Shares of Powell Industries experienced a significant surge on Wednesday following the company’s impressive financial performance in the fiscal first quarter. The stock rose by an astounding 50% to reach $122.15 in recent trading, setting a new all-time high and achieving its largest percentage increase on record. Over the past year, shares have nearly tripled, marking its best three-day period since 1989.
Houston-based electrical distribution company, Powell Industries, reported that its revenue for the quarter ended December 31 increased by a notable 53% to $194 million. In comparison to the previous year, the company’s profit also saw a significant jump, reaching $24.1 million, or $1.98 per share, compared to $1.16 million, or 10 cents per share, previously.
One of the driving factors behind this success was the company’s strong growth in various sectors including Petrochemical, Oil and Gas, Utility, and Commercial and Other Industrial segments. Powell Industries attributes its solid revenue growth to the strength and quality of its backlog as well as excellent project execution and efficiency gains.
According to Chief Executive Brett Cope, this improved profitability demonstrates the positive impact of their robust backlog and efficient project execution. Additionally, Chief Financial Officer Michael Metcalf expressed confidence in the company’s core markets, expecting continued activity through fiscal 2024.
Moreover, Powell Industries raised its dividend by 1%, bringing it to 26.5 cents.
Overall, Powell Industries’ impressive financial performance is a testament to its success in various sectors and highlights its potential for future growth.
