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olivLaw · US equity research

Power Solutions International, Inc. PSIX

Engines & Turbines · SIC 3510 · Vertical: Engines & Turbines (SIC 3510)

39.67USD−19.75% · 1 dayClose 04 Nov 2026

Power Solutions International designs and manufactures emission-certified engines and power systems that run on natural gas, propane, biofuels, gasoline and diesel. The company has recently shifted toward power systems for data centers, which lifted sales in 2025, while the second quarter of 2026 showed slower sales and weaker gross margin as capacity expanded in Wisconsin. Net sales for 2025 were 722.4 million USD, and for the second quarter of 2026 were 152.5 million USD.

At the close of 04 Nov 2026, Power Solutions International, Inc. (PSIX) stock was 39.67 USD (−19.75% on the day), with market capitalisation 915.0 m USD, P/E 13.5 on diluted EPS of 2.95 USD over the last 12 months, beta 3.04, 52-week range 25.44–98.77 USD. Latest reported quarter (Q2 2026): revenue of 152.5 m USD (−20.5% YoY), net income of 16.9 m USD (−67.1% YoY), diluted EPS 0.73 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
915.0 m USD
shares as of 30 Jul 2026
P/E (TTM)
13.5
Diluted EPS TTM 2.95 · TTM to 30 Jun 2026
E/P (TTM)
7.43%
TTM to 30 Jun 2026
Dividend yield
unavailable
Beta (2y)
3.04
Volatility (1y) 111%
52-week range
25.4498.77

Price history

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Technical reading

RSI (14)
39.4
weak (30–45)
Bollinger (20, 2)
42.55 – 53.55
below the lower band · %B -0.26 · band width 22.9%
SMA 50 / 200
44.79 / 52.53
downtrend (price < SMA50 < SMA200)
MACD (12, 26, 9)
-0.06 / 0.80
MACD below signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−11.6%−2.0%−9.6 pp—
3 months+20.5%−2.2%+22.6 pp—
6 months−46.7%+4.3%−51.0 pp—
Year to date−30.6%+10.6%−41.1 pp—
1 year−52.8%+10.5%−63.3 pp−5.0%
3 years+1,291.9%+73.7%+1,218.3 pp+55.7%
5 years+781.6%+61.7%+719.8 pp—
Max drawdown (1y)
−74.2%
13 Feb 2026 → 29 Jul 2026
Max drawdown (5y)
−78.0%
23 Sept 2025 → 29 Jul 2026
Compound annual growth (5y)
+54.5%
S&P 500 +10.1%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q2 2026 · 30 Jun 2026

Revenue
152.5 m USD
−20.5% YoY
Net income
16.9 m USD
−67.1% YoY
Diluted EPS
0.73
−67.1% YoY
net / operating
11.1% / 15.7%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Revenue125.8 m144.3 m135.4 m191.9 m203.8 m191.2 m128.6 m152.5 m
Cost of revenue89.4 m101.1 m95.2 m137.8 m155.1 m149.4 m99.2 m111.2 m
Gross profit36.4 m43.2 m40.3 m54.1 m48.7 m41.8 m29.4 m41.4 m
Research & development4.7 m5.2 m4.2 m4.6 m4.8 m4.5 m4.8 m5.1 m
SG&A———16.7 m———12.1 m
Operating income20.5 m25.2 m24.6 m32.5 m28.4 m24.2 m11.4 m23.9 m
Interest expense2.8 m2.4 m1.8 m1.7 m1.6 m1.6 m1.7 m1.6 m
Pre-tax income17.6 m22.8 m22.9 m31.1 m26.7 m22.7 m9.7 m22.5 m
Income tax277.0 k-451.0 k3.8 m-20.1 m-876.0 k6.6 m2.4 m5.6 m
Net income17.3 m23.3 m19.1 m51.2 m27.6 m16.1 m7.3 m16.9 m
Diluted EPS0.751.01 ≈0.832.221.200.70 ≈0.320.73
Operating cash flow12.6 m ≈32.7 m8.8 m16.7 m ≈3.3 m ≈-4.6 m19.1 m56.6 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 82 percentile of its own 17-quarter history (min 1.8, median 8.7, max 51.4; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue496.0 m546.1 m417.6 m456.3 m481.3 m459.0 m476.0 m722.4 m
Revenue YoY+19.1%+10.1%−23.5%+9.2%+5.5%−4.6%+3.7%+51.8%
Net income-54.7 m8.2 m-23.0 m-48.5 m11.3 m26.3 m69.3 m114.0 m
Net income YoYunavailableunavailable−378.6%unavailableunavailable+133.4%+163.4%+64.5%
Diluted EPS-2.940.38-1.00-2.120.491.153.014.94
Diluted EPS YoYunavailableunavailable−363.2%unavailableunavailable+134.7%+161.7%+64.1%
net %-11.0%1.5%-5.5%-10.6%2.3%5.7%14.6%15.8%
Free cash flowunavailableunavailableunavailableunavailableunavailableunavailableunavailableunavailable

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
41.3 m USD
Financial debt
10.0 k USD
Net debt
-41.2 m USD
Equity
178.6 m USD
Total assets
424.7 m USD
Debt / equity
0.00x
Current ratio
3.15x
ROE
93.5%
ROA
30.3%
FCF margin
unavailable

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
459.0 m
2024
476.0 m
2025
722.4 m

SEC (XBRL)· 02 Mar 2026verified

Cost of revenue
2023
353.1 m
2024
335.4 m
2025
537.5 m

SEC (XBRL)· 02 Mar 2026verified

Gross profit
2023
105.9 m
2024
140.5 m
2025
184.9 m

SEC (XBRL)· 02 Mar 2026verified

Research & development
2023
19.5 m
2024
20.1 m
2025
18.2 m

SEC (XBRL)· 02 Mar 2026verified

Operating income
2023
44.3 m
2024
81.6 m
2025
109.7 m

SEC (XBRL)· 02 Mar 2026verified

Interest expense
2023
17.1 m
2024
11.4 m
2025
6.7 m

SEC (XBRL)· 02 Mar 2026verified

Pre-tax income
2023
27.2 m
2024
70.2 m
2025
103.4 m

SEC (XBRL)· 02 Mar 2026verified

Income tax
2023
900.0 k
2024
922.0 k
2025
-10.6 m

SEC (XBRL)· 02 Mar 2026verified

Net income
2023
26.3 m
2024
69.3 m
2025
114.0 m

SEC (XBRL)· 02 Mar 2026verified

Diluted EPS
2023
1.15
2024
3.01
2025
4.94

SEC (XBRL)· 02 Mar 2026verified

Weighted average diluted shares
2023
23.0 m
2024
23.0 m
2025
23.1 m

SEC (XBRL)· 02 Mar 2026verified

Balance sheet · USD

Cash
2023
22.8 m
2024
55.3 m
2025
41.3 m

SEC (XBRL)· 02 Mar 2026verified

Receivables
2023
67.0 m
2024
69.0 m
2025
90.4 m

SEC (XBRL)· 02 Mar 2026verified

Inventories
2023
84.9 m
2024
93.9 m
2025
127.4 m

SEC (XBRL)· 02 Mar 2026verified

Current assets
2023
205.4 m
2024
254.3 m
2025
290.9 m

SEC (XBRL)· 02 Mar 2026verified

Goodwill
2023
29.8 m
2024
29.8 m
2025
29.8 m

SEC (XBRL)· 02 Mar 2026verified

Intangibles (excl. goodwill)
2023
3.9 m
2024
2.5 m
2025
1.2 m

SEC (XBRL)· 02 Mar 2026verified

Total assets
2023
284.3 m
2024
328.2 m
2025
424.7 m

SEC (XBRL)· 02 Mar 2026verified

Accounts payable
2023
67.4 m
2024
58.2 m
2025
48.2 m

SEC (XBRL)· 02 Mar 2026verified

Short-term debt
2023
144.8 m
2024
120.0 m
2025
0

SEC (XBRL)· 02 Mar 2026verified

Long-term debt
2023
90.0 k
2024
38.0 k
2025
10.0 k

SEC (XBRL)· 02 Mar 2026verified

Current liabilities
2023
248.3 m
2024
227.6 m
2025
92.3 m

SEC (XBRL)· 02 Mar 2026verified

Total liabilities
2023
288.2 m
2024
262.9 m
2025
246.1 m

SEC (XBRL)· 02 Mar 2026verified

Equity
2023
-3.9 m †
2024
65.3 m †
2025
178.6 m †

SEC (XBRL)· 02 Mar 2026verified

Cash flow · USD

Operating cash flow
2023
70.5 m
2024
62.4 m
2025
24.1 m

SEC (XBRL)· 02 Mar 2026verified

Investing cash flow
2023
-5.0 m
2024
-4.6 m
2025
-10.0 m

SEC (XBRL)· 02 Mar 2026verified

Financing cash flow
2023
-66.8 m
2024
-25.9 m
2025
-27.7 m

SEC (XBRL)· 02 Mar 2026verified

Computed indicators

Growth

Revenue growth (YoY)
51.8%
computed by olivLawFY 2025
Revenue CAGR 3Y
14.5%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
11.6%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
34.4%
computed by olivLawFY 2025
Net income growth (YoY)
64.5%
computed by olivLawFY 2025
Net income CAGR 3Y
116.3%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
64.1%
computed by olivLawFY 2025
EPS CAGR 3Y
116.0%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
unavailable
input data missing

Profitability

Gross margin
23.9%
computed by olivLawTTM to 30 Jun 2026
EBITDA margin
unavailable
input data missing
EBIT margin
13.0%
computed by olivLawTTM to 30 Jun 2026
Net margin
10.0%
computed by olivLawTTM to 30 Jun 2026
FCF margin
unavailable
input data missing

Returns

ROE
40.1%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROA
15.2%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROIC
45.7%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROCE
26.2%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
-64.3 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Net debt / EBITDA
unavailable
input data missing
Debt / equity
0.0x
computed by olivLawbalance sheet at 30 Jun 2026
Interest coverage
13.4x
computed by olivLawTTM to 30 Jun 2026

Liquidity

Current ratio
2.6x
computed by olivLawbalance sheet at 30 Jun 2026
Quick ratio
1.5x
computed by olivLawbalance sheet at 30 Jun 2026
Cash ratio
0.6x
computed by olivLawbalance sheet at 30 Jun 2026

Cash

Operating cash flow
74.4 m USD
computed by olivLawTTM to 30 Jun 2026
Capital expenditure
unavailable
input data missing
Free cash flow
unavailable
input data missing
FCF conversion
unavailable
input data missing
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
44 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days inventory outstanding
98 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days payables outstanding
49 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Cash conversion cycle
93 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026

Market and valuation

Market capitalisation
915.0 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Enterprise value
850.7 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Market cap / net income TTM
13.5x
computed by olivLawTTM to 30 Jun 2026
P/E (TTM)
13.5x
computed by olivLawTTM to 30 Jun 2026
Earnings yield
7.4%
computed by olivLawTTM to 30 Jun 2026
P/B
4.5x
computed by olivLawbalance sheet at 30 Jun 2026
P/S
1.4x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
9.7x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/Sales
1.3x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
P/FCF
unavailable
input data missing
FCF yield
unavailable
input data missing
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero
Shareholder yield (distributions)
unavailable
input data missing

Risk

Altman Z
4.96
computed by olivLawbalance sheet at 30 Jun 2026

Valuation

olivLaw classification

Insufficient data
What is missing
  • score weight coverage: 54.2% of at least 60%

A scoring methodology on indicators and valuation, not investment advice.

Closing price

39.67 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 915.0 m USD

Key indicators

Market capitalisation
915.0 m USD
computed by olivLawbalance sheet at 30 Jun 2026
P/E (TTM)
13.5x
computed by olivLawTTM to 30 Jun 2026
P/B
4.5x
computed by olivLawbalance sheet at 30 Jun 2026
EV/EBITDA
unavailable
input data missing
ROE
40.1%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Net margin
10.0%
computed by olivLawTTM to 30 Jun 2026
Revenue growth (YoY)
51.8%
computed by olivLawFY 2025
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero

Coverage and freshness

27/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Share count (cover of the latest filing), as of: 30 Jul 2026
Source: SEC (XBRL)published 06 Aug 2026
verified 2280derived 144

Score by group

54% · Insufficient data

Estimated value range

Low
65.13
USD per share
Mid
74.66
USD per share
High
81.21
USD per share
Price: 39.67 USD
The price is below the range
Potential to the central value: 88.2% (value / price − 1)
Margin of safety: 46.9% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 65.13 – 81.21 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · the input exists, but its latest figure is far older than the latest reported period: not used
  • Peers: EV/EBITDAunavailable · input data missing
  • Peers: P/E65.13 – 81.21 (Mid 74.66)
    3 companies used · median multiple 25.3x · quartiles 22.1x – 27.6x
    BWXT, CMI, CYD
  • Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Multiple comparisons use the SIC vertical: Engines & Turbines (SIC 3510)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: score weight coverage: 54.2% of at least 60%

FactorValueScoreWeight used
ROIC · Quality45.7%100 (on a fixed band)19%
Net margin · Quality10.0%83 (vs peers)12%
FCF conversion · Qualityunavailableunavailable—
Revenue CAGR 3Y · Growth14.5%100 (on a fixed band)15%
EPS CAGR 3Y · Growth116.0%100 (on a fixed band)15%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheet13.4x100 (on a fixed band)12%
Current ratio · Balance sheet2.6x100 (on a fixed band)8%
P/E (TTM) · Valuation13.5x75 (on a fixed band)19%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuationunavailableunavailable—
Shareholder yield (distributions) · Returnsunavailableunavailable—
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet100/100 · 2/3 factors with a value
  • Growth100/100 · 2/2 factors with a value
  • Quality94/100 · 2/3 factors with a value
  • Returns· partialunavailable · 0/2 factors with a value
  • Valuation· partial75/100 · 1/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

POWER SOLUTIONS INTERNATIONAL, INC. (PSIX). Latest full fiscal year: 2025; data up to 2026-06-30.

Figures computed from the financial statements: revenue 722.4 m USD in 2025; YoY growth 51.8%; net margin 10.0%; ROE 40.1%.

The estimated value range is 65.13–81.21 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 74.66 USD, the price of 39.67 USD leaves a potential of 88.2% (value / price − 1) and a margin of safety of 46.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

Insufficient data for a verdict (score weight coverage: 54.2% of at least 60%).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • ROIC: 45.7%
  • Net margin: 10.0%
  • Revenue CAGR 3Y: 14.5%
  • EPS CAGR 3Y: 116.0%
  • Interest coverage: 13.4x
  • Current ratio: 2.6x
  • P/E (TTM): 13.5x
  • The price is below the estimated value range

What contradicts it

No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.

Not assessed (insufficient data or a ratio without meaning): FCF conversion, Net debt / EBITDA, EV/EBITDA, FCF yield, Shareholder yield (distributions), Payout ratio (FCF).

Versus the vertical median

Engines & Turbines (SIC 3510) · same industry (4-digit SIC) · compared with 6 companies

Multiples and returns vs the median

P/E
13.5x
vertical median 25.3x
below median (−46.9%)
EV/EBITDA
—
vertical median 13.1x
P/S
1.4x
vertical median 1.2x
above median (+15.1%)
P/B
4.5x
vertical median 3.1x
above median (+43.6%)
ROE
40.1%
vertical median 3.5%
above median (+1,046.1%)
Net margin
10.0%
vertical median 2.6%
above median (+290.2%)
EBIT margin
13.0%
vertical median 3.8%
above median (+245.9%)
Revenue YoY
51.8%
vertical median 3.7%
above median (+1,301.8%)
Net debt/EBITDA
—
vertical median 2.0x
Dividend yield
—
vertical median 1.6%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
CMICummins Inc.68.9 bn25.323.0%8.1%−1.3%+1% / +123%
BWXTBwx Technologies, Inc.11.1 bn29.828.2%10.4%+18.3%−32% / +56%
BCBrunswick Corporation5.3 bn—-4.8%-1.5%+2.4%+23% / +3%
PSIXPower Solutions International, Inc.915.0 m13.540.1%10.0%+51.8%−53% / +1,292%
CYDChina Yuchai International Limited807.0 m18.93.5%1.7%+5.0%−40% / +136%
CEPLCapstone Energy Plus, Inc.50.4 m——3.5%+23.9%unavailable / unavailable
WPRTWestport Fuel Systems Inc.33.0 m—-59.9%-264.3%−42.7%−5% / −63%

1- and 3-year price returns: for PSIX from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
25.76
Total return -35% · Per year -35%
45.34
Total return 14% · Per year 14%
68.03
Total return 71% · Per year 71%
3 years
30.28
Total return -24% · Per year -9%
59.44
Total return 50% · Per year 14%
97.14
Total return 145% · Per year 35%
5 years
35.58
Total return -10% · Per year -2%
77.92
Total return 96% · Per year 14%
138.70
Total return 250% · Per year 28%
What moves the 3-year price the most
  • Exit P/E± 14.86
  • Net margin± 10.40
  • Annual revenue growth± 7.79
  • Annual dilution± 0.87

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

Power Solutions International designs and manufactures emission-certified engines and power systems that run on natural gas, propane, biofuels, gasoline and diesel. The company has recently shifted toward power systems for data centers, which lifted sales in 2025, while the second quarter of 2026 showed slower sales and weaker gross margin as capacity expanded in Wisconsin. Net sales for 2025 were 722.4 million USD 1, and for the second quarter of 2026 were 152.5 million USD 3.

SWOT

Strengths

  • A fuel-agnostic engine range and emissions certifications are hard for new entrants to replicate 1.
  • The company cut debt significantly in the second quarter of 2026 and has a stronger balance sheet 3.
  • In-house design, testing and engineering allow fast customization of products for large customers 1.

Weaknesses

  • Dependence on a few large customers, the largest of which accounted for a significant share of sales, exposes the company to order changes 1.
  • Gross margin declined in 2025 and in the second quarter of 2026 because of Wisconsin capacity expansion costs 13.
  • Shipment timing is unpredictable, and the company provides no formal full-year 2026 guidance 2.

Opportunities

  • Data-center demand for backup power and microgrids could significantly expand sales if capacity stabilizes 12.
  • Integrating the MTL acquisition could improve supply chain control and production flexibility 3.
  • The Weichai collaboration could open markets in Europe, the Middle East and Africa through the Baudouin distribution agreement 1.

Threats

  • Trade tariffs and legal uncertainty over their recovery could affect costs and pricing 12.
  • Continued weakness in the oil and gas market could keep depressing sales in some quarters 2.
  • Failure to extend or renegotiate the Weichai collaboration agreement could affect access to products and markets 1.

Risks

  • Dependence on large customershigh

    A single customer can represent a significant share of sales, and losing or reducing orders could hurt results 1.

  • Tariffs and trade policyhigh

    Changes in tariffs could raise the cost of imported components, and recovery from customers is not assured 12.

  • Capacity executionmedium

    Expanding production in Wisconsin could delay deliveries and keep margin pressure in place for longer 23.

  • Liquidity and debtmedium

    High capital needs and existing debt could limit financial flexibility if sales decline 1.

  • Emissions compliancemedium

    A failure to obtain EPA or CARB certification could lead to product recalls and penalties 1.

Investment thesis

What would need to be true (bull case)

  • If data-center demand converts into delivered orders, the second half of 2026 could show the sales recovery management expects 2.
  • Cutting debt by nearly thirty million dollars in one quarter shows the company's ability to generate cash from operations 3.
  • A fuel-agnostic portfolio and emissions certifications give an edge in markets moving away from diesel 1.

What would break the thesis

  • Sales in the second quarter of 2026 fell twenty-one percent year over year, and the company provides no formal full-year guidance 23.
  • Gross margin still suffers from Wisconsin production costs, and improvement depends on product mix and throughput 3.
  • Dependence on one major customer and on a majority shareholder with strategic influence limits the company's freedom of action 1.

What to watch

  • Timing and value of data-center orders reaching revenueQ3 2026
  • Gross margin trajectory as Wisconsin production stabilizesQ3 2026
  • Formal extension of the Weichai collaboration agreement2026
  • Debt levels and use of the renewed revolving credit linenext 10-K

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

The company 'designs, engineers, manufactures, markets and sells' emission-certified engines and power systems adapted for natural gas, propane, biofuels, gasoline and diesel 1. Products are mainly sold to original equipment manufacturers (OEMs) and end-user customers for standby and prime power generation, microgrids, combined heat and power, forklifts, agricultural and construction equipment, pumps and compressors 1. The company runs as a single reportable segment with facilities in the Chicago area and Wisconsin 1. In January 2026 it acquired MTL Manufacturing & Equipment, adding in-house capacity for fuel tanks and electrical enclosure panels 3.

On strategy, PSI pursues profitability through portfolio review, warranty reduction and expansion of heavy-duty engines, notably through its collaboration with Weichai 1. It has also invested in production capacity for data center markets, which has become the main growth driver 1. The Weichai partnership remains important, but at the time of the 10-K filing the collaboration agreement had not yet been formally extended 1.

The company is not providing formal full-year guidance for 2026, citing variability in order timing 2. Management expects second-half 2026 sales to exceed first-half sales, but execution depends on customer scheduling and production throughput 2.

Segments

Power Systems

The Power Systems segment generated 81% of 2025 sales, up from 68% in 2024 1. In the second quarter of 2026, sales in this segment fell year over year, reflecting data-center shipment timing and softness in oil and gas 3.

Industrial

Industrial sales, covering forklifts, agricultural equipment, pumps and related applications, declined in 2025 versus 2024, reflecting weaker demand in material handling 1. In the second quarter of 2026 the segment was relatively stable, with a modest decline year over year 3.

Market context

The market for emission-certified engines and power systems is dominated by large producers with global supply chains and strict regulatory requirements in the US, China and EU 1. Data-center demand for backup power has grown, and PSI is investing in capacity to capture it 12. However, the oil and gas market remains volatile, and rig counts influence sales of gas-fueled systems 2.

Sales in the US account for nearly all of the company's activity, which exposes PSI directly to US trade policy and tariffs on imported components, mainly from China 1. Non-US sales are small and could be affected by retaliatory tariffs 1.

Trends

  • Data-center demandtailwind

    Rising electricity use by data centers has increased demand for standby generators and microgrids, which lifted Power Systems sales in 2025 1. The company says demand remains strong, though order timing is uneven 3.

  • Oil and gas marketheadwind

    Lower active drilling limits sales in this segment, and softness in the second quarter of 2026 was partly attributed to it 2. A recovery could support volumes again if drilling activity rises.

  • Trade tariffsmixed

    US tariffs on imports from China and other countries could raise production costs, and the Supreme Court struck down part of them in February 2026, but the replacement temporary measures remain uncertain 12. The impact depends on whether companies can recover costs from customers.

  • Emissions regulationmixed

    EPA, CARB and other emissions rules support demand for gas-fueled and alternative-fuel engines, but they require heavy research and certification spending 1. A certification failure could lead to product recalls 1.

Competitive position

Competitors include engine manufacturers, independent component suppliers, generator equipment makers and OEMs' in-house operations, some with longer histories and greater financial resources 1. PSI differentiates through its fuel-agnostic strategy and ability to integrate complete power systems 1.

The company's advantage partly depends on the Weichai collaboration, which provides distribution access and new products but also creates dependence on a majority shareholder 1. PSI must keep prices competitive and lead times short to compete with large producers 1.

  • Weichai Power

    Majority shareholder and collaboration partner of PSI, with distribution access in China and new-energy products 1.

  • HD Hyundai Infracore

    Major engine supplier whose engines are integrated into PSI systems, making it both a partner and a potential competitor 1.

  • Generator manufacturers

    Companies that build complete generator equipment and compete directly in the standby power segment 1.

  • OEM in-house operations

    Large customers that can build their own engines and systems, reducing external demand 1.

News & filings

In the press

The latest news item in our archive is from 16 Sept 2026; the newest SEC filing is from 30 Sept 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.

SEC filings

  • Current report30 Sept 2026
    Material agreement · Termination of a material agreement · Creation of a direct financial obligation · Other events · Financial statements and exhibits
  • Current report06 Aug 2026
    Results of operations · Financial statements and exhibits
  • Quarterly report06 Aug 2026
  • Current report27 Jul 2026
    Departure or appointment of officers · Shareholder vote · Regulation FD disclosure · Financial statements and exhibits
  • Proxy statement09 Jun 2026
  • Current report13 May 2026
    Departure or appointment of officers · Financial statements and exhibits
  • Current report11 May 2026
    Results of operations · Financial statements and exhibits
  • Quarterly report11 May 2026
  • Current report13 Mar 2026
    Regulation FD disclosure · Financial statements and exhibits
  • Current report11 Mar 2026
    Departure or appointment of officers · Financial statements and exhibits

Sources

  1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Power Solutions International, Inc. · 02 Mar 2026
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Power Solutions International, Inc. · 06 Aug 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Power Solutions International, Inc. · 06 Aug 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.