Power Solutions International Announces Record Second Quarter 2025 Financial Results
Power Solutions International (NASDAQ:PSIX) reported exceptional Q2 2025 financial results, with record sales of $191.9 million, up 74% year-over-year, and net income of $51.2 million, a 138% increase. The company achieved diluted EPS of $2.22, up 136% from Q2 2024.
Key highlights include the resolution of going concern issues with a $29.2 million net income impact, debt reduction of $15.0 million, and a new $135.0 million revolving credit agreement extended to July 2027. The strong performance was driven by an $83.8 million increase in power systems sales, particularly in data centers and oil & gas sectors, despite challenges from shifting tariffs and production scaling.
[ "Record quarterly sales of $191.9M, up 74% year-over-year", "Net income surged 138% to $51.2M with EPS of $2.22", "Resolution of going concern with $29.2M tax benefit", "New $135M revolving credit agreement secured through July 2027", "Debt reduced by $15M in Q2 2025", "Inclusion in Russell 3000®, Russell 2000®, and Russell Microcap® indexes", "Strong cash position with $49.5M in cash and cash equivalents" ]Power Solutions International (NASDAQ:PSIX) ha riportato risultati finanziari eccezionali nel secondo trimestre 2025, con vendite record di 191,9 milioni di dollari, in crescita del 74% rispetto all'anno precedente, e un utile netto di 51,2 milioni di dollari, con un aumento del 138%. L'azienda ha raggiunto un utile diluito per azione (EPS) di 2,22 dollari, in crescita del 136% rispetto al Q2 2024.
I punti salienti includono la risoluzione delle problematiche di continuità aziendale con un impatto positivo di 29,2 milioni di dollari sull'utile netto, una riduzione del debito di 15 milioni di dollari e un nuovo accordo di credito revolving da 135 milioni di dollari esteso fino a luglio 2027. La solida performance è stata trainata da un aumento delle vendite di sistemi di alimentazione di 83,8 milioni di dollari, in particolare nei settori dei data center e oil & gas, nonostante le sfide legate ai cambiamenti tariffari e alla scalabilità della produzione.
- Vendite trimestrali record di 191,9 milioni di dollari, +74% anno su anno
- Utile netto in crescita del 138% a 51,2 milioni di dollari con EPS di 2,22 dollari
- Risoluzione delle problematiche di continuità aziendale con beneficio fiscale di 29,2 milioni di dollari
- Nuovo accordo di credito revolving da 135 milioni di dollari valido fino a luglio 2027
- Riduzione del debito di 15 milioni di dollari nel Q2 2025
- Inclusione negli indici Russell 3000®, Russell 2000® e Russell Microcap®
- Posizione di cassa solida con 49,5 milioni di dollari in liquidità e equivalenti
Power Solutions International (NASDAQ:PSIX) reportó resultados financieros excepcionales en el segundo trimestre de 2025, con ventas récord de 191,9 millones de dólares, un aumento del 74% interanual, y un ingreso neto de 51,2 millones de dólares, un incremento del 138%. La compañía logró un EPS diluido de 2,22 dólares, un aumento del 136% respecto al Q2 2024.
Los aspectos más destacados incluyen la resolución de problemas de continuidad con un impacto positivo de 29,2 millones de dólares en el ingreso neto, una reducción de deuda de 15 millones de dólares y un nuevo acuerdo de crédito revolvente de 135 millones de dólares extendido hasta julio de 2027. El sólido desempeño fue impulsado por un aumento en ventas de sistemas de energía de 83,8 millones de dólares, especialmente en los sectores de centros de datos y petróleo y gas, a pesar de los desafíos derivados de cambios en aranceles y escalabilidad de producción.
- Ventas trimestrales récord de 191,9 millones de dólares, +74% interanual
- Ingreso neto aumentó 138% a 51,2 millones de dólares con EPS de 2,22 dólares
- Resolución de problemas de continuidad con beneficio fiscal de 29,2 millones de dólares
- Nuevo acuerdo de crédito revolvente de 135 millones de dólares hasta julio de 2027
- Reducción de deuda de 15 millones de dólares en Q2 2025
- Inclusión en los índices Russell 3000®, Russell 2000® y Russell Microcap®
- Posición de efectivo fuerte con 49,5 millones de dólares en efectivo y equivalentes
Power Solutions International (NASDAQ:PSIX)� 2025� 2분기� 뛰어� 재무 성과� 보고했습니다. 기록적인 매출 1� 9,190� 달러� 전년 대� 74% 증가했으�, 순이익은 5,120� 달러� 138% 상승했습니다. 회사� 희석 주당순이�(EPS) 2.22달러� 기록� 2024� 2분기 대� 136% 증가했습니다.
주요 성과로는 순이익에 2,920� 달러� 영향� 있는 계속기업 의문사항 해결, 1,500� 달러� 부� 감축, 그리� 2027� 7월까지 연장� 1� 3,500� 달러 규모� 리볼� 신용 계약� 포함됩니�. 강력� 실적은 데이� 센터 � 석유·가� 부문에� 8,380� 달러 증가� 전력 시스� 매출� 힘입었으�, 관� 변화와 생산 확대� 어려움에도 불구하고 달성되었습니�.
- 분기 매출 기록 1� 9,190� 달러, 전년 대� 74% 증가
- 순이� 138% 급증, 5,120� 달러, EPS 2.22달러
- 계속기업 의문사항 해결� 2,920� 달러 세금 혜택
- 2027� 7월까지 유효� 1� 3,500� 달러 리볼� 신용 계약 체결
- 2025� 2분기 부� 1,500� 달러 감축
- Russell 3000®, Russell 2000®, Russell Microcap® 지� 포함
- 현금 � 현금� 자산 4,950� 달러� 강력� 현금 포지� 유지
Power Solutions International (NASDAQ:PSIX) a annoncé des résultats financiers exceptionnels pour le deuxième trimestre 2025, avec des ventes records de 191,9 millions de dollars, en hausse de 74 % par rapport à l'année précédente, et un revenu net de 51,2 millions de dollars, soit une augmentation de 138 %. La société a réalisé un BPA dilué de 2,22 dollars, en progression de 136 % par rapport au deuxième trimestre 2024.
Les points clés incluent la résolution des incertitudes relatives à la continuité d'exploitation avec un impact positif de 29,2 millions de dollars sur le revenu net, une réduction de la dette de 15 millions de dollars et un nouvel accord de crédit renouvelable de 135 millions de dollars prolongé jusqu'en juillet 2027. La forte performance a été portée par une augmentation des ventes de systèmes d'alimentation de 83,8 millions de dollars, notamment dans les secteurs des centres de données et du pétrole et gaz, malgré les défis posés par les changements tarifaires et l'augmentation de la production.
- Ventes trimestrielles record de 191,9 millions de dollars, en hausse de 74 % sur un an
- Revenu net en hausse de 138 % à 51,2 millions de dollars avec un BPA de 2,22 dollars
- Résolution des incertitudes relatives à la continuité d'exploitation avec un avantage fiscal de 29,2 millions de dollars
- Nouveau accord de crédit renouvelable de 135 millions de dollars jusqu'en juillet 2027
- Réduction de la dette de 15 millions de dollars au T2 2025
- Inclusion dans les indices Russell 3000®, Russell 2000® et Russell Microcap®
- Position de trésorerie solide avec 49,5 millions de dollars en liquidités et équivalents
Power Solutions International (NASDAQ:PSIX) meldete herausragende Finanzergebnisse für das zweite Quartal 2025 mit rekordverdächtigen Umsätzen von 191,9 Millionen US-Dollar, was einem Anstieg von 74 % gegenüber dem Vorjahr entspricht, und einem Nettoeinkommen von 51,2 Millionen US-Dollar, einem Plus von 138 %. Das Unternehmen erzielte ein verwässertes Ergebnis je Aktie (EPS) von 2,22 US-Dollar, ein Anstieg um 136 % gegenüber dem zweiten Quartal 2024.
Zu den wichtigsten Highlights zählen die Beilegung von Fortführungszweifeln mit einem Nettoeinkommenseffekt von 29,2 Millionen US-Dollar, eine Schuldenreduzierung um 15 Millionen US-Dollar sowie ein neuer 135 Millionen US-Dollar revolvierender Kreditvertrag, der bis Juli 2027 verlängert wurde. Die starke Leistung wurde durch einen Umsatzanstieg bei Energiesystemen um 83,8 Millionen US-Dollar angetrieben, insbesondere in den Bereichen Rechenzentren und Öl & Gas, trotz Herausforderungen durch wechselnde Zölle und Produktionsskalierung.
- Rekordquartalsumsatz von 191,9 Mio. USD, +74 % gegenüber Vorjahr
- Nettoeinkommen stieg um 138 % auf 51,2 Mio. USD mit EPS von 2,22 USD
- Beilegung von Fortführungszweifeln mit Steuerertrag von 29,2 Mio. USD
- Neuer revolvierender Kreditvertrag über 135 Mio. USD bis Juli 2027
- Schuldenabbau um 15 Mio. USD im 2. Quartal 2025
- Aufnahme in die Russell 3000®, Russell 2000® und Russell Microcap® Indizes
- Starke Liquiditätsposition mit 49,5 Mio. USD in Barmitteln und Zahlungsmitteln
- None.
- Gross margin decreased 3.6% to 28.2% due to lower-margin product mix
- SG&A expenses increased 269% to $16.7M
- Industrial and transportation end markets showed declining sales
- Temporary inefficiencies from accelerated production ramp-up
Insights
Record-breaking quarter with 74% sales growth driven by power systems, plus removal of going concern issue through refinancing and tax benefit.
PSI delivered an exceptional Q2 with $191.9 million in revenue, representing
The net income surge of
Beyond the headline numbers, PSI made significant progress strengthening its financial foundation. The company reduced debt by $15 million, fully repaying its shareholder loan. More importantly, PSI secured a new $135 million revolving credit facility extending to July 2027, providing critical financial flexibility and removing the "going concern" designation that had previously hung over the company.
While gross margin declined by
Cash generation remains strong with $25.5 million from operations in the first half of 2025. With $49.5 million in cash against $96.8 million in total debt, PSI now has a much healthier balance sheet compared to year-end 2024, providing runway for continued investment in growth initiatives, particularly in the data center sector where management is prioritizing manufacturing capacity expansion.
Quarter Sales of
Quarter Net Income of
Diluted EPS
Resolution of going concern with
Reduced debt
WOOD DALE, Ill., Aug. 07, 2025 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. (the “Company� or “PSI�) (Nasdaq: PSIX), a leader in the design, engineering and manufacture of emission-certified engines and power systems, announced its record financial results for the second quarter 2025.
Financial Highlights | |||||||
($ in millions, except per share amounts) | Quarter Ended | ||||||
June 30, 2025 | June 30, 2024 | Change | |||||
Net Sales | |||||||
Gross Profit | |||||||
Net Income | |||||||
Diluted Earnings per Share |
Second Quarter 2025 Results
PSI reported record sales and profit for the three months ended June 30, 2025, with sales of
Dino Xykis, Chief Executive Officer, commented, “We are very pleased with our second quarter results, which marks the strongest sales and profit performance in our Company’s history. Achieving
This milestone was achieved despite challenges from shifting tariffs and the complexities of scaling production. Our team responded with cross-functional coordination, operational efficiency, and financial discipline. We remain focused on mitigating tariff-related risks through strategic sourcing, agile supply chain management, and pricing actions to ensure continuity, competitiveness, and long-term value creation for our customers.�
Kenneth Li, Chief Financial Officer, stated, “In June 2025, we were honored to be included in the Russell 3000®, Russell 2000®, and Russell Microcap® indexes, an important milestone that reflects the continued progress we’re making in strengthening our business and delivering value to our customers and shareholders.
During the first six months of 2025, the Company reported net income of
Sales for the second quarter of 2025 were
Gross profit increased by
Selling, general and administrative expenses of
Interest expense was
Income tax was a benefit of
Net income and diluted earnings per share were
Balance Sheet Update
The Company’s cash and cash equivalents were approximately
In July, we amended our revolving credit agreement to secure a
Outlook for 2025
The Company anticipates strong sales growth for 2025 compared to 2024, driven by expected growth in the power systems end market including products supporting data centers, while sales in the industrial and transportation end markets are projected to remain about flat.
AboutPower Solutions International, Inc.
Power Solutions International, Inc. (PSI) is a leader in the design, engineering and manufacture of a broad range of advanced, emission-certified engines and power systems. PSI provides integrated turnkey solutions to leading global original equipment manufacturers and end-user customers within the power systems, industrial and transportation end markets. The Company’s unique in-house design, prototyping, engineering and testing capabilities allow PSI to customize clean, high-performance engines using a fuel agnostic strategy to run on a wide variety of fuels, including natural gas, propane, gasoline, diesel and biofuels.
PSI develops and delivers complete power systems that are used worldwide in stationary and mobile power generation applications supporting standby, prime, demand response, and microgrid solutions, as well as products and packages supporting the rapidly growing data center markets. PSI’s industrial end market provides engine and battery powertrain solutions to serve applications such as forklifts, agricultural and turf, arbor care, industrial sweepers, aerial lifts, irrigation pumps, ground support, and construction equipment. PSI’s transportation end market provides engine powertrain solutions to specialized applications such as terminal tractors, port equipment, military vehicles, and other non-road vocational vehicles. For more information on PSI, visit .
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements regarding the current expectations of the Company about its prospects and opportunities. These forward-looking statements are entitled to the safe-harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act�). These statements may involve risks and uncertainties. These statements often include words such as “anticipate,� “believe,� “budgeted,� “contemplate,� “estimate,� “expect,� “forecast,� “guidance,� “may,� “outlook,� “plan,� “projection,� “should,� “target,� “will,� “would� or similar expressions, but these words are not the exclusive means for identifying such statements. These statements are not guarantees of performance or results, and they involve risks, uncertainties and assumptions. Although the Company believes that these forward-looking statements are based on reasonable assumptions, there are many factors that could affect the Company’s results of operations and liquidity and could cause actual results, performance or achievements to differ materially from those expressed in, or implied by, the Company’s forward-looking statements.
The Company cautions that the risks, uncertainties and other factors that could cause its actual results to differ materially from those expressed in, or implied by, the forward-looking statements include, without limitation: the impact of the macro-economic environment in both the U.S. and internationally on our business and expectations regarding growth of the industry; uncertainties arising from global events (including the Russia-Ukraine and Israel-Hamas conflicts), natural disasters or pandemics, and their impact on material prices; the effects of strategic investments on our operations, including our efforts to expand our global market share and actions taken to increase sales growth; the ability to develop and successfully launch new products; labor costs and other employment-related costs; loss of suppliers and disruptions in the supply of raw materials; the Company’s ability to continue as a going concern; the Company’s ability to raise additional capital when needed and its liquidity; uncertainties around the Company’s ability to meet funding conditions under its financing arrangements and access to capital thereunder; the potential acceleration of the maturity at any time of the loans under the Company’s uncommitted revolving credit agreement through the exercise by any lender of its demand right in its Revolving Credit Agreement; the impact of rising interest rates; changes in economic conditions, including inflationary trends in the price of raw materials; our reliance on information technology and the associated risk involving potential security lapses and/or cyber-attacks; the ability of the Company to accurately forecast sales, and the extent to which sales result in recorded revenues; changes in customer demand for the Company’s products; volatility in oil and gas prices; the impact of U.S. tariffs on imports and exports; the impact of supply chain interruptions and raw material shortages, including compliance disruptions such as the UFLPA delaying goods from China; the potential impact of higher warranty costs and the Company’s ability to mitigate such costs; any delays and challenges in recruiting and retaining key employees consistent with the Company’s plans; the potential effects of damage to our reputation or other adverse consequences if our employees, suppliers, sub-suppliers or other contract parties, agents or business partners violate anti-bribery, competition, export and import, trade sanctions, data privacy, environmental, human rights or other laws; the impact of unanticipated changes in our effective tax rate, the adoption of new tax legislation or exposure to additional income tax liabilities; and the risks and uncertainties described in reports filed by the Company with the SEC, including without limitation its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and the Company’s subsequent filings with the SEC.
The Company’s forward-looking statements are presented as of the date hereof. Except as required by law, the Company expressly disclaims any intention or obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise.
Results of operations for the three and six months ended June 30, 2025, compared with the three and six months ended June 30, 2024 (UNAUDITED): | |||||||||||||||||||||||||||||
(in thousands, except per share amounts) | For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||||
2025 | 2024 | Change | % Change | 2025 | 2024 | Change | % Change | ||||||||||||||||||||||
Net sales (to related parties June 30, 2025 and June 30, 2024, respectively, for the six months ended June 30, 2025 and June 30, 2024, respectively) | $ | 191,907 | $ | 110,586 | $ | 81,321 | $ | 327,353 | $ | 205,826 | $ | 121,527 | 59 % | ||||||||||||||||
Cost of sales (derived from any related party sales three months ended June 30, 2025 and June 30, 2024, respectively, and June 30, 2025 and June 30, 2024, respectively) | 137,824 | 75,398 | 62,426 | 232,976 | 144,882 | 88,094 | 61 % | ||||||||||||||||||||||
Gross profit | 54,083 | 35,188 | 18,895 | 94,377 | 60,944 | 33,433 | 55 % | ||||||||||||||||||||||
Gross margin % | 28.2 | % | 31.8 | % | (3.6)% | 28.8 | % | 29.6 | % | (0.8)% | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Research and development expenses | 4,615 | 4,959 | (344 | ) | (7)% | 8,859 | 10,156 | (1,297 | ) | (13) % | |||||||||||||||||||
Research and development expenses as a % of sales | 2.4 | % | 4.5 | % | (2.1)% | 2.7 | % | 4.9 | % | (2.2) | % | ||||||||||||||||||
Selling, general and administrative expenses | 16,680 | 4,520 | 12,160 | 27,789 | 14,052 | 13,737 | 98 % | ||||||||||||||||||||||
Selling, general and administrative expenses as a % of sales | 8.7 | % | 4.1 | % | 4.6 | % | 8.5 | % | 6.8 | % | 1.7 | % | |||||||||||||||||
Amortization of intangible assets | 306 | 365 | (59 | ) | (16)% | 613 | 730 | (117 | ) | (16) % | |||||||||||||||||||
Total operating expenses | 21,601 | 9,844 | 11,757 | 119 % | 37,261 | 24,938 | 12,323 | 49 % | |||||||||||||||||||||
Operating income | 32,482 | 25,344 | 7,138 | 28 % | 57,116 | 36,006 | 21,110 | 59 % | |||||||||||||||||||||
Other expense (income), net: | |||||||||||||||||||||||||||||
Interest expense (from related parties for the three months ended June 30, 2024 and 2023, respectively, and ended June 30, 2025 and June 30, 2024, respectively) | 1,700 | 2,909 | (1,209 | ) | (42)% | 3,466 | 6,255 | (2,789 | ) | (45) % | |||||||||||||||||||
Other expense (income), net | (295 | ) | � | (295 | ) | NM | (295 | ) | � | (295 | ) | NM | |||||||||||||||||
Total other expense (income) | 1,405 | 2,909 | (1,504 | ) | (52)% | 3,171 | 6,255 | (3,084 | ) | (49) % | |||||||||||||||||||
Income before income taxes | 31,077 | 22,435 | 8,642 | 53,945 | 29,751 | 24,194 | 81 % | ||||||||||||||||||||||
Income tax (benefit) expense | (20,135 | ) | 895 | (21,030 | ) | NM | (16,349 | ) | 1,096 | (17,445 | ) | NM | |||||||||||||||||
Net income | $ | 51,212 | $ | 21,540 | $ | 29,672 | $ | 70,294 | $ | 28,655 | $ | 41,639 | 145 % | ||||||||||||||||
Earnings per common share: | |||||||||||||||||||||||||||||
Basic | $ | 2.23 | $ | 0.94 | $ | 1.29 | $ | 3.06 | $ | 1.25 | $ | 1.81 | 145 % | ||||||||||||||||
Diluted | $ | 2.22 | $ | 0.94 | $ | 1.28 | $ | 3.05 | $ | 1.25 | $ | 1.80 | 144 % | ||||||||||||||||
Non-GAAP Financial Measures: | |||||||||||||||||||||||||||||
Adjusted net income * | $ | 51,769 | $ | 16,559 | $ | 35,210 | $ | 71,004 | $ | 23,600 | $ | 47,404 | 201 % | ||||||||||||||||
Adjusted net income per share � diluted* | $ | 2.24 | $ | 0.72 | $ | 1.52 | $ | 3.07 | $ | 1.04 | $ | 2.03 | 195 % | ||||||||||||||||
EBITDA * | $ | 34,108 | $ | 26,662 | $ | 7,446 | $ | 60,024 | $ | 38,641 | $ | 21,383 | 55 % | ||||||||||||||||
Adjusted EBITDA * | $ | 34,665 | $ | 21,681 | $ | 12,984 | $ | 60,734 | $ | 33,586 | $ | 27,148 | 81 % |
NM Not meaningful
* See reconciliation of non-GAAP financial measures to GAAP results below
POWER SOLUTIONS INTERNATIONAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(in thousands, except par values) | As of June 30, 2025 (unaudited) | As of December 31, 2024 | ||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 49,459 | $ | 55,252 | ||||
Restricted cash | 3,659 | 3,239 | ||||||
Accounts receivable, net of allowances of 2025 and December 31, 2024, respectively; (from related parties | 82,098 | 68,958 | ||||||
Income tax receivable | � | 986 | ||||||
Inventories, net | 148,980 | 93,872 | ||||||
Prepaid expenses and other current assets | 4,218 | 6,396 | ||||||
Contract Asset | 21,171 | 21,462 | ||||||
Other current assets | 716 | 4,170 | ||||||
Total current assets | 310,301 | 254,335 | ||||||
Property, plant and equipment, net | 21,008 | 15,406 | ||||||
Operating lease right-of-use assets, net | 46,549 | 23,275 | ||||||
Intangible assets, net | 1,841 | 2,454 | ||||||
Goodwill | 29,835 | 29,835 | ||||||
Deferred tax assets | 25,357 | � | ||||||
Other noncurrent assets | 2,791 | 2,877 | ||||||
TOTAL ASSETS | $ | 437,682 | $ | 328,182 | ||||
LIABILITIES AND STOCKHOLDERS� EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable (to related parties | $ | 89,605 | $ | 58,208 | ||||
Current maturities of long-term debt | 45 | 52 | ||||||
Revolving line of credit | 95,000 | 95,000 | ||||||
Finance lease liability, current | 382 | 78 | ||||||
Operating lease liability, current | 5,522 | 4,503 | ||||||
Other short-term financing (from related parties | � | 25,000 | ||||||
Other accrued liabilities (to related parties | 56,311 | 44,726 | ||||||
Total current liabilities | 246,865 | 227,567 | ||||||
Deferred income taxes | � | 1,568 | ||||||
Long-term debt, net of current maturities | 19 | 38 | ||||||
Finance lease liability, long-term | 1,396 | 16 | ||||||
Operating lease liability, long-term | 43,199 | 20,663 | ||||||
Noncurrent contract liabilities | 1,772 | 1,877 | ||||||
Other noncurrent liabilities | 8,780 | 11,203 | ||||||
TOTAL LIABILITIES | $ | 302,031 | $ | 262,932 | ||||
STOCKHOLDERS� EQUITY | ||||||||
Common stock � issued; 23,011 and 23,000 shares outstanding at June 30, 2025 and December 31, 2024, respectively | 23 | 23 | ||||||
Additional paid-in capital | 157,775 | 157,561 | ||||||
Accumulated deficit | (21,217 | ) | (91,511 | ) | ||||
Treasury stock, at cost, 106 and 117 shares at June 30, 2025 and December 31, 2024, respectively | (930 | ) | (823 | ) | ||||
TOTAL STOCKHOLDERS� EQUITY | 135,651 | 65,250 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS� EQUITY | $ | 437,682 | $ | 328,182 |
POWER SOLUTIONS INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||||||||||
(in thousands) | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Cash provided by operating activities | ||||||||||||||||
Net income | $ | 51,212 | $ | 21,540 | $ | 70,294 | $ | 28,655 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Amortization of intangible assets | 306 | 365 | 613 | 730 | ||||||||||||
Depreciation | 1,025 | 953 | 2,000 | 1,905 | ||||||||||||
Noncash lease expense | 1,026 | 1,006 | 2,974 | 2,940 | ||||||||||||
Stock-based compensation expense | 154 | 22 | 307 | 48 | ||||||||||||
Amortization of financing fees | 166 | 29 | 331 | 273 | ||||||||||||
Deferred income taxes | (26,925 | ) | 54 | (26,925 | ) | 108 | ||||||||||
(Credit) for losses in accounts receivable | (20 | ) | (109 | ) | (57 | ) | (608 | ) | ||||||||
Increase (decrease) in allowance for inventory obsolescence, net | (131 | ) | 405 | 75 | 1,351 | |||||||||||
Other adjustments, net | 23 | 51 | 56 | 51 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | (462 | ) | (14,860 | ) | (13,081 | ) | 3,327 | |||||||||
Inventories | (30,233 | ) | (5,052 | ) | (49,527 | ) | (9,850 | ) | ||||||||
Prepaid expenses | (3,020 | ) | (2,097 | ) | 2,177 | (4,269 | ) | |||||||||
Contract assets | 6,700 | (5,178 | ) | 290 | (11,152 | ) | ||||||||||
Other assets | 78 | 78 | 3,208 | 93 | ||||||||||||
Accounts payable | 23,993 | (5,883 | ) | 31,007 | (538 | ) | ||||||||||
Income taxes receivable | � | 119 | 986 | 257 | ||||||||||||
Accrued expenses | (3,307 | ) | 8,986 | 5,965 | 5,458 | |||||||||||
Other noncurrent liabilities | (422 | ) | 1,105 | (5,219 | ) | (1,615 | ) | |||||||||
Net cash provided by operating activities | 20,163 | 1,534 | 25,474 | 17,164 | ||||||||||||
Cash used in investing activities | ||||||||||||||||
Capital expenditures | (2,036 | ) | (712 | ) | (5,439 | ) | (1,527 | ) | ||||||||
Proceeds from disposal of assets | 11 | � | 11 | � | ||||||||||||
Net cash used in investing activities | (2,025 | ) | (712 | ) | (5,428 | ) | (1,527 | ) | ||||||||
Cash used in financing activities | ||||||||||||||||
Repayment of long-term debt and lease liabilities | (121 | ) | (51 | ) | (219 | ) | (102 | ) | ||||||||
(Repayment of) proceeds from short-term financings | (15,000 | ) | 5,000 | (25,000 | ) | (10,000 | ) | |||||||||
Payments of deferred financing costs | � | 13 | � | (117 | ) | |||||||||||
Repurchases to settle tax withholding obligations for stock-based compensation awards | (58 | ) | (20 | ) | (200 | ) | (20 | ) | ||||||||
Net cash (used in) provided by financing activities | (15,179 | ) | 4,942 | (25,419 | ) | (10,239 | ) | |||||||||
Net (decrease) increase in cash, cash equivalents, and restricted cash | (541 | ) | (4,236 | ) | (5,373 | ) | 5,398 | |||||||||
Cash, cash equivalents, and restricted cash at beginning of the period | 53,659 | 36,228 | 58,491 | 26,594 | ||||||||||||
Cash, cash equivalents, and restricted cash at end of the period | $ | 53,118 | $ | 31,992 | $ | 53,118 | $ | 31,992 |
Non-GAAP Financial Measures
In addition to the results provided in accordance with accounting principles generally accepted in the United States (“U.S. GAAP�) above, this press release also includes non-GAAP (adjusted) financial measures. Non-GAAP financial measures provide insight into selected financial information and should be evaluated in the context in which they are presented. These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or as a substitute for, financial information presented in compliance with U.S. GAAP, and non-GAAP financial measures as reported by the Company may not be comparable to similarly titled amounts reported by other companies. The non-GAAP financial measures should be considered in conjunction with the consolidated financial statements, including the related notes, and Management’s Discussion and Analysis of Financial Condition and Results of Operations within the Company’s Form 10-Q for the quarter ended June 30, 2025. Management does not use these non-GAAP financial measures for any purpose other than the reasons stated below.
Non-GAAP Financial Measure | Comparable GAAP Financial Measure |
Adjusted net income | Net income |
Adjusted net income per share � diluted | Net income per share � diluted |
EBITDA | Net income |
Adjusted EBITDA | Net income |
The Company believes that Adjusted net income, Adjusted net income per share � diluted, EBITDA, and Adjusted EBITDA provide relevant and useful information, which is widely used by analysts, investors and competitors in its industry as well as by the Company’s management in assessing the performance of the Company. Adjusted net income is defined as net income as adjusted for certain items that the Company believes are not indicative of its ongoing operating performance. Adjusted net income per share � diluted is a measure of the Company’s diluted earnings per common share adjusted for the impact of special items. EBITDA provides the Company with an understanding of earnings before the impact of investing and financing charges and income taxes. Adjusted EBITDA further excludes the effects of other non-cash charges and certain other items that do not reflect the ordinary earnings of the Company’s operations.
Adjusted net income, Adjusted net income per share � diluted, EBITDA, and Adjusted EBITDA are used by management for various purposes, including as a measure of performance of the Company’s operations and as a basis for strategic planning and forecasting. Adjusted net income, Adjusted net income per share � diluted, and Adjusted EBITDA may be useful to an investor because these measures are widely used to evaluate companies� operating performance without regard to items excluded from the calculation of such measures, which can vary substantially from company to company depending on the accounting methods, the book value of assets, the capital structure and the method by which the assets were acquired, among other factors. They are not, however, intended as alternative measures of operating results or cash flow from operations as determined in accordance with U.S. GAAP.
The following table presents a reconciliation from Net income to Adjusted net income for the three and six months ended June 30, 2025 and 2024 (UNAUDITED):
(in thousands) | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||
Net income | $ | 51,212 | $ | 21,540 | $ | 70,294 | $ | 28,655 | ||||||
Stock-based compensation 1 | 154 | 22 | 307 | 48 | ||||||||||
Severance 2 | 403 | � | 403 | � | ||||||||||
Other legal matters 3 | � | (5,003 | ) | � | (5,103 | ) | ||||||||
Adjusted net income | $ | 51,769 | $ | 16,559 | $ | 71,004 | $ | 23,600 |
The following table presents a reconciliation from Net income per share � diluted to Adjusted net income per share � diluted for the three and six months ended June 30, 2025 and 2024 (UNAUDITED):
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||
Net income per share � diluted | $ | 2.22 | $ | 0.94 | $ | 3.05 | $ | 1.25 | ||||||
Severance 2 | 0.02 | � | 0.02 | � | ||||||||||
Other legal matters 3 | � | (0.22 | ) | � | (0.21 | ) | ||||||||
Adjusted net income per share � diluted | $ | 2.24 | $ | 0.72 | $ | 3.07 | $ | 1.04 | ||||||
Diluted shares (in thousands) | 23,067 | 22,993 | 23,064 | 22,983 |
The following table presents a reconciliation from Net income to EBITDA and Adjusted EBITDA for the three and six months ended June 30, 2025 and 2024 (UNAUDITED):
(in thousands) | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Net income | $ | 51,212 | $ | 21,540 | $ | 70,294 | $ | 28,655 | ||||||||
Interest expense | 1,700 | 2,909 | 3,466 | 6,255 | ||||||||||||
Income tax expense | (20,135 | ) | 895 | (16,349 | ) | 1,096 | ||||||||||
Depreciation | 1,025 | 953 | 2,000 | 1,905 | ||||||||||||
Amortization of intangible assets | 306 | 365 | 613 | 730 | ||||||||||||
EBITDA | 34,108 | 26,662 | 60,024 | 38,641 | ||||||||||||
Stock-based compensation 1 | 154 | 22 | 307 | 48 | ||||||||||||
Severance 2 | 403 | � | 403 | � | ||||||||||||
Other legal matters 3 | � | (5,003 | ) | � | (5,103 | ) | ||||||||||
Adjusted EBITDA | $ | 34,665 | $ | 21,681 | $ | 60,734 | $ | 33,586 |
- Amounts reflect non-cash stock-based compensation expense and have no material impact on the Adjusted net income per share � diluted for the three and six months ended June 30, 2025 and 2024.
- Amounts include severance expense for the three and six months ended June 30, 2025.
- Amounts include legal settlements for the three and six months ended June 30, 2025 and 2024.

Contact: Power Solutions International, Inc. Kenneth Li Chief Financial Officer 630-284-9719 [email protected]