Tema ETFs Boosts Powell Industries Position as Industrial Stock Powers Up 63%

In a move reflecting strong conviction in industrial infrastructure growth, New York-based Tema ETFs significantly expanded its Powell Industries holding by acquiring 23,168 additional shares valued at approximately $7.80 million based on Q4 2025 quarterly average pricing. The expansion underscores why this 63% performer deserves renewed attention from growth-focused investors seeking exposure to the infrastructure modernization wave.

As of quarter-end, the fund’s total Powell Industries position reached 76,338 shares valued at $24.34 million, representing 1.89% of Tema’s 13F reportable assets under management. The position value increased by $8.13 million during the quarter, reflecting both the share acquisition and substantial stock price appreciation.

Record Performance Fuels the 63% Rally

Powell Industries’ trajectory tells a compelling story for investors asking why a fund would expand into a stock already up 63% in twelve months. The company delivered a record fiscal year, generating $1.10 billion in revenue alongside $180.75 million in net income, translating to diluted earnings of $14.86 per share.

The numbers behind the up 63% surge reveal quality, not speculation: gross profit expanded 16% alongside revenue growth, demonstrating expanding margins rather than mere top-line expansion. Equally important, the company’s order backlog ticked up 3% to nearly $1.4 billion, suggesting the current momentum reflects genuine demand rather than a temporary sentiment shift.

Priced at $405.55 as of late January, Powell shares have dramatically outpaced the S&P 500’s 17% gain over the same period, showcasing sector-specific strength in industrial equipment and controls.

Infrastructure Compounder, Not Cyclical Play

What makes Tema’s decision to increase exposure particularly revealing is the fund’s positioning. Powell Industries ranks within a portfolio already populated by large-cap quality operators like Nvidia ($32.88 million, 2.6% of AUM), Apple ($24.24 million, 1.9% of AUM), Lilly ($23.11 million, 1.8% of AUM), and Caterpillar ($21.90 million, 1.7% of AUM).

This placement signals how Tema classifies Powell: not as a traditional cyclical industrial bet tied to oil and gas volatility, but as a specialized infrastructure compounder positioned to benefit from longer-term structural trends. The company’s custom-engineered electrical equipment systems, including power control substations, switchgears, and motor control centers, serve medium- and high-voltage applications across oil and gas, petrochemicals, utilities, mining, and transportation sectors.

Critically, Powell’s exposure to electric utility grid modernization and data center expansion provides a demand profile fundamentally more resilient than peers chained to commodity cycles. Its integrated distribution and control systems address mission-critical infrastructure needs where reliability demands premium pricing power.

Capital Strength Enables Scaled Growth

Beyond operational excellence, Powell’s financial durability adds another layer of conviction to Tema’s up 63% position increase. The company ended fiscal 2025 with $476 million in cash and short-term investments, providing substantial flexibility to:

• Scale manufacturing capacity to fulfill the $1.4 billion backlog
• Pursue strategic acquisitions like Remsdaq (completed in Q3) to expand service capabilities
• Fund research and development for next-generation electrical control systems
• Weather any near-term cyclical headwinds without stressing capital structure

This financial fortress allows Powell to move faster than competitors constrained by leverage, making the company an infrastructure consolidator in fragmented markets where integration capabilities create lasting competitive advantages.

Why Tema Doubles Down

Tema’s decision to expand Powell Industries holdings despite the 63% run signals confidence that earnings power and balance sheet strength—not momentum—drive the investment thesis. In an environment where infrastructure modernization, grid reliability, and industrial automation command premium valuations, Powell represents exactly the type of durable, mission-critical solution provider that compounds shareholder value over decades rather than quarters.

For investors evaluating industrial positions, the fund’s vote of confidence in a stock up 63% suggests the real growth story may still be unfolding.