Capital allocation remains disciplined with CapEx consistently below 2% of revenue, though cash flow conversion remains volatile due to project-based working capital swings.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Oct'05 | Oct'04 | Oct'03 | Oct'02 | Oct'01 | Oct'00 | Oct'99 | Oct'98 | Oct'97 | Oct'96 |
|---|
| Cash from Operations | 152.09M | 167.94M | 108.66M | 182.55M | -3.58M | -30.46M | 72.39M | 68.76M | -28.54M | 36.81M | 74.91M | 12.92M | 9.13M | 91.76M | -5.96M | 15.49M | 64.13M | 126.98M | -5.19M | 12.16M | -4.7M | -21.19M | 24.91M | 36.47M | 31.67M | -2.06M | 426K | 18.5M | 1M | 5.6M | 11.8M |
| Operating CF Margin % | - | 15.21% | 10.73% | 26.1% | -0.67% | -6.47% | 13.96% | 13.3% | -6.36% | 9.3% | 13.25% | 1.95% | 1.41% | 14.32% | -0.83% | 2.75% | 11.65% | 19.07% | -0.81% | 2.15% | - | -8.26% | 12.08% | 14.39% | 10.33% | -0.76% | 0.19% | 8.71% | 0.47% | 2.92% | 6.94% |
| Operating CF Growth % | 1281.48% | 54.55% | -40.48% | 5196.4% | 88.24% | -142.08% | 5.29% | 340.9% | -177.53% | -50.85% | 479.86% | 41.52% | -90.05% | 1638.34% | -138.52% | -75.85% | -49.5% | 2547.65% | -142.66% | 358.72% | 77.82% | -185.07% | -31.7% | 15.16% | 1639.43% | -582.86% | -97.7% | 1750% | -82.14% | -52.54% | 883.33% |
| Net Income | 186.93M | 180.75M | 149.85M | 54.52M | 13.74M | 631K | 16.66M | 9.89M | -7.15M | -9.49M | 15.51M | 9.44M | 29.22M | 42.08M | 29.66M | -2.71M | 25.17M | 39.72M | 25.85M | 9.91M | 0 | 2.25M | 1.67M | 7.12M | 17.91M | 13.54M | 7.06M | 7.1M | 6.7M | 12.6M | 4.8M |
| Depreciation & Amortization | 8.12M | 7.26M | 6.87M | 8.61M | 9.36M | 10.34M | 10.54M | 12.03M | 12.9M | 12.76M | 13.33M | 13.55M | 12.16M | 10.19M | 13.08M | 15.45M | 13.7M | 11.6M | 11.87M | 11.86M | 6.5M | 5.42M | 4.53M | 5.16M | 4.9M | 4.38M | 4.67M | 4.4M | 4.1M | 3.4M | 3.3M |
| Stock-Based Compensation | 3.66M | 4.63M | 4.75M | 4.6M | 4.09M | 2.58M | 3.47M | 3.84M | 3.15M | 2.72M | 4.88M | 3.17M | 3.38M | 4.46M | 1.72M | 99K | 1.93M | 1.62M | 2.17M | 0 | 0 | 506K | 364K | 410K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -12K | -4.87M | -7.47M | -7.85M | -4.86M | -995K | 1.47M | 820K | -2.17M | 100K | 2.33M | 10.52M | -3.21M | -6.72M | -1.42M | -425K | -348K | -1.45M | 318K | -592K | -1.5M | -207K | -1.72M | 902K | 140K | 1.03M | 1.17M | -800K | 900K | 1.3M | -2.1M |
| Other Non-Cash Items | -48.03M | -237K | -48K | -54K | -1.84M | 48K | -248K | 233K | -636K | 144K | 878K | 466K | 582K | -544K | 842K | 5.82M | 7.86M | 1.17M | 1.07M | 1.84M | -4.97M | -1.05M | -13K | 557K | 149K | -16K | -400K | -600K | -200K | 12.3M | 12.8M |
| Working Capital Changes | 1.42M | -19.61M | -45.28M | 122.72M | -24.06M | -43.06M | 40.5M | 41.95M | -34.64M | 30.58M | 37.97M | -24.23M | -33.02M | 42.3M | -49.84M | -2.73M | 15.82M | 74.33M | -46.47M | -11.2M | -6.72M | -28.11M | 20.07M | 22.32M | 8.65M | -21.16M | -12.45M | 8.2M | -10.1M | -11.4M | -6.5M |
| Change in Receivables | 15.63M | -2.44M | -7.31M | -99.72M | -31.63M | -7.51M | 41.97M | -20.19M | -37.18M | 47.98M | 369K | 391K | 1.96M | 5.84M | -16.21M | -17.62M | 39.69M | 15.39M | -27.15M | 0 | -42.28M | -17.98M | 24.26M | -22.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 6.95M | 2.98M | -21.82M | -13.28M | -21.43M | -599K | 304K | -7.99M | -3.02M | 8.21M | 6.16M | -572K | -3.96M | 3.88M | 3.95M | 1.54M | 12.32M | 25.88M | -25.51M | -19.15M | -6.53M | -2.52M | 2.19M | 1.5M | 1.87M | -3.9M | -2.35M | 1.1M | -2.7M | 500K | 900K |
| Change in Payables | -26.97M | -7.49M | 16.35M | -6.17M | 18.59M | 9.76M | -15.31M | 9.55M | 8.15M | -2.42M | -12.33M | -5.07M | 1M | 12.56M | -37.05M | 14.78M | -37.01M | 33.13M | 5.87M | 0 | 23.06M | -106.88M | -103.27M | -43.25M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 18K | -8.34M | -21.87M | -26.57M | 6.46M | -2.46M | -17.54M | 2.96M | 10.14M | -55.3M | -2.86M | -34.61M | -1.56M | -73.48M | -27.87M | -6.76M | -28.46M | -8.05M | -3.43M | -14.16M | -10.7M | 21.64M | -3.02M | -10.3M | -13.87M | -10.29M | -2.65M | -5.2M | -9.7M | -14.8M | -3.3M |
| Capital Expenditures | -8.91M | -13.15M | -11.98M | -7.82M | -2.45M | -2.93M | -5.16M | -4.25M | -4.42M | -3.62M | -3.04M | -34.72M | -16.5M | -74.37M | -29.06M | -7.35M | -4.42M | -8.08M | -3.43M | -14.34M | -8.44M | -6.11M | -6.47M | -4.54M | -13.87M | -10.29M | -2.65M | -5.2M | -9.7M | -14.8M | -3.3M |
| CapEx % of Revenue | 0.79% | 1.19% | 1.18% | 1.12% | 0.46% | 0.62% | 1% | 0.82% | 0.98% | 0.92% | 0.54% | 5.25% | 2.55% | 11.6% | 4.05% | 1.31% | 0.8% | 1.21% | 0.54% | 2.54% | - | 2.38% | 3.14% | 1.79% | 4.53% | 3.79% | 1.19% | 2.45% | 4.56% | 7.72% | 1.94% |
| Acquisitions | -11.49M | -11.49M | 0 | 0 | 4.35M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 14.82M | 0 | 0 | 0 | -23.39M | 0 | 0 | 0 | -11M | -19.17M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 20K | -143K | 12K | 629K | 514K | 33K | 0 | 1.86M | 0 | 187K | 112K | 118K | 885K | 1.2M | -646K | 14K | 30K | 0 | 175K | 8.73M | 879K | 1.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -23.98M | -25.12M | -19.25M | -13.06M | -13.31M | -13.17M | -13.1M | -13.85M | -13.03M | -12.67M | -17.37M | -34.95M | -12.51M | -452K | 1.27M | -801K | -19.39M | -30.44M | 13.79M | -4.05M | 700K | 15.41M | 580K | -3.74M | -9.95M | 16.75M | -6.31M | -3.3M | 7.1M | 2.4M | -2.3M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | -400K | -400K | -400K | -400K | -400K | -400K | -400K | -400K | -400K | -729K | -1.12M | -1.08M | -17.01M | -31.24M | 7.05M | -2.11M | -164K | 14.38M | -458K | -4.65M | -10.7M | 15.57M | -2.43M | -3.4M | 7M | 2.2M | -2.8M |
| Equity Issued (Net) | -2.04M | -12.25M | -6.6M | -652K | -675K | -632K | -629K | -1.45M | -712K | -398K | -4.74M | -22M | -499K | -187K | -154K | 0 | 0 | 0 | 4.24M | 3.26M | 703K | 1.53M | 1.04M | 914K | 752K | 1.18M | -3.88M | 100K | 100K | 200K | 500K |
| Dividends Paid | -9.69M | -12.87M | -12.65M | -12.41M | -12.23M | -12.14M | -12.07M | -12M | -11.92M | -11.88M | -11.85M | -12.36M | -12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -2.04M | -12.25M | -6.6M | -652K | -675K | -632K | -629K | -1.45M | -712K | -398K | -4.74M | -22M | -499K | -187K | -154K | 0 | 0 | 0 | 0 | 0 | 800K | 0 | 0 | 0 | 0 | -218K | -4.67M | 0 | 0 | 0 | 0 |
| Other Financing | -12.25M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -387K | -191K | 391K | 464K | 2.54M | 275K | -4.08M | 806K | 2.51M | -5.21M | 161K | -501K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | -359.54M | 135.41M | 69.46M | 143.92M | -12.36M | -45.9M | 41.58M | 56.91M | -31.77M | -29.36M | 54.15M | -59.55M | -4.29M | 17.71M | -33.43M | 8.11M | 17.95M | 87.27M | 4.88M | -5.24M | -14.3M | 15.87M | 22.47M | 22.43M | 7.84M | 4.41M | -8.53M | 10M | 2.4M | -2.3M | -2.7M |
| Free Cash Flow | 143.18M | 154.79M | 96.68M | 174.73M | -6.03M | -33.35M | 67.26M | 64.5M | -33.05M | 33.18M | 71.86M | -21.8M | -7.37M | 17.39M | -35.03M | 8.14M | 59.71M | 118.9M | -8.62M | -2.18M | -13.13M | -27.3M | 18.44M | 31.93M | 17.79M | -12.35M | -2.22M | 13.3M | -8.7M | -9.2M | 8.5M |
| FCF Margin % | 12.65% | 14.02% | 9.55% | 24.99% | -1.13% | -7.09% | 12.97% | 12.47% | -7.36% | 8.38% | 12.71% | -3.29% | -1.14% | 2.71% | -4.88% | 1.45% | 10.84% | 17.86% | -1.35% | -0.39% | - | -10.64% | 8.94% | 12.6% | 5.81% | -4.55% | -1% | 6.26% | -4.09% | -4.8% | 5% |
| FCF Growth % | 179.97% | 60.11% | -44.67% | 2996.3% | 81.91% | -149.58% | 4.28% | 295.2% | -199.6% | -53.83% | 429.63% | -195.93% | -142.36% | 149.65% | -530.32% | -86.37% | -49.78% | 1480.03% | -295.59% | 83.42% | 51.88% | -248.06% | -42.25% | 79.42% | 244.1% | -455.72% | -116.71% | 252.87% | 5.43% | -208.24% | 547.37% |
| FCF per Share | 3.92 | 4.24 | 2.64 | 4.81 | -0.17 | -0.94 | 1.92 | 1.85 | -0.96 | 0.97 | 2.10 | -0.61 | -0.20 | 0.48 | -0.98 | 0.23 | 1.70 | 3.42 | -0.25 | -0.06 | -0.41 | -0.85 | 0.57 | 1.00 | 0.55 | -0.39 | -0.07 | 0.41 | -0.27 | -0.28 | 0.26 |
| FCF Conversion (FCF/Net Income) | 0.77x | 0.93x | 0.73x | 3.35x | -0.26x | -48.27x | 4.35x | 6.95x | 3.99x | -3.88x | 4.83x | 1.37x | 0.31x | 2.18x | -0.20x | -5.70x | 2.56x | 3.20x | -0.20x | 1.23x | - | -9.41x | 14.92x | 5.22x | 1.77x | -0.15x | 0.06x | 2.61x | 0.15x | 0.44x | 2.46x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 56.13M | 50.92M | 17.23M | 533K | 0 | 1.77M | 0 | 354K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Project-based cash flow volatility
As reported in financial statements, Powell's operating cash flow to net income ratio has exhibited significant volatility, ranging from a negative 0.13 in 2024Q4 to a peak of 3.48 in 2024Q1, reflecting the inherent lumpiness of project-based revenue recognition and milestone-driven billing cycles in industrial engineering.
The wide variance between net income and operating cash flow suggests that investors should focus on multi-quarter averages rather than individual periods to gauge true earnings quality. This divergence appears primarily driven by the timing of project milestones, which can cause significant temporary disconnects between accounting profit and actual cash collection.
Based on reported figures, working capital changes have been the primary driver of cash flow instability, with a notable $47.2 million outflow in 2024Q4 followed by an $8.3 million inflow in 2025Q4, illustrating the sensitivity of Powell's liquidity to the timing of large-scale project payments.
These fluctuations indicate that the company's cash position is highly susceptible to the billing and collection cycles of its major energy infrastructure projects. Investors should monitor the 'costs and estimated earnings in excess of billings' account, as persistent outflows may suggest delays in project completion or client payment cycles.
According to recent SEC filings, Powell maintains a lean capital intensity, with CapEx as a percentage of revenue consistently remaining below 2% in most quarters, which underscores a business model that does not require heavy, recurring investment in fixed assets to sustain its specialized engineering operations.
The low capital intensity suggests that the company's competitive advantage is derived from intellectual capital and engineering expertise rather than massive physical infrastructure. This allows for high free cash flow conversion during periods of project execution, provided that working capital requirements do not overwhelm the cash generated from operations.
As evidenced by historical data, Powell has utilized its robust cash reserves to fund modest dividends and opportunistic share repurchases, such as the $14 million buyback in 2026Q1, while maintaining a fortress balance sheet that remains entirely free of long-term debt obligations.
The company's approach to capital deployment appears highly cautious, prioritizing liquidity preservation over aggressive expansion or shareholder returns. While this strategy provides a significant buffer against cyclical downturns, it may warrant further investigation into whether management intends to deploy this capital for strategic M&A to diversify its project pipeline.
Quick answers to the most common questions about buying POWL stock.
Powell Industries, Inc. (POWL) generated $167.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Powell Industries, Inc. (POWL) generated $154.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Powell Industries, Inc. (POWL) spent $13.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Powell Industries, Inc. (POWL) returned $12.9M to shareholders via cash dividends and spent $12.2M on share repurchases. This shows the company's commitment to returning capital to its equity investors.