Power Solutions (PSIX) Q2 2026 Earnings Report

The call presented a mix of encouraging operational and liquidity improvements alongside notable year-over-year declines and ongoing uncertainties. Sequential performance was strong: revenue rose 18.6% quarter-to-quarter, gross margin improved ~420 bps, EBITDA and net income increased sequentially, operating cash flow was robust ($56.6M) and debt was reduced by ~$30.8M. However, year-over-year comparisons were weak (net sales down 21%, net income down ~67%) in part due to timing of shipments and a large one-time tax benefit in the prior year, and the company faces continued elevated production costs from Wisconsin ramp-up, persistent oil & gas softness, and timing risk for data center order conversion. Management did not provide formal full-year guidance, citing variability, though they expect H2 2026 sales to exceed H1 2026 based on current production schedules.

Management did not provide formal full‑year 2026 or 2027 guidance, but said they expect second‑half 2026 sales to exceed first‑half 2026 sales and to be approximately in line with second‑half 2025, while cautioning that timing and volume will depend on customer scheduling, manufacturing flow paths and supply‑chain factors and that they are not predicting any specific level of data‑center revenue; capacity ramp‑up at the Wisconsin operations (noted expansion from roughly 150,000 to ~800,000 sq ft) will continue with elevated production costs expected to persist, gross‑margin trajectory will depend on mix and flow paths (Q2 gross margin was 27.1%, up ~420 bps sequentially from Q1’s 22.9%, with year‑to‑date margin 25.2%), data‑center demand remains strong, oil & gas softness is expected to weigh on revenue, the longer‑term gross‑margin target is roughly 25%, and management said they can add capital to expand capacity for 2027 and will provide more visibility later in the year (potentially in 4Q).