Powell Industries delivered a standout QQ3 2024 performance characterized by robust top-line growth, a buoyant order book, and meaningful margin expansion. Revenue rose 50% year over year to $288.2 million, supported by broad-based strength across core industrial, oil & gas, and petrochemical markets, with utilities also contributing meaningfully. New orders reached $356 million, raising the quarterly book-to-bill to 1.2x and leaving backlog effectively flat quarter-to-quarter at roughly $1.3 billion—the company’s highest backlog in history. Gross margin expanded to 28.4% (up 620 bps YoY; 380 bps QoQ), driven by higher project closeouts, improved execution, and the exit of higher-margin backlog, with Powell benefiting from a more diversified margin profile as nonindustrial markets improve. Net income of $46.2 million ($3.79 per diluted share) more than doubled year over year. Powell also increased R&D expenditure by approximately 49% year to date, continued capacity expansion (Houston plant and a nearby 9-acre site acquisition), and maintained a debt-free balance sheet with ample liquidity (cash and short-term investments around $374 million and no outstanding debt per the company). Management highlighted a healthy demand environment, especially in utilities, oil & gas, and petrochemicals, along with a constructive outlook for 4Q2024 and fiscal 2025. The key takeaway for investors is Powell’s strong execution across a broad set of end markets, ongoing capacity investments to unlock backlog, and a resilient balance sheet that supports dividend policy discussions and potential strategic accretions. Risks include project-based execution risk, commodity/energy cycle exposure (notably LNG), competition, and inflationary pressures on materials and labor. The company remains well-positioned to translate backlog into future revenue while pursuing selective growth initiatives.