Powell Industries (POWL) stock plummeted 12.38% in pre-market trading on Wednesday, following the release of its third-quarter fiscal 2025 financial results. The sharp decline indicates that the earnings report fell short of market expectations, despite showing growth in several key areas.

According to the company's announcement, Powell Industries reported Q3 revenue of $286 million and earnings per share (EPS) of $3.96. The company's gross profit reached $88 million, resulting in a gross margin of 30.7%. Net income for the quarter stood at $48 million, while new orders amounted to $362 million. Despite these figures showing growth in several key areas, the market's response suggests that investors were anticipating even stronger results or more optimistic future guidance.

The significant pre-market drop follows a 10.68% decline in Tuesday's regular trading session, indicating a continued negative reaction to the earnings report. Investors and analysts will likely scrutinize the financial results further to better understand the factors driving this substantial stock price decline, including potential concerns about the sustainability of growth or industry headwinds not immediately apparent in the reported financials.