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Power Solutions
(NASDAQ:PSIX)
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Rating:70Outperform
Price Target:
$57.00
▲(57.33% Upside)
Action:Reiterated
Date:09/30/26
Overall score reflects a credible financial turnaround led by strong current cash generation and improved profitability, supported by constructive (but somewhat stretched) technical momentum. The rating is held back by softer recent revenue/margin trends, limited valuation support from the lack of a dividend, and mixed earnings-call visibility due to no formal guidance and ongoing ramp-cost/timing risks.
Positive Factors
Strong cash generation
Strong operating and free cash flow provide internally generated funding for operations, debt repayment, and capacity investment. The close alignment between free cash flow and earnings also supports the quality of current profitability, despite historical cash-flow volatility.
Negative Factors
Soft revenue trend
Recent revenue weakness indicates that demand is not broad-based across PSIX’s end markets. Lower power-systems sales and persistent oil and gas softness could constrain growth, while uneven data-center order timing may make quarterly performance less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Strong operating and free cash flow provide internally generated funding for operations, debt repayment, and capacity investment. The close alignment between free cash flow and earnings also supports the quality of current profitability, despite historical cash-flow volatility.
Read all positive factors
Power Solutions (PSIX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.15B
Dividend YieldN/A
Average Volume (3M)379.73K
Price to Earnings (P/E)17.0
Beta (1Y)2.78
Revenue Growth13.17%
EPS Growth-38.92%
CountryUS
Employees1,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)2.95
Shares Outstanding23,065,450
10 Day Avg. Volume378,869
30 Day Avg. Volume379,733
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)7.37
Price to Sales (P/S)1.82
P/FCF Ratio93.03
Enterprise Value/Market Cap0.83
Enterprise Value/Revenue1.42
Enterprise Value/Gross Profit5.97
Enterprise Value/Ebitda10.15
Forecast
1Y Price Target
$73.00Price Target Upside101.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.38
Revenue Forecast (FY)$661.93M
Power Solutions Business Overview & Revenue Model
Company Description
Power Solutions International, Inc. (PSIX) is a global entity operating across the United States, North America, the Pacific Rim, and Europe, specializing in the engineering, manufacturing, marketing, and sale of sophisticated engines and power sy...
How the Company Makes Money
PSIX makes money primarily by selling powertrain and power-generation products—most notably engines and integrated power systems—to commercial customers (often OEMs) that incorporate these products into their own equipment or deploy them in field ...
Power Solutions Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
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.Positive Updates
Sequential Revenue Growth
Net sales of $152.5 million in Q2 2026, up 18.6% sequentially from Q1 2026 (from ~$128 million), driven primarily by power systems and increased production out of Wisconsin.
Negative Updates
Year-over-Year Revenue Decline
Net sales decreased $39.4 million, or 21%, versus Q2 2025 (Q2 2026: $152.5M vs Q2 2025), primarily driven by lower power systems sales (-$34.6M year-over-year), with industrial down $3.0M and transportation down $1.7M.
Read all updates
Q2-2026 Updates
Positive
Negative
Sequential Revenue Growth
Net sales of $152.5 million in Q2 2026, up 18.6% sequentially from Q1 2026 (from ~$128 million), driven primarily by power systems and increased production out of Wisconsin.
Read all positive updates
Company Guidance
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).Power Solutions Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
64
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 676.19M | 722.40M | 475.97M | 458.97M | 481.33M | 456.25M |
| Gross Profit | 160.46M | 183.68M | 140.54M | 105.86M | 88.56M | 41.27M |
| EBITDA | 94.32M | 115.45M | 86.84M | 49.88M | 31.29M | -34.16M |
| Net Income | 67.85M | 113.99M | 69.28M | 26.31M | 11.27M | -48.47M |
Balance Sheet | ||||||
| Total Assets | 453.32M | 444.40M | 328.18M | 284.30M | 319.91M | 300.54M |
| Cash, Cash Equivalents and Short-Term Investments | 70.06M | 44.95M | 55.25M | 22.76M | 24.30M | 6.25M |
| Total Debt | 134.73M | 153.10M | 146.04M | 174.20M | 224.90M | 195.17M |
| Total Liabilities | 250.25M | 265.79M | 262.93M | 288.22M | 350.29M | 342.56M |
| Stockholders Equity | 203.07M | 178.61M | 65.25M | -3.92M | -30.37M | -42.02M |
Cash Flow | ||||||
| Free Cash Flow | 67.09M | 14.14M | 57.83M | 65.48M | -10.20M | -63.45M |
| Operating Cash Flow | 74.36M | 24.11M | 62.39M | 70.51M | -8.85M | -61.48M |
| Investing Cash Flow | -19.18M | -9.96M | -4.56M | -5.02M | -1.35M | 398.00K |
| Financing Cash Flow | -33.77M | -27.69M | -25.93M | -66.80M | 28.37M | 46.55M |
Power Solutions Technical Analysis
Positive
36.23
Price Trends
40.85
Positive
38.64
Positive
54.29
Negative
Market Momentum
2.44
Negative
63.89
Neutral
75.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSIX, the sentiment is Positive. The current price of 36.23 is below the 20-day moving average (MA) of 45.72, below the 50-day MA of 40.85, and below the 200-day MA of 54.29, indicating a neutral trend. The MACD of 2.44 indicates Negative momentum. The RSI at 63.89 is Neutral, neither overbought nor oversold. The STOCH value of 75.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSIX.
Power Solutions Risk Analysis
Power Solutions disclosed 30 risk factors in its most recent earnings report. Power Solutions reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Power Solutions Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.15B | 16.97 | 37.18% | ― | 13.17% | -38.92% | |
70 Outperform | $267.59B | 28.50 | 83.40% | 0.17% | 12.85% | 738.05% | |
69 Neutral | $72.05B | 26.64 | 21.89% | 1.57% | 2.93% | -8.06% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $13.29B | 51.01 | 9.54% | 13.72% | 0.61% | -27.77% | |
52 Neutral | $813.35M | -6.28 | 77.75% | ― | 40.37% | 55.59% | |
51 Neutral | $14.84B | -650.99 | -10.38% | ― | ― | ― |
* Industrials Sector Average
PSIX
Power Solutions
50.07
-44.89
-47.27%
BW
Babcock & Wilcox Company
5.46
1.91
53.80%
CMI
Cummins
523.39
120.28
29.84%
GNRC
Generac Holdings
224.94
50.82
29.19%
GEV
GE Vernova Inc.
1,004.73
357.95
55.34%
INIO
INNIO Holding GmbH
19.79
-13.51
-40.57%
Power Solutions Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Power Solutions Secures New Revolving Credit Facility
Positive
Sep 30, 2026
On September 25, 2026, Power Solutions International entered into a new revolving credit agreement providing up to $220 million in committed borrowing capacity, including a $70 million letter of credit sublimit, maturing on September 25, 2029. The...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Power Solutions Reports Weaker Q2 Results Amid Data Center Demand
Negative
Aug 6, 2026
On August 6, 2026, Power Solutions International reported second quarter 2026 net sales of $152.5 million and net income of $16.9 million, with diluted EPS of $0.73, reflecting a 21% year-over-year sales decline and a 67% drop in net income. The w...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Power Solutions Appoints New CEO Amid Governance Support
Positive
Jul 27, 2026
On July 23, 2026, Power Solutions International’s board appointed veteran industrial executive Nan (Richard) Hu as chief executive officer, effective August 17, 2026, with interim CEO Xun (Kenneth) Li returning full-time to his role as chief...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.