 0.9x, though the third quarter saw a stronger 1.3x ratio. The full year saw new orders total $1.2 billion.

To support future project execution, Powell Industries, Inc. is actively engaged in Expanding production capacity. The company announced a $12.4 million investment for the next phase of expansion at the Jacintoport manufacturing facility. This specific investment targets an incremental 335,000 square feet of productive capacity for Power Control Room laydown area, representing a 62% increase in current yard capacity. This brings the cumulative investment in the Jacintoport yard to approximately $20 million over eight years, with nearly $40 million invested across all three Houston facilities.

Finally, Research and development (R&D) for new product innovation is being executed partly through strategic acquisitions to scale new capabilities. The company completed the acquisition of Remsdaq Ltd., a U.K.-based manufacturer of SCADA Remote Terminal Units for electrical substation control and automation, during the fiscal fourth quarter. This move is intended to scale a 'highly competitive and margin-accretive electrical automation solution'.

Here's a quick view of the financial metrics underpinning these activities as of late 2025:

The focus on specific market segments drives the engineering and manufacturing pipeline. You can see the shift in activity through the revenue mix:

• Electric Utility and Commercial and Other Industrial markets accounted for 41% of annual revenue.
• Electric Utility revenue grew by 100% year-over-year in Q4 Fiscal 2025.
• The largest utility order in Powell Industries, Inc.'s history was a $60 million award in Q3 2025.
• Nonindustrial markets represented 48% of the total backlog.

The execution of the backlog is directly tied to capacity. The Jacintoport expansion is designed to support anticipated Oil & Gas order activity, especially LNG projects, over the next three to five years.

• Jacintoport expansion investment: $12.4 million.
• Incremental Power Control Room laydown area: 335,000 square feet.
• Shoreline bulkhead doubling to 1,150 feet.

Finance: draft 13-week cash view by Friday.

Powell Industries, Inc. (POWL) - Canvas Business Model: Key Resources

You're looking at the core assets Powell Industries, Inc. (POWL) relies on to deliver its custom-engineered electrical solutions. These aren't just line items; they are the tangible and intangible foundations supporting their market position as of late 2025.

The balance sheet strength is a major resource. As of September 30, 2025, Powell Industries held $476 million in cash and short-term investments. Critically, the company carries zero debt, which gives them significant financial flexibility for operations and strategic moves.

The project pipeline, or backlog, represents future recognized revenue and operational stability. As of September 30, 2025, the backlog stood at $1.4 billion, showing a 3% increase compared to the prior year. This backlog is becoming increasingly diversified away from traditional sectors; the Electric Utility and Commercial & Other Industrial segments now account for approximately 48% of the total backlog, up from about 20% five years prior.

Here's a quick look at the hard numbers underpinning the resource base:

The physical assets include advanced manufacturing capabilities concentrated in key areas. Management is actively investing in these facilities to capture anticipated demand, particularly in LNG and utility modernization. They approved a $12.4 million expansion at the Jacintoport facility, which is planned for completion in the second half of Fiscal 2026. Furthermore, the company has invested nearly $40 million across its Houston facilities over an eight-year period, which included completing the expansion of the breaker manufacturing facility across Fiscal 2024 and Fiscal 2025.

Specialized engineering expertise is a core intangible resource, bolstered by recent strategic acquisitions. The company designs and manufactures custom-engineered solutions. The recent acquisition of Remsdaq Ltd., a U.K.-based manufacturer of SCADA Remote Terminal Units, directly enhances Powell Industries' electrical automation capabilities, which they plan to scale across utility and data center applications. This intellectual property and design capability is what allows them to achieve strong gross margins, like the record quarterly margin of 31.4% in Q4 Fiscal 2025.

The key resource categories can be summarized as follows:

• Financial Strength: $476 million cash position with no debt.
• Order Visibility: A $1.4 billion project backlog.
• Physical Assets: Manufacturing facilities in Houston, Texas, and Louisiana, supported by recent capital investments like the $12.4 million Jacintoport expansion.
• Intangible Assets: Proprietary engineering for custom power control and distribution solutions, supplemented by acquired automation technology.

Finance: draft 13-week cash view by Friday.

Powell Industries, Inc. (POWL) - Canvas Business Model: Value Propositions

You're looking at the core value Powell Industries, Inc. (POWL) delivers to its customers as of late 2025. This isn't just about selling components; it's about delivering engineered certainty for electrical energy control and distribution.

Custom-engineered, high-reliability electrical power solutions

Powell Industries, Inc. provides the complex, custom-built systems that keep major industrial and utility operations running safely. The scale of this commitment is reflected in the company's financial results; for the full Fiscal Year 2025 ended September 30, 2025, Powell Industries, Inc. recorded total revenues of $1.1 billion. This revenue translated to a net income of $181 million for the same period. You see the demand for this reliability in the order book, which stood at $1.4 billion as of September 30, 2025.

Full-line manufacturing with complete system integration capability

The ability to design, manufacture, and integrate entire systems is a key differentiator. This capability supported a strong order intake, with new orders for the full Fiscal Year 2025 totaling $1.2 billion, representing a 9% increase year-over-year. The company's execution on its existing work is strong; for the fourth quarter of Fiscal 2025, the gross profit margin reached 31.4% of revenue.

Mission-critical power management for industrial infrastructure

Powell Industries, Inc. serves sectors where failure is not an option, like electric utilities and heavy industry. For instance, revenue from the Electric Utility sector surged 50% year-over-year in Fiscal 2025. Even in the traditional Oil & Gas market, which saw a slight revenue decline of 3% compared to Fiscal 2024, the company secured significant work, including over $80 million combined from two separate awards for custom offshore modules in the third quarter of Fiscal 2025. The commitment to utility-scale projects is clear: the largest utility order in Powell Industries, Inc.'s history, valued at $60 million, was booked in the third quarter of Fiscal 2025. That's a defintely strong signal for grid investment.

Electrical automation and SCADA RTU technology for grid modernization

To support grid modernization, Powell Industries, Inc. expanded its automation footprint. This was formalized by the completion of the acquisition of Remsdaq Ltd., a U.K.-based manufacturer specializing in SCADA Remote Terminal Units for electrical substation control and automation in generation, transmission, and distribution. This move is intended to scale a highly competitive and margin-accretive electrical automation solution.

Risk reduction through a diversified, counter cyclical product portfolio

The company's ability to secure new orders across different end markets helps balance cyclical risks inherent in energy markets. The new orders in Fiscal 2025 were described as well-balanced across all key markets, which is a testament to this strategy. The performance across key segments in Fiscal 2025 illustrates this mix:

The growth in Utility and Light Rail revenue helped offset declines in the traditional Oil & Gas and Petrochemical segments during the full year.

The value proposition is further supported by the company's liquidity position, with cash and short-term investments totaling $476 million as of September 30, 2025.

• The backlog as of September 30, 2025, was $1.4 billion.
• The book-to-bill ratio in Q3 Fiscal 2025 was 1.3x.
• The company's forward price-to-earnings ratio was 20.86X, below the industry average of 21.68X.

Powell Industries, Inc. (POWL) - Canvas Business Model: Customer Relationships

You're looking at how Powell Industries, Inc. keeps its major industrial and utility clients locked in. It's not about off-the-shelf sales; it's about deep, project-specific engineering partnerships. This relationship model is built on delivering highly customized, complex electrical solutions, which is why their backlog was sitting at $1.4 billion as of September 30, 2025. That number shows you the volume of committed, future work flowing from these relationships.

Dedicated project-based engagement for custom solutions is the core. When you land a contract like the $60 million award in the Electric Utility market-the largest utility order in Powell Industries, Inc.'s history as of Q3 Fiscal 2025-you aren't just shipping boxes. You are embedding engineering and manufacturing expertise directly into the client's critical infrastructure plan. Similarly, securing over $80 million combined from two separate awards for custom offshore modules for oil and gas production in that same quarter shows the scale of these bespoke engagements.

Long-term, consultative relationships with major utilities and energy firms are what fuel the pipeline. These aren't one-off transactions; they are multi-year commitments based on trust in execution. The company's full-year Fiscal 2025 revenues hit $1.1 billion, with significant growth coming from these core areas, indicating deep customer reliance. For instance, the Electric Utility sector saw revenue jump 50% for the full year, and in the fourth quarter alone, that sector's revenue grew 100% year-over-year. This level of growth in established sectors points directly to strong, ongoing consultative partnerships.

Here's a quick look at how the key customer markets performed in terms of revenue for the full Fiscal 2025 year:

Post-sale support including technical training and maintenance services is clearly being formalized and expanded. You see this in strategic moves, like the completion of the acquisition of Remsdaq Ltd., a U.K.-based manufacturer of SCADA Remote Terminal Units for electrical substation control and automation in generation, transmission and distribution. This acquisition directly enhances the company's ability to offer advanced automation and control solutions, which naturally extends the relationship well past the initial equipment delivery and into long-term operational support and system upgrades.

Managing these relationships falls to Powell Industries, Inc.'s direct sales and engineering teams, who are set up to manage complex, high-value contracts. These teams translate customer needs into the $1.2 billion in new orders secured during Fiscal 2025. The sales process is inherently technical, requiring engineering input from the start to scope the custom solutions. The success is evident in the 21% increase in full-year Net Income to $181 million, showing that the high-touch, direct management of these large projects is translating efficiently to the bottom line.

The customer relationship strategy relies on several key interaction points:

• Direct engagement for large-scale, custom-engineered power systems.
• Consultative selling focused on utility and energy sector modernization.
• Integration of automation and control technology post-sale.
• Engineering support driving initial contract value.
• Securing major awards, like the large LNG project in Q1 Fiscal 2025.

Finance: draft the 13-week cash view by Friday, factoring in the working capital needs for the $1.4 billion backlog.

Powell Industries, Inc. (POWL) - Canvas Business Model: Channels

You're looking at how Powell Industries, Inc. (POWL) gets its custom-engineered solutions into the hands of its customers, and it's definitely a mix of high-touch direct engagement and expanding digital reach.

For the big, custom-engineered projects, the primary channel is a direct sales force. This approach makes sense when you're dealing with massive, complex electrical energy management systems. Think about the major awards they secured in Fiscal 2025; for instance, they landed a $60 million award in the Electric Utility market-that's the largest utility order in Powell Industries' history-which certainly required direct, deep engagement with the end-user. Also, they were awarded over $80 million combined from two separate awards for custom offshore modules for oil and gas production. These aren't off-the-shelf sales; they require dedicated, expert negotiation and technical alignment right from the start.

The global manufacturing and service footprint is key for international projects, and Powell Industries is actively augmenting this. They finished Fiscal 2025 with total revenues hitting $1.1 billion, showing the scale of their global execution capability. A concrete step in expanding this footprint was the completion of the acquisition of Remsdaq Ltd., a U.K.-based manufacturer of SCADA Remote Terminal Units, which helps scale automation solutions into the U.K. and North American markets. This physical and geographic presence is what allows them to service projects across diverse geographies, even as they see shifts in their end-market mix.

Here's a quick look at how the revenue from the different end-markets-which are reached through these various channels-shaped up for the full Fiscal Year 2025:

Service and support engineers are the frontline for installation and commissioning, turning those massive project orders into operational assets. Powell Industries lists a comprehensive suite of after-market and support channels, which you can definitely see as a distinct value proposition. They use these teams to deliver:

• Retrofit and Retrofill Solutions
• Bus Duct Repair, Replace, Refurbish (RRR) Services
• Start-Up and Commissioning Services
• Breaker Life Extension Upgrade (BLEU)
• Powell Service Training Academy
• Capital and Start-Up Spares
• Parts-On-Demand (PowlPOD)

Also, they are continuously developing new channels through original equipment manufacturers (OEMs) and distribution market channels, so it isn't just direct project sales. The company's year-end backlog of $1.4 billion as of September 30, 2025, is heavily supported by these non-industrial sectors, with 48% of that backlog coming from Electric Utility and Commercial & Industrial markets.

For remote diagnostics and predictive analytics, Powell Industries is pushing its DIGITAL SOLUTIONS & AUTOMATION offerings. This is where the modern, less physical channel comes into play, helping customers manage assets post-installation. These digital tools are becoming increasingly important for maintaining the high-margin profile they achieved, with a full-year gross margin of 29.4% in Fiscal 2025. Their digital channel portfolio includes:

• Asset Management
• PMS, ENMCS, SCADA/SCADA-H
• Software Engineering / Custom Applications
• HMI, Graphics, Custom Software
• Condition Monitoring Devices and Systems

If onboarding takes 14+ days, churn risk rises, so efficient digital integration is definitely a near-term focus area for customer retention.

Finance: draft 13-week cash view by Friday.

Powell Industries, Inc. (POWL) - Canvas Business Model: Customer Segments

You're looking at the core markets Powell Industries, Inc. (POWL) serves as of late 2025, which clearly shows a strategic pivot toward electrification and away from the historical reliance on traditional energy sectors.

The diversification strategy is definitely paying off, with the utility and CNI segments driving top-line growth for Fiscal Year 2025, which saw total revenues hit $1.1 billion.

Here's a look at how the key customer segments performed in terms of revenue growth for the full Fiscal Year 2025:

The shift in focus is visible in the backlog composition as well. It's not just about what's being booked today, but where the work is coming from for the next few years. As of September 30, 2025, the total backlog stood at $1.4 billion.

You can see the market rebalancing clearly when you compare the backlog composition:

• Electric Utility and Commercial & Other Industrial sectors now comprise 48% of the total backlog.
• Five years ago, these two strategic markets accounted for just under 20% of the backlog.
• The Electric Utility and Oil & Gas sectors each make up about one-third of the total backlog exiting fiscal 2025.
• These two non-industrial markets (Utility and CNI) accounted for 41% of the total revenue in fiscal 2025.

For the Oil & Gas segment, while revenue declined, the company secured awards for custom offshore modules, totaling over $80 million combined in the third quarter alone. The Commercial & Other Industrial segment saw a significant win with a large mining project award in Canada.

The Electric Utility market delivered the largest utility order in Powell Industries, Inc. (POWL)'s history during the third quarter, valued at $60 million.

The company also closed the acquisition of Remsdaq Ltd. for $18.4 million, integrating SCADA Remote Terminal Units technology to scale electrical automation solutions, especially for the utility and data center customers.

Finance: draft 13-week cash view by Friday.

Powell Industries, Inc. (POWL) - Canvas Business Model: Cost Structure

You're looking at the core expenses that keep Powell Industries, Inc. running and building those massive electrical solutions. Honestly, for a company that deals in engineered-to-order projects, the costs are heavily weighted toward direct production and the technical brainpower behind the designs.

Cost of Goods Sold (COGS) for raw materials and manufacturing labor

The largest cost component is definitely the Cost of Goods Sold. For the full Fiscal Year 2025, Powell Industries reported total Cost of Goods Sold amounting to $779,937 million, based on total revenues of $1.1 billion. This figure bundles everything that goes directly into building the product, which includes raw materials and the direct manufacturing labor you mentioned. We know raw materials are a major driver; for instance, the reported Raw Materials cost for the quarter ending June 2025 was $95.1 million. Managing the price volatility of these components is key to protecting margins, something the company has been actively monitoring due to supply chain dynamics.

Here's a snapshot of the major cost components for the full Fiscal Year 2025:

Significant investment in engineering and R&D capabilities

The company's business relies on deep engineering know-how, which is a significant, though often less visible, cost. Powell Industries is making deliberate investments here to commercialize new products and stay competitive, especially in high-margin areas like electrical automation. For the full Fiscal Year 2025, Research and Development expenses totaled $7,881 thousand. Management has indicated you'll see spending at this level continue for the next couple of years, with expectations for new products to hit the market in 2026. It takes a lot of engineering to turn an RFQ (Request for Quotation) into a buildable design, generating thousands of drawings regardless of the order size.

Selling, General, and Administrative (SG&A) expenses

These are the overhead costs not directly tied to manufacturing a specific unit. For the full Fiscal Year 2025, Powell Industries reported Selling, General, and Administrative expenses of $95,401 thousand. This covers everything from sales staff salaries to corporate overhead. The company has been focused on driving cost efficiencies across the business as a whole to help manage this base cost structure.

Capital expenditures for facility expansion and capacity upgrades

To support the robust backlog and future growth, capital expenditures are necessary for physical capacity. For example, the expansion project at the Houston electrical products facility was budgeted around $11 million for Fiscal 2025, aimed at augmenting the manufacturing footprint. Looking ahead, projected CapEx for Fiscal 2026 includes about $12.4 million specifically for the Jacintoport facility expansion to support LNG demand, plus an additional $5 million to $7 million for general maintenance and productivity projects. This shows a clear, multi-year investment plan in physical assets.

Costs associated with maintaining a skilled technical workforce

While direct labor is in COGS, the cost to maintain the high level of technical skill is embedded across R&D and SG&A, plus the general overhead of a specialized workforce. The fact that the company is actively expanding its engineering capabilities with a new center in West Houston underscores the ongoing investment in technical talent. Furthermore, the company appointed a new VP of Service to expand its services franchise, which implies investment in specialized, skilled personnel to drive that revenue stream. The successful execution of complex, engineered-to-order projects, which drives their strong gross margins, is directly dependent on this specialized human capital.

Powell Industries, Inc. (POWL) - Canvas Business Model: Revenue Streams

You're looking at the core engine of Powell Industries, Inc.'s financial engine, which is heavily weighted toward the sale of custom-engineered electrical equipment and systems. This is where the bulk of the money comes in, designing and building those critical power management and distribution solutions for major industrial and utility projects. For the full fiscal year 2025, Powell Industries, Inc. hit a significant milestone, reporting Total Fiscal 2025 Revenue was $\mathbf{\$1.1 \text{ billion}}$. That's a solid 9% jump compared to the prior year. To keep that momentum going, the company is converting its substantial order book into recognized sales. As of September 30, 2025, the backlog stood at $\mathbf{\$1.4 \text{ billion}}$. Management signaled confidence in converting a significant portion of that, with approximately $\mathbf{60\%}$ of the $\mathbf{\$1.4 \text{ billion}}$ backlog expected to convert to revenue over the next 12 months, looking into fiscal 2026. Honestly, that visibility is what keeps the financial engine humming. The bottom line for this record year was equally impressive; Net income for FY2025 was a record $\mathbf{\$181 \text{ million}}$, which is a 21% increase year-over-year.

Here's a quick look at the key financial results underpinning these revenue streams for the full Fiscal 2025:

While the primary revenue driver is the large-scale equipment sales, the business model also incorporates service revenue from maintenance, installation, and support, which supports the long-term customer relationship, though the financial reports tend to aggregate this within the overall project revenue or by market sector. The revenue mix is heavily influenced by the cyclical nature and project timelines within their served industries. You can see where the revenue growth was concentrated in FY2025:

• Electric Utility sector revenue grew by $\mathbf{50\%}$.
• Commercial & Other Industrial sector revenue grew by $\mathbf{19\%}$.
• Light Rail Traction Power market revenue increased by $\mathbf{87\%}$.
• Oil & Gas revenue saw a slight decline of $\mathbf{3\%}$.
• Petrochemical market revenue declined by $\mathbf{19\%}$.

The $\mathbf{\$1.4 \text{ billion}}$ backlog is a mix of these sectors, with Electric Utility and Oil & Gas each making up about one-third as the company exited fiscal 2025. The focus on the utility sector, including the $\mathbf{\$60 \text{ million}}$ order noted in Q3, which was the largest utility order in Powell Industries' history, clearly shows where near-term revenue conversion strength is expected to come from. The acquisition of Remsdaq Ltd. is also intended to scale a margin-accretive electrical automation solution, which will feed into future service and system revenue streams.