Powell Industries Inc (POWL) Reports Record Fiscal 2023 Results with Significant Growth in ...
Fourth Quarter Revenue increased by 28% to $209 million; Full Year Revenue up by 31% to $699 million.
Net Income soared to $26 million in Q4 and $54.5 million for the full year, with EPS at $2.17 and $4.50 respectively.
Backlog reached a historic high of $1.3 billion, indicating robust future revenue potential.
Cash and short-term investments stood at $279 million as of September 30, 2023.
On December 5, 2023, Powell Industries Inc (NASDAQ:POWL), a premier provider of electrical energy solutions, released its 8-K filing, announcing its earnings for the fourth quarter and full fiscal year ended September 30, 2023. The company reported a significant increase in both quarterly and annual revenues, alongside a substantial rise in net income and earnings per share (EPS).
Fiscal 2023 Fourth Quarter Performance
POWL's fourth quarter revenues reached $208.6 million, marking a 28% increase from the same period last year. This growth was primarily attributed to strong performance in the Oil and Gas market sector, particularly from higher LNG revenue. Gross profit for the quarter stood at $52.0 million, or 24.9% of revenue, showing a notable improvement from the previous year's 20.6%. Net income for the quarter was impressive at $26.4 million, or $2.17 per diluted share, which included benefits from unusual items amounting to $0.22 per diluted share.
Annual Financial Highlights
For the full fiscal year 2023, POWL's revenues totaled $699.3 million, a 31% increase from the previous fiscal year. The company's gross profit also saw a significant rise to $147.6 million, or 21.1% of revenue, up from 16.0% in Fiscal 2022. Net income more than tripled to $54.5 million, or $4.50 per diluted share, compared to $13.7 million, or $1.15 per diluted share, in the prior year. These full-year results included unusual items that provided a combined benefit of $0.38 per diluted share.
Operational and Market Outlook
Brett A. Cope, Chairman and CEO of Powell Industries, expressed pride in the company's record-setting year, highlighting the double of new orders to $1.4 billion and a strong backlog that sets the stage for continued success. CFO Michael Metcalf projected a positive outlook for Fiscal 2024, expecting similar margins to Fiscal 2023 and emphasizing the company's strong balance sheet and liquidity position.
Balance Sheet and Cash Flow Insights
As of September 30, 2023, POWL's balance sheet reflected a robust financial position with cash, cash equivalents, and short-term investments totaling $279 million. The company's working capital stood at $226.3 million, and total assets were reported at $752.2 million. Capital expenditures for the year amounted to $7.8 million, and the company paid dividends totaling $12.4 million.
Conference Call and Webcast Information
POWL has scheduled a conference call for December 6, 2023, to discuss these financial results in greater detail. Interested parties can access the call via phone or through a live webcast on the company's website, with a replay available for approximately 90 days post-call.
In summary, Powell Industries Inc (NASDAQ:POWL) has delivered a remarkable fiscal year with significant growth in revenue, net income, and a record backlog, positioning the company for sustained success in the coming year. The strong financial results reflect the company's operational excellence and strategic initiatives, which continue to resonate well with investors and stakeholders alike.
Explore the complete 8-K earnings release (here) from Powell Industries Inc for further details.
This article first appeared on GuruFocus.
