Tema ETFs Adds $8 Million to an Industrial Stock Up 63% This Past Year

On Friday, New York-based Tema ETFs disclosed a buy of 23,168 shares of Powell Industries (NASDAQ:POWL), an estimated $7.80 million trade based on quarterly average pricing.

What happened

According to a Friday SEC filing, Tema ETFs acquired an additional 23,168 shares of Powell Industries (NASDAQ:POWL). The estimated value of this transaction, using the mean unadjusted closing price for the fourth quarter of 2025, was $7.80 million. At quarter-end, the total value of the Powell Industries position increased by $8.13 million, reflecting both the share purchase and stock price movement.

What else to know

After the buy, the Powell Industries position represents 1.89% of Tema's 13F reportable assets under management.

Top holdings after the filing:

• NASDAQ: NVDA: $32.88 million (2.6% of AUM)
• NASDAQ: AAPL: $24.24 million (1.9% of AUM)
• NYSE: LLY: $23.11 million (1.8% of AUM)
• NYSE: CAT: $21.90 million (1.7% of AUM)
• NYSE: NEE: $19.65 million (1.5% of AUM)

As of Thursday, Powell Industries shares were priced at $405.55, up 63.5% over the past year and well outperforming the S&P 500's 17% gain in the same period.

Company overview

Company snapshot

• Powell Industries provides custom-engineered electrical equipment and systems, including power control room substations, switchgears, motor control centers, and monitoring solutions for medium- and high-voltage applications.
• It generates revenue through the design, manufacture, sale, and servicing of integrated electrical distribution and control systems, as well as value-added services such as installation, commissioning, maintenance, and retrofitting.
• Primary customers include companies in oil and gas, petrochemicals, utilities, mining, transportation, and other heavy industrial sectors across North America and international markets.

Powell Industries is a leading provider of engineered electrical equipment and systems, serving complex industrial and utility infrastructure needs worldwide. The company leverages decades of technical expertise and a broad product portfolio to address critical power distribution and control challenges in demanding environments. Its competitive advantage lies in its ability to deliver customized, integrated solutions and comprehensive support services for mission-critical applications.

What this transaction means for investors

Tema’s decision to double down on Powell amid a 63% run signals confidence that earnings power is driving the stock’s underlying story. Powell Industries just wrapped up a record fiscal year, delivering $1.1 billion in revenue, $180.7 million in net income, and diluted earnings of $14.86 per share. More importantly for long-term investors, margins expanded alongside growth, with gross profit rising 16% and backlog ticking up 3% to nearly $1.4 billion.

This position also fits neatly within Tema ETFs’ broader portfolio construction. Its top holdings skew toward large, high-quality operators like Nvidia, Apple, Lilly, and Caterpillar, suggesting Powell is being treated as a niche infrastructure compounder rather than a cyclical trade. The company’s exposure to electric utilities, data centers, and grid modernization gives it a structurally stronger demand profile than traditional industrial peers tied purely to oil and gas.

Powell’s balance sheet adds another layer of durability. The company ended the year with $476 million in cash and short-term investments, providing flexibility to scale capacity and integrate acquisitions like Remsdaq, which was completed in the third quarter, without stressing capital.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, NextEra Energy, and Nvidia. The Motley Fool has a disclosure policy.