Powell Industries, Inc.

Welcome to the Powell Industries Earnings Conference Call. At this time, all participants are in listen-only mode. Should you need assistance, please signal a consent specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to Mr. Robert Winters, Vestalations. Thank you. Please go ahead.

Thank you, Operator, and good morning, everyone. Thank you for joining us for Powell Industries' conference call today to review fiscal year 2026 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 11. 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, August 4, 2026, and therefore You are advised that any time-sensitive information may no longer be accurate at the time of replay, listening, or transcript reading. This conference call includes certain statements, including statements related to the company's expectations of its future operating results that may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, and that actual results may differ materially from those projected in these forward-looking statements. These risks and uncertainties include, but are not limited to, competition and competitive pressures, sensitivity to general economic and industry conditions, international, political and economic risks, availability and price of raw materials, and execution of business strategies. For more information, please refer to company filings with the Securities Exchange Commission. With that, I'll now turn the call over to Brett.

Thank you, Bobby, and good morning, everyone. Thank you for joining us today to review Powell's fiscal 2026 third quarter results. I will make a few comments and then turn the call over to Mike for more financial commentary before we take your questions. Powell delivered a very strong third quarter. highlighted by a record for new orders in a single quarter, which in turn has elevated our backlog to over $2 billion for the first time in our 79-year history. Revenue grew 9% compared to the prior year, and our continued focus on productivity delivered a gross margin of 30.6%. Revenue growth in the quarter was once again driven by our commercial and other industrial and electric utility markets, with continued strong results in the oil and gas sector. Each of our core end markets are exhibiting high levels of activity, and the nature and scope of these projects are central to Powell's core competencies. The electric utility market remains very active, underwritten by structurally undersupplied power demand, while data center order activity for Powell has clearly inflected higher relative to just one year ago. Meanwhile, in our industrial end markets, the growing importance of U.S. LNG exports in the global energy landscape remain supportive of demand for the electrical infrastructure required across the natural gas supply chain. Overall, Powell was awarded a record $934 million of new orders in the third quarter, which is nearly three times higher than the prior year and nearly double the order total from last quarter. Included in this order total is the previously announced Mega Data Center order, which is in excess of $400 million for phase one of a multi-phase behind-the-meter design of on-site generation assets. In addition, Powell was awarded $75 million for the electrical distribution equipment supporting a new petrochemical facility for the production of fertilizer, and we received an award of approximately $60 million for a new LNG liquefaction facility. Both of these projects are located along the U.S. Gulf Coast. Outside of these three mega awards, our order book in the quarter was comprised of more than $350 million of new awards balanced across the market verticals in which we compete, and a testament to the volume and diversity of our order intake. Our backlog is now nearly $2.4 billion, again the highest in Powell's history, and it is notable that we have booked over $1.8 billion of new awards over the past three quarters. The visibility provided by our backlog continues to extend, as we are booking awards that we'll be executing deep into our fiscal 2028. The order book also remains balanced across the Powell footprint, which, combined with actions we are taking to create incremental capacity, will improve opportunities to further drive productivity across our facilities. Those actions include a lease that we entered into late last year, providing an incremental 30,000 square feet of manufacturing capacity near our Ohio facility. Part of that agreement included the option to expand that lease, which we expect to execute in response to accelerating order activity. And in April, we entered into a lease agreement for a facility near our Houston facilities that is providing another 50,000 square feet of manufacturing capacity. We are now operating two satellite engineering offices around the Houston metro area to add critical engineering talent to our world-class electrical and mechanical engineering and design teams. These facilities are strategically located in the Energy Corridor and North Houston to expand our coverage of the metro area. Lastly, the expansion of our Jacinto Port facility that we announced one year ago is nearing completion. This investment will add 335,000 square feet of capacity to initially meet the accelerating demand for custom power control rooms for the LNG market. Over the long term, this capacity is fungible and can be utilized to serve our customers across any of our markets. We expect the work at Jacinto Fort to be completed in the next month or two and for utilization to ramp fairly quickly. When fully utilized, we would expect the expanded yard to support well in excess of $100 million of incremental annualized revenue. Each of the incremental initiatives that we have taken across the company over the last 12 to 18 months will result in an expansion of our total footprint of manufacturing, office, and warehouse facilities of over 20% by the end of fiscal 2026 as compared to the end of our fiscal 2025. Further, during our third quarter, the board has authorized the acquisition of a lease facility that will support approximately 300,000 square feet of manufacturing space. Over the last several quarters, our manufacturing and service leadership teams have progressed several options in proximity to our existing facilities. We are planning to have this future facility available for manufacturing activity late in our second or early third quarter of our fiscal 2027. The facility will be supported by increased fabrication throughput as part of a previously announced $8 million investment in new equipment and upgrades at our Mosley facility. We continue to evaluate the prospect of a Greenfield Powell-owned facility that would require $70 to $100 million of capital, provide upwards of an owned 250 to 300,000 square foot factory, which would also support increased fabrication. This planning process continues to progress, and we expect to make a decision in the near future. Our M&A pipeline also remains healthy and growing, and we are evaluating a number of opportunities to better position us within key growth markets. These include complementary products and or capabilities to our current portfolio or oriented toward building out our growing services franchise. Our efforts here are tempered in part by what we regard as rich valuations across the space, though we continue to engage where we see value and a strategic fit. In closing, we are very pleased with our third quarter results. Commercial activity in our core end markets remain strong, underpinned by durable and secular demand drivers, that should continue our momentum as we close fiscal 2026 and prepare for our fiscal 2027. With that, I'll turn the call over to Mike to walk us through our financial results in greater detail.