Powell Industries delivered a solid second quarter of fiscal 2025, with revenue of $279 million, up 9% year over year, and gross profit of $83 million, resulting in a gross margin of 29.9% (up ~530 bps YoY). Net income rose to $46.3 million and diluted EPS reached $3.81, marking a quarterly record. The quarter benefited from strong demand in the electric utility and commercial/other industrial sectors, contributing to a backlog of $1.3 billion and a book-to-bill of approximately 0.9x. Management highlighted several strategic product launches and capacity expansions designed to monetize intellectual property and diversify revenue mix, including grounding switches, a compact substation, a Powell control aisle substation, and a low-voltage switchgear design for data centers. Backlog quality and project closeouts supported margin upside, with project closeouts contributing roughly 275 bps to gross margin in Q2 and about 125 bps year-to-date. Powell also reiterated an upbeat view for the remainder of the year, supported by a capacity expansion completed on time and on budget at the Houston electrical products facility and a strategic push into higher-growth end markets across the U.S., Canada, and the U.K. Importantly, the company maintains a pristine balance sheet with no debt and cash and short-term investments of $389 million, underpinning its ability to fund capital expenditures and potential strategic opportunities. Management signaled that margins in the back half of fiscal 2025 are expected to align with the first six months’ run-rate, excluding the benefit of near-term closeouts, and that revenue visibility extends well into fiscal 2027. Overall, Powell is positioned to benefit from continued strength in LNG/oil & gas, utility and data-center opportunities, while navigating ongoing macro and tariff-related uncertainties.