- Earnings call transcript Q4 2022

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Operator

Good morning. And welcome to the Powell Industries Fiscal Fourth Quarter 2022 Results Conference Call. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Ryan Coleman, Investor Relations. sir. ahead, go Please

Ryan Coleman

me execution not risks, these and raw involve economic political and competition risks to, be general Securities in longer risks good the price a conditions, materially Powell's company's availability of forward-looking statements. time call Industries to Thank operating that including of international, will forward-looking review how statements and of Conference quarter the sensitivity statements replay business via but earnings limited CEO; call, to results. related will company's no XXXX, replay within reading. and of projected XXXX considered uncertainties the telephonic of webcast and speaks Cope, today's are therefore, or XX. statements such us Chairman of There on be Investors pressures, Powell's Fiscal and for those replay available will note for information These includes be fourth are available of and are powellind.com, that information Act With was Private year certain full time-sensitive going that call X, Powell the may uncertainties its conference cautioned Call actual this Mike industry to differ may future and transcript you only and December it or accurate the morning, until you, call the that results results any you by economic expectations future on release. This Brett information Metcalf, strategies. Litigation everyone. and and materials joining Year forward-looking Please listening Reform on statements, CFO. replay Thank yesterday's the from be of website, may as and and that today December the a to advised reported to provided The and in XXXX. access competitive today, include, meaning be at are

company's Exchange please the Brett. refer call that information, and over with filings I’ll to Securities For With more the now turn to the Commission.

Brett Cope

Thank Thank results. fiscal comments Powell’s make you take Powell today quarter everyone. call XXXX review and us commentary I'll turn to fiscal year. financial very fourth good strong to year for the we our and Mike fourth questions. a before you, Ryan. for close full over then And morning, out joining delivered a your more quarter few to

modest prior into to more cyclical supply a was continue yielding global market with macro-economic I'm the deliberate efforts strategic future our to the XX% like grew improved extremely to not a XX% diversified to prior to By I'd the across grew out compared our commercial our and to certainly traction $XX XX% we market as footing since a that and among our and performed markets history. industrial. where a Traction the lead consists the markets in XX% was throughout has $XXX The quarter industrial in stronger fell how sequentially. economic to products $XX very of fiscal applications pandemic totaled creating are and our strategic and all in petrochemical, to while position a of an Our above After and business, Total revenue headwinds, revenue of Powell’s It are XX% in million, year profitability. solid petrochemical for are And gas from XXXX million. beginning XX% initiatives revenue we and for XXXX, enter breaking sector had decline on that and to over $X quarter, XX% mining the remain XX% utility, deliver fourth gas, a a adverse the we million. Powell period by other and we less execute datacenters, utility mainly effects by saw in XX% of incredibly Revenue historically XX% includes which such higher by note sector business. $XXX others. are a growth are of $XX elevated proud which Powell chain revenue $XX fiscal fiscal year our for while led that offset are costs growth oil the the million increased resilient, focus. And across sector our year. also year, and strong moment backlog partially and will team oil million and automation cycle. tangible revenue million full results strong XXXX million. activity under the factors we highest in now to has its new just this in take the to calling financial onset and cryptocurrency lower on challenging growth early decline

sector activity. the our over traction doubled was quarterly quarter from totals year, For revenue secured as our which this $XX second the is gross of of than and our our figure consecutive in rising fiscal sixth market. in activity Order order we million, was revenue the notably new more full the new quarter market million in to since strong bookings. $XXX than higher XXXX is That quarter highest

X.X Our book the a strong, was fourth quarter bill quarter one. of straight in the and book with equally bill was over to to x ratio

As the to large a pleased of highlighted oil market am Powell calls broader markets prior we I the liquefied all activity. that support was the US activity lagged Gulf to orders order end fourth awarded by recovery share in core industrial that to located our spanned our small of Coast. mid-sized which the on was activity, our we across natural significant in on robust continued and gas award This gas markets. overall production of complemented quarter has project

fiscal million, year, of compared For orders the totaled to full $XXX new XX% XXXX. an increase

margin a the did by We the This delivered XXX points benefit of points one-time quarter. related close from municipal greater adjusting in which year, basis a in strong helped to to sequential project from quarter execution. positive and a fourth of was the outs benefit, shortly. year. gross positive a margin that higher basis of contributed these for event XXX recovery services After basis prior driven and explain fiscal non-recurring points prior XX.X%. XXX on underlying improvement will project the project detail costs Our a team's a than favorable effects deliver growth. Michael mix

million, to per $X.XX net benefited per prior in share share. million which bottom million, the diluted aforementioned reported of the share, income $X.X $X.XX per or the $X.X $XX.X $X.XX The or net the year from line, Full compared share. income diluted income contributed to million, was we year. in Moving recovery, per net or quarter $X.XX or cost $X line

company During diluted combined, non-recurring that events $X.XX fiscal when had the share. XXXX, contributed three er

ended represents total highest is growth XXXX. Lastly, higher end year the history sequential backlog fiscal of backlog of This Powell’s XX%. the a we the million. And and with in of $XXX is XX% than

step right commercial with end the our marked the sectors of Our and backlog. project from share markets. another standpoint, markets balanced a fourth the a other comprising direction was the we commercial key continued utility, the and in the quarter is growing backlog return industrial Overall, serve well across of

mitigate higher environment. continue to we operational working the to our effects of a cost diligently Turning performance,

for such steel price prices engineered copper compared and remain and While commodities previous the availability to key key material levels, improved headwinds. as have of the components

on into price them early bidding our teams are ensure address enough and current and activity. to and factor not cost these project Our overruns working increases identify they future do hard significant to process create

strong We continue have our and on to closeout focus protect strong an productivity to margins. extremely project

environment and the projects when possible. initiatives to We cost implementing are where current also pressing align to

improved timing of support We business of we our cost closely level our across of continue labor growth staffing to monitor execution the of to the as work and backlog. the and

major currently, economy. a and certainly labor the we rising appreciate costs headwind the of retaining not of as as across finding difficult employees nature the well qualified While

quarters. been hard the Our human has several resources team last extremely working over

later released areas. our year areas focus One we I operation pleased of will we introduce and difficult the I established the and environment company reliably very control far. electrical that We have very talented products with that continues and proud our am customers Powell resourceful have the for these of group creativity the safely helped and tenacity, their navigate labor an incredibly dedication effectively have Powell thus across quick has progress the It breaker. help was to been am develop this of throughout This expand XXXX. automation call Powell. that several we conclude recap a year, attention three initiatives solutions. of of year digital around fiscal our on strategic I'd focused where and line each ago to and made past one formally reputable of our our with like

innovative operation first and control recently taken and offer their to assets new of high we Additionally, peak measurement our contracts, we And digital monitor current product helping value service have sensor. secure measure released our to and first switchgear, steps protect, customers subscription-based and Powell's control a the the ensure performance.

our delivering is fourth of entire results teams strong. quarter in in line thank and moment very Their service has team our like I'd Services all strategy. the and and to a strong Global Our our congratulate year the to been with take business. for performance

of have offerings. products comments. made adoption for beyond low during circuit commercial around our distribution our bus voltage and President XX to that this years past bus steps solution. mapping only year, and voltage industrial positioned is over service last, value-added to digital development expanded or portfolio continue cost inorganic this commissioning operations. site Also growth other organic that And an additional track our to part breaker. This these transitioning FlexGear and Thonsgard initial sector led going a further good solutions. the the support and offering impressive our to And clients roles welcome available our over an broader requirements installation ability have expanded Powell value done, Powell’ of FlexGear in new electrical me past expand excited in is factors and taken developing past our in their the and demonstrated scope their record to helping air led finally, a the product value successes Research we we noted Powell remains with and a demonstrated ecosystem. invaluable organization. to services schedule meet low our voltage This and engineering earlier notable electrical as introducing Powell success. strategy to contributed Dennis our systems. past medium one of project take allowing and role, Powell on for medium he confident the Voltage high electrical has is the significant and use there commercially Development, be are and Jr] contributing we work customers further we our project and to new providing 's help brings development differentiator in of of joined held our Vice and years the management [Marshall more to from have be my Marshall on we products and team the in network a roadmaps will to XX While efficiently for where This global customers of power leadership has distribution our Monae I build solutions that the customers Low position forward more to solutions strategies. any today modification provides Low of we we of proven our our of the help Overall, have is research repair in value development product customers at Dennis true of markets. R&D Powell our to Chicago commercial fall. within our what successfully platform, increased of effectively have teams Breaker year, Powell our service addition and services. years the led products, service earlier very common our proposition that offerings. their phase And offer Powell develop ability led an is about ansi in add is and path am year, and a operations, I'm who progress XX of Voltage the Powell he He expand to of improve

driving requirements more for results. of Our applications. turn that in often increased electrification status over suited to a demand order the across Mike with as applications added to our number detail growing that, distribution around call is leader engineer to for for provide value a new complex globe solutions is the ideally With I'll electrical Powell financial

Mike Metcalf

quarter Thank sequentially higher a you, to all a to of sectors Powell market and basis. increased then morning, across quarter $XX quarter, market number successfully for results. results Brett. XXXX has as Notably, fiscal by last the $XXX sector first the were I'll begin on gains Revenues XX% fourth focused. revenues executed in of in historically And this fourth And sequential other fourth projects year the and commercial quarter with where everyone. of industrial to not business markets fiscal year's good by of increased million making $XXX total fiscal move accretive million, million. we compared XXXX the our

industrial we result increasing across an sector additional that a as to determine commercial our add other applications, to appropriate and of the reporting. As Brett activity is it mentioned,

As and core data our will to million, same and $XXX sector ago, than one has across $XXX were and and sectors, such a strategic other a markets applications higher demand is fourth period our in of pulp as initiative. fiscal Net end spanning traditionally orders year applications mining others. industrial strong core such which our Growth commercial these component most added for quarter of been paper reported markets. the centers, a encompass the million among

we positive the Our specifically continue active industrial end Complementing large to core markets across all market, a very commercial recovery LNG industrial end in end see activity of markets. securing by also positive the evidenced quarter. our of markets. our remain the project within gas

end the the a the million was $XXX quarter versus fiscal in the strength $XX substantial the From our of the very Overall, higher with sectors XXXX. across by increase ratio of driven the As the fiscal core our end and while XXXX, XXXX. revenues as the oil quarter, or performance quarter revenues industrial million record by fourth million. million resulting orders result quarter orders of XX% quarter $XXX winding end on at our by across decreased fiscal to utility XX%, our higher and we in industrial of of markets. fourth by backlog international all Compared enter book The a and domestic million was position to Reported East perspective, and the book and to a from strong bill we $XXX was order $XX sector customer the sector in commercial the Middle down fourth were primarily gas, backlog XX%. was fiscal utility revenues large in by The other of our Asia. increased X%. projects X.Xx. increased high pleased sector

and versus managing year, XX.X% quarter mentioned ago, necessary $X income was compensation. the a prior year a order to municipal costs the CapEx prior million diligent team of compared book. $XX general million per prior in on focus working increased which $X.X the project quarter. by share. claim addressing remains with or project to million fiscal volume per quarter the expenses nonoperational to fiscal in related XX% Overall, US project period lower free respect revenues the favorable municipal large a year municipal net On XX% were year ago. or and by diluted increased reported million, and versus our XX.X% or by attributable was of diluted the in oil to same the XX%, a of as volume percentage compared $X.X million fourth a as variable an the $X.XX same was well successfully which favorable higher million down with The cash which the quarter profit in fiscal higher close period industrial Canada. commercial mainly the $XXX,XXX. recovery, sector year favorable income a a reported the increases the increase the ago, fulfill across XX% or XXX net business, benefited which or points the million, the during increase fourth by productivity by in basis sector a year basis, share, fourth the and attributable spending margin rate year by closure While broad revenues outs. nearly in million project Xx the in the higher a was service fiscal XXX wind Notably, by $XX while quarter project of the year the rate profit to driven one fourth revenue, long-standing faster $XX continuing requirements ago. other lower versus while performance resource and we associated project, quarter, previously of generated flow We across same performance-based XXXX, fourth prior overhead These to by in the sector was expenses offset gross of to year. generating core capital and was quarter costs $X.XX work basis generated mix to industrial critical cost Gross ago. in were points somewhat as XX% this of revenues margin included driven rate fiscal coupled was strong versus the the based and versus as fiscal period. sector, gross revenues increase XXXX. of in an $XX services one Selling, higher to gas in quarter based profit SG&A the of traction, incremental in by of margin period administrative driven to the of $X.X was in associated from also With the period collections same year-over-year a petrochemical We volume quarter XX.X% by

$X.X versus were recapping expenses versus year gas total end the other basis revenues $XX fiscal XXXX we market, in and the by and XXXX a year-over-year as as by incremental successfully revenues by with Now lower year. or and supply chain We and the of prior sector challenges XXXX. XX.X% Orders the that led to the income Selling, of industrial of in $XXX XXX market percentage XX% oil at XX% XX% expenses utility higher million, versus end Gross net higher were prior million, penetration percentage increased prior the of by and growth coupled revenues Revenues offsetting in the $XXX $X.XX headwinds fiscal commercial flat Overall, our the most administrative of versus net throughout of year fiscal continued inflationary SG&A compared per was profit year. a year. share. fiscal our recovery million ‘XX. were the diluted and sustained encountered reported points general prior in million, the or $XX.X of XX.X% million markets.

a million, long the of term the investments million and company prior $XX $XXX position, had short-term was the fiscal impacting During in than $XX combined diluted quarter to million two fourth and had per in Total fiscal year. of yearend fiscal end the holds flow At the debt. that cash zero a fiscal XXXX, usage contributed versus XXXX, when of XXXX XXXX. of we share previously recovery the usage quarter we events, non-recurring $X fiscal fiscal lower cash noted cost our call, XXXX municipal $X.XX fiscal million three in claim third free earnings year cash

Based prior will fiscal we look forward that solid end revenue our upon into at growth order $XXX momentum fiscal this encouraged to year. we're presently XXXX, we're anticipate experiencing, our end fiscal with we commercial that core with commercial are coupled optimistic strong the year XXXX XXXX. As fiscal and the current the throughout versus fiscal book continue million, markets, activity across

mentioned we anticipated as we to expect Additionally, year resulting on, business in revenue XXXX, will result cost actions Based for the focused continued that and the outlook quality, fiscal past point, expect the improvement XXXX. experience project first and to typical XX pricing as answer the dynamics in that fiscal productivity the the operational across we'll earnings the At total to throughout the quarter be seasonality items improve and upon your of this we of a happy increased in profitability I during discipline significantly fiscal in nonrecurring previously. questions. of teams months, terms versus XXXX, XX well accounting excluding that are these initiated as

Operator

Instructions] from Franzreb first come John question [Operator Our & will Company. with here Sidoti

John Franzreb

mentioned congratulations want morning, and of for $X.XX press how of of I you season business Good quarter. the talked of should for great on point onetime playing kind some suggests And about Is the in Brett, that prepared the look XXXX. seasonality $X.XX versus going number kind Mike. starting out thanks Brett as I And so, into at taking in the fiscal a has should XXXX a it? items start release, QX and questions we as with the if in to guess the you've remarks. that we use a QX.

Brett Cope

where and John. gross will are to our always continue been, has and is into the Thanks how and hits year spin us still base with from we at seasonality managing sure focus Yes, so profitability next is, we fight can the even always to spin it through. quarter, make margins time be more those overall backlog growth would a business. continue That's and two heading absolutely. the it incremental first operational it on look periods, up I the just underlying The improve margins of down holiday

we in the we plough of the But expect as throughout the fiscal kind year. this that point, on of some QX and rest be there'll then, year. of So recover fiscal at the into to

John Franzreb

to a talk percentage maybe quarter, context to would What kind seems that helpful. relative bit it in Any wasn't and case? business of a there was quarter. profitability like the sizable the of be the revenue, Can the was third? why Okay, it about little services contributor you the a

Brett Cope

a was It significant very to contributor the year.

the the strategic short on that that pent-up where brownfield was tend we the project the than approach to year, a done service ’XX as ‘XX. the work well larger, front in as services the to but demand not long of look and both are certainly and and nice come out taking Mike then as little just of markets job sort to is in a into into out side be And our financial end our the build that, at of that's expand a alluded are there we're think tenders and Not to there themes. back did the little There project. end site team success quicker I of year. to on capability some the team, to some to. make contributed was that and of both commercial of two to jobs capital element a prudently the run these general services other the the test cycle the the strategies always projects One of risk cycle jobs of jobs being I comments aftermarket these longer definitely the the they a successful throughout pandemic,

John Franzreb

on to gross hate put but looks quarter about margin was the I spot, and Okay, XX.X%. adjusted you this the like

prevents a when year headwinds, that maintain of kind or Is XX% of the was rate I have there but that for can that a margin record headwinds gross I remember XX%, from backlog. materializing? you can there? You eminently this enough run full are achievable. think time

Brett Cope

backlog. mouths theme today, goal ago. power lot than we heading do to or year margin from that into underlying and versus gross a years those Powell have I all full But is a sits sizable is sit Yes, that of had And is the past more out Mike, gold. got But increment no, you to to without would years have feed say the we here it time. the call year. it's coming the of XX nice year. it XX what had anything. we're, wouldn't operational divisions, We on a footprint our our today one across I'll which a be

Mike Metcalf

the Brett, and that on fiscal was into refer over looking head, little is going heading I Yes, substantially you back you when mix ‘XX. to mix we're than hit gas experiencing it ‘XX to the in into year different periods prior the different think, a really last right

Operator

Our City Jon with Kansas Capital. next from Braatz will question come

Jon Braatz

Brett. a than the Good big was add you also also morning, Can And award. cash maybe be the LNG to flows LNG of that might with color project, award. profile might and I of a associated and Good revenue then How little breadbasket. maybe that wondering morning, could it be? margin the -- if sequencing Mike. maybe Bigger the

Brett Cope

I'd the So award, spring, as to continued project. year mentioned, is, kind into the a last a is line this first is of up we've the pick comment it in would make in fall activity mega classically with greenfield we call all of what

the that So market back that. of in usually call the kind is to days, $XX screaming, $XX side in of when we on offshore the north was used the million to million This range.

which with on project to when where a And the get a we so difficult, years. end to it's it. very has complexity, know lot of excited of plus it, pretty well will this off, complex very go they rate is a There's challenges built, we're lot a of the usually a burn there's uncertainty lot of it's the job, have we're back a high little but and bit well, starting project, two in it

attention On the fiscal it think the we've in but more margin and still job, larger pricing market side, comment is make competitive a that still price the competitive, general world, generally, draws just is on the throughout the some But progress year. it cognizant competitively. made it's I'd I entire

into a little that this woven well. there's one bit as So

Jon Braatz

Okay.

you've You've the work this is done than aspect LNG done before, of what before? this different project

Brett Cope

electrical challenges mechanically distribution, but how the there these and footprints the coastal of which small meat mechanical designs, electrical a had on building facilities, a just statement. general the area, in a it call I of It's the side. potatoes, being squeezed the but No, just on they're design, complexity the lot just LNG not the

changes combine you that the It given of our, going project. be of it's just lot carry do it. fast employees throughout that when side we it you're model. that So don't designers, of constant And and there's XX% entire is happen two our and well, and the John, I really And together, think followed the efficiently. a to really we just engineers engineering are

Jon Braatz

then improving that's And Good. in prospects the, we lastly, Might say, seeing talk area. you a improvements I see Okay. some should about can front? been geographically a on international the weaker Obviously, if little you're or bit XXXX? for the maybe

Brett Cope

Mike about in of Yes, their the of winding in a couple his noted down projects Asia. comments sort of

a some we end There then of for Asia. mostly are East pause in traveling in we, year. did a Middle got I've projects, XXXX of the fall in participate. this activity terms was planned sort in next there around touring And I where the some the trip I think just market in

So some starting come we'll think up. I mid late year. And do spin next we back back that to to things see

Operator

Pinnacle. Our will with from next come John question Deysher

John Deysher

Good taking morning. Thanks for my question.

up Following with on worked before? question, that you have the customer LNG

Brett Cope

we Yes, have.

John Deysher

done works. you of so but I Okay, out percentage can if what side That's some Now you've operations. do operating might in you capacity looking good. know this, fiscal I don't capacity; you be at? ‘XX? sales to answer close do sold with ’XX. fiscal think some be of But might were you what percentage you capacity your each and understand you to think how do projects them operating What, at know and you a you record

Brett Cope

of result the maybe based. to in but today, that we the on broader much I'd the of record what it is the question, these firstly, when you're a shared the your as And respond saw John, QX, backlog growth it up levels. seen look past run we is question first at call sorts we've and right

just in the ‘XX, dependent, to the and XX% so where last and though was as it Canada, timing XX% not coming schedule. started up market that participating are capacity, thinking Gulf oil So to it we we that And edge. these getting was and activity previous move were the range. to that could quarters, we more Coast calls it if to. say get needed back, I'd UK if because tend think good about the it's it's business, ‘XX, are thoughtfully is close, average, we sharing little then Overall evenly. a Remember, about the the so But everybody bit see we On gas. around even on in US building watching somewhere push curves, spread to come really back Canada's bidding couple and because nice large strong, we're were the projects you see over we just

we're the take So at I'm pretty today. years. in with that side confident of well to have that looking the what what with positioned funnel, we next in top the we're couple And

John Deysher

business. got you've infrastructure manpower and sourcing this handle to enough and so of all material Okay,

Brett Cope

doing the I indications different a continues we'll side, some past engineering mean, our side side I at, it's in better do. macro that the the when some little continue But the summer, overall we've the changes grow from whether leadership, slowed we're we're a challenges. the to pace, wouldn't in bring this sets, or -- I into say seen done out think operations, and consumer bit down think, there. it's we I've of on skill the to even in if go better little We manpower it I market factory is have in

think I look capitalize well but next two if successful it be and into overcome without really I we're pace So at positioned challenges, we're out to same as it. the its years, wouldn't the

John Deysher

helpful. the out segment, I financials? That's that you all-other the other finally, does segment that segments And replace in and new commercial the guess industrial,

Mike Metcalf

and Yes, hi, these is reported growth it that actually is It a markets that we're of accretive out carves so segregates all traditionally seeing John. bucket This Mike. that buckets. from new yes, and this other subset

John Deysher

good. Okay,

segment will So you thing. of that all kind automation, ago in and about basically of year new everything service a and electrical be of talked terms expense, that the

Brett Cope

in consistent other sort be XX side. data end done always specific a rising in in just become be segment, work would the last it the done This would although market there. -- the over revenue sporadically of We've and pulp centers, It and paper. segment. We've the started on months work more

out it segment. So in felt carve we prudent was the it to

Operator

And come question will from next Spiro Spiro our with Tom Capital.

Tom Spiro

LNG Fine. getting Congratulations quarter business a good on for morning. you. on strong Good that and fourth

utility be a little old show Where to an that will reported? segment segment your Is will segment? new Just new in or one the that be housekeeping, in what in utility? business, going that up business,

Brett Cope

to reported That has in utility and been its No be in continue there. sector, will reported sector. it own the changes

Tom Spiro

you for it's to think the change Okay, year going do new R&D much? great. Thanks, spending

Brett Cope

bit. years I what think we've not Marshall year others, we year future think out, but talked up at spins work on some And investment. a would So Look yet that adding anticipate that as into up, done allocate team our market the the on, made moves year little in think to X-XX I capital we've this next increasing I into year. flattish we've years, into with term. and Marshall heading up, on with and line to the some in comes and But quite longer plans there's team strategic to this with the

Tom Spiro

What VP is R&D? of the from? he come the of did new background Where

Brett Cope

really of recently, on us in Schneider secondary had as switchgear, perfectly. the background, and well career the with Eaton Most S&C his Electric, started also his rounded well side primary fits and so as which

Tom Spiro

That's great.

project guess, of wonder coming And two, that I you up? won one, I couple you the of end how LNG when You're, it gone? a large ago, has years it number finish number to

Brett Cope

team. those two, they've the the the managing the job, I that is think get with identifying It knew been year. from bid, our without we heading team I staying it's the all I'm with through project, a executed. it's how client. very securing the and great to is end job, hasn't can very the of it'll somewhat the with give be well say all partner close client, I And with pleased challenges. We think gone the the it secured tailing credit the into very ’XX of really still project ongoing, from project. as And its risks, commercial off I Certainly the Number bulk aspects, risks I'm, although outset done engineering

Tom Spiro

the mix point you it. didn't see. this and I at of a in impacts had go margin discussion take really you understand you gross the earlier Maybe I of on changing the make. business, little call, another could of And were to trying

margins? of How your lines As your mix new services changes, that will business and technologies other and affect grow of some these stuff.

Mike Metcalf

that oil this our profits of mix that five, years back you and seven John up brought When mix, teens, Tom, in question at ago, when look work. were is gas Yes, contained lot Mike. a gross the the high

oil this gas other the that seven oil that Brett doesn't back work, we're did and which of As carry to sectors commercial work alluded margins gas is now, the recover. seeing and volume a the ago. and But utility supplementing work, typically type in five, we're industrial just years what of beginning to lot back

So in mix It's Powell you of was jobs those the from history. in XX-year the when is that my an comment but prior have what of built the easy, for on on say just not changes our all versus Yes, to with not you look they're process loads, complexity complex a on years, as right. they're that or lot of facility. changes depth don't industrial happen because

as it's did really development And other complexities in been add a it And And well the side. diversification different a it's that bus, cycle. in continue this it to year, been story our phasing tendency the service pressure. the we to makes So on it to a great build a year. part but the as the then pick have under has both also is the nice look up side that last market

Tom Spiro

traditional business? the Do lower services tend on or oil and margins gas your than to run higher

Mike Metcalf

Higher.

Brett Cope

a the design side to products. you're with a on margin labor of bring or of to in when talented on in bear It's lot some tends side, labor services on it higher a site the the especially you're putting, project and bringing

Operator

up Our Company. next with & Franzreb question from be John follow will a Sidoti

John Franzreb

how that old to older? projects, it that is the a a here. revenue. Was about I'm points million Just are curious couple the $X.X project contributed recent project,

Mike Metcalf

won that of due and XXXX John, executed. and orders the incurred years the or a years. And over several we revenue recovery timing P&L, cost uncertainty via recorded. of in a think project recovering The We the costs. costs Powell but actually I the executed Yes, is through to the of is flow number was not ‘XX change ago, this those

amounts finalized And general contractor. the fourth ultimate that and the margins last fourth of settled. that's that majority ago. this quarter. -- And fiscal by in quarter, end Now cost was defined a $X.X several user a the And uplift recovered million were and incurred had this Powell in result, years project the we as the

John Franzreb

that's versus, Is trip we are I mean, the to months fiscal Brett three ago? the at XXXX. And in referenced, upcoming exit kind East. your say backlog fiscal still similar of All you curious the your robust? as Middle backlog right. Asia, travel today exit XXXX I'm pipeline it to about looking in opportunity

capture Just in seeing, what's there your relative out thoughts to about were it. you order to what

Brett Cope

It's exit to hard still say will pretty John, what backlog strong, be. the

number potential shared has part XX is I to and the end strong oil there, that to have think ‘XX very And of the the backlog have that a at certainly to as we received the of better appreciative throughout for gas pursue definitely been we'll oil of building XX months. side ‘XX QX. point. continue things in the that are just into them and There at ongoing, part and and definitely there's award gas to probably in ‘XX core continue. a one project, this that market isn't But are that percolating

be core return So that increasing market. I to think will that an

have the change On of number years, in a focus, Canada, any about the years, especially talked that countries don't very expect five, I US, broader, for home We've strong UK. cadence. utility a strategic the in of to we six continue our

latter more gaining in I continue XX the last have up the solution, to continue expect months, share pretty of to toXX utility the uncertainly year. But part maybe I So the there, it here and little sit then that that where come and robust can as activity. Powell best execute markets today, kind demonstrate a we customers incrementally of bit broader is

like clip. So a concludes turn our to I any over Cope at half, continue would to back the remarks. This conference closing at good the first think, it'll for least session. I question-and-answer in Brett

Brett Cope

financial Overall, our are quarter markets our the full end and Joe. core year as with you, Thank pleased the performance continue for improve. we to in

participation employees talented seeing X,XXX exceptional very are customers. their fiscal to like with success, excellence, a our you with for to thank on on today's that With enthusiasm the I quarter. successes would future initiatives very service XXXX combined forward are your to nearly spirit confidence thank improve to can-do our the continued call. growth your early Powell strong that in look me of commitment We 's with all great a encouraging our speaking entering operational I momentum. for We and early gives Their interest appreciate and focus is safety next and you bright. Powell.

Operator

Thank for attending concluded. The presentation. conference you now today's has

disconnect You may your now lines.

Powell Industries (POWL) 6 Dec 222022 Q4 Earnings call transcript