After a parabolic run and brutal 54% drawdown, Power Solutions now trades like a cyclical industrial despite increasingly structural exposure to AI data centers and resilient power demand. Q3 sales surged 62% YoY and EPS rose 60% YoY, despite a 500 bps gross margin decline driven by mix and ramp-up costs. PSIX is strategically shifting toward higher-margin, data center-focused products, positioning for cyclical resilience and margin recovery.
Power Solutions International (PSIX) delivered record Q3 2025 revenue of $203.9 million, driven by surging demand in its power system segment. Despite strong topline growth, PSIX faced margin pressure in the last quarter. However, this weakness appears temporary and is expected to recover as volume expands in high-growth end markets. Structural tailwinds from AI infrastructure and data center expansion position PSIX for sustained double-digit growth, with capacity investments supporting future volume increases.
Power Solutions International (PSIX) delivered record Q3 2025 revenue and profits, but shares plunged due to margin pressure and cautious outlook. PSIX's gross margin declined, cash flow weakened, and receivables rose, raising concerns about sustainability of recent growth and profitability. Management highlighted strong energy segment demand but warned of flat industrial and transportation markets, signaling potential for slower growth ahead.
| Machinery Industry | Industrials Sector | Constantine Xykis CEO | NASDAQ (CM) Exchange | 73933G202 CUSIP |
| US Country | 700 Employees | - Last Dividend | 1 Sep 2011 Last Split | - IPO Date |
Power Solutions International, Inc., founded in 1985 with headquarters in Wood Dale, Illinois, is a global leader in designing, engineering, manufacturing, marketing, and selling engines and power systems. The company offers a diverse range of products catering to the United States, North America, the Pacific Rim, Europe, and international markets. It specializes in alternative-fueled power systems for original equipment manufacturers (OEMs) of off-highway industrial equipment and on-road vehicles, along with large custom-engineered integrated electrical power generation systems. Power Solutions International has established a strategic collaboration agreement with Weichai Power Co., Ltd., expanding its reach and capabilities in powering a wide array of applications in the energy, industrial, and transportation sectors.
These systems are designed for OEMs of off-highway industrial equipment and on-road vehicles, offering a greener alternative to traditional fuel sources. The focus on alternative fuels, such as natural gas, propane, gasoline, diesel, and biofuels, underscores the company's commitment to sustainable and versatile energy solutions.
Custom-engineered systems provide reliable and efficient power generation solutions. Ranging from standby and prime power generation to demand response and microgrid systems, these products support various applications, including renewable energy resiliency.
The company offers a comprehensive range of components, including basic engine blocks, fuel system parts, front accessory drives, cooling systems, electronic systems, air intake systems, fuel systems, housings, power takeoff systems, exhaust systems, and hydraulic systems. This extensive product line enables customization and flexibility in engine and power system design.
Power Solutions caters to a broad spectrum of industrial and transportation applications. These include arbor equipment like forklifts, wood chippers, and stump grinders; cleaning equipment such as sweepers and industrial scrubbers; aerial lift platforms and scissor lifts; irrigation pumps; oil and gas compression; ground support equipment; ice resurfacing equipment; and pump jacks. The transportation sector benefits from products designed for light and medium-duty vocational trucks and vans, school and transit buses, and terminal and utility tractors, highlighting the company's versatility in its product offerings.