Expansion of Jacintoport facility's capacity funded by Powell to the tune of $12.4 million
Powell Industries Announces Expansion at Jacintoport Fabrication Yard
Powell Industries, a leading player in the manufacturing sector, has announced a significant expansion at its Jacintoport fabrication yard in Houston. The company is investing $12.4M to boost its production capacity by 62%, with a total investment in its Houston manufacturing sites approaching $40M.
The expansion at Jacintoport includes doubling the shoreline bulkhead length to 1,150 feet, enhancing shipping flexibility with multiple lanes. This upgrade will also add 335,000 ft² of Power Control Room laydown area, further boosting capacity. However, it's important to note that the expansion does not increase Powell's production capacity beyond the previously mentioned 65% backlog revenue conversion over the next 12 months.
The construction for this project is set to begin in Q1 of fiscal 2026, with completion expected in late fiscal 2026. The expansion at Jacintoport is part of Powell Industries' strategic move to expand into the electric utility and automation markets, moving beyond its initial focus on serving Oil & Gas clients.
Recent financial results for Powell Industries have been mixed. While the company's latest quarterly revenue fell short of estimates, some analysts are bullish about its prospects, with Powell Industries' stock having the potential for new all-time highs. On the other hand, others have suggested that the company's growth may be fizzling.
Apple is also joining in the expansion at Jacintoport, investing a total of about 40 million US dollars in its three production sites in Houston as part of its broader manufacturing expansion in the United States. However, no new information about the timeline for construction or completion of the expansion at Jacintoport was provided.
The strong recent results of Powell Industries have reinforced a buy rating, with the company's stock showing potential for new highs. Despite some concerns about the company's growth, the expansion at Jacintoport is a clear sign of Powell Industries' commitment to organic growth and its confidence in the future of its operations in Houston.
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