Risks for POWELL INDUSTRIES INC (POWL)

Here are some interesting risks from the recent filings of POWELL INDUSTRIES INC. Our algorithms work hard to highlight risks unique to this company.

Unless otherwise indicated, all references to “we,” “us,” “our,” “Powell” or “the Company” include Powell Industries, Inc. and its consolidated subsidiaries.

Our business is largely dependent on customers in the oil and gas markets and we are adversely impacted by extended periods of low oil or gas prices, which decrease our customers’ spending, the demand for our products and services and the prices we are able to charge. This has had, and may continue to have, an adverse effect on our future operating results.

Economic uncertainty and financial market conditions may impact our customer base, suppliers and backlog.

Our backlog is subject to unexpected adjustments and cancellations and, therefore, may not be a reliable indicator of our future earnings.

The use of percentage-of-completion accounting on our fixed-price contracts could result in volatility in our results of operations.