Q3 2024 Powell Industries Inc Earnings Call Transcript
Key Points
- Revenues in the quarter were 50% higher than the prior year, driven by strong performance across nearly all market sectors.
- Gross profit nearly doubled compared to the same period in fiscal 2023, achieving a gross margin of 28.4%, the highest in over a decade.
- The company booked $356 million of new orders in the quarter, the highest quarterly total of fiscal 2024.
- Backlog remains at $1.3 billion, the highest in Powell's history, indicating strong future revenue potential.
- Net income more than doubled to $46.2 million or $3.79 per diluted share, compared to $18.5 million or $1.52 per share in the prior period.
- Operational disruptions due to Hurricane Beryl impacted facilities in Houston, causing power outages for up to five working days.
- New orders for the third fiscal quarter were $149 million or 30% lower compared to the same period one year ago, due to a challenging comparison with the prior-year period.
- The light rail traction power sector saw a 25% decline, indicating challenges in this market segment.
- Increased SG&A expenses by $2 million due to higher spending on infrastructure improvements.
- The company is facing capacity constraints, which could limit future growth if not addressed.
Good day, and welcome to the Powell Industries fiscal third-quarter 2024 results conference call. (Operator Instructions) Please note, this event is being recorded.
I would now like to turn the conference over to Ryan Coleman with Alpha IR. Please go ahead.
Thank you, and good morning, everyone. Thank you for joining us for Powell Industries' conference call today to review fiscal year 2024 third-quarter results. With me on the call are Brett Cope, Powell's Chairman and CEO; and Mike Metcalf, Powell's CFO.
There will be a replay of today's call, and it will be available via webcast by going to the company's website, powellind.com, or a telephonic replay will be available until August 7. The information on how to access the replay was provided in yesterday's earnings release.
Please note that information reported on this call speaks only as of today, July 31, 2024. And therefore, you are advised that any time-sensitive information may no longer be accurate at the time of replay listening or
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