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Power Solutions International Announces Record Second Quarter 2025 Financial Results

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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
Positive
  • None.
Negative
  • 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 74% year-over-year growth. This remarkable performance was primarily driven by an $83.8 million increase in power systems sales, particularly in data centers and oil & gas segments, demonstrating management's successful strategic pivot toward higher-growth markets.

The net income surge of 138% to $51.2 million is particularly impressive, though investors should note this includes a substantial $29.2 million tax benefit from the release of valuation allowances on deferred tax assets. Even adjusting for this one-time benefit, the company still delivered adjusted net income growth of 213% compared to Q2 2024.

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 3.6% to 28.2%, this reflects temporary inefficiencies from rapid production scaling and a shift toward lower-margin product sales. The 54% gross profit increase to $54.1 million demonstrates the company's ability to generate substantial profit growth despite these margin pressures.

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 $191.9 million, up 74% from a year earlier,

Quarter Net Income of $51.2 million, up 138% from a year earlier,

Diluted EPS $2.22 for the Quarter, up 136% from a year earlier,

Resolution of going concern with $29.2 million net income and $1.27 EPS impact,

Reduced debt $15.0 million for the Quarter

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, 2025June 30, 2024Change
Net Sales$191.9$110.674%
Gross Profit$54.1$35.254%
Net Income$51.2$21.5138%
Diluted Earnings per Share$2.22$0.94$1.28


Second Quarter 2025 Results

PSI reported record sales and profit for the three months ended June 30, 2025, with sales of $191.9 million, net income of $51.2 million and diluted earnings per share of $2.22, compared to sales of $110.6 million, net income of $21.5 million and diluted earnings per share of $0.94 for the second quarter of 2024. Second quarter 2025 adjusted net income was $51.8 million, compared to adjusted net income of $16.6 million for the second quarter of 2024, an increase of 213%.

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 74% year-over-year sales growth and 138% increase in net income reflects strong demand for our power systems solutions, the disciplined execution of our strategy, the commitment and dedication of our employees, and favorable tax benefits.

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 $70.3 million, and cash provided by operations of $25.5 million. On July 30, 2025, the Company amended its Revolving Credit Agreement, which extended the maturity date from August 30, 2025, to July30, 2027 and increased the borrowing capacity to $135.0 million. As the Company has achieved profitability, is generating positive cash flows from operating activities, and has extended the Revolving Credit Agreement, the Company has concluded that its existing cash and cash equivalents and cash from operations will be sufficient for the Company to continue as a going concern for at least twelve months from the issuance of these condensed consolidated financial statements. As a result, the Company released a valuation allowance previously recorded against its deferred tax assets, and increased net income and stockholders� equity $29.2million from the tax benefits as of June 30, 2025.�

Sales for the second quarter of 2025 were $191.9 million, an increase of $81.3 million, or 74%, compared to the second quarter of 2024, primarily as a result of a sales increase of $83.8 million in the power systems end market, offset by a decrease of $1.6 million and $0.9 million within the industrial and transportation end markets, respectively. This shift in market mix reflects our deliberate strategic focus on higher-growth sectors such as data centers and oil and gas. In particular, we are prioritizing the rapidly expanding data center sector by enhancing our manufacturing capacity and capabilities to meet evolving customer demand. The decline in industrial sales is largely attributable to softer demand in the material handling market.

Gross profit increased by $18.9 million, or 54%, during the second quarter of 2025 as compared to the same period in the prior year. Gross margin in the second quarter of 2025 was 28.2%, a decrease of 3.6% compared to 31.8% in the same period last year. Gross margin was impacted due to strong sales growth in comparatively lower-margin products and temporary inefficiencies related to our accelerated production ramp-up.

Selling, general and administrative expenses of $16.7 million increased during the second quarter of 2025 by $12.2 million, or 269%, compared to the same period in the prior year. The variance reflects a favorable $5.0million non-recurring legal reserve reduction in 2024, and higher costs associated with employee incentive programs, increased sales and administrative expenses to support ongoing business growth in 2025.

Interest expense was $1.7 million in the second quarter of 2025 as compared to $2.9 million in the same period in the prior year, largely due to reduced outstanding debt and lower overall effective interest rates.

Income tax was a benefit of $20.1 million in the second quarter of 2025, compared to an expense of $0.9 million in the same period in the prior year. The change was primarily driven by the release of a valuation allowance on deferred tax assets with tax benefit of $29.2million in the second quarter of 2025.

Net income and diluted earnings per share were $51.2 million and $2.22, respectively, in the second quarter of 2025, compared to $21.5 million and $0.94, respectively, for the second quarter of 2024.

Balance Sheet Update

The Company’s cash and cash equivalents were approximately $49.5million, while total debt was approximately $96.8million at June 30, 2025. This compares to cash and cash equivalents of approximately $55.3 million and total debt of approximately $120.2 million at December 31, 2024. Included in the Company’s total debt at June 30, 2025 were borrowings of $95.0million under the Revolving Credit Agreement. In the second quarter of 2025, the Company fully repaid the remaining $15.0 million balance under its shareholder loan agreement.

In July, we amended our revolving credit agreement to secure a $135.0 million, two-year committed revolving loan through a syndicate of banks. This refinancing significantly strengthened our capital structure, and with improved financial performance, enabled us to remove substantial doubt about the Company’s ability to continue as a going concern, release the valuation allowance on deferred tax assets, and recognize $29.2million in additional net income and stockholders� equity. These impacts were reflected in the Company's second quarter financial statements.

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,
20252024Change% Change20252024Change% Change
Net sales
(to related parties $402 and $253 for the three months ended
June 30, 2025 and June 30, 2024, respectively, $865 and $453
for the six months ended June 30, 2025 and June 30, 2024,
respectively)
$ 191,907$ 110,586$ 81,32174%$ 327,353$ 205,826$121,52759 %
Cost of sales
(derived from any related party sales $271 and $176 for the
three months ended June 30, 2025 and June 30, 2024,
respectively, and $587 and $329 for the six months ended
June 30, 2025 and June 30, 2024, respectively)
137,824 75,398 62,42683% 232,976 144,882 88,09461 %
Gross profit 54,083 35,188 18,89554% 94,377 60,944 33,43355 %
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 12,160269% 27,789 14,052 13,73798 %
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 11,757119 % 37,261 24,938 12,32349 %
Operating income 32,482 25,344 7,13828 % 57,116 36,006 21,11059 %
Other expense (income), net:
Interest expense (from related parties $219 and $2,216
for the three months ended June 30, 2024 and 2023,
respectively, and $634 and $4,438 for the six months
ended June 30, 2025 and June 30, 2024, respectively)
1,700 2,909 (1,209)(42)% 3,466 6,255 (2,789)(45) %
Other expense (income), net (295) (295)NM (295) (295)NM
Total other expense (income) 1,405 2,909 (1,504)(52)% 3,171 6,255 (3,084)(49) %
Income before income taxes 31,077 22,435 8,64239% 53,945 29,751 24,19481 %
Income tax (benefit) expense (20,135) 895 (21,030)NM (16,349) 1,096 (17,445)NM
Net income$ 51,212$ 21,540$ 29,672138%$ 70,294$ 28,655$ 41,639145 %
Earnings per common share:
Basic$ 2.23$ 0.94$ 1.29137%$ 3.06$ 1.25$ 1.81145 %
Diluted$ 2.22$ 0.94$ 1.28136%$ 3.05$ 1.25$ 1.80144 %
Non-GAAP Financial Measures:
Adjusted net income *$ 51,769$ 16,559$ 35,210213%$ 71,004$ 23,600$ 47,404201 %
Adjusted net income per share � diluted*$ 2.24$ 0.72$ 1.52211%$ 3.07$ 1.04$ 2.03195 %
EBITDA *$ 34,108$ 26,662$ 7,44628%$ 60,024$ 38,641$ 21,38355 %
Adjusted EBITDA *$ 34,665$ 21,681$ 12,98460%$ 60,734$ 33,586$ 27,14881 %

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 $1,831 and $1,889 as of June 30,
2025 and December 31, 2024, respectively; (from related parties $623 and
$1,383 as of June 30, 2025 and December 31, 2024, respectively)
82,098 68,958
Income tax receivable 986
Inventories, net 148,980 93,872
Prepaid expenses and other current assets 4,218 6,396
Contract Asset 21,171 21,462
Other current assets 716 4,170
Total current assets 310,301 254,335
Property, plant and equipment, net 21,008 15,406
Operating lease right-of-use assets, net 46,549 23,275
Intangible assets, net 1,841 2,454
Goodwill 29,835 29,835
Deferred tax assets 25,357
Other noncurrent assets 2,791 2,877
TOTAL ASSETS$ 437,682$ 328,182
LIABILITIES AND STOCKHOLDERS� EQUITY
Current liabilities:
Accounts payable (to related parties $26,592 and $14,427 as of June 30, 2025 and December 31, 2024, respectively)$ 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 as of December 31, 2024) 25,000
Other accrued liabilities (to related parties $139 and $807 as of June 30, 2025 and December 31, 2024, respectively) 56,311 44,726
Total current liabilities 246,865 227,567
Deferred income taxes 1,568
Long-term debt, net of current maturities 19 38
Finance lease liability, long-term 1,396 16
Operating lease liability, long-term 43,199 20,663
Noncurrent contract liabilities 1,772 1,877
Other noncurrent liabilities 8,780 11,203
TOTAL LIABILITIES$ 302,031$ 262,932
STOCKHOLDERS� EQUITY
Common stock � $0.001 par value; 50,000 shares authorized; 23,117 shares
issued; 23,011 and 23,000 shares outstanding at June 30, 2025 and December 31,
2024, respectively
23 23
Additional paid-in capital 157,775 157,561
Accumulated deficit (21,217) (91,511)
Treasury stock, at cost, 106 and 117 shares at June 30, 2025 and December 31,
2024, respectively
(930) (823)
TOTAL STOCKHOLDERS� EQUITY 135,651 65,250
TOTAL LIABILITIES AND STOCKHOLDERS� EQUITY$ 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,
2025202420252024
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 MeasureComparable GAAP Financial Measure
Adjusted net incomeNet income
Adjusted net income per share � dilutedNet income per share � diluted
EBITDANet income
Adjusted EBITDANet 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,
2025202420252024
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,
2025202420252024
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)23,06722,99323,06422,983


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,
2025202420252024
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


  1. 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.
  2. Amounts include severance expense for the three and six months ended June 30, 2025.
  3. 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]

FAQ

What were Power Solutions International's (PSIX) Q2 2025 earnings results?

PSIX reported record Q2 2025 results with sales of $191.9M (up 74%), net income of $51.2M (up 138%), and diluted EPS of $2.22 (up 136%) compared to Q2 2024.

How much debt did PSIX reduce in Q2 2025?

PSIX reduced its debt by $15.0 million in Q2 2025 by fully repaying the remaining balance under its shareholder loan agreement.

What is the size of PSIX's new credit facility?

In July 2025, PSIX secured a $135.0 million two-year committed revolving loan through a syndicate of banks, with maturity extended to July 2027.

How did PSIX resolve its going concern issues?

PSIX resolved going concern issues through improved profitability, positive operating cash flows, and an extended credit agreement, resulting in a $29.2 million tax benefit from releasing the valuation allowance on deferred tax assets.

What is PSIX's outlook for 2025?

PSIX anticipates strong sales growth in 2025 compared to 2024, primarily driven by growth in power systems for data centers, while industrial and transportation markets are expected to remain flat.

What caused PSIX's gross margin decline in Q2 2025?

Gross margin declined 3.6% to 28.2% due to increased sales of lower-margin products and temporary inefficiencies related to accelerated production ramp-up.
Power Solutions Intl Inc

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2.13B
6.47M
71.88%
12.61%
2.38%
Specialty Industrial Machinery
Engines & Turbines
United States
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