0000080420-21-000029 | 10-Q | XBRL Viewer

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Cover Page - shares	6 Months Ended
Cover Page - shares	Mar. 31, 2021	May 03, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Transition Report	false
Entity File Number	001-12488
Entity Registrant Name	Powell Industries, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	88-0106100
Entity Address, Address Line One	8550 Mosley Road
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77075-1180
City Area Code	713
Local Phone Number	944-6900
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	POWL
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		11,691,673
Entity Central Index Key	0000080420
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--09-30

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2021	Sep. 30, 2020
Current Assets:
Cash and cash equivalents	$ 134,093	$ 160,216
Short-term investments	19,852	18,705
Accounts receivable, less allowance for credit losses of $382 and $510	72,070	69,957
Contract assets	42,728	50,995
Inventories	30,031	28,968
Income taxes receivable	147	467
Prepaid expenses	2,061	4,402
Other current assets	1,806	1,948
Total Current Assets	302,788	335,658
Property, plant and equipment, net	113,653	114,372
Operating lease assets, net	4,390	5,217
Goodwill and intangible assets, net	1,072	1,161
Deferred income taxes	4,666	3,644
Other assets	14,179	12,226
Total Assets	440,748	472,278
Current Liabilities:
Current maturities of long-term debt	400	400
Accounts payable	39,598	35,029
Contract liabilities	54,098	79,445
Accrued compensation and benefits	13,356	21,739
Accrued product warranty	2,467	2,771
Current operating lease liabilities	1,948	2,352
Income taxes payable	310	1,861
Other current liabilities	8,778	9,350
Total Current Liabilities	120,955	152,947
Long-term debt, net of current maturities	0	400
Deferred compensation	8,413	6,710
Long-term operating lease liabilities	2,897	3,434
Other long-term liabilities	2,151	2,161
Total Liabilities	134,416	165,652
Commitments and Contingencies (Note F)
Stockholders' Equity:
Preferred stock, par value $0.01; 5,000,000 shares authorized; none issued	0	0
Common stock, par value $0.01; 30,000,000 shares authorized; 12,497,691 and 12,422,411 shares issued, respectively	125	124
Additional paid-in capital	63,112	61,998
Retained earnings	287,364	294,016
Treasury stock, 806,018 shares at cost	(24,999)	(24,999)
Accumulated other comprehensive loss	(19,270)	(24,513)
Total Stockholders' Equity	306,332	306,626
Total Liabilities and Stockholders' Equity	$ 440,748	$ 472,278

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2021	Sep. 30, 2020
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 382	$ 510
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	30,000,000	30,000,000
Common stock, shares issued (in shares)	12,497,691	12,422,411
Treasury stock, shares (in shares)	806,018	806,018

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
Revenues	$ 118,716	$ 151,570	$ 225,291	$ 285,720
Cost of goods sold	101,563	121,885	189,867	234,209
Gross profit	17,153	29,685	35,424	51,511
Selling, general and administrative expenses	16,675	18,573	33,549	35,861
Research and development expenses	1,601	1,783	3,274	3,258
Amortization of intangible assets	44	44	88	88
Operating income (loss)	(1,167)	9,285	(1,487)	12,304
Interest expense	51	60	101	127
Interest income	(47)	(330)	(158)	(711)
Income (loss) before income taxes	(1,171)	9,555	(1,430)	12,888
Income tax provision (benefit)	(946)	2,134	(841)	2,692
Net income (loss)	$ (225)	$ 7,421	$ (589)	$ 10,196
Earnings (loss) per share:
Basic (in dollars per share)	$ (0.02)	$ 0.64	$ (0.05)	$ 0.88
Diluted (in dollars per share)	$ (0.02)	$ 0.64	$ (0.05)	$ 0.87
Weighted average shares:
Basic (in shares)	11,707	11,621	11,690	11,617
Diluted (in shares)	11,707	11,681	11,690	11,673
Dividends per share (in dollars per share)	$ 0.26	$ 0.26	$ 0.52	$ 0.52

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (225)	$ 7,421	$ (589)	$ 10,196
Foreign currency translation adjustments	894	(6,916)	5,243	(4,529)
Comprehensive income	$ 669	$ 505	$ 4,654	$ 5,667

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income/(Loss)
Balance (in shares) at Sep. 30, 2019		12,373			(806)
Balance at Sep. 30, 2019	$ 299,153	$ 124	$ 59,153	$ 289,422	$ (24,999)	$ (24,547)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	2,775			2,775
Foreign currency translation adjustments	2,387					2,387
Stock-based compensation (in shares)		30
Stock-based compensation	982		982
Shares withheld in lieu of employee tax withholding	(611)		(611)
Dividends paid	(3,013)			(3,013)
Balance (in shares) at Dec. 31, 2019		12,403			(806)
Balance at Dec. 31, 2019	301,673	$ 124	59,524	289,184	$ (24,999)	(22,160)
Balance (in shares) at Sep. 30, 2019		12,373			(806)
Balance at Sep. 30, 2019	299,153	$ 124	59,153	289,422	$ (24,999)	(24,547)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	10,196
Foreign currency translation adjustments	(4,529)
Balance (in shares) at Mar. 31, 2020		12,420			(806)
Balance at Mar. 31, 2020	300,131	$ 124	60,492	293,590	$ (24,999)	(29,076)
Balance (in shares) at Dec. 31, 2019		12,403			(806)
Balance at Dec. 31, 2019	301,673	$ 124	59,524	289,184	$ (24,999)	(22,160)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	7,421			7,421
Foreign currency translation adjustments	(6,916)					(6,916)
Stock-based compensation (in shares)		17
Stock-based compensation	968		968
Dividends paid	(3,015)			(3,015)
Balance (in shares) at Mar. 31, 2020		12,420			(806)
Balance at Mar. 31, 2020	300,131	$ 124	60,492	293,590	$ (24,999)	(29,076)
Balance (in shares) at Sep. 30, 2020		12,422			(806)
Balance at Sep. 30, 2020	306,626	$ 124	61,998	294,016	$ (24,999)	(24,513)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(364)			(364)
Foreign currency translation adjustments	4,349					4,349
Stock-based compensation (in shares)		59
Stock-based compensation	894	$ 1	893
Shares withheld in lieu of employee tax withholding	(632)		(632)
Dividends paid	(3,028)			(3,028)
Balance (in shares) at Dec. 31, 2020		12,481			(806)
Balance at Dec. 31, 2020	307,845	$ 125	62,259	290,624	$ (24,999)	(20,164)
Balance (in shares) at Sep. 30, 2020		12,422			(806)
Balance at Sep. 30, 2020	306,626	$ 124	61,998	294,016	$ (24,999)	(24,513)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(589)
Foreign currency translation adjustments	5,243
Balance (in shares) at Mar. 31, 2021		12,498			(806)
Balance at Mar. 31, 2021	306,332	$ 125	63,112	287,364	$ (24,999)	(19,270)
Balance (in shares) at Dec. 31, 2020		12,481			(806)
Balance at Dec. 31, 2020	307,845	$ 125	62,259	290,624	$ (24,999)	(20,164)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(225)			(225)
Foreign currency translation adjustments	894					894
Stock-based compensation (in shares)		17
Stock-based compensation	853		853
Dividends paid	(3,035)			(3,035)
Balance (in shares) at Mar. 31, 2021		12,498			(806)
Balance at Mar. 31, 2021	$ 306,332	$ 125	$ 63,112	$ 287,364	$ (24,999)	$ (19,270)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References + Details

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating Activities:
Net income (loss)	$ (589)	$ 10,196
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	5,289	5,241
Stock-based compensation	1,747	1,950
Bad debt expense (recovery), net	(132)	51
Deferred income taxes	(1,022)	706
Changes in operating assets and liabilities:
Accounts receivable, net	(820)	20,446
Contract assets and liabilities, net	(16,647)	(19,614)
Inventories	(707)	(2,095)
Income taxes	(1,231)	127
Prepaid expenses and other current assets	2,542	2,847
Accounts payable	3,908	(5,602)
Accrued liabilities	(9,119)	(5,163)
Other, net	(1,298)	(1,672)
Net cash provided by (used in) operating activities	(18,079)	7,418
Investing Activities:
Purchases of short-term investments	(15,835)	0
Maturities of short-term investments	15,788	6,146
Purchases of property, plant and equipment, net	(1,590)	(3,469)
Proceeds from life insurance policies	474	0
Net cash provided by (used in) investing activities	(1,163)	2,677
Financing Activities:
Payments on industrial development revenue bonds	(400)	(400)
Shares withheld in lieu of employee tax withholding	(632)	(611)
Dividends paid	(6,063)	(6,028)
Net cash used in financing activities	(7,095)	(7,039)
Net increase (decrease) in cash and cash equivalents	(26,337)	3,056
Effect of exchange rate changes on cash and cash equivalents	214	(1,124)
Cash and cash equivalents at beginning of period	160,216	118,639
Cash and cash equivalents at end of period	$ 134,093	$ 120,571

Overview and Summary of Significant Accounting Policies	6 Months Ended
Overview and Summary of Significant Accounting Policies	Mar. 31, 2021
Accounting Policies [Abstract]
Overview and Summary of Significant Accounting Policies	Overview and Summary of Significant Accounting Policies Overview Powell Industries, Inc. (we, us, our, Powell or the Company) was incorporated in the state of Delaware in 2004 as a successor to a Nevada company incorporated in 1968. The Nevada company was the successor to a company founded by William E. Powell in 1947, which merged into the Company in 1977. Our major subsidiaries, all of which are wholly owned, include: Powell Electrical Systems, Inc.; Powell (UK) Limited; Powell Canada Inc.; and Powell Industries International, B.V. We develop, design, manufacture and service custom-engineered equipment and systems which (1) distribute, control and monitor the flow of electrical energy and (2) provide protection to motors, transformers and other electrically powered equipment. We are headquartered in Houston, Texas and serve the oil and gas markets, including onshore and offshore oil and gas production, petrochemical, liquefied natural gas (LNG) terminals, pipeline, terminal, mining and metals, light rail traction power, electric utility, pulp and paper and other heavy industrial markets. Impact of the COVID-19 Pandemic and Oil and Gas Commodity Market Volatility on Powell Through the first half of Fiscal 2021, the COVID-19 pandemic continues to significantly impact global economic conditions. This pandemic has negatively impacted energy demand, which in turn has resulted in considerable volatility across global oil and gas commodity markets. As a result, some of our industrial customers are deferring or suspending their planned capital expenditures. Certain of our customers have asked that we delay or cancel our manufacturing on their projects as their operations have been negatively impacted by this pandemic and the reduced oil and gas demand which has resulted in recognition of cancellation fees based on contract terms and the extent of our progress on the projects. We continue to work with and review the contracts with our key suppliers who have been impacted by this pandemic to ensure that we are able to meet our customer commitments. The consequences of a prolonged global economic decline could include, but are not limited to, a continued reduction in commercial and industrial activity. Accordingly, the Company cannot reasonably estimate the duration or severity of this pandemic, or the extent to which the disruption may materially impact our business, results of operations or cash flows. We will take prudent measures to maintain our strong liquidity and cash position, which may include reducing our capital expenditures and research and development costs, as well as reducing or eliminating future dividend payments. Basis of Presentation These unaudited condensed consolidated financial statements include the accounts of Powell and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. These unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial information. Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP), have been condensed or omitted pursuant to those rules and regulations. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the financial position, results of operations and cash flows with respect to the interim condensed consolidated financial statements have been included. The results of operations for the interim periods are not necessarily indicative of the results for the entire fiscal year. We believe that these financial statements contain all adjustments necessary so that they are not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto of Powell and its subsidiaries included in Powell’s Annual Report on Form 10-K for the year ended September 30, 2020, which was filed with the Securities and Exchange Commission (SEC) on December 9, 2020. References to Fiscal 2021 and Fiscal 2020 used throughout this report shall mean our fiscal years ended September 30, 2021 and 2020, respectively. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying footnotes. The most significant estimates used in our condensed consolidated financial statements affect revenue recognition and estimated cost recognition on our customer contracts, the allowance for credit losses, provision for excess and obsolete inventory, warranty accruals and income taxes. The amounts recorded for warranties, legal, income taxes, impairment of long-lived assets (when applicable), liquidated damages and other contingent liabilities require judgments regarding the amount of expenses that will ultimately be incurred. We base our estimates on historical experience, forecasts and various other assumptions, as well as the specific circumstances surrounding these contingent liabilities, in evaluating the amount of liability that should be recorded. Additionally, the recognition of deferred tax assets requires estimates related to future income and other assumptions regarding timing and future profitability because the ultimate realization of net deferred tax assets is dependent on the generation of future taxable income during the periods in which temporary differences become deductible. Estimates routinely change as new events occur, additional information becomes available or operating environments change. Actual results may differ from our prior estimates. New Accounting Standard In June 2016, the Financial Accounting Standards Board (FASB) issued a new topic on measurement of credit losses. The topic introduces an impairment model known as the current expected credit loss (CECL) model that is based on an expected loss methodology rather than an incurred loss methodology for financial instruments. Under the new topic, an entity recognizes as an allowance its estimate of expected credit losses with the intention of improving financial reporting by requiring timelier recognition of such losses. We adopted this topic on October 1, 2020 and such adoption did not have a material impact on our consolidated financial statements.

Earnings Per Share

6 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Earnings Per Share

We compute basic earnings per share by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per common and potential common share includes the weighted average of additional shares associated with the incremental effect of dilutive restricted stock and restricted stock units, as prescribed by the FASB guidance on earnings per share.

The following table reconciles basic and diluted weighted average shares used in the computation of earnings per share (in thousands, except per share data):


	Three months ended March 31,				Six months ended March 31,
	2021		2020		2021		2020
Numerator:
Net income (loss)	$	(225)	$	7,421	$	(589)	$	10,196
Denominator:
Weighted average basic shares	11,707		11,621		11,690		11,617
Dilutive effect of restricted stock units	—		60		—		56
Weighted average diluted shares	11,707		11,681		11,690		11,673
Earnings (loss) per share:
Basic	$	(0.02)	$	0.64	$	(0.05)	$	0.88
Diluted	$	(0.02)	$	0.64	$	(0.05)	$	0.87

For the three and six months ended March 31, 2021, we incurred a net loss and therefore all potential common shares were deemed to be anti-dilutive.

Detail of Selected Balance Sheet Accounts

6 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Detail of Selected Balance Sheet Accounts

Allowance for Credit Losses

Activity in our allowance for credit losses consisted of the following (in thousands):


	Three months ended March 31,				Six months ended March 31,
	2021		2020		2021		2020
Balance at beginning of period	$	493	$	346	$	510	$	301
Bad debt expense (recovery), net	(113)		9		(132)		51
Uncollectible accounts written off, net of recoveries	—		(45)		(10)		(55)
Change due to foreign currency translation	2		(10)		14		3
Balance at end of period	$	382	$	300	$	382	$	300

Inventories

The components of inventories are summarized below (in thousands):


	March 31, 2021		September 30, 2020
Raw materials, parts and sub-assemblies, net	$	29,302	$	27,429
Work-in-progress	729		1,539
Total inventories	$	30,031	$	28,968

Accrued Product Warranty

Activity in our product warranty accrual consisted of the following (in thousands):


	Three months ended March 31,				Six months ended March 31,
	2021		2020		2021		2020
Balance at beginning of period	$	2,675	$	3,162	$	2,771	$	2,946
Increase to warranty expense	395		784		1,053		1,627
Deduction for warranty charges	(609)		(670)		(1,388)		(1,315)
Change due to foreign currency translation	6		—		31		18
Balance at end of period	$	2,467	$	3,276	$	2,467	$	3,276

Revenue

6 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue

Revenue Recognition

Our revenues are primarily generated from the manufacturing of custom-engineered products and systems under long-term fixed-price contracts under which we agree to manufacture various products such as traditional and arc-resistant distribution switchgear and control gear, medium-voltage circuit breakers, monitoring and control communications systems, motor control centers, switches and bus duct systems. These products may be sold separately as an engineered solution, but are typically integrated into custom-built enclosures which we also build. These enclosures are referred to as power control room substations (PCRs®), custom-engineered modules or electrical houses (E-Houses). Some contracts may also include the installation and the commissioning of these enclosures.

Revenue from these contracts is generally recognized over time utilizing the cost-to-cost method to measure the extent of progress toward the completion of the performance obligation and the recognition of revenue over time. We believe that this method is the most accurate representation of our performance, because it directly measures the value of the services transferred to the customer over time as we incur costs on our contracts. Contract costs include all direct materials, labor, and indirect costs related to contract performance, which may include indirect labor, supplies, tools, repairs and depreciation costs.

We also have contracts to provide value-added services such as field service inspection, installation, commissioning, modification and repair, as well as retrofit and retrofill components for existing systems. If the service contract terms give us the right to invoice the customer for an amount that corresponds directly with the value of our performance completed to date (i.e., a service contract in which we bill a fixed amount for each hour of service provided), then we recognize revenue over time

in each reporting period corresponding to the amount with which we have the right to invoice. Our performance obligations are satisfied as the work progresses. Revenues from our custom-engineered products and value-added services transferred to customers over time accounted for approximately 93% of total revenues for the three months ended March 31, 2021, 92% of total revenues for the six months ended March 31, 2021 and 96% of total revenues for each of the three and six months ended March 31, 2020.

We also have sales orders for spare parts and replacement circuit breakers for switchgear that are obsolete or that are no longer produced by the original manufacturer. Revenues from these sales orders are recognized at the time we fulfill our performance obligation to the customer, which is typically upon shipment and represented approximately 7% of total revenues for the three months ended March 31, 2021, 8% of total revenues for the six months ended March 31, 2021 and 4% of total revenues for each of the three and six months ended March 31, 2020.

Additionally, some contracts may contain a cancellation clause that could limit the amount of revenue we are able to recognize over time. In these instances, revenue and costs associated with these contracts are deferred and recognized at a point in time when the performance obligation is fulfilled.

Selling and administrative costs incurred in relation to obtaining a contract are typically expensed as incurred. We periodically utilize a third-party sales agent to obtain a contract and will pay a commission to that agent. We record the full commission liability to the third-party sales agents at the order date, with a corresponding deferred asset. As the project progresses, we record commission expense based on percentage of completion rates that correlate to the project and reduce the deferred asset. Once we have been paid by the customer, we pay the commission and the liability is reduced.

Performance Obligations

A performance obligation is a promise in a contract or with a customer to transfer a distinct good or service. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue as the performance obligations are satisfied. To determine the proper revenue recognition for contracts, we evaluate whether a contract should be accounted for as more than one performance obligation or, less commonly, whether two or more contracts should be combined and accounted for as one performance obligation. This evaluation of performance obligations requires significant judgment. The majority of our contracts have a single performance obligation where multiple engineered products and services are combined into a single custom-engineered solution. Our contracts include a standard one year assurance warranty. Occasionally, we provide service-type warranties that will extend the warranty period. These extended warranties qualify as a separate performance obligation, and revenue is deferred and recognized over the warranty period. If we determine during the evaluation of the contract that there are multiple performance obligations, we allocate the transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract.

Remaining unsatisfied performance obligations, which we refer to as backlog, represent the estimated transaction price for goods and services for which we have a material right, but work has not been performed. As of March 31, 2021, we had backlog of $436.6 million, of which approximately $322.7 million is expected to be recognized as revenue within the next twelve months. Backlog may not be indicative of future operating results as orders may be cancelled or modified by our customers. Our backlog does not include service and maintenance-type contracts for which we have the right to invoice as services are performed.

Contract Estimates

Actual revenues and project costs may vary from previous estimates due to changes in a variety of factors. The cost estimation process is based upon the professional knowledge and experience of our engineers, project managers and financial professionals. Factors that are considered in estimating the work to be completed and ultimate contract recovery include the availability and productivity of labor, the nature and complexity of the work to be performed, the availability of materials, and the effect of any delays on our project performance. We periodically review our job performance, job conditions, estimated profitability and final contract settlements, including our estimate of total costs and make revisions to costs and income in the period in which the revisions are probable and reasonably estimable. Whenever revisions of estimated contract costs and contract values indicate that the contract costs will exceed estimated revenues, thus creating a loss, a provision for the total estimated loss is recorded in that period.

For the six months ended March 31, 2021 and 2020, our operating results were positively impacted by $8.2 million and $9.0 million, respectively, as a result of changes in contract estimates related to projects in progress at the beginning of the respective period. These changes in estimates resulted primarily from favorable project execution and negotiations of variable consideration, discussed below, as well as revenue and reduced costs recognized from project cancellations and other changes in facts and circumstances during these periods.

Variable Consideration

It is common for our long-term contracts to contain variable consideration that can either increase or decrease the transaction price. Due to the nature of our contracts, estimating total cost and revenue can be complex and subject to variability due to change orders, back charges, spare parts, early completion bonuses, customer allowances and liquidated damages. We estimate the amount of variable consideration based on the expected value method, which is the sum of probability-weighted amount, or the most likely amount method which uses various factors including experience with similar transactions and assessment of our anticipated performance. Variable consideration is included in the transaction price if legally enforceable and to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur once the uncertainty associated with the variable consideration is resolved.

Contract Modifications

Contracts may be modified for changes in contract specifications and requirements. We consider contract modifications to exist when the modification either creates new or changes the enforceable rights and obligations under the contract. Most of our contract modifications are for goods and services that are not distinct from the existing performance obligation. Contract modifications result in a cumulative catch-up adjustment to revenue based on our measure of progress for the performance obligation.

Contract Balances

The timing of revenue recognition, billings and cash collections affects accounts receivable, contract assets and contract liabilities in our Condensed Consolidated Balance Sheets.

Contract assets are recorded when revenues are recognized in excess of amounts billed for fixed-price contracts as determined by the billing milestone schedule. Contract assets are transferred to accounts receivable when billing milestones have been met, or we have an unconditional right to payment.

Contract liabilities typically represent advance payments from contractual billing milestones and billings in excess of revenue recognized. It is unusual to have advanced milestone payments with a term greater than one year, which could represent a financing component on the contract.

Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period and are generally classified as current. The timing of contract billing milestones related to our Fiscal 2020 contract award for a large industrial project contributed significantly to our net contract liability at September 30, 2020 and March 31, 2021.

Contract assets and liabilities as of March 31, 2021 and September 30, 2020 are summarized below (in thousands):


	March 31, 2021		September 30, 2020
Contract assets	$	42,728	$	50,995
Contract liabilities	(54,098)		(79,445)
Net contract liability	$	(11,370)	$	(28,450)

The decrease in net contract liability at March 31, 2021 from September 30, 2020 was primarily due to the timing of contract billing milestones and new orders. To determine the amount of revenue recognized during the period from contract liabilities, we first allocate revenue to the individual contract liability balance outstanding at the beginning of the period until the revenue exceeds that balance. During the six months ended March 31, 2021, we recognized revenue of approximately $55.2 million that was related to contract liabilities outstanding at September 30, 2020.

The timing of our invoice process is typically dependent on the completion of certain milestones and contract terms and subject to agreement by our customer. Payment is typically expected within 30 days of invoice. Any uncollected invoiced amounts for our performance obligations recognized over time, including contract retentions, are recorded as accounts receivable in the Condensed Consolidated Balance Sheets. Certain contracts contain retention provisions that become due upon completion of contractual requirements. As of March 31, 2021 and September 30, 2020, accounts receivable included retention amounts of $8.8 million and $6.9 million, respectively. Of the retained amount at March 31, 2021, $7.1 million is expected to be collected in the next twelve months and is recorded in accounts receivable. The remaining $1.7 million is recorded in other assets.

Disaggregation of Revenue

The following tables present our disaggregated revenue by geographic destination and market sector for the six months ended March 31, 2021 and 2020 (in thousands):


	Three months ended March 31,				Six months ended March 31,
	2021		2020		2021		2020
United States	$	87,939	$	121,432	$	168,525	$	228,510
Canada	17,734		15,407		31,825		29,861
Europe, Middle East and Africa	10,937		8,816		19,193		18,982
Asia/Pacific	2,009		5,456		4,725		7,142
Mexico, Central and South America	97		459		1,023		1,225
Total revenues by geographic destination	$	118,716	$	151,570	$	225,291	$	285,720


	Three months ended March 31,				Six months ended March 31,
	2021		2020		2021		2020
Oil and gas	$	50,142	$	51,954	$	90,171	$	111,948
Petrochemical	10,196		47,337		19,361		77,763
Electric utility	28,452		24,255		56,622		47,270
Traction power	15,140		13,944		28,501		22,295
All others	14,786		14,080		30,636		26,444
Total revenues by market sector	$	118,716	$	151,570	$	225,291	$	285,720

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
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-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Long-Term Debt

6 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Long-Term Debt

Long-term debt consisted of the following (in thousands):


	March 31, 2021		September 30, 2020
Industrial development revenue bonds	$	400	$	800
Less: current portion	(400)		(400)
Total long-term debt	$	—	$	400

U.S. Revolver

We have a credit agreement with Bank of America, N.A. (the "U.S. Revolver") which is a $75.0 million revolving credit facility that is available for both borrowings and letters of credit and expires September 27, 2024. On March 12, 2021, we entered into a first amendment to the U.S. Revolver which, among other things, amended certain terms related to the calculation of the consolidated leverage ratio from gross leverage to net leverage. As a result of the first amendment, up to $30 million may be deducted from the amount of letters of credit outstanding (not to be less than zero) when calculating the consolidated funded indebtedness which is a component of the consolidated net leverage ratio. Additionally, we now have the option to cash collateralize all or a portion of the letters of credit outstanding, which would favorably impact the consolidated funded indebtedness calculation and the consolidated net leverage ratio. As of March 31, 2021, there were no amounts borrowed under the U.S. Revolver and letters of credit outstanding were $38.6 million. There was $36.4 million available for the issuance of letters of credit and borrowings under the U.S. Revolver as of March 31, 2021.

We are required to maintain certain financial covenants, the most significant of which are a consolidated net leverage ratio less than 3.0 to 1.0 and a consolidated interest coverage ratio of greater than 3.0 to 1.0. The consolidated leverage ratio is our most restrictive covenant and a decrease in our earnings before interest, taxes, depreciation, amortization and stock-based compensation (EBITDAS) could restrict our ability to issue letters of credit and borrow under the U.S. Revolver. Additionally, we must maintain a consolidated cash balance of $30 million at all times, which now can be deducted from the letters of credit outstanding as noted above. The U.S. Revolver also contains a "material adverse effect" clause which is a material change in our operations, business, properties, liabilities or condition (financial or otherwise) or a material impairment of our ability to perform our obligations under our credit agreements. As of March 31, 2021, we were in compliance with all of the financial covenants of the U.S. Revolver.

The U.S. Revolver allows the Company to elect that any borrowing under the facility bears an interest rate based on either the base rate or the eurocurrency rate, in each case, plus the applicable rate. The base rate is generally the highest of (a) the federal funds rate plus 0.50%, (b) the Bank of America prime rate or (c) the London Interbank Offered Rate (LIBOR) plus 1.00%. The applicable rate is generally a range from (0.25)% to 1.75% depending on the type of loan and the Company's consolidated leverage ratio.

The U.S. Revolver is collateralized by a pledge of 100% of the voting capital stock of each of our domestic subsidiaries and 65% of the voting capital stock of each non-domestic subsidiary. The U.S. Revolver provides for customary events of default and carries cross-default provisions with other existing debt agreements. If an event of default (as defined in the U.S. Revolver) occurs and is continuing, on the terms and subject to the conditions set forth in the U.S. Revolver, amounts and letters of credit outstanding under the U.S. Revolver may be accelerated and may become immediately due and payable.

Industrial Development Revenue Bonds

We borrowed $8.0 million in October 2001 through a loan agreement funded with proceeds from tax-exempt industrial development revenue bonds (Bonds) for the completion of our Northlake, Illinois facility. The Bonds are subject to various covenants, for which we were in compliance at March 31, 2021. The Bonds mature in October 2021 and bear interest at a floating rate determined weekly by the Bonds’ remarketing agent. This interest rate was 0.14% as of March 31, 2021.

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Letters of Credit, Bank Guarantees and Bonds Certain customers require us to post letters of credit, bank guarantees or surety bonds. These security instruments assure that we will perform under the terms of our contract. In the event of default, the counterparty may demand payment from the bank under a letter of credit or bank guarantee, or performance by the surety under a bond. To date, there have been no significant draws or claims related to security instruments for the periods reported. We were contingently liable for letters of credit of $38.6 million as of March 31, 2021. We also had surety bonds totaling $173.4 million that were outstanding, with additional bonding capacity of $276.6 million available, at March 31, 2021. At present, we have strong surety relationships; however a change in market conditions or the sureties' assessment of our financial position could cause the sureties to require cash collateralization for undischarged liabilities under the bonds. We have a $9.6 million facility agreement (Facility Agreement) between Powell (UK) Limited and a large international bank that provides Powell (UK) Limited the ability to enter into bank guarantees as well as forward exchange contracts and currency options. At March 31, 2021, we had outstanding guarantees totaling $6.8 million and amounts available under this Facility Agreement were $2.8 million. The Facility Agreement expires in May 2021 and provides for financial covenants and customary events of default, and carries cross-default provisions with our U.S. Revolver. If an event of default (as defined in the Facility Agreement) occurs and is continuing, per the terms and subject to the conditions set forth therein, obligations outstanding under the Facility Agreement may be accelerated and declared immediately due and payable. Additionally, we are required to maintain cash collateral for guarantees greater than two years. As of March 31, 2021, we were in compliance with all of the financial covenants of the Facility Agreement. Litigation We are involved in various legal proceedings, claims and other disputes arising from our commercial operations, projects, employees and other matters which, in general, are subject to uncertainties and in which the outcomes are not predictable. Although we can give no assurances about the resolution of pending claims, litigation or other disputes and the effect such outcomes may have on us, management believes that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided or covered by insurance, will not have a material adverse effect on our consolidated financial position or results of operations or liquidity.

Stock-Based Compensation

6 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Refer to our Annual Report on Form 10-K for the fiscal year ended September 30, 2020 for a full description of our existing stock-based compensation plans.

Restricted Stock Units

We issue restricted stock units (RSUs) to certain officers and key employees of the Company. The fair value of the RSUs is based on the price of our common stock as reported on the NASDAQ Global Market on the grant dates. Typically, these grants vest over a three-year period from the date of issuance and are a blend of time-based and performance-based shares. The portion of the grant that is time-based typically vests over a three-year period on each anniversary of the grant date, based on continued employment. The performance-based shares vest based on the three-year earnings performance of the Company following the grant date. At March 31, 2021, there were 202,836 RSUs outstanding. The RSUs do not have voting rights but do receive dividend equivalents upon vesting. Additionally, the shares of common stock underlying the RSUs are not considered issued and outstanding until vested and common stock is issued.

Total RSU activity (number of shares) for the six months ended March 31, 2021 is summarized below:


	Number of Restricted Stock Units	Weighted Average Grant Value Per Share
Outstanding at September 30, 2020	154,034	$	35.37
Granted	104,550	24.08
Vested	(55,748)	32.50
Forfeited/canceled	—	—
Outstanding at March 31, 2021	202,836	$	30.34

During the six months ended March 31, 2021 and 2020, we recorded compensation expense of $1.3 million and $1.5 million, respectively, related to the RSUs.

Restricted Stock

Each non-employee director receives 2,400 restricted shares of the Company’s common stock annually. Fifty-percent of the restricted stock granted to each of our non-employee directors vests immediately, while the remaining fifty-percent vests on the anniversary of the grant date. Compensation expense is recognized immediately for the first fifty-percent of the restricted stock granted, while compensation expense for the remaining fifty-percent is recognized over the remaining vesting period. In February 2021, 16,800 shares of restricted stock were issued to our non-employee directors under the 2014 Non-Employee Director Equity Incentive Plan at a price of $31.33 per share. During both the six months ended March 31, 2021 and 2020, we recorded compensation expense of $0.4 million related to restricted stock.

Fair Value Measurements

6 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

We measure certain financial assets and liabilities at fair value. Fair value is defined as an “exit price,” which represents the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in valuing an asset or liability. The accounting guidance requires the use of valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. As a basis for considering such assumptions and inputs, a fair value hierarchy has been established which identifies and prioritizes three levels of inputs to be used in measuring fair value.

The three levels of the fair value hierarchy are as follows:

Level 1 — Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 — Inputs other than the quoted prices in active markets that are observable either directly or indirectly, including: quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data.

Level 3 — Unobservable inputs that are supported by little or no market data and require the reporting entity to develop its own assumptions.

The following table summarizes the fair value of our assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2021 (in thousands):


	Fair Value Measurements at March 31, 2021
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value at March 31, 2021
Assets:
Cash and cash equivalents	$	134,093	$	—	$	—	$	134,093
Short-term investments	19,852		—		—		19,852

Other assets	—		8,712		—		8,712
Liabilities:
Deferred compensation	—		8,300		—		8,300

The following table summarizes the fair value of our assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2020 (in thousands):


	Fair Value Measurements at September 30, 2020
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value at September 30, 2020
Assets:
Cash and cash equivalents	$	160,216	$	—	$	—	$	160,216
Short-term investments	18,705		—		—		18,705

Other assets	—		7,351		—		7,351
Liabilities:
Deferred compensation	—		6,569		—		6,569

Fair value guidance requires certain fair value disclosures be presented in both interim and annual reports. The estimated fair value amounts of financial instruments have been determined using available market information and valuation methodologies described below.

Cash and cash equivalents – Cash and cash equivalents, primarily funds held in money market savings instruments, are reported at their current carrying value, which approximates fair value due to the short-term nature of these instruments and are included in cash and cash equivalents in our Condensed Consolidated Balance Sheets.

Short-term Investments – Short-term investments include time deposits with original maturities of three months or more.

Other Assets and Deferred Compensation – We hold investments in an irrevocable Rabbi Trust for our deferred compensation plan. The assets are primarily related to company-owned life insurance policies and are included in other assets in the accompanying Condensed Consolidated Balance Sheets. Because the mutual funds and company-owned life insurance policies are combined in the plan, they are categorized as Level 2 in the fair value measurement hierarchy. The deferred compensation liability represents the investment options that the plan participants have designated to serve as the basis for measurement of the notional value of their accounts. Because the deferred compensation liability is intended to offset the plan assets, it is also categorized as Level 2 in the fair value measurement hierarchy.

There were no transfers between levels within the fair value measurement hierarchy during the quarter ended March 31, 2021.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Leases

6 Months Ended

Mar. 31, 2021

Leases [Abstract]

Leases

Our leases consist primarily of office and manufacturing space, construction equipment and office equipment. All of our future lease obligations are related to non-cancelable operating leases. The most significant portion of our lease portfolio relates to leases of office and manufacturing facilities in Canada which we no longer occupy. We currently sublease the majority of these Canadian facilities. The following table provides a summary of lease cost components for the three and six months ended March 31, 2021 and 2020, respectively (in thousands):


	Three months ended March 31,				Six months ended March 31,
Lease Cost	2021		2020		2021		2020
Operating lease cost	$	629	$	580	$	1,237	$	1,208
Less: sublease income	(177)		(158)		(357)		(237)
Variable lease cost(1)	109		84		217		178
Short-term lease cost(2)	319		159		488		349
Total lease cost	$	880	$	665	$	1,585	$	1,498

(1) Variable lease cost represents common area maintenance charges related to our Canadian office space lease.

(2) Short-term lease cost includes leases and rentals with initial terms of one year or less.

We recognize operating lease assets and operating lease liabilities representing the present value of the remaining lease payments for leases with initial terms greater than twelve months. Leases with initial terms of twelve months or less are not recorded in our Condensed Consolidated Balance Sheets. Our operating lease assets have been reduced by a lease accrual of $0.5 million related to certain unused facility leases in Canada. The following table provides a summary of the operating lease assets and operating lease liabilities included in our Condensed Consolidated Balance Sheets as of March 31, 2021 and September 30, 2020, respectively (in thousands):


Operating Leases	March 31, 2021		September 30, 2020
Assets:
Operating lease assets, net	$	4,390	$	5,217
Liabilities:
Current operating lease liabilities	1,948		2,352
Long-term operating lease liabilities	2,897		3,434
Total lease liabilities	$	4,845	$	5,786

The following table provides the maturities of our operating lease liabilities as of March 31, 2021 (in thousands):


	Operating Leases
Remainder of 2021	$	1,203
2022	2,387
2023	1,365
2024	101
2025	—
Thereafter	—
Total future minimum lease payments	5,056
Less: present value discount (imputed interest)	(211)
Present value of lease liabilities	$	4,845

The weighted average discount rate as of March 31, 2021 was 4.1%. The weighted average remaining lease term was 2.1 years at March 31, 2021.

Income Taxes

6 Months Ended

Mar. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

The calculation of the effective tax rate is as follows (in thousands):


	Three months ended March 31,						Six months ended March 31,
	2021			2020			2021			2020
Income (loss) before income taxes	$	(1,171)		$	9,555		$	(1,430)		$	12,888

Income tax provision (benefit)	(946)			2,134			(841)			2,692

Net income (loss)	$	(225)		$	7,421		$	(589)		$	10,196

Effective tax rate	81		%	22		%	59		%	21		%

Our income tax provision (benefit) reflects an effective tax rate on pre-tax income (loss) of 81% for the second quarter of Fiscal 2021 compared to 22% for the second quarter of Fiscal 2020. For the three and six months ended March 31, 2021, the income tax benefit largely resulted from the relative amounts of income/loss recognized in various tax jurisdictions, the utilization of net operating loss carryforwards in Canada that have been fully reserved with a valuation allowance, and the estimated Research and Development Tax Credit (R&D Tax Credit).

The effective tax rate for the three and six months ended March 31, 2020 was favorably impacted by the R&D Tax Credit as well as the projected utilization of net operating loss carryforwards in Canada that were fully reserved with a valuation allowance. These favorable impacts were offset by the valuation allowance recorded against our UK deferred tax assets as a discrete item during the second quarter of Fiscal 2020.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Subsequent Events	6 Months Ended
Subsequent Events	Mar. 31, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Quarterly Dividend Declared On May 4, 2021, our Board of Directors declared a quarterly cash dividend on our common stock in the amount of $0.26 per share. The dividend is payable on June 16, 2021 to shareholders of record at the close of business on May 19, 2021.

Overview and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation These unaudited condensed consolidated financial statements include the accounts of Powell and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. These unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial information. Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP), have been condensed or omitted pursuant to those rules and regulations. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the financial position, results of operations and cash flows with respect to the interim condensed consolidated financial statements have been included. The results of operations for the interim periods are not necessarily indicative of the results for the entire fiscal year. We believe that these financial statements contain all adjustments necessary so that they are not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto of Powell and its subsidiaries included in Powell’s Annual Report on Form 10-K for the year ended September 30, 2020, which was filed with the Securities and Exchange Commission (SEC) on December 9, 2020. References to Fiscal 2021 and Fiscal 2020 used throughout this report shall mean our fiscal years ended September 30, 2021 and 2020, respectively.
Use of Estimates	Use of EstimatesThe preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying footnotes. The most significant estimates used in our condensed consolidated financial statements affect revenue recognition and estimated cost recognition on our customer contracts, the allowance for credit losses, provision for excess and obsolete inventory, warranty accruals and income taxes. The amounts recorded for warranties, legal, income taxes, impairment of long-lived assets (when applicable), liquidated damages and other contingent liabilities require judgments regarding the amount of expenses that will ultimately be incurred. We base our estimates on historical experience, forecasts and various other assumptions, as well as the specific circumstances surrounding these contingent liabilities, in evaluating the amount of liability that should be recorded. Additionally, the recognition of deferred tax assets requires estimates related to future income and other assumptions regarding timing and future profitability because the ultimate realization of net deferred tax assets is dependent on the generation of future taxable income during the periods in which temporary differences become deductible. Estimates routinely change as new events occur, additional information becomes available or operating environments change. Actual results may differ from our prior estimates.
New Accounting Standards	New Accounting Standard In June 2016, the Financial Accounting Standards Board (FASB) issued a new topic on measurement of credit losses. The topic introduces an impairment model known as the current expected credit loss (CECL) model that is based on an expected loss methodology rather than an incurred loss methodology for financial instruments. Under the new topic, an entity recognizes as an allowance its estimate of expected credit losses with the intention of improving financial reporting by requiring timelier recognition of such losses. We adopted this topic on October 1, 2020 and such adoption did not have a material impact on our consolidated financial statements.
Revenue Recognition	Revenue Recognition Our revenues are primarily generated from the manufacturing of custom-engineered products and systems under long-term fixed-price contracts under which we agree to manufacture various products such as traditional and arc-resistant distribution switchgear and control gear, medium-voltage circuit breakers, monitoring and control communications systems, motor control centers, switches and bus duct systems. These products may be sold separately as an engineered solution, but are typically integrated into custom-built enclosures which we also build. These enclosures are referred to as power control room substations (PCRs®), custom-engineered modules or electrical houses (E-Houses). Some contracts may also include the installation and the commissioning of these enclosures. Revenue from these contracts is generally recognized over time utilizing the cost-to-cost method to measure the extent of progress toward the completion of the performance obligation and the recognition of revenue over time. We believe that this method is the most accurate representation of our performance, because it directly measures the value of the services transferred to the customer over time as we incur costs on our contracts. Contract costs include all direct materials, labor, and indirect costs related to contract performance, which may include indirect labor, supplies, tools, repairs and depreciation costs. We also have contracts to provide value-added services such as field service inspection, installation, commissioning, modification and repair, as well as retrofit and retrofill components for existing systems. If the service contract terms give us the right to invoice the customer for an amount that corresponds directly with the value of our performance completed to date (i.e., a service contract in which we bill a fixed amount for each hour of service provided), then we recognize revenue over time in each reporting period corresponding to the amount with which we have the right to invoice. Our performance obligations are satisfied as the work progresses. Revenues from our custom-engineered products and value-added services transferred to customers over time accounted for approximately 93% of total revenues for the three months ended March 31, 2021, 92% of total revenues for the six months ended March 31, 2021 and 96% of total revenues for each of the three and six months ended March 31, 2020. We also have sales orders for spare parts and replacement circuit breakers for switchgear that are obsolete or that are no longer produced by the original manufacturer. Revenues from these sales orders are recognized at the time we fulfill our performance obligation to the customer, which is typically upon shipment and represented approximately 7% of total revenues for the three months ended March 31, 2021, 8% of total revenues for the six months ended March 31, 2021 and 4% of total revenues for each of the three and six months ended March 31, 2020. Additionally, some contracts may contain a cancellation clause that could limit the amount of revenue we are able to recognize over time. In these instances, revenue and costs associated with these contracts are deferred and recognized at a point in time when the performance obligation is fulfilled. Selling and administrative costs incurred in relation to obtaining a contract are typically expensed as incurred. We periodically utilize a third-party sales agent to obtain a contract and will pay a commission to that agent. We record the full commission liability to the third-party sales agents at the order date, with a corresponding deferred asset. As the project progresses, we record commission expense based on percentage of completion rates that correlate to the project and reduce the deferred asset. Once we have been paid by the customer, we pay the commission and the liability is reduced Performance Obligations A performance obligation is a promise in a contract or with a customer to transfer a distinct good or service. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue as the performance obligations are satisfied. To determine the proper revenue recognition for contracts, we evaluate whether a contract should be accounted for as more than one performance obligation or, less commonly, whether two or more contracts should be combined and accounted for as one performance obligation. This evaluation of performance obligations requires significant judgment. The majority of our contracts have a single performance obligation where multiple engineered products and services are combined into a single custom-engineered solution. Our contracts include a standard one year assurance warranty. Occasionally, we provide service-type warranties that will extend the warranty period. These extended warranties qualify as a separate performance obligation, and revenue is deferred and recognized over the warranty period. If we determine during the evaluation of the contract that there are multiple performance obligations, we allocate the transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. Remaining unsatisfied performance obligations, which we refer to as backlog, represent the estimated transaction price for goods and services for which we have a material right, but work has not been performed. Contract Estimates Actual revenues and project costs may vary from previous estimates due to changes in a variety of factors. The cost estimation process is based upon the professional knowledge and experience of our engineers, project managers and financial professionals. Factors that are considered in estimating the work to be completed and ultimate contract recovery include the availability and productivity of labor, the nature and complexity of the work to be performed, the availability of materials, and the effect of any delays on our project performance. We periodically review our job performance, job conditions, estimated profitability and final contract settlements, including our estimate of total costs and make revisions to costs and income in the period in which the revisions are probable and reasonably estimable. Whenever revisions of estimated contract costs and contract values indicate that the contract costs will exceed estimated revenues, thus creating a loss, a provision for the total estimated loss is recorded in that period. Variable Consideration It is common for our long-term contracts to contain variable consideration that can either increase or decrease the transaction price. Due to the nature of our contracts, estimating total cost and revenue can be complex and subject to variability due to change orders, back charges, spare parts, early completion bonuses, customer allowances and liquidated damages. We estimate the amount of variable consideration based on the expected value method, which is the sum of probability-weighted amount, or the most likely amount method which uses various factors including experience with similar transactions and assessment of our anticipated performance. Variable consideration is included in the transaction price if legally enforceable and to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur once the uncertainty associated with the variable consideration is resolved. Contract Modifications Contracts may be modified for changes in contract specifications and requirements. We consider contract modifications to exist when the modification either creates new or changes the enforceable rights and obligations under the contract. Most of our contract modifications are for goods and services that are not distinct from the existing performance obligation. Contract modifications result in a cumulative catch-up adjustment to revenue based on our measure of progress for the performance obligation. Contract Balances The timing of revenue recognition, billings and cash collections affects accounts receivable, contract assets and contract liabilities in our Condensed Consolidated Balance Sheets. Contract assets are recorded when revenues are recognized in excess of amounts billed for fixed-price contracts as determined by the billing milestone schedule. Contract assets are transferred to accounts receivable when billing milestones have been met, or we have an unconditional right to payment. Contract liabilities typically represent advance payments from contractual billing milestones and billings in excess of revenue recognized. It is unusual to have advanced milestone payments with a term greater than one year, which could represent a financing component on the contract. Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period and are generally classified as current.The timing of our invoice process is typically dependent on the completion of certain milestones and contract terms and subject to agreement by our customer. Payment is typically expected within 30 days of invoice. Any uncollected invoiced amounts for our performance obligations recognized over time, including contract retentions, are recorded as accounts receivable in the Condensed Consolidated Balance Sheets. Certain contracts contain retention provisions that become due upon completion of contractual requirements.

- Definition

Disclosure of accounting policy for revenue from contract with customer.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

Earnings Per Share (Tables)

6 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Reconciliation of Basic and Diluted Weighted Average Shares used in Computation of Earnings Per Share

The following table reconciles basic and diluted weighted average shares used in the computation of earnings per share (in thousands, except per share data):


	Three months ended March 31,				Six months ended March 31,
	2021		2020		2021		2020
Numerator:
Net income (loss)	$	(225)	$	7,421	$	(589)	$	10,196
Denominator:
Weighted average basic shares	11,707		11,621		11,690		11,617
Dilutive effect of restricted stock units	—		60		—		56
Weighted average diluted shares	11,707		11,681		11,690		11,673
Earnings (loss) per share:
Basic	$	(0.02)	$	0.64	$	(0.05)	$	0.88
Diluted	$	(0.02)	$	0.64	$	(0.05)	$	0.87

Detail of Selected Balance Sheet Accounts (Tables)

6 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Activity in Allowance for Doubtful Accounts Receivable

Activity in our allowance for credit losses consisted of the following (in thousands):


	Three months ended March 31,				Six months ended March 31,
	2021		2020		2021		2020
Balance at beginning of period	$	493	$	346	$	510	$	301
Bad debt expense (recovery), net	(113)		9		(132)		51
Uncollectible accounts written off, net of recoveries	—		(45)		(10)		(55)
Change due to foreign currency translation	2		(10)		14		3
Balance at end of period	$	382	$	300	$	382	$	300

Components of Inventories

The components of inventories are summarized below (in thousands):


	March 31, 2021		September 30, 2020
Raw materials, parts and sub-assemblies, net	$	29,302	$	27,429
Work-in-progress	729		1,539
Total inventories	$	30,031	$	28,968

Activity in Product Warranty Accrual

Activity in our product warranty accrual consisted of the following (in thousands):


	Three months ended March 31,				Six months ended March 31,
	2021		2020		2021		2020
Balance at beginning of period	$	2,675	$	3,162	$	2,771	$	2,946
Increase to warranty expense	395		784		1,053		1,627
Deduction for warranty charges	(609)		(670)		(1,388)		(1,315)
Change due to foreign currency translation	6		—		31		18
Balance at end of period	$	2,467	$	3,276	$	2,467	$	3,276

Revenue (Tables)

6 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Summary of Contract Asset and Liabilities

Contract assets and liabilities as of March 31, 2021 and September 30, 2020 are summarized below (in thousands):


	March 31, 2021		September 30, 2020
Contract assets	$	42,728	$	50,995
Contract liabilities	(54,098)		(79,445)
Net contract liability	$	(11,370)	$	(28,450)

Disaggregation of Revenue

The following tables present our disaggregated revenue by geographic destination and market sector for the six months ended March 31, 2021 and 2020 (in thousands):


	Three months ended March 31,				Six months ended March 31,
	2021		2020		2021		2020
United States	$	87,939	$	121,432	$	168,525	$	228,510
Canada	17,734		15,407		31,825		29,861
Europe, Middle East and Africa	10,937		8,816		19,193		18,982
Asia/Pacific	2,009		5,456		4,725		7,142
Mexico, Central and South America	97		459		1,023		1,225
Total revenues by geographic destination	$	118,716	$	151,570	$	225,291	$	285,720


	Three months ended March 31,				Six months ended March 31,
	2021		2020		2021		2020
Oil and gas	$	50,142	$	51,954	$	90,171	$	111,948
Petrochemical	10,196		47,337		19,361		77,763
Electric utility	28,452		24,255		56,622		47,270
Traction power	15,140		13,944		28,501		22,295
All others	14,786		14,080		30,636		26,444
Total revenues by market sector	$	118,716	$	151,570	$	225,291	$	285,720

Long-Term Debt (Tables)

6 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Components of Long-term debt

Long-term debt consisted of the following (in thousands):


	March 31, 2021		September 30, 2020
Industrial development revenue bonds	$	400	$	800
Less: current portion	(400)		(400)
Total long-term debt	$	—	$	400

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details

Stock-Based Compensation (Tables)

6 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Schedule of Restricted Stock Units Activity

Total RSU activity (number of shares) for the six months ended March 31, 2021 is summarized below:


	Number of Restricted Stock Units	Weighted Average Grant Value Per Share
Outstanding at September 30, 2020	154,034	$	35.37
Granted	104,550	24.08
Vested	(55,748)	32.50
Forfeited/canceled	—	—
Outstanding at March 31, 2021	202,836	$	30.34

Fair Value Measurements (Tables)

6 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities Measured on Recurring Basis

The following table summarizes the fair value of our assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2021 (in thousands):


	Fair Value Measurements at March 31, 2021
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value at March 31, 2021
Assets:
Cash and cash equivalents	$	134,093	$	—	$	—	$	134,093
Short-term investments	19,852		—		—		19,852

Other assets	—		8,712		—		8,712
Liabilities:
Deferred compensation	—		8,300		—		8,300

The following table summarizes the fair value of our assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2020 (in thousands):


	Fair Value Measurements at September 30, 2020
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value at September 30, 2020
Assets:
Cash and cash equivalents	$	160,216	$	—	$	—	$	160,216
Short-term investments	18,705		—		—		18,705

Other assets	—		7,351		—		7,351
Liabilities:
Deferred compensation	—		6,569		—		6,569

Leases (Tables)

6 Months Ended

Mar. 31, 2021

Leases [Abstract]

Lease Cost

The following table provides a summary of lease cost components for the three and six months ended March 31, 2021 and 2020, respectively (in thousands):


	Three months ended March 31,				Six months ended March 31,
Lease Cost	2021		2020		2021		2020
Operating lease cost	$	629	$	580	$	1,237	$	1,208
Less: sublease income	(177)		(158)		(357)		(237)
Variable lease cost(1)	109		84		217		178
Short-term lease cost(2)	319		159		488		349
Total lease cost	$	880	$	665	$	1,585	$	1,498

(1) Variable lease cost represents common area maintenance charges related to our Canadian office space lease.

(2) Short-term lease cost includes leases and rentals with initial terms of one year or less.

Operating Lease Assets and Liabilities

The following table provides a summary of the operating lease assets and operating lease liabilities included in our Condensed Consolidated Balance Sheets as of March 31, 2021 and September 30, 2020, respectively (in thousands):


Operating Leases	March 31, 2021		September 30, 2020
Assets:
Operating lease assets, net	$	4,390	$	5,217
Liabilities:
Current operating lease liabilities	1,948		2,352
Long-term operating lease liabilities	2,897		3,434
Total lease liabilities	$	4,845	$	5,786

Maturities of Operating Lease Liabilities

The following table provides the maturities of our operating lease liabilities as of March 31, 2021 (in thousands):


	Operating Leases
Remainder of 2021	$	1,203
2022	2,387
2023	1,365
2024	101
2025	—
Thereafter	—
Total future minimum lease payments	5,056
Less: present value discount (imputed interest)	(211)
Present value of lease liabilities	$	4,845

Income Taxes (Tables)

6 Months Ended

Mar. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Calculation of the Effective Income Tax Rate

The calculation of the effective tax rate is as follows (in thousands):


	Three months ended March 31,						Six months ended March 31,
	2021			2020			2021			2020
Income (loss) before income taxes	$	(1,171)		$	9,555		$	(1,430)		$	12,888

Income tax provision (benefit)	(946)			2,134			(841)			2,692

Net income (loss)	$	(225)		$	7,421		$	(589)		$	10,196

Effective tax rate	81		%	22		%	59		%	21		%

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2021	Mar. 31, 2020
Numerator:
Net income (loss)	$ (225)	$ (364)	$ 7,421	$ 2,775	$ (589)	$ 10,196
Denominator:
Weighted average basic shares (in shares)	11,707		11,621		11,690	11,617
Dilutive effect of restricted stock units (in shares)	0		60		0	56
Weighted average diluted shares (in shares)	11,707		11,681		11,690	11,673
Earnings (loss) per share:
Basic (in dollars per share)	$ (0.02)		$ 0.64		$ (0.05)	$ 0.88
Diluted (in dollars per share)	$ (0.02)		$ 0.64		$ (0.05)	$ 0.87

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Detail of Selected Balance Sheet Accounts - Activity in Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 493	$ 346	$ 510	$ 301
Bad debt expense (recovery), net	(113)	9	(132)	51
Uncollectible accounts written off, net of recoveries	0	(45)	(10)	(55)
Change due to foreign currency translation	2	(10)	14	3
Balance at end of period	$ 382	$ 300	$ 382	$ 300

Detail of Selected Balance Sheet Accounts - Components of Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials, parts and sub-assemblies, net	$ 29,302	$ 27,429
Work-in-progress	729	1,539
Total inventories	$ 30,031	$ 28,968

Detail of Selected Balance Sheet Accounts - Activity in Product Warranty Accrual (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 2,675	$ 3,162	$ 2,771	$ 2,946
Increase to warranty expense	395	784	1,053	1,627
Deduction for warranty charges	(609)	(670)	(1,388)	(1,315)
Change due to foreign currency translation	6	0	31	18
Balance at end of period	$ 2,467	$ 3,276	$ 2,467	$ 3,276

Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Revenue - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Revenue from External Customer [Line Items]
Changes in contract estimates related to projects in progress			$ 8.2	$ 9.0
Transferred over Time \| Product Concentration Risk \| Revenue from Contract with Customer Benchmark
Revenue from External Customer [Line Items]
Concentration risk, percentage	93.00%	96.00%	92.00%	96.00%
Transferred at Point in Time \| Product Concentration Risk \| Revenue from Contract with Customer Benchmark
Revenue from External Customer [Line Items]
Concentration risk, percentage	7.00%	4.00%	8.00%	4.00%

Revenue - Performance Obligations (Details) $ in Millions	Mar. 31, 2021 USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation, amount	$ 436.6
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation, amount	$ 322.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, expected timing of satisfaction, period	12 months

Revenue - Contract Balances (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2021	Sep. 30, 2020
Revenue from Contract with Customer [Abstract]
Contract assets	$ 42,728	$ 50,995
Contract liabilities	(54,098)	(79,445)
Net contract liability	(11,370)	(28,450)
Revenue recognized related to contract liabilities	55,200
Retention amounts included in accounts receivable	8,800	$ 6,900
Retained amount expected to be collected in the next twelve months	7,100
Retained amount expected to be collected	$ 1,700

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Disaggregation of Revenue [Line Items]
Revenues	$ 118,716	$ 151,570	$ 225,291	$ 285,720
Oil and gas
Disaggregation of Revenue [Line Items]
Revenues	50,142	51,954	90,171	111,948
Petrochemical
Disaggregation of Revenue [Line Items]
Revenues	10,196	47,337	19,361	77,763
Electric utility
Disaggregation of Revenue [Line Items]
Revenues	28,452	24,255	56,622	47,270
Traction power
Disaggregation of Revenue [Line Items]
Revenues	15,140	13,944	28,501	22,295
All others
Disaggregation of Revenue [Line Items]
Revenues	14,786	14,080	30,636	26,444
United States
Disaggregation of Revenue [Line Items]
Revenues	87,939	121,432	168,525	228,510
Canada
Disaggregation of Revenue [Line Items]
Revenues	17,734	15,407	31,825	29,861
Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Revenues	10,937	8,816	19,193	18,982
Asia/Pacific
Disaggregation of Revenue [Line Items]
Revenues	2,009	5,456	4,725	7,142
Mexico, Central and South America
Disaggregation of Revenue [Line Items]
Revenues	$ 97	$ 459	$ 1,023	$ 1,225

Long-Term Debt - Components of Long-Term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Sep. 30, 2020
Debt Disclosure [Abstract]
Industrial development revenue bonds	$ 400	$ 800
Less: current portion	(400)	(400)
Total long-term debt	$ 0	$ 400

Long-Term Debt - Narrative (Details)	6 Months Ended
Long-Term Debt - Narrative (Details)	Mar. 31, 2021 USD ($)	Sep. 30, 2020 USD ($)	Oct. 31, 2001 USD ($)
Line Of Credit Facility [Line Items]
Revolving credit facility borrowings, outstanding amount	$ 400,000	$ 800,000
U.S. Revolver
Line Of Credit Facility [Line Items]
Percentage of voting capital stock pledged as collateral	100.00%
Non-domestic subsidiaries of voting capital stock	65.00%
U.S. Revolver \| Amended and Restated Credit Agreement
Line Of Credit Facility [Line Items]
Revolving credit facility	$ 75,000,000.0
Cash collateral pledged balance	30,000,000
Letters of credit collateral amount, minimum outstanding	0
Revolving credit facility borrowings, outstanding amount	0
Amount available under the credit facility	$ 36,400,000
Debt covenant, consolidated leverage ratio (less than)	3.0
Debt covenant, consolidated interest coverage ratio (greater than)	3.0
U.S. Revolver \| Amended and Restated Credit Agreement \| Fed Funds Rate
Line Of Credit Facility [Line Items]
Basis spread on variable rate	0.50%
U.S. Revolver \| Amended and Restated Credit Agreement \| LIBOR
Line Of Credit Facility [Line Items]
Basis spread on variable rate	1.00%
U.S. Revolver \| Amended and Restated Credit Agreement \| Base Rate \| Minimum
Line Of Credit Facility [Line Items]
Basis spread on variable rate	(0.25%)
U.S. Revolver \| Amended and Restated Credit Agreement \| Base Rate \| Maximum
Line Of Credit Facility [Line Items]
Basis spread on variable rate	1.75%
U.S. Revolver \| Amended and Restated Credit Agreement \| Financial Standby Letter of Credit
Line Of Credit Facility [Line Items]
Guarantee liability	$ 38,600,000
Industrial Development Revenue Bonds
Line Of Credit Facility [Line Items]
Borrowings			$ 8,000,000.0
Interest rate	0.14%

Commitments and Contingencies (Details) $ in Millions	6 Months Ended
Commitments and Contingencies (Details) $ in Millions	Mar. 31, 2021 USD ($)
Guarantee Obligations [Line Items]
Additional bonding capacity	$ 276.6
Cash collateral required for guarantees, period (greater than)	2 years
Facility Agreement \| Powell (UK) Limited
Guarantee Obligations [Line Items]
Guarantee liability	$ 6.8
Revolving credit facility	9.6
Amount of credit facility remaining borrowing capacity	2.8
Surety Bonds
Guarantee Obligations [Line Items]
Guarantee liability	$ 173.4

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	6 Months Ended
	Feb. 28, 2021	Mar. 31, 2021	Mar. 31, 2020	Sep. 30, 2020
Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period		3 years
Unvested restricted stock outstanding (in shares)		202,836		154,034
Compensation expense		$ 1.3	$ 1.5
Restricted Stock Units (RSUs) \| Time Based Restricted Stock Unit
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period		3 years
Restricted Stock Units (RSUs) \| Performance Based Restricted Stock Unit
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period		3 years
Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Compensation expense		$ 0.4	$ 0.4
Restricted Stock \| Non Employee Director Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares issued under the plan (in shares)		2,400
Restricted stock issued (in shares)	16,800
Shares issued, price per share (in shares)	$ 31.33
Restricted Stock \| Non Employee Director Equity Incentive Plan \| Immediate Vesting
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting, percentage		50.00%
Restricted Stock \| Non Employee Director Equity Incentive Plan \| Anniversary of Grant Date
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting, percentage		50.00%

Stock-Based Compensation - Schedule of Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs)	6 Months Ended
	Mar. 31, 2021 $ / shares shares
Number of Restricted Stock Units
Outstanding at beginning of period (in shares) \| shares	154,034
Granted (in shares) \| shares	104,550
Vested (in shares) \| shares	(55,748)
Forfeited/canceled (in shares) \| shares	0
Outstanding at end of period (in shares) \| shares	202,836
Weighted Average Grant Value Per Share
Outstanding at beginning of period (in dollars per share) \| $ / shares	$ 35.37
Granted (in dollars per share) \| $ / shares	24.08
Vested (in dollars per share) \| $ / shares	32.50
Forfeited/canceled (in dollars per share) \| $ / shares	0
Outstanding at end of period (in dollars per share) \| $ / shares	$ 30.34

Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Sep. 30, 2020
Assets:
Cash and cash equivalents	$ 134,093	$ 160,216
Short-term investments	19,852	18,705
Other assets	8,712	7,351
Liabilities:
Deferred compensation	8,300	6,569
Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets:
Cash and cash equivalents	134,093	160,216
Short-term investments	19,852	18,705
Other assets	0	0
Liabilities:
Deferred compensation	0	0
Significant Other Observable Inputs (Level 2)
Assets:
Cash and cash equivalents	0	0
Short-term investments	0	0
Other assets	8,712	7,351
Liabilities:
Deferred compensation	8,300	6,569
Significant Unobservable Inputs (Level 3)
Assets:
Cash and cash equivalents	0	0
Short-term investments	0	0
Other assets	0	0
Liabilities:
Deferred compensation	$ 0	$ 0

Leases - Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Leases - Lease Costs (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Leases [Abstract]
Operating lease cost	$ 629	$ 580	$ 1,237	$ 1,208
Less: sublease income	(177)	(158)	(357)	(237)
Variable lease cost	109	84	217	178
Short-term lease cost	319	159	488	349
Total lease cost	$ 880	$ 665	$ 1,585	$ 1,498

Leases - Narrative (Details) $ in Millions	Mar. 31, 2021 USD ($)
Leases [Abstract]
Lease accrual	$ 0.5
Weighted average discount rate, percent	4.10%
Weighted average remaining lease term	2 years 1 month 6 days

Leases - Summary of Operating Lease Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Sep. 30, 2020
Assets:
Operating lease assets, net	$ 4,390	$ 5,217
Liabilities:
Current operating lease liabilities	1,948	2,352
Long-term operating lease liabilities	2,897	3,434
Total lease liabilities	$ 4,845	$ 5,786

Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Sep. 30, 2020
Leases [Abstract]
Remainder of 2021	$ 1,203
2022	2,387
2023	1,365
2024	101
2025	0
Thereafter	0
Total future minimum lease payments	5,056
Less: present value discount (imputed interest)	(211)
Present value of lease liabilities	$ 4,845	$ 5,786

Income Taxes - Schedule of Calculation of the Effective Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2021	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income (loss) before income taxes	$ (1,171)		$ 9,555		$ (1,430)	$ 12,888
Income tax provision (benefit)	(946)		2,134		(841)	2,692
Net income (loss)	$ (225)	$ (364)	$ 7,421	$ 2,775	$ (589)	$ 10,196
Effective tax rate	81.00%		22.00%		59.00%	21.00%

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
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-Subparagraph (SX 210.9-05(b)(2))
-URI http://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
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+ Details

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Income Taxes - Narrative (Details)	3 Months Ended		6 Months Ended
Income Taxes - Narrative (Details)	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Effective tax rate	81.00%	22.00%	59.00%	21.00%

Subsequent Events (Details) - $ / shares		3 Months Ended		6 Months Ended
Subsequent Events (Details) - $ / shares	May 04, 2021	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Subsequent Event [Line Items]
Quarterly cash dividend (in dollars per share)		$ 0.26	$ 0.26	$ 0.52	$ 0.52
Subsequent Event
Subsequent Event [Line Items]
Quarterly cash dividend (in dollars per share)	$ 0.26