POWELL INDUSTRIES ANNOUNCES FISCAL 2023 SECOND QUARTER RESULTS.

HOUSTON: Powell Industries, Inc. (NASDAQ: POWL), a leading supplier of custom-engineered solutions for the management, control and distribution of electrical energy, today announced results for the fiscal 2023 second quarter ended March 31, 2023. All comparisons are to the comparable period in the prior fiscal year, unless otherwise noted.

Fiscal Second Quarter Key Highlights:

Revenues strengthened to $171 million, an increase of 34%;

Backlog more than doubled to a record $1.0 billion;

New orders(1) more than tripled to $508 million;

Gross margin improved 460 basis points to 19.5%;

Net Income was $8.5 million, or $0.70 per diluted share; and

Cash and short-term investments as of March 31, 2023 totaled $163 million.

Brett A. Cope, Powell's Chairman and Chief Executive Officer, stated, "Powell delivered quarterly results that were among the best in its history, as our continued execution against our strategic initiatives combined with the cyclical recovery of our core markets drove new orders of $508 million - our highest ever quarterly total. We also delivered $171 million of revenue, an increase of 34% compared to last year, which resulted in a book-to-bill ratio(2) of 3.0x - the sixth consecutive quarter above 1.0x. Further, our order backlog is now over $1.0 billion as the breadth of order activity across our end markets remains healthy and is complementing a strong recovery of commercial activity within our core Industrial markets. Overall, we feel very confident that our strategic efforts are positioning Powell for long-term success and that we are well-positioned to drive improved earnings in fiscal 2023."

Revenues for the second fiscal quarter totaled $171.4 million, an increase of 34% compared to $127.9 million in the prior year, which represents sequential growth of 35% compared to $126.9 million in the first fiscal quarter.

Gross profit in the quarter totaled $33.4 million, an increase of $14.4 million, or 75%, compared to the prior year, and compared to $19.5 million in the fiscal first quarter. Gross margin in the second quarter was 19.5%, an increase of 460 basis points compared to the prior year and 420 basis points compared to the fiscal first quarter.

New orders placed in the second quarter more than tripled to $508 million compared to $151 million in the prior year, and more than doubled compared to $212 million in the first quarter.

Backlog as of March 31, 2023 was a record $1.0 billion, an increase of 50% compared to $680...