WEB NEWS Research
Power Solutions International, Inc. (NASDAQ:PSIX) ($27.75; $638.5M market cap) announced Q1 2025 results:
Q1 2025 sales of $135.4 million vs. $95.2 million in the prior year, well ahead of analyst estimates of $106.6 million
Q1 2025 non-GAAP EPS of $0.83 vs. $0.31 in the prior year, well ahead of analyst estimates of $0.46
Debt reduction: Paid down $10 million on the Shareholder's Loan Agreement in Q1 and an additional $5 million in May 2025. Remaining SLA balance is $10 million as of May 8, 2025.
End market focus: Strategic shift away from industrial and toward power systems (notably data centers ) and oil & gas.
Outlook: Expects full-year 2025 sales to increase over 2024, driven by strength in the power systems market. No specific growth guidance issued due to macro/geopolitical uncertainties.
Debt reduction: Paid down $10 million on the Shareholder's Loan Agreement in Q1 and an additional $5 million in May 2025.
Our Quick Take:
Note that quarterly EPS comparisons will start to get more challenging in coming quarters.
We are still waiting for management to disclose more information about the size of the company's new data center business (making enclosures for generators).
Management Commentary:
"Dino Xykis, Chief Executive Officer, commented, “We are extremely pleased with our first quarter results, which represent the best first quarter performance in the Company’s history. Achieving 42% year-over-year sales growth and a 168% increase in net income reflects the strength of our strategic focus and our team's relentless execution. This historic performance underscores the growing demand for our solutions particularly in power systems, combined with company wide operational enhancements and a continued commitment to financial discipline."
In addition, we are actively assessing the evolving tariff environment and are committed to proactively mitigating any associated risks through strategic sourcing, pricing actions, and supply chain agility. Our goal is to ensure continuity..."
Power Solutions International, Inc. designs, manufactures, and sells engines, integrated power systems, and custom power generation solutions, along with providing equipment and components for industrial, transportation, and energy applications.
Research
Power Solutions International, (OOTC:PSIX) ($25.89; $594.4 M market cap) announced it has been approved to uplist to the NASDAQ.
“The uplisting to Nasdaq is a transformative moment for our company. It reflects the hard work of our dedicated employees at all levels, the loyalty of our shareholders, and the strength of our strategic vision. Trading on a premier global exchange like Nasdaq will enhance our visibility, attract a broader investor base, and provide greater liquidity for our stock. As we embark on this next chapter, we remain steadfast in our commitment to delivering innovation, driving top and bottom-line growth, and creating long-term value to shareholders. This event represents a pivotal point in our journey as a company and underscores the positioning of PSI as a business for growth, and profitability.” Xykis continued, “Over the past several years PSI has consistently demonstrated its ability and commitment to profitability, debt reduction and revenue growth by developing cutting-edge technologies, expanding in the data center markets and achieving strong financial results.”
PSI’s common stock is expected to commence trading on Nasdaq at the opening of the market on December 26, 2024, under the Company’s current ticker symbol “PSIX.”
In September, PSIX was added to the Open Forum Focus Stock Model Portfolio due to its strong Q2 2024 performance and potential in the data center market, driven by new contracts and market expansion.
Research
Power Solutions International, (OOTC:PSIX) ($26.00; $597.7 M market cap) - announced Q3 2024 results:
Sales of $125.8 million vs $115.9 million in the prior year
Adjusted EPS of $0.75 vs $0.39 in the prior year
"We continued to deliver strong profit in the third quarter, driven by higher sales from our power systems business, including contributions from the expanding data center sector, along with ongoing operational excellence. To meet growing customer demand, our team is actively working on several projects to expand manufacturing capacity . The Company also is committed to efficiently managing expenses, including streamlining operating expenses and prioritizing certain R&D investments in support of long-term growth objectives.”
Outlook for 2024 (maintains guidance)
The Company expects its net sales in 2024 to increase by approximately 3% versus 2023 levels, a result of expectations for strong growth in the power systems end market paired with lower sales in the industrial end market and a forecasted reduction in the transportation end markets.
Power Solutions International Inc is an America-based company that manufactures, distributes, and services power systems that primarily run on non diesel fuels, including natural gas, propane, and gasoline.
Research
Power Solutions International, (OOTC:PSIX) ($19.80; $455.2 M market cap) - Since we recently added PSIX to our Buy on Pullback (NOP) Model Portfolio #12 and as an Open Forum Focus Stock , we wanted to share a Seeking Alpha article published over the weekend titled "Power Solutions International: A Company With Great Potential Set to Continue Growing " for additional insights from another investor's perspective.
Article Highlights::
Power Solutions International continued its margin expansion despite top-line contraction in the first half of 2023.
Continued strong demand across the power system solutions end market and favorable pricing and mix should benefit sales in the quarters ahead.
Margin prospects also look promising, mainly due to strong pricing and focus on efficiency improvement.
Despite the recent surge in the stock price, the company stock still presents a decent valuation, making it a good investment for the longer term.
At the beginning of this month, PSIX was added to the Open Forum Focus Stock Model Portfolio due to its strong Q2 2024 performance and potential in the data center market, driven by new contracts and market expansion. Despite a recent revenue dip, the company's turnaround under new leadership, focusing on margin improvements and cutting legacy product losses, positions it well for future growth.
Power Solutions International Inc is an America-based company that manufactures, distributes, and services power systems that primarily run on non diesel fuels, including natural gas, propane, and gasoline.
