Powell Industries : 2022 Annual Report

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P O W E L L I N D U S T R I E S

A N N U A L R E P O R T

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LEADING

FROM POWERING NEW HORIZONS

STRENGTH

Change is constant. Understanding that has been key to our longevity.

Today's energy transition is a predominant force, reverberating across our core end markets, particularly among our valued utility, petrochemical, and oil and gas customers. As they redefine their trajectories, Powell will continue to support them with innovative solutions and reliable products to meet their electrical distribution requirements.

As we've responded to the challenges of a changing world, doors of opportunity have swung wide open.

Brett A. Cope

President & CEO Chairman of the Board

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Taking a thoughtful, measured approach to expansion, we have consistently proven our capabilities across the globe, earning sustainable market gains in geographies and end markets that were historically secondary for Powell.

Taking a thoughtful, measured approach to expansion, we have consistently proven our capabilities across the globe, earning sustainable market gains in geographies and end markets that were historically secondary for Powell. We continue to build our presence in new market sectors, while also aggressively growing our services franchise and offerings. Today, we are well positioned and eager to solve tomorrow's electrical distribution needs.

Strategies, reinforced

Powell remains committed to our strategic growth plans. First, leveraging our domain engineering expertise, we continue to expand our product and solution offerings organically, through both new product introductions and existing product enhancements. Investing in the appropriate talent and R&D, we are designing and manufacturing innovative, cost-effective products, meeting our customers' challenges with big ideas.

Second, we continue to enhance our automation capabilities. As the world pivots to more configurable solutions and less manual intervention, Powell's suite of monitoring hardware and sensors promise to improve operational efficiencies through predictive analytics and data digitization.

And finally, broadening our service capabilities into new markets remains a Powell priority. Rather than the conventional capital expenditure model of installation, commissioning, and maintenance, we are delivering real value to our customers through ongoing operational expenditures that optimize equipment and ultimately improve safety and efficiency.

Proactive supply chain

Powell proudly operates a regionally based supply chain, sourcing and manufacturing our products where they are produced. Our integrated factories give us total control over the things we provide, allowing us to deliver solutions quickly during challenging times.

Despite many global supply chain challenges over the last fiscal year, Powell effectively leveraged the strength of our balance sheet, using capital to build component and raw material inventories, which allowed us to maintain flawless execution to our customers.

Eyes open to new opportunities

Growth is inevitable for Powell products and services as the world transitions to more diverse energy sources and new technologies that will call for innovative distribution solutions. This has never been more evident than throughout fiscal 2022, as global commercial activity across industrial, and light commercial sectors gained significant momentum. Our ingenuity and domain expertise allows us to meet customers on their turf and terms to solve the latest electrical distribution problems.

In response to recent unprecedented events, Powell was quick to react and adapt, transforming challenges into opportunities. As Powell evolves, we are looking to build partnerships with universities and expand relationships with other companies within our space.

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