Powell to Boost Automation Portfolio With the Remsdaq Buyout

Powell Industries, Inc. POWL has inked a deal to acquire Remsdaq Ltd. for £12.2 million (approximately $16.3 million) in cash. The deal includes an upfront payment of £9.2 million, with the rest to be paid later if Remsdaq meets certain technical and financial goals.

Based in the UK, Remsdaq is engaged in designing and producing advanced technology products for the management, control and supply of electrical energy including Supervisory Control and Data Acquisition (SCADA) Remote Terminal Units (RTUs). It supplies these products to customers in industries such as utilities, military, financial institutions and industrial plants through different sales channels.

Acquisition Rationale of Powell

The latest buyout is in sync with Powell’s policy of acquiring businesses to strengthen its business and expand market share. The integration of Remsdaq’s advanced SCADA RTUs with the company’s hardware and detection sensors will enhance the latter’s electrical automation solutions portfolio. This acquisition will also enable POWL to offer more comprehensive automation solutions for utility customers, enhancing their operational performance, system stability and infrastructure security.

The acquisition will strengthen Powell’s position in the utility market and will enhance its ability to meet the growing customer demand for digital automation solutions. Subject to customary closing conditions, the acquisition is expected to close during the fourth quarter of fiscal 2025 (ending September 2025).

POWL’s Zacks Rank and Price Performance

Powell’s business momentum can be largely attributed to its strong foothold and strength in two key markets, which are oil and gas and petrochemical. A strong pipeline of projects within the LNG market and its growing presence across the data center and electric utility sectors, along with a solid backlog, are key catalysts behind the company’s growth.

POWL currently carries a Zacks Rank #3 (Hold). In the past year, the stock has gained 67% compared with the industry’s 11.7% growth.

However, rising expenses, supply-chain issues and other factors are keeping the company’s bottom line under pressure.

Stocks to Consider

Some better-ranked companies are discussed below:

AZZ Inc. AZZ currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AZZ delivered a trailing four-quarter average earnings surprise of 8.1%. In the past 60 days, the Zacks Consensus Estimate for AZZ’s fiscal 2026 earnings has increased 4.9%.

Broadwind, Inc. BWEN presently sports a Zacks Rank of 1. The company delivered a trailing four-quarter average earnings surprise of 61.1%.

In the past 60 days, the consensus estimate for BWEN’s 2025 earnings has remained steady.

Alarm.com Holdings, Inc. ALRM presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 15.7%.

The Zacks Consensus Estimate for ALRM’s 2025 earnings has remained steady in the past 60 days.

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This article originally published on Zacks Investment Research (zacks.com).

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