Direct Answer
46 SEC filers are classified under the Standard Industrial Classification codes that describe the electrical equipment industry, and their latest annual reports show $150.7 billion of combined revenue and a median operating margin of -30.2%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Electrical equipment makers produce motors, transformers, drives, batteries and power systems for utilities, industry and buildings. Electrification and grid investment are supporting demand, with long lead times. The first numbers to compare across companies here are orders and backlog, book-to-bill and gross margin.
Key Industry Metrics
- Orders and backlog: Orders show new demand booked in a period, and backlog is what remains to be shipped. With long lead times in power equipment, backlog gives visibility into revenue over coming quarters.
- Book-to-bill: Orders received divided by revenue shipped over the same period. A reading above one means the order book is growing, and below one means it is shrinking and future revenue may soften.
- Gross margin: Sales less production cost as a share of sales. It reflects pricing power when capacity is tight, product mix and how well copper, steel and other input costs are passed through.
- Price and cost: The net effect of selling-price changes against input and labor cost inflation. Price above cost raises margin, while cost outrunning price compresses it, especially on long-dated orders priced in advance.
- Service share: Portion of revenue from maintenance, parts and upgrades on installed equipment. A larger share tends to be steadier and higher margin than new equipment, which follows capital budgets.
Primary Macro Drivers
- Grid and data center investment: Utility and facility owners buying power gear lift orders and backlog, with long lead times converting them to revenue in later periods; watch book-to-bill.
- Industrial capex: Factories add or replace motors, drives and power systems when they invest, so capital budgets feed orders and the pace of sales growth.
- Electrification: More electric heating, vehicles and industrial processes increase load and the equipment needed to deliver it, supporting orders over many years.
- Raw material prices: Copper, steel and electrical steel are major costs, so changes move cost of goods and, with a lag, pricing and gross margin.
Major Risks
- Supply constraints: Limited factory capacity, skilled labor or components can delay deliveries and cap revenue even when orders are strong; watch lead times and backlog conversion.
- Raw material costs: Metal prices can rise before contracts are repriced, squeezing gross margin on long-lead backlog; watch price-cost commentary and escalation clauses.
- Cyclical orders: Customer capital budgets can be cut or deferred, causing order intake to fall before revenue does; book-to-bill under one is the early signal.
- Competition: Rivals adding capacity or lower-cost imports can pressure pricing on standard products, lowering gross margin; watch share and price-realization comments.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | Medium |
| Regulatory Intensity | Medium |
| Industry Maturity | Growth |
| Geographic Importance | Global |
Electrical Equipment Filers in the SEC Record
46 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 3600, 3613, 3620, 3621, 3640, 3690. Their latest fiscal years end between 2023 and 2026, and together they reported $150.7 billion of revenue. Median revenue growth over the prior year was 9.0%. Median operating margin was -30.2% and median net margin -15.9%. Median total liabilities were 56% of total assets, and 15 of 46 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| General Electric Co | $45.9 billion | 18.5% | n/a | 19.0% | FY 2025 |
| Ge Vernova Inc. | $38.1 billion | 9.0% | 3.6% | 12.8% | FY 2025 |
| Emerson Electric Co | $18.0 billion | 3.0% | n/a | 12.7% | FY 2025 |
| Otis Worldwide Corp | $14.4 billion | 1.2% | 14.8% | 9.6% | FY 2025 |
| Acuity Inc. (De) | $4.3 billion | 13.1% | 13.0% | 9.1% | FY 2025 |
| Generac Holdings Inc. | $4.2 billion | -2.0% | 6.9% | 3.8% | FY 2025 |
| Enersys | $3.8 billion | 3.7% | 11.4% | 7.8% | FY 2026 |
| Woodward, Inc. | $3.6 billion | 7.3% | n/a | 12.4% | FY 2025 |
The 8 largest of 46 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Electrical Equipment guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Electrical Equipment industry?
Key performance indicators for the Electrical Equipment industry include: Orders and backlog, Book-to-bill, Gross margin, Price and cost, Service share. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Electrical Equipment industry?
The Electrical Equipment industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important.
What are the biggest risks in the Electrical Equipment industry?
The primary risks for Electrical Equipment companies include: Supply constraints, Raw material costs, Cyclical orders, Competition. Investors should assess each company's exposure to these factors and its track record of navigating them.