Alfred 'Chip' Moore's questions to Powell Industries Inc (POWL) leadership • Q2 2025
Question
Alfred 'Chip' Moore questioned the company's cash deployment strategy, asking why a buyback wasn't being considered and for an update on M&A. He also inquired about the drivers of electric utility growth, the potential for new products in the data center market, and the margin risk from tariffs.
Answer
CEO Brett Cope confirmed that holding cash signals compelling organic growth and M&A opportunities, noting that M&A activity is 'very active.' He highlighted that the electric utility business is a strategic focus, now 25-30% of revenue. Regarding tariffs, Cope believes the impact will be 'de minimis' for Powell due to its domestic positioning, which he views as a strategic advantage, and that costs on major buyout items will be passed through.