Ben Magovern ’25 pitched Powell Industries, Inc. (NASDAQ: POWL) on November 18, 2024. Powell Industries, established in 1947 and headquartered in Houston, Texas, is a leading provider of custom-engineered equipment and systems for electrical energy management, distribution, and control. Powell’s diverse product offerings include integrated power control room substations (PCRs), medium-voltage circuit breakers, and arc-resistant switchgear. The company serves key industries such as oil and gas, petrochemicals, LNG facilities, and electric utilities while maintaining a strong presence in emerging sectors like data centers and renewable energy.
Ben’s investment thesis highlighted Powell Industries’ leadership in engineered electrical distribution solutions, its robust backlog of $1.3 billion, rising demand in oil and gas, and its strategic focus on growth sectors such as renewable energy and grid resilience. With rising global demand for electrification and infrastructure modernization, Powell is well-positioned to benefit from these long-term trends. The company’s U.S.-based manufacturing provides a competitive edge amid reshoring initiatives and domestic energy infrastructure investments. Additionally, Powell’s diversification efforts into high-growth markets, including energy storage and hydrogen production, align with global sustainability goals.
The Student Managed Investment Fund (SMIF) voted to purchase 175 shares of POWL, funded through the sale of 305 shares of XLI. This trade underscores confidence in Powell’s ability to capitalize on its strong backlog, expanding product portfolio, and strategic positioning in traditional and emerging markets, securing long-term growth opportunities.