UNITED STATES

SECURITIES AND EXCHANGE
COMMISSION WASHINGTON D.C. 20549

FORM 10-Q

(Mark one)

|[X] | Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act
                    of 1934 for the quarterly period ended July 31, 2004.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

or

|[   ] | Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from
         to
         .
|----- | ----------------------------------------------------------------------------------------------------------------------------------------------

# Commission File Number
0-6050

POWELL INDUSTRIES, INC.

---

(Exact
name of registrant as specified in its charter)

|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|NEVADA                                                         |  | 88-0106100                          
|                                                               |  |                                     
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)

|                                         |  |           
|---------------------------------------- |  | ----------
|8550 Mosley Drive, Houston, Texas        |  | 77075-1180
|                                         |  |           
|(Address of principal executive offices) |  | (Zip Code)

Registrant's telephone number, including area code  (713) 944-6900

Indicate
by X whether the registrant (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90 days.

YesX   No

Indicate
by X whether the registrant is an accelerated filer (as defined in Rule
12b-2 of the Exchange Act).

YesX   No

Indicate the
number of shares  outstanding  of each of the issuers  classes of common  stock,  as of the latest  practicable
date.

Common
 Stock, par value $.01 per share; 10,710,164 shares outstanding as of August 31, 2004.

1

---

Powell Industries, Inc.
and Subsidiaries

|                               |            |                                                                                             |   
|------------------------------ | ---------- | ------------------------------------------------------------------------------------------- | --
|Part I - Financial Information |           
|                               | Item 1.    | Condensed Consolidated Financial Statements                                                 | 3 
|                               | Item 2.    | Management's Discussion and Analysis of
   Financial Condition and
   Results of Operations | 12
|                               | Item 3.    | Quantitative and Qualitative Disclosures
   About Market Risk                               | 16
|                               | Item 4.    | Controls and Procedures                                                                     | 17
|Part II - Other Information    | 18        
|                               | Signatures |                                                                                             | 19

2

---

Powell Industries, Inc. and Subsidiaries
                                          Condensed Consolidated Balance Sheets (unaudited)
                                           (In thousands, except share and per share data)

|                                                                              | July 31,
2004 | October 31,
2003
|----------------------------------------------------------------------------- | ------------- | ----------------
|                                                                              |               |                 
|Assets                                                                        |               |                 
|Current Assets:                                                               |               |                 
|Cash and cash equivalents                                                     |               |                 
|Marketable securities                                                         |               |                 
|Accounts receivable, less allowance for doubtful accounts of $809 and $1,283, |               |                 
|respectively                                                                  |               |                 
|Costs and estimated earnings in excess of billings on uncompleted contracts   |               |                 
|Inventories                                                                   |               |                 
|Income taxes receivable                                                       |               |                 
|Deferred income taxes                                                         |               |                 
|Prepaid expenses and other current assets                                     |               |                 
|                                                                              |               |                 
|Total Current Assets                                                          |               |                 
|Property, plant and equipment, net                                            |               |                 
|Other assets                                                                  |               |                 
|                                                                              |               |                 
|Total Assets                                                                  |               |                 
|                                                                              |               |                 
|Liabilities and Stockholders' Equity                                          |               |                 
|Current Liabilities:                                                          |               |                 
|Current maturities of long-term debt and capital lease obligations            |               |                 
|Income taxes payable                                                          |               |                 
|Accounts payable                                                              |               |                 
|Accrued salaries, bonuses and commissions                                     |               |                 
|Billings in excess of costs and estimated earnings on uncompleted contracts   |               |                 
|Accrued product warranty                                                      |               |                 
|Other accrued expenses                                                        |               |                 
|                                                                              |               |                 
|Total Current Liabilities                                                     |               |                 
|Long-term debt and capital lease obligations, net of current maturities       |               |                 
|Deferred compensation                                                         |               |                 
|Other liabilities                                                             |               |                 
|                                                                              |               |                 
|Total Liabilities                                                             |               |                 
|Commitments and contingencies (Note I)                                        |               |                 
|Stockholders' Equity:                                                         |               |                 
|Preferred stock, par value $.01; 5,000,000 shares authorized; none issued     |               |                 
|Common stock, par value $.01; 30,000,000 shares authorized; 11,000,000 and    |               |                 
|10,994,000 shares issued, respectively; 10,708,000 and 10,641,000 shares      |               |                 
|outstanding, respectively                                                     |               |                 
|Additional paid-in capital                                                    |               |                 
|Retained earnings                                                             |               |                 
|Treasury stock, 292,000 shares and 352,000 shares respectively, at cost       |               |                 
|Accumulated other comprehensive loss                                          |               |                 
|Deferred compensation                                                         |               |                 
|                                                                              |               |                 
|Total Stockholders' Equity                                                    |               |                 
|                                                                              |               |                 
|Total Liabilities and Stockholders' Equity                                    |               |                 
|                                                                              |               |                 

The accompanying notes are an integral part of these condensed
consolidated financial statements.

3

---

Powell Industries, Inc. and Subsidiaries
                                     Condensed Consolidated Statements of Operations (unaudited)
                                                (In thousands, except per share data)

|                                                              | Three Months Ended July 31, |  | Nine Months Ended July 31, |       
|------------------------------------------------------------- | --------------------------- |  | -------------------------- | ------
|
|                                                              |                             |  |                            |       
|Revenues                                                      |                             |  | $                          | 52,805
|Cost of goods sold                                            |                             |  |                            | 43,488
|                                                              |                             |  |                            |       
|Gross profit                                                  |                             |  |                            | 9,317 
|Selling, general and administrative expenses                  |                             |  |                            | 8,849 
|                                                              |                             |  |                            |       
|Income before interest and income taxes                       |                             |  |                            | 468   
|Interest expense                                              |                             |  |                            | 45    
|Interest income                                               |                             |  |                            | (235  
|                                                              |                             |  |                            |       
|Income from continuing operations before income taxes and     |                             | 
|cumulative effect of change in accounting principle           |                             |  |                            | 658   
|Income tax provision (benefit)                                |                             |  |                            | (79   
|                                                              |                             |  |                            |       
|Income from continuing operations before cumulative effect of |                             | 
|change in accounting principle                                |                             |  |                            | 737   
|Cumulative effect of change in accounting principle, net of   |                             | 
|$285 tax                                                      |                             |  |                            | --    
|                                                              |                             |  |                            |       
|Net income                                                    |                             |  | $                          | 737   
|                                                              |                             |  |                            |       
|Net earnings per common share:                                |                             | 
|Basic:                                                        |                             | 
|Earnings from continuing operations                           |                             |  | $                          | 0.07  
|Cumulative effect of change in accounting principle           |                             |  |                            | --    
|                                                              |                             |  |                            |       
|Net earnings                                                  |                             |  | $                          | 0.07  
|                                                              |                             |  |                            |       
|Diluted:                                                      |                             | 
|Earnings from continuing operations                           |                             |  | $                          | 0.07  
|Cumulative effect of change in accounting principle           |                             |  |                            | --    
|                                                              |                             |  |                            |       
|Net earnings                                                  |                             |  | $                          | 0.07  
|                                                              |                             |  |                            |       
|Weighted average number of common shares outstanding -        |                             | 
|Basic                                                         |                             |  |                            | 10,701
|                                                              |                             |  |                            |       
|Weighted average number of common and common equivalent       |                             | 
|shares outstanding - Diluted                                  |                             |  |                            | 10,777
|                                                              |                             |  |                            |       

The
accompanying notes are an integral part of these condensed consolidated financial
statements.

4

---

# Powell Industries,
Inc. and Subsidiaries Condensed Consolidated
Statements of Cash Flows (unaudited) (In thousands)

|                                                                                     | Nine Months Ended July 31, | 
|------------------------------------------------------------------------------------ | -------------------------- | 
|
|                                                                                     |                            | 
|Operating Activities:                                                                |                            | 
|Net income                                                                           |                            | 
|Adjustments to reconcile net income to net cash provided by operating activities:    |                            | 
|Cumulative effect of change in accounting principle, net of tax                      |                            | 
|Depreciation and amortization                                                        |                            | 
|Deferred income tax provision                                                        |                            | 
|(Gain)/Loss on disposition of assets                                                 |                            | 
|Other                                                                                |                            | 
|Changes in operating assets and liabilities:                                         |                            | 
|Accounts receivable, net                                                             |                            | 
|Costs and estimated earnings in excess of billings on uncompleted contracts          |                            | 
|Inventories                                                                          |                            | 
|Prepaid expenses and other current assets                                            |                            | 
|Other assets                                                                         |                            | 
|Accounts payable and income taxes payable                                            |                            | 
|Accrued liabilities                                                                  |                            | 
|Billings in excess of costs and estimated earnings on uncompleted contracts          |                            | 
|Deferred compensation                                                                |                            | 
|Other liabilities                                                                    |                            | 
|                                                                                     |                            | 
|Net cash provided by operating activities                                            |                            | 
|                                                                                     |                            | 
|Investing Activities:                                                                |                            | 
|Proceeds from sale of fixed assets                                                   |                            | 
|Purchases of property, plant and equipment                                           |                            | 
|Purchases of marketable securities                                                   |                            | 
|Sales of marketable securities                                                       |                            | 
|                                                                                     |                            | 
|Net cash used in investing activities                                                |                            | 
|                                                                                     |                            | 
|Financing Activities:                                                                |                            | 
|Borrowings of short-term debt                                                        |                            | 
|Borrowings of long-term debt                                                         |                            | 
|Repayments of debt                                                                   |                            | 
|Proceeds from issuance of common stock                                               |                            | 
|Proceeds from exercise of stock options                                              |                            | 
|                                                                                     |                            | 
|Net cash provided by (used in) financing activities                                  |                            | 
|                                                                                     |                            | 
|Net increase in cash and cash equivalents                                            |                            | 
|Cash and cash equivalents at beginning of period                                     |                            | 
|                                                                                     |                            | 
|Cash and cash equivalents at end of period                                           |                            | 
|                                                                                     |                            | 
|Supplemental disclosures of cash flow information (in thousands):                    |                            | 
|Cash paid during the period for:                                                     |                            | 
|Interest                                                                             |                            | 
|                                                                                     |                            | 
|Income taxes                                                                         |                            | 
|                                                                                     |                            | 
|Non-cash investing and financing activities:                                         |                            | 
|Change in fair value of interest rate swap during the period, net of $37 income      |                            | 
|taxes                                                                                |                            | 
|                                                                                     |                            | 
|Change in fair value of marketable securities during the period, net of $33 and $100 |                            | 
|income taxes, respectively                                                           |                            | 
|                                                                                     |                            | 
|Issuance of common stock for deferred directors' fees                                |                            | 
|                                                                                     |                            | 
|Assets acquired under capital lease obligations                                      |                            | 
|                                                                                     |                            | 

The
accompanying notes are an integral part of these condensed consolidated financial
statements.

5

---

Part
I      Item 1

# POWELL INDUSTRIES,
INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Unaudited)

A.    
          BASIS OF PRESENTATION

| | The accompanying  unaudited condensed  consolidated financial statements have been prepared in accordance with
     the  instructions  to  Form  10-Q.  Certain  information  and  footnote   disclosures   normally  included  in
     consolidated  financial  statements  prepared in accordance with accounting  principles  generally accepted in
     the United States of America have been condensed or omitted  pursuant to these rules and  regulations.  In the
     opinion of management,  these condensed consolidated financial statements include all adjustments,  consisting
     of normal  recurring  adjustments,  which are necessary  for a fair  presentation  of the Company's  financial
     position,  results of operations,  and cash flows.  These financial  statements  should be read in conjunction
     with the financial  statements and related footnotes  included in the Company's annual report on Form 10-K for
     the year ended October 31, 2003.  The interim  period  results are not  necessarily  indicative of the results
     to be expected for the full fiscal year.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The preparation of financial  statements in conformity with accounting  principles  generally  accepted in the
     United States of America  requires  management  to make  estimates  and  assumptions  that affect the reported
     amounts of assets and  liabilities  and  disclosure of contingent  assets and  liabilities  at the date of the
     condensed  consolidated  financial  statements  and the reported  amounts of revenues and expenses  during the
     reporting period.  Actual results could differ from those estimates.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | New
Accounting Standards
| | ------------------------

| | In  January  2003,  the  Financial   Accounting   Standards  Board  (FASB)  issued   Interpretation   No.  46,
     "Consolidation  of  Variable  Interest  Entities"  (FIN 46).  A  variable  interest  entity is a  corporation,
     partnership,  trust,  or any other  legal  structure  used for  business  purposes  that does not have  equity
     investors with voting rights, or has equity investors that do not provide sufficient  financial  resources for
     the entity to support its activities.  FIN 46 requires the  consolidation  of any variable  interest  entities
     in which a  company  is  subject  to a  majority  of the  risk of loss  from the  variable  interest  entity's
     activities or entitled to receive a majority of the entity's  residual  returns,  or both.  In December  2003,
     the FASB issued  Interpretation  No. 46R, a revision of  Interpretation  No. 46. The  provisions of FIN 46 and
     FIN 46R related to  special-purpose  entities were  effective for reporting  periods ending after December 15,
     2003.  These  provisions  were adopted  during the quarter  ended January 31, 2004.  The remaining  provisions
     were adopted  during the quarter ended April 30, 2004.  The adoption of these  provisions had no impact on our
     consolidated financial position, results of operations or cash flows.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In November  2003,  the  Emerging  Issues Task Force  (EITF)  reached a consensus  opinion on EITF 03-1,  "The
     Meaning of  Other-Than-Temporary  Impairment and its Application to Certain  Investments".  EITF 03-1 provides
     guidance  on the new  requirements  for  other-than-temporary  impairment  and  its  application  to debt  and
     marketable  equity  investments  that are accounted for under SFAS No. 115. The new requirements are effective
     for fiscal years ending after  December 15, 2003.  The adoption of EITF 03-1 during the quarter  ended January
     31, 2004 had no impact on our consolidated financial position, results of operations or cash flows.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In March  2004,  the EITF  reached a  consensus  opinion  on EITF  03-06,  "Participating  Securities  and the
     Two-Class  Method  under FASB  Statement  No.  128,  Earnings  Per  Share."  EITF 03-06  provides  guidance in
     applying the two-class  method of  calculating  earnings per share for companies  that have issued  securities
     other than common stock that  contractually  entitle the holder to participate  in any dividends  declared and
     earnings of the company.  The opinion defines what  constitutes a participating  security and how to apply the
     two-class  method of calculating  earnings per share to those  securities.  EITF 03-06 became effective during
     the quarter ended July 31, 2004,  and the adoption did not have an impact on our  calculation  of earnings per
     share.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In May 2004,  the FASB issued  FASB Staff  Position  (FSP)  106-2,  "Accounting  and  Disclosure  Requirements
     Related to the Medicare Prescription Drug,  Improvement,  and Modernization Act of 2003" to provide accounting
     and  disclosure  guidance  for  employers  that  sponsor   postretirement   health  care  plans  that  provide
     prescription drug benefits.  The Medicare Prescription Drug,  Improvement,  and Modernization Act of 2003 (the
     "Act") was signed  into law on  December  8, 2003.  The Act  introduces  a  prescription  drug  benefit  under
     Medicare  as well as a federal  subsidy to  sponsors  of retiree  health  care  benefit  plans that  provide a
     benefit that is at least  actuarially  equivalent to Medicare Part D. The new  requirements  are effective for
     interim  periods  beginning  after June 15,  2004.  We provide  postretirement  health  benefits  that include
     prescription  drug  benefits,  but this  benefit  ends  when the  employee  reaches  the age of 65.  We do not
     anticipate that FSP 106-2 will have an impact on our postretirement benefit cost.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

6

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B.    
          STOCK-BASED COMPENSATION

| | In  accordance  with the  provisions  of SFAS No. 123,  "Accounting  for  Stock-Based  Compensation,"  we have
     elected  to  account  for our  stock-based  employee  compensation  plans  under the  intrinsic  value  method
     established  by  Accounting  Principles  Board  ("APB")  Opinion  No.  25,  "Accounting  for  Stock  Issued to
     Employees."  Under APB No. 25, no  compensation  expense is recorded  when the exercise  price of the employee
     stock option is greater than or equal to the market price of the common stock on the grant date.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | If compensation  expense for our stock option plans had been  determined  based on the fair value at the grant
     date for awards  through  July 31, 2004  consistent  with the  provisions  of SFAS No. 123, our net income and
     earnings per share would have been as follows:
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                       | Three Months Ended July 31, |  | Nine Months Ended July 31, |     
|------------------------------------------------------ | --------------------------- |  | -------------------------- | ----
|
|                                                       |                             |  |                            |     
|Net income, as reported                                |                             |  | $                          | 737 
|Less:  Total stock-based employee compensation expense |                             | 
|determined under fair value based method for all       |                             | 
|awards, net of related tax effects                     |                             |  |                            | (222
|                                                       |                             |  |                            |     
|Pro forma net income                                   |                             |  |                            | 515 
|                                                       |                             |  |                            |     
|Basic earnings per share:                              |                             | 
|As reported                                            |                             |  | $                          | 0.07
|Pro forma                                              |                             |  | $                          | 0.05
|Diluted earnings per share:                            |                             | 
|As reported                                            |                             |  | $                          | 0.07
|Pro forma                                              |                             |  | $                          | 0.05

C.    
          EARNINGS PER SHARE

| | The
following table sets forth the computation of basic and diluted earnings per share (in
thousands, except per share data):
| | -----------------------------------------------------------------------------------------------------------------------------

|                                                    | Three Months Ended July 31, |  | Nine Months Ended July 31, |       
|--------------------------------------------------- | --------------------------- |  | -------------------------- | ------
|
|                                                    |                             |  |                            |       
|Numerator:                                          |                             |  |                            |       
|Income from continuing operations available to      |                             | 
|common stockholders                                 |                             |  | $                          | 737   
|Cumulative effect of change in accounting           |                             | 
|principle, net of tax                               |                             |  |                            | --    
|                                                    |                             |  |                            |       
|Net income available to common stockholders         |                             |  | $                          | 737   
|                                                    |                             |  |                            |       
|Denominator:                                        |                             | 
|Denominator for basic earnings per share-weighted   |                             | 
|average shares                                      |                             |  |                            | 10,701
|Dilutive effect of stock options                    |                             |  |                            | 76    
|                                                    |                             |  |                            |       
|Denominator for diluted earnings per                |                             | 
|share-adjusted weighted average shares with         |                             | 
|assumed conversions                                 |                             |  |                            | 10,777
|                                                    |                             |  |                            |       
|Basic earnings per share:                           |                             | 
|Earnings from continuing operations                 |                             |  | $                          | 0.07  
|Cumulative effect of change in accounting principle |                             |  |                            | --    
|                                                    |                             |  |                            |       
|Net earnings                                        |                             |  | $                          | 0.07  
|                                                    |                             |  |                            |       
|Diluted earnings per share:                         |                             | 
|Earnings from continuing operations                 |                             |  | $                          | 0.07  
|Cumulative effect of change in accounting principle |                             |  |                            | --    
|                                                    |                             |  |                            |       
|Net earnings                                        |                             |  | $                          | 0.07  
|                                                    |                             |  |                            |       

| | For the three  months  ended July 31,  2004 and 2003,  options to  purchase  a total of 350  thousand  and 494
     thousand  shares,  respectively,  were excluded from the computation of diluted earnings per share because the
     options'  exercise  prices  were  greater  than the average  market  price of the common  stock.  For the nine
     months ended July 31, 2004 and 2003,  options to purchase a total of 354  thousand  and 494  thousand  shares,
     respectively,  were excluded from the computation of diluted earnings per share because the options'  exercise
     prices were greater than the average market price of the common stock.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7

---

D.    
          DETAIL OF CERTAIN BALANCE SHEET ACCOUNTS

| | Activity in the allowance for doubtful accounts receivable consists of the following (in thousands):
| | ----------------------------------------------------------------------------------------------------

|                                              | Three Months Ended July 31, |  | Nine Months Ended July 31, |      
|--------------------------------------------- | --------------------------- |  | -------------------------- | -----
|
|                                              |                             |  |                            |      
|Balance at beginning of period                |                             |  | $                          | 1,016
|Adjustments to the reserve                    |                             |  |                            | (122 
|Deductions for uncollectible accounts written |                             | 
|off, net of recoveries                        |                             |  |                            | (85  
|                                              |                             |  |                            |      
|Balance at end of period                      |                             |  | $                          | 809  
|                                              |                             |  |                            |      

| | Activity
in the accrued product warranty account consists of the following (in thousands):
| | ------------------------------------------------------------------------------------------

|                                | Three Months Ended July 31, |  | Nine Months Ended July 31, |      
|------------------------------- | --------------------------- |  | -------------------------- | -----
|
|                                |                             |  |                            |      
|Balance at beginning of period  |                             |  | $                          | 1,763
|Adjustments to the reserve      |                             |  |                            | 311  
|Deductions for warranty charges |                             |  |                            | (497 
|                                |                             |  |                            |      
|Balance at end of period        |                             |  | $                          | 1,577
|                                |                             |  |                            |      

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

|                                       | July 31,
2004 | October 31,
2003
|-------------------------------------- | ------------- | ----------------
|                                       |               |                 
|Raw materials, parts and subassemblies |               |                 
|Work-in-process                        |               |                 
|                                       |               |                 
|Total inventories                      |               |                 
|                                       |               |                 

| | Property, plant and equipment is summarized below (in thousands):
| | -----------------------------------------------------------------

|                                         | July 31,
2004 | October 31,
2003
|---------------------------------------- | ------------- | ----------------
|                                         |               |                 
|Land                                     |               |                 
|Buildings and improvements               |               |                 
|Machinery and equipment                  |               |                 
|Furniture and fixtures                   |               |                 
|Construction in progress                 |               |                 
|                                         |               |                 
|                                         |               |                 
|Less-accumulated depreciation            |               |                 
|                                         |               |                 
|Total property, plant and equipment, net |               |                 
|                                         |               |                 

| | Depreciation
expense for the nine months ended July 31, 2004 and 2003 was $3.3 million and $3.7
million, respectively.
| | ----------------------------------------------------------------------------------------------------------------------

8

---

| | The
components of costs and estimated earnings in excess of billings are summarized below (in
thousands):
| | ---------------------------------------------------------------------------------------------------------

|                                                                        | July 31,
2004 | October 31,
2003
|----------------------------------------------------------------------- | ------------- | ----------------
|                                                                        |               |                 
|Costs and estimated earnings                                            |               |                 
|Progress billings                                                       |               |                 
|                                                                        |               |                 
|Total costs and estimated earnings in excess of billings on uncompleted |               |                 
|contracts                                                               |               |                 
|                                                                        |               |                 

| | The
components of billings in excess of costs and estimated earnings are summarized below (in
thousands):
| | ---------------------------------------------------------------------------------------------------------

|                                                                        | July 31,
2004 | October 31,
2003
|----------------------------------------------------------------------- | ------------- | ----------------
|                                                                        |               |                 
|Progress billings                                                       |               |                 
|Costs and estimated earnings                                            |               |                 
|                                                                        |               |                 
|Total billings in excess of costs and estimated earnings on uncompleted |               |                 
|contracts                                                               |               |                 
|                                                                        |               |                 

E.    
          COMPREHENSIVE INCOME

| | Comprehensive  income in 2004  consists of net income and the change in fair value of  marketable  securities.  At July 31, 2004,
     marketable securities consisted of investment-grade  corporate bonds that we have classified as available-for-sale.  The maturity
     dates of these bonds vary from 1-9 years.  These investments are carried at fair value, with unrealized gains and losses,  net of
     related tax effects,  included in other comprehensive  income. At July 31, 2003, we had an interest rate swap agreement which was
     used as a cash flow hedge in the  management  of  interest  rate  exposure.  The  interest  rate swap  agreement  was  settled in
     September  2003.  Comprehensive  income  for the three and nine month  periods  ended  July 31,  2004 and 2003 is as follows  (in
     thousands):
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                    | Three Months Ended July 31, |  | Nine Months Ended July 31, |    
|--------------------------------------------------- | --------------------------- |  | -------------------------- | ---
|
|                                                    |                             |  |                            |    
|Net income                                          |                             |  | $                          | 737
|Other comprehensive income (loss), net of tax:      |                             | 
|Unrealized gains (losses) on marketable securities: |                             | 
|Unrealized holding gains (losses) arising           |                             | 
|during period                                       |                             |  |                            | 40 
|Less:  Reclassification adjustment for (gains)      |                             | 
|losses included in net income                       |                             |  |                            | 8  
|Unrealized gains (losses) on hedge instrument       |                             |  |                            | -- 
|                                                    |                             |  |                            |    
|Other comprehensive income                          |                             |  |                            | 48 
|                                                    |                             |  |                            |    
|Comprehensive income                                |                             |  | $                          | 785
|                                                    |                             |  |                            |    

F.    
          POSTRETIREMENT BENEFITS

| | The
following table illustrates the components of net periodic postretirement benefit expense
in the employee retiree benefit plan (in thousands):
| | --------------------------------------------------------------------------------------------------------------------------------------------------

|                                            | Three Months Ended July 31, |  | Nine Months Ended July 31, |   
|------------------------------------------- | --------------------------- |  | -------------------------- | --
|
|                                            |                             |  |                            |   
|Service cost                                |                             |  | $                          | 13
|Interest cost                               |                             |  |                            | 15
|Amortization of prior service cost          |                             |  |                            | 17
|Amortization of net (gain) loss             |                             |  |                            | (1
|                                            |                             |  |                            |   
|Net periodic postretirement benefit expense |                             |  | $                          | 44
|                                            |                             |  |                            |   

9

---

G.    
          BUSINESS SEGMENTS

| | We
manage our business through operating subsidiaries, which are combined into two reportable
business segments: Electrical Power Products and Process Control Systems. Electrical Power
Products includes equipment and systems for the distribution and control of electrical
energy. Process Control Systems consists principally of instrumentation, computer
controls, communications and data management systems.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
tables below reflect certain information relating to our operations by segment. All
revenues represent sales from unaffiliated customers. The accounting policies of the
segments are the same as those described in the summary of significant accounting policies
included in our annual report on Form 10-K for the year ended October 31, 2003. For
purposes of this presentation, all general corporate expenses have been allocated among
operating segments based primarily on revenues. The corporate assets are mainly cash and
cash equivalents and marketable securities.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Detailed
information regarding our business segments is shown below (in thousands):
| | -----------------------------------------------------------------------------------

|                                                          | Three Months Ended July 31, |  | Nine Months Ended July 31, |       
|--------------------------------------------------------- | --------------------------- |  | -------------------------- | ------
|
|                                                          |                             |  |                            |       
|Revenues:                                                 |                             |  |                            |       
|Electrical Power Products                                 |                             |  | $                          | 43,256
|Process Control Systems                                   |                             |  |                            | 9,549 
|                                                          |                             |  |                            |       
|Total                                                     |                             |  | $                          | 52,805
|                                                          |                             |  |                            |       
|Gross profit:                                             |                             | 
|Electrical Power Products                                 |                             |  | $                          | 7,513 
|Process Control Systems                                   |                             |  |                            | 1,804 
|                                                          |                             |  |                            |       
|Total                                                     |                             |  | $                          | 9,317 
|                                                          |                             |  |                            |       
|Income from continuing operations before income taxes and |                             | 
|cumulative effect of change in accounting principle:      |                             | 
|Electrical Power Products                                 |                             |  | $                          | 185   
|Process Control Systems                                   |                             |  |                            | 473   
|                                                          |                             |  |                            |       
|Total                                                     |                             |  | $                          | 658   
|                                                          |                             |  |                            |       

|                          | July 31,
2004 | October 31,
2003
|------------------------- | ------------- | ----------------
|                          |               |                 
|Assets:                   |               |                 
|Electrical Power Products |               |                 
|Process Control Systems   |               |                 
|Corporate                 |               |                 
|                          |               |                 
|Total                     |               |                 
|                          |               |                 

H.    
          GOODWILL AND OTHER INTANGIBLE ASSETS

| | A
summary of goodwill and other intangible assets follows (in thousands):
| | -------------------------------------------------------------------------

|                                           | July 31, 2004  |  | October 31, 2003        |    
|------------------------------------------ | -------------- |  | ----------------------- | ---
|                                           |                |  |                         |    
|                                           | HistoricalCost |  | AccumulatedAmortization |    
|Goodwill                                   |                |  | $                       | 304
|Intangible assets subject to amortization: |                | 
|Deferred loan costs                        |                |  |                         | 233
|Patents and Trademarks                     |                |  |                         | 837

| | The
above intangible assets are included in other assets on the consolidated balance sheet.
Amortization expense related to intangible assets subject to amortization for the three
and nine months ended July 31, 2004 was $17 thousand and $52 thousand, respectively.
Estimated amortization expense for each of the subsequent five fiscal years is expected to
be approximately $70 thousand.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

10

---

I.    
          COMMITMENTS AND CONTINGENCIES

| | Litigation
| | ----------

| | We
are involved in various legal proceedings arising in the ordinary course of business. We
do not believe that the ultimate outcome of these disputes will materially affect our
financial position or future results of operations.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Letters of Credit and Bonds
| | ---------------------------

| | Certain
customers require us to post a bank letter of credit guarantee or performance bonds issued
by a surety. These assure our customers that we will perform under terms of our contract
and with associated vendors and subcontractors. In the event of default the customer may
demand payment from the bank under a letter of credit or performance by the surety under a
performance bond. To date there have been no significant expenses related to either for
the periods reported. We were contingently liable for secured and unsecured letters of
credit of $10.6 million as of July 31, 2004. We also had performance bonds totaling
approximately $167.4 million that were outstanding at July 31, 2004.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Other Contingencies
| | -------------------

| | The
Company is a partner in a joint venture (the Joint Venture), which provided
process control systems to the Central Artery/Tunnel Project (the Project) in
Boston, Massachusetts, under a contract with the Massachusetts Turnpike Authority (the
MTA). The Joint Venture has submitted claims against the MTA seeking
additional reimbursement for work done by the Joint Venture on the project. In a separate
matter, the Joint Venture received notice dated May 9, 2002 (the Notice) from
the MTA that a follow-on contractor has asserted a claim against the MTA in connection
with work done or to be done by the follow-on contractor on the project. One component of
the Project involved the Joint Venture performing specific work that the MTA then bid for
the follow-on contractor to complete. Part of the follow-on contractors claim
contains unsubstantiated allegations that such work performed by the Joint Venture was
insufficient and defective, thus possibly contributing to the follow-on contractors
claims for damages against the MTA. In the Notice of the potential claim, the MTA advised
the Joint Venture that if it is required to pay the follow-on contractor additional
amounts and such payment is the result of defective work by the Joint Venture, the MTA
will seek indemnification from the Joint Venture for such additional amounts.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Joint Venture has no reason to believe the systems it delivered under contract to the MTA
were defective and accordingly it intends to vigorously defend any such allegations. The
ultimate disposition of the Joint Ventures claim against the MTA and the MTAs
potential claim for indemnification based on the follow-on contractors claims are
not presently determinable. Although an unfavorable outcome to the follow-on
contractors claim could have a material adverse effect on the Companys
financial condition, results of operations, and cash flows, the Company believes that an
unfavorable outcome with respect to these matters, under the circumstances and on the
basis of the information now available, is unlikely.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

J.    
          PLANT CLOSING COSTS

| | To reduce overhead costs and improve  efficiency,  we decided to reduce the number of operations  within our Electrical Power Products
     segment.  In February  2004, we announced our decision to close our plant in  Greenville,  Texas and relocate the  manufacture of
     the associated  distribution switch product lines to our North Canton, Ohio facility.  In June 2004, we announced our decision to
     close our facility in Elyria,  Ohio,  and relocate the  manufacture  of our bus duct product  lines to our facility in Northlake,
     Illinois.  The consolidation of our Greenville and North Canton  operations was completed in the third quarter,  resulting in the
     involuntary  termination of 39 employees.  We expect  consolidation of our Northlake and Elyria  facilities to be complete by the
     end of the first quarter of fiscal 2005 and to result in the termination of approximately 50 employees.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | We estimate total pre-tax  expenses  associated  with the plant closings to be  approximately  $3.0 million,  an increase of $0.5
     million from initial  estimates.  Of this  increase,  $0.2  million is due to  additional  severance  costs  associated  with the
     consolidation  of our Greenville  and North Canton  operations.  The remaining  $0.3 million is due to revised  estimates for the
     relocation and setup of equipment at our Northlake facility.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | For the quarter  ended July 31, 2004, we incurred  involuntary  termination  benefits of $0.7 million and shutdown  costs of $0.5
     million.  Shutdown  costs  primarily  consist of employee  training and equipment  relocation.  Of the $1.2 million total pre-tax
     expenses  during  the  quarter,  $0.9  million  is  included  in cost of goods  sold and the  balance  in  selling,  general  and
     administrative expenses.  During the quarter, we paid $0.4 million in involuntary termination benefits.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | For the nine months ended July 31, 2004, we incurred involuntary  termination benefits of $0.9 million and shutdown costs of $0.6
     million.  Of the $1.5 million total pre-tax  expenses  recorded year to date,  $1.2 million is included in cost of goods sold and
     the balance in selling,  general and  administrative  expenses.  We have paid $0.4 million in  involuntary  termination  benefits
     through the first nine months.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | As of July 31, 2004,  other assets included assets held for sale of $1.0 million  associated with the land,  building,  and other
     assets at our Greenville,  Texas facility.  Accrued salaries,  bonuses and commissions included $0.7 million for unpaid severance
     associated with our consolidation of operations.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

11

---

Part
I      Item 2

# MANAGEMENTS
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS

| | The following discussion should be read in conjunction with the accompanying  condensed  consolidated financial statements and related
notes.  In the course of  operations,  we are  subject  to  certain  risk  factors,  including  but not  limited  to  competition  and
competitive  pressures,  sensitivity  to general  economic and  industry  conditions,  international  political  and  economic  risks,
availability and price of raw materials and execution of business strategy.  Any  forward-looking  statements made by or on our behalf
are made pursuant to the safe harbor provisions of the Private  Securities  Litigation Reform Act of 1995.  Readers are cautioned that
such  forward-looking  statements  involve  risks and  uncertainties  in that the  actual  results  may differ  materially  from those
projected in the forward-looking statements.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Overview
| | --------

| | The difficult  market  conditions  that existed in fiscal 2003 have  continued in fiscal 2004. We continue to experience a significant
reduction in market  demand for our  products.  Additionally,  market price levels have  deteriorated  as  competition  for  available
business  volume  intensified.  However,  we have been able to expand  system  modification  and  replacement  equipment  activity  as
customers look for ways to extend the lives of their existing systems.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Although we currently face reduced demand and prices,  there are  indications of improvement in our principal  markets.  Historically,
business  expansion  within our principal  markets - public and private  utilities,  heavy industry and public  agencies - have lagged
general  economic  trends by six to twelve  months as our  revenues  are  principally  driven by new capital  investments.  One of the
positive  trends we have  experienced  is an increase in new order  activity.  New orders  booked in the third  quarter of fiscal 2004
totaled $42.1  million.  This  represents  two  consecutive  quarters  where new orders have  exceeded $40 million.  This positive new
order trend follows four consecutive  quarters of bookings  totaling $35.8 million,  $36.3 million,  $33.1 million,  and $45.3 million
for the three months ended July 31, 2003,  October 31, 2003,  January 31, 2004,  and April 30, 2004,  respectively.  We are optimistic
that we will see further improvement in the fourth quarter of fiscal 2004.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In anticipation of improving  business  opportunities,  we are taking advantage of lower production  volumes to make necessary capital
improvements to our  manufacturing  facility in Houston,  Texas. We have committed to projects  totaling $5.6 million.  These projects
include  a new  metal  finishing  and paint  system  and  replacement  of some  older  metal  fabricating  equipment  with a laser cut
fabricating  center and material handling system.  Consistent with other lean initiatives,  these investments will improve our quality
and efficiency as well as lead to lower working capital requirements.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | To reduce  overhead  costs and improve  efficiency,  we also decided to reduce the number of operations  within our  Electrical  Power
Products  segment.  In February  2004, we announced the closing of our  Greenville,  Texas  facility and the  relocation of our switch
product lines to our North Canton,  Ohio  operation.  In June 2004, we decided to close our facility in Elyria,  Ohio, and consolidate
operations with our Northlake,  Illinois  facility.  The  consolidation of our Greenville and North Canton operations was completed in
the third  quarter and we expect to cease  operations at the Elyria  facility by the end of the first  quarter of 2005.  Total pre-tax
expenses  associated  with these plant closings are estimated to be  approximately  $3.0 million.  For the three and nine months ended
July 31, 2004, we incurred pre-tax expenses associated with the plant closings of $1.2 million and $1.5 million, respectively.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | We continue to focus on managing  our working  capital.  As of July 31,  2004,  Powell  Industries  held cash,  cash  equivalents  and
marketable  securities  of $56 million,  an increase of $14 million from  year-end  2003.  We believe we are  well-positioned  to take
advantage of improving economic and market conditions.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Results of Operations
| | ---------------------

| | Revenue and Gross Profit
| | ------------------------

| | Consolidated  revenues  decreased  13% to $52.8  million in the third  quarter of fiscal 2004  compared to the third quarter of fiscal
year 2003 revenues of $60.4  million.  Domestic  revenues  decreased $8.9 million to $44.3 million for the three months ended July 31,
2004 compared to the same period a year ago.  Revenues  outside of the United States  accounted  for 16% of  consolidated  revenues in
the third quarter of fiscal 2004 compared to 12% for the three months ended July 31, 2003.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | For the nine months ended July 31, 2004,  consolidated  revenues  decreased  20% to $157.5  million  compared to the nine months ended
July 31, 2003 revenues of $196.2  million.  Domestic  revenues for the first nine months of fiscal 2004 were $132.7  million  compared
to $170.3  million for the first nine months of fiscal 2003. For the nine months ended July 31, 2004,  revenues  outside of the United
States  accounted for 16% of consolidated  revenues  compared to 13% for the same period a year ago. We anticipate that  international
revenues will remain strong for the remainder of fiscal 2004.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

12

---

| | Electrical Power Products
| | -------------------------

| | Our Electrical Power Products  segment  recorded  revenues of $43.3 million for the three months ended July 31, 2004 compared to $53.1
million for the third quarter of fiscal 2003. A decline in revenues  from utility  customers  had the most  significant  impact on our
third quarter revenues as compared to the prior year.  Revenues from utility  customers  decreased to $16.8 million,  a 31% reduction,
or nearly $7.5  million.  Revenues  from  industrial  customers  were  relatively  unchanged at $21.6  million.  Municipal and transit
projects generated revenues of $4.9 million compared to $7.7 million a year ago.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | For the nine months ended July 31, 2004,  this segment  recorded  revenues of $133.4 million  compared to $176.8 million for the first
nine months of fiscal  2003.  During the first nine months of 2004,  revenues  from all markets  were down from the same period a year
ago.  Utility  revenues  totaled  $46.6  million,  a decline of 32%;  industrial  revenues were $73.1  million,  a decline of 16%; and
revenues from municipal and transit projects totaled $13.7 million, down 36%.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Gross  profit,  as a percentage  of revenues,  increased to 17.4% in the third quarter of 2004 from 17.0% in the third quarter of 2003
despite  inflationary  pressures.  During the third quarter 2004,  direct material expenses  increased by approximately  5.5%, or $1.1
million,  primarily  due to higher  commodity  prices in copper,  aluminum  and steel  compared to the same  period a year ago.  Gross
profit was also adversely  impacted by one-time expenses of $0.9 million  associated with our decision to close our Greenville,  Texas
and Elyria, Ohio facilities.  These expenses include employee severance, training and equipment relocation costs.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | For the nine months ended July 31, 2004,  gross  profit as a percentage  of revenues  decreased to 17.0% from 18.3% for the first nine
months of fiscal 2003.  Higher  commodity  price levels have  contributed  to lower gross  profit.  Direct  material  costs  increased
approximately  3.5%,  or $2.3 million,  during the first nine months of 2004  compared to the same period a year ago. In addition,  we
incurred separation costs and other one-time expenses of $1.2 million as a result of our decision to consolidate operations.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Revenues  and gross  profit  for both  periods  have been  adversely  impacted  by  competitive  pricing in a  depressed  marketplace.
Partially  offsetting  adverse market  conditions  have been the results of our efforts to reduce our costs of production by improving
operating efficiencies through the implementation of lean initiatives.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Process Control Systems
| | -----------------------

| | Revenues in our Process  Control  Systems  segment  were $9.5  million and $24.1  million for the three and nine months ended July 31,
2004 compared to $7.3 million and $19.4 million for the same time period of the previous  year.  The most  significant  project in our
backlog is a contract to design and build  Intelligent  Transportation  Systems (ITS) for the Holland and Lincoln tunnels for the Port
Authority of New York and New Jersey.  Revenue  attributable  to this project totaled $5.0 million and $10.1 million for the three and
nine months  ended July 31 2004.  As of July 31,  2004,  the  remaining  value  associated  with this project in our backlog was $23.5
million, or 49% of the segment backlog.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Gross profit was $1.8  million and $4.8  million for the three and nine months  ended July 31, 2004  compared to $1.6 million and $4.6
million for the same time period of the previous year.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | For additional information related to our business segments, see Note G of the Notes to Condensed Consolidated Financial Statements.
| | ------------------------------------------------------------------------------------------------------------------------------------

| | Operating Expenses
| | ------------------

| | Selling,  general and  administrative  expenses  were $8.8  million,  or 16.8% of  revenues,  in the three  months ended July 31, 2004
compared to $8.5  million,  or 14.1% of revenues,  in the third  quarter of fiscal  2003.  During the  quarter,  we incurred  one-time
expenses of $0.3 million  associated with the  consolidation of operations.  Research and development  expenditures  were $0.8 million
in the three  months  ended July 31, 2004  compared to $1.1  million in the third  quarter of fiscal  2003.  R&D costs are included in
selling, general and administrative expenses.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | For the nine months ended July 31, 2004,  selling,  general and  administrative  expenses  were $25.6  million,  or 16.2% of revenues,
compared to $26.8  million,  or 13.7% of  revenues,  for the first nine months of fiscal  2003.  We have  reduced our expenses by $1.2
million in the first nine months compared to the same period a year ago despite one-time  expenses  associated with the  consolidation
of operations of $0.3 million.  We have  maintained  our focus on  developing  our markets and new product  development.  As a result,
selling,  general and  administrative  expenses as a percentage of revenues have  increased.  For the nine months ended July 31, 2004,
research and development  expenditures  were $2.6 million,  unchanged from the first nine months of fiscal 2003. For the full year, we
anticipate  research and  development  spending  will be  comparable to fiscal year 2003  expenditures  of $3.6 million.  Our research
efforts are directed toward the discovery and  development of new products and processes as well as improvements in existing  products
and processes.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

13

---

| | Interest Income and Expense
| | ---------------------------

| | We incurred $45 thousand in interest  expense in the third  quarter of 2004  compared to $178  thousand in the same period a year ago.
For the nine months ended July 31, 2004,  we incurred $108  thousand in interest  expense  compared to $346 thousand for the same time
period of fiscal 2003.  For both periods,  interest  expense has been reduced by favorable  interest  rates and a lower balance on our
industrial  revenue bond debt that resulted from the October 2003  scheduled  payment of $400  thousand.  Additionally,  for the three
and nine months ended July 31, 2003, we incurred $53 thousand and $174 thousand,  respectively,  in interest  expense on our term loan
and the  associated  interest  rate swap.  In  September  2003,  we paid the  remaining  principal  balance on our term loan which has
reduced our interest expense.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | We earned $235  thousand in interest  income in the third  quarter of 2004  compared to $207 thousand in the third quarter a year ago.
For the first nine months of 2004,  interest income  increased by $215 thousand to $602 thousand  compared to the first nine months of
2003.  Interest  income for the three and nine month periods ended July 31, 2004  increased  compared to the same periods of last year
due  primarily  to higher  levels of invested  funds.  In  addition,  we hold  corporate  bonds as discussed in Note E of the Notes to
Condensed Consolidated Financial Statements that yield higher interest rates than the previous years investments.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Provision for Income Taxes
| | --------------------------

| | Our income tax  provision/(benefit)  for the three months ended July 31, 2004 and 2003 was ($79) thousand and $567  thousand,  and our
effective  tax rate was (12.0%) and 37.7%,  respectively.  Our income tax  provision  for the nine months ended July 31, 2004 and 2003
was $810 thousand and $3.8 million, and our effective tax rate was 23.5% and 37.4%, respectively.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | During the third quarter,  we recorded a $300 thousand  favorable  adjustment to income taxes as a result of revised  extraterritorial
income exclusion  estimates  associated with our 2003 federal income tax liability.  Without this  adjustment,  our effective tax rate
would have been 33.6% and 36.0%, respectively, for the three and nine months ended July 31, 2004.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Net income
| | ----------

| | Net income was $0.7 million,  or $0.07 per diluted share, in the third quarter of fiscal year 2004 compared to $1.3 million,  or $0.13
per diluted share, in the third quarter of fiscal year 2003.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | For the nine months ended July 31, 2004, net income was $1.8 million,  or $0.17 per diluted share,  compared to $5.9 million, or $0.55
per diluted share,  for the first nine months of 2003.  For the first nine months of fiscal 2003,  net income was negatively  impacted
as a result of the  adoption of  Statement  of  Financial  Accounting  Standards  (SFAS)  No. 142,  Goodwill  and Other  Intangible
Assets. During the first quarter of fiscal 2003, we recorded a goodwill  impairment loss of $0.5 million as a cumulative  effect of a
change in accounting principle.  The goodwill impairment charge accounted for a loss of $0.05 per diluted share.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Lower selling,  general and administrative  expenses,  along with higher interest income,  have partially offset a decline in business
volume and lower gross profits which have resulted in earnings weakening during fiscal 2004.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Backlog
| | -------

| | The order backlog on July 31, 2004 was $120.4  million  compared to $157.5  million at fiscal year end 2003 and $178.4  million at the
end of the third  quarter one year ago.  Challenging  economic  and market  conditions  have led to the decline in our order  backlog.
However,  we have  experienced a recent  strengthening  in new orders.  Orders  placed during the third quarter  totaled $42.1 million
versus $35.8 million in our third quarter 2003.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Liquidity and Capital Resources
| | -------------------------------

| | We have  maintained a strong  liquidity  position.  Working  capital was $98.5  million at July 31, 2004  compared to $96.9 million at
October 31, 2003.  The  improvement  was mainly due to billing and  collection  of our net  investment in long-term  contracts.  As of
July 31, 2004,  current assets exceeded  current  liabilities by 3.5 times and our debt to  capitalization  ratio was less than 0.1 to
1.0.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | As of July 31, 2004, we had cash and cash  equivalents  of $51.3 million,  as well as $5.1 million in marketable  debt  securities,  a
$14.1 million  increase in cash, cash  equivalents and marketable  securities from the end of fiscal 2003.  Long-term debt,  including
current  maturities,  totaled $7.5 million at July 31, 2004  compared to $7.4 million at October 31, 2003,  our fiscal year end. As of
July 31, 2004, our long-term debt was limited to our industrial  revenue bonds,  with the next payment of $400 thousand on these bonds
scheduled for October 2004. In addition to our long-term debt, we have a $15 million  revolving  credit  agreement  expiring  February
2006. As of July 31, 2004,  there were no borrowings  under this line of credit.  We were in compliance  with all debt covenants as of
July 31, 2004.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

14

---

| | Operating Activities
| | --------------------

| | For the nine months ended July 31, 2004,  cash from operating  activities  provided  $17.9 million.  A net reduction in investments in
contract costs and  inventories  provided $17.8 million as projects in our backlog reached  contractual  billing  milestones.  For the
nine months ended July 31, 2003, cash from operating  activities  provided $33.7 million.  Both periods provided  substantial cash due
to decreases in operating assets such as contract costs,  accounts  receivable and inventories.  Lower sales volumes have equated into
less cash being reinvested in operating assets.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Investing Activities
| | --------------------

| | For the nine  months  ended  July 31,  2004,  cash used in  investing  activities  was $4.2  million.  Cash used for the  purchase  of
property,  plant and  equipment  during the nine months  ended July 31, 2004 was $4.9  million,  compared to $3.4 million for the nine
months ended July 31, 2003.  The majority of our 2004 capital  investments  will be used to improve our  capabilities  to  manufacture
switchgear and  electrical  power control rooms.  We have committed to capital  projects  totaling $5.6 million to acquire a new metal
finishing and paint system, a laser cut fabricating  center,  and material  handling system.  Consistent with other lean  initiatives,
these  investments  will  improve our quality and  efficiency  as well as lead to lower  working  capital  requirements.  For the nine
months ended July 31, 2004,  proceeds  from the sale of fixed assets  provided  $0.3 million and net trades in  marketable  securities
provided $0.5 million, which partially offset our investment in property, plant and equipment.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Financing Activities
| | --------------------

| | Financing  activities  provided $0.7 million in the first nine months of 2004.  These  financing  activities  were  primarily from the
exercise of stock  options.  Net cash used in  financing  activities  for the nine months  ended July 31, 2003 was $0.8  million.  The
decrease in cash used in  financing  activities  during the first nine months of 2004 as compared to the same period in 2003 is due to
lower levels of debt as the remaining principal balance on our term loan was paid in September 2003 per the contract terms.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Outlook
| | -------

| | We expect  continued  weakness and  depressed  price levels in the markets we serve  throughout  the balance of fiscal 2004.  However,
there are  indications  of  improvement  in our  principal  markets.  Customer  inquiries,  or requests for  proposals,  have steadily
strengthened throughout the year.  The increase in customer activity has resulted in strengthening in new orders booked.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In our Electrical  Power Products  segment,  current quarter orders increased both  sequentially  and year over year. In addition,  we
expect  to  realize  lower  overhead  expenses  and  increased  efficiencies  as a result of our  consolidation  efforts  and  capital
improvements  which will improve our competitive  position.  Although our Process  Controls  Systems  segment  continues to experience
soft market  conditions,  we anticipate  increased  funding for municipal  projects will be available as general  economic  conditions
strengthen.  We believe we will be well-positioned to take advantage of improving economic conditions.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | We expect full year revenues to range  between $205 million and $215  million.  Full year  earnings  from  continuing  operations  are
expected to range between $0.18 and $0.23 per diluted share,  which includes  pre-tax  expenses  associated with the  consolidation of
operations of  approximately  $3.0 million.  For the fourth quarter of 2004, we expect  earnings from  continuing  operations to range
between  $0.01  and $0.06  per  diluted  share.  Pre-tax  expenses  associated  with our  consolidation  efforts  are  expected  to be
approximately $1.5 million in the fourth quarter.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | We will  continue to invest in our  manufacturing  capabilities  and expect  capital  expenditures  for full fiscal year 2004 to range
between $6.0 million and $7.0 million.  The majority of these  investments  will be used to improve the  efficiency and quality of our
manufacturing operations in Houston, Texas.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | We  anticipate  that our cash  position  will remain  relatively  unchanged  for the balance of fiscal  2004.  We believe that working
capital,  borrowing  capabilities,  and funds  generated  from  operations  will be  sufficient  to  finance  anticipated  operational
activities, capital improvements, debt repayment and possible future acquisitions for the foreseeable future.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

15

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Part
1      Item 3

# QUANTITATIVE AND
QUALITATIVE DISCLOSURES ABOUT MARKET RISK

| | We are exposed to certain market risks arising from  transactions  we have entered into in the normal course of business.  These risks
primarily relate to fluctuations in interest rates, foreign exchange rates, and commodity prices.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | We manage our exposure to changes in interest  rates by optimizing  the use of variable  rate debt. A 1.0% increase in interest  rates
would  result in an annual  increase in interest  expense of less than $100  thousand.  In  addition  to variable  rate debt,  we also
invest in marketable debt  securities  that are carried at fair value on the  consolidated  balance sheet,  with unrealized  gains and
losses reported in other comprehensive  income.  Changes in interest rates will affect the fair value of the marketable  securities as
reported.  However,  we believe that changes in interest  rates will not have a material  near-term  impact on our future  earnings or
cash flows.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | We manage our  exposure  to changes in foreign  exchange  rates  primarily  through  arranging  compensation  in U.S.  dollars.  Risks
associated  with  changes in  commodity  prices are  primarily  managed  through  utilizing  short-term,  fixed price  contracts  with
suppliers.  Risks  related to foreign  exchange  rates and  commodity  prices are  monitored and actions could be taken to hedge these
risks in the future.  We believe that  fluctuations in foreign exchange rates will not have a material  near-term effect on our future
earnings and cash flows;  however,  fluctuations  in commodity  prices may have a  short-term  effect on our future  earnings and cash
flows.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

16

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Part
1      Item 4

# CONTROLS AND PROCEDURES

| | Management,  with the  participation of our Chief Executive  Officer ("CEO") and Chief Financial  Officer  ("CFO"),  has evaluated the
effectiveness  of our disclosure  controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities  Exchange Act
of 1934,  as  amended)  as of the end of the  period  covered  by this  report.  Based on such  evaluation,  our CEO and CFO have each
concluded  that as of the end of such  period,  our  disclosure  controls and  procedures  were  effective to ensure that  information
required to be disclosed by us in reports that we file or submit under the Securities  Exchange Act of 1934, as amended,  is recorded,
processed,  summarized and reported within the time periods specified in the Securities and Exchange  Commission's rules and forms and
that such  information is accumulated and communicated to our management,  including the CEO and CFO, as appropriate,  to allow timely
decisions regarding required disclosures.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | We also  maintain a system of internal  accounting  controls  that are  designed to provide  reasonable  assurance  that our books and
records  accurately  reflect our  transactions  and that our policies and procedures are followed.  There have not been any changes in
our  internal  control over  financial  reporting  (as such term is defined in Rules  13a-15(f)  and  15d-15(f)  under the  Securities
Exchange Act of 1934,  as amended)  during the fiscal  quarter to which this report  relates  that have  materially  affected,  or are
reasonably likely to materially affect, our internal control over financial reporting.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

17

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Part II

OTHER INFORMATION

| |                                                         |                                                                                                                                                                                                                                                                                                                                                                                                               
| | ------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | ITEM 1.
       
       
       
ITEM 2.
       
ITEM 3. | Legal Proceedings
The Company is a party to disputes  arising in the  ordinary  course of business.  Management  does not believe that
the ultimate  outcome of these disputes will materially  affect the financial  condition or results of operations of
the Company.
Changes in Securities, Use of Proceeds, and Issuer Purchases of Equity Securities
None
Defaults Upon Senior Securities
Not applicable
| |                                                         |                                                                                                                                                                                                                                                                                                                                                                                                               

| |         |                                                         
| | ------- | --------------------------------------------------------
| | ITEM 4. | Submission of Matters to a Vote of Security Holders
None
| |         |                                                         

| |                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | ----------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | ITEM 5.
       
ITEM 6. | Other Information
None
Exhibits and Reports on Form 8-K
       a. Exhibits
          3.1 - Articles of  Incorporation  and  Certificates of Amendment of Powell  Industries,  Inc. dated 
                  July 20, 1987 and March 13, 1992 (filed as Exhibit 3 to our Form 10-K for the fiscal year 
                  ended October 31,  1982,  Form 10-Q  for the  quarter  ended  July 31,  1987,  and  Form  10-Q    
                  for the quarter  ended  April  30,  1992, respectively, and incorporated herein by reference).
          3.2 - Bylaws of Powell  Industries,  Inc.  (filed as Exhibit 3.2 to our Form 10-Q for the quarter ended 
                  April 30, 1995 and incorporated herein by reference).
         31.1 - Certification of Thomas W. Powell pursuant to Rule 13a-14(a)/15d-14(a).
         31.2 - Certification of Don R. Madison pursuant to Rule 13a-14(a)/15d-14(a).
         32.1 -  Certification  of Thomas W. Powell  Pursuant to Section 18 U.S.C.  Section  1350,  as Adopted  

                   Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
         32.2 -  Certification  of Don R.  Madison  Pursuant  to Section 18 U.S.C.  Section  1350,  as Adopted  

                   Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
       b. Reports on Form 8-K           Form 8-K filed on May 13, 2004
           Form 8-K filed on June 8, 2004           Form 8-K filed on September 2, 2004
| |                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

18

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SIGNATURES

Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.

POWELL INDUSTRIES, INC. Registrant

|                       |                                                                                                                              
|---------------------- | -----------------------------------------------------------------------------------------------------------------------------
|September 3, 2004
Date | /s/      THOMAS W. POWELL             
Thomas W. Powell
President & Chief Executive Officer
(Principal Executive Officer)    
|September 3, 2004
Date | /s/    DON R. MADISON                  
Don R. Madison
Vice President & Chief Financial Officer
(Principal Financial Officer)

19

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EXHIBIT INDEX

|Number | Exhibit Title
|------ | -------------

|3.1 -- | Articles of Incorporation and Certificates of Amendment of Powell Industries, Inc.
dated July 20, 1987 and March 13, 1992 (filed as Exhibit 3 to our Form 10-K for the fiscal
year ended October 31, 1982, Form 10-Q for the quarter ended July 31, 1987, and Form 10-Q
for the quarter ended April 30, 1992, respectively, and incorporated herein by reference).
|------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.2 -- | By-laws of Powell Industries, Inc. (filed as Exhibit 3.2 to our Form 10-Q for the
quarter ended April 30, 1995 and incorporated herein by reference).
|------ | -----------------------------------------------------------------------------------------------------------------------------------------------------

|31.1 -- | Certification of Thomas W. Powell pursuant to Rule 13a-14(a)/15d-14(a).
|------- | -----------------------------------------------------------------------

|31.2 -- | Certification of Don R. Madison pursuant to Rule 13a-14(a)/15d-14(a).
|------- | ---------------------------------------------------------------------

|32.1 -- | Certification of Thomas W. Powell Pursuant to Section 18 U.S.C. Section 1350, as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|------- | ---------------------------------------------------------------------------------------------------------------------------------------------------

|32.2 -- | Certification of Don R. Madison Pursuant to Section 18 U.S.C. Section 1350, as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|------- | -------------------------------------------------------------------------------------------------------------------------------------------------

20

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