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Pioneer Power Solutions (PPSI)
NASDAQ:PPSI
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Pioneer Power Solutions (PPSI) AI Stock Analysis

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PPSI

Pioneer Power Solutions

(NASDAQ:PPSI)

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Neutral 59 (OpenAI - 4o)
Rating:59Neutral
Price Target:
$4.00
▼(-9.50% Downside)
Pioneer Power Solutions has a mixed outlook. The most significant factor is the company's strategic advancements and growth potential in the EV charging market, supported by recent corporate events. However, financial challenges, particularly in cash flow and valuation, weigh on the overall score. Technical indicators are positive, suggesting potential for price appreciation.
Positive Factors
Strategic Partnership
The partnership with SparkCharge for mobile EV charging solutions enhances market presence and aligns with growing EV infrastructure needs.
Product Launch
The HOMe-Boost launch expands market reach into residential and commercial sectors, supporting long-term growth through product diversification.
Strong Balance Sheet
A strong balance sheet with significant cash reserves and no debt provides financial stability and flexibility for future investments.
Negative Factors
Decline in Backlog
A reduced backlog may indicate potential future revenue challenges, impacting the company's ability to sustain growth momentum.
Continued Operating Loss
Persistent operating losses suggest ongoing operational inefficiencies, which could hinder profitability and long-term sustainability.
Decrease in Cash Reserves
A significant reduction in cash reserves limits financial flexibility, potentially affecting the company's ability to fund new initiatives.

Pioneer Power Solutions (PPSI) vs. SPDR S&P 500 ETF (SPY)

Pioneer Power Solutions Business Overview & Revenue Model

Company DescriptionPioneer Power Solutions, Inc., together with its subsidiaries, designs, manufactures, sells, and services electric power systems, distributed energy resources, used and new power generation equipment, and mobile EV charging solutions in the United States, Canada, and internationally. The company operates in two segments, Transmission & Distribution Solutions and Critical Power Solutions. The Transmission & Distribution Solutions segment provides electric power systems, including e-Bloc, and distributed energy resources that help customers effectively and efficiently protect, control, transfer, monitor, and manage their electric energy requirements. It also provides low voltage switchgears and transfer switches. The Critical Power Solutions segment provides new and used power generation equipment, and aftermarket field-services to ensure smooth and uninterrupted power to operations during times of emergency. The company serves utility, industrial, commercial, and backup power markets. The company was incorporated in 2008 and is headquartered in Fort Lee, New Jersey. Pioneer Power Solutions, Inc. is a subsidiary of Provident Pioneer Partners, L.P.
How the Company Makes MoneyPioneer Power Solutions generates revenue through multiple key streams, including the sale of power management equipment and systems, engineering services, and maintenance contracts. The company earns significant income from direct product sales, particularly in the renewable energy and energy storage markets, where demand is growing due to the global shift towards sustainable energy solutions. Additionally, PPSI has established strategic partnerships with various utility companies and energy providers, which not only expand its market reach but also create opportunities for joint projects and collaborations. The recurring revenue from service contracts and maintenance agreements further contributes to the company's financial stability.

Pioneer Power Solutions Earnings Call Summary

Earnings Call Date:Aug 14, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue growth and strategic advancements, particularly in the EV charging and power solutions markets, despite a reduction in backlog and continued operating losses. The company is well-positioned for future growth with new product launches and strategic partnerships.
Q2-2025 Updates
Positive Updates
Significant Revenue Growth
Revenue increased 150% year-over-year to $8.4 million in Q2 2025.
Profitability Improvement
Non-GAAP operating income from continuing operations was a positive $218,000, compared to a loss of $137,000 in Q2 2024, marking a $355,000 improvement.
Major Project Completion
Executed on a 25-unit e-Boost order for a large public-school district in the U.S., supporting the district's fleet of 200 electric school buses.
Strategic Partnership with SparkCharge
Delivered initial units under a deal potentially worth up to $10 million, reflecting high demand for mobile EV charging solutions.
Expansion into New Markets
Preparing to launch the HOMe-Boost product in the second half of 2025, targeting residential and light commercial markets with a power generation and charging solution.
Strong Balance Sheet
Cash on hand of $18 million with zero bank debt and working capital of approximately $24 million as of June 30, 2025.
Negative Updates
Decline in Backlog
Total backlog decreased by 23% compared to the prior quarter, primarily due to fulfillment of several large orders.
Continued Operating Loss
Operating loss from continuing operations remained at $1.7 million, unchanged from Q2 2024.
Decrease in Cash Reserves
Cash reserves decreased significantly from $41.6 million as of December 31, 2024, primarily due to a special cash dividend and tax payments.
Company Guidance
In the second quarter of 2025, Pioneer Power delivered robust financial results, with revenue increasing 150% year-over-year to $8.4 million and non-GAAP operating income from continuing operations reaching $218,000. The company's growth was significantly driven by the execution of a 25-unit e-Boost order for a large public-school district, contributing to a gross profit of $1.3 million, despite a decline in gross margin to 16% from 19% the previous year. Pioneer's total backlog at the end of the quarter was approximately $18 million, a 23% decrease due to fulfilling several large orders. The company reaffirmed its guidance for full-year 2025 revenue of $27 million to $29 million and highlighted a promising sales pipeline across various sectors, including government agencies and private enterprises. Additionally, the forthcoming launch of the HOMe-Boost product in the second half of 2025 is expected to expand Pioneer's market reach and drive growth into 2026.

Pioneer Power Solutions Financial Statement Overview

Summary
Pioneer Power Solutions faces significant challenges with declining revenues and negative cash flows, which are concerning for long-term sustainability. However, the company maintains a strong equity position with low leverage, providing some stability. The high return on equity is a positive indicator but is primarily driven by non-operational factors. Overall, the financial health of the company is mixed, with notable risks in operational performance and cash flow generation.
Income Statement
45
Neutral
Pioneer Power Solutions has experienced a decline in revenue from $41.49M in 2023 to $21.03M TTM, indicating a significant revenue contraction. The gross profit margin stands at 18.7% TTM, which is relatively low. The company has a negative EBIT margin of -30.8% TTM, reflecting operational inefficiencies. Despite a positive net income of $31.96M TTM, largely due to non-operational factors, the overall profitability remains weak.
Balance Sheet
60
Neutral
The balance sheet shows a strong equity position with a debt-to-equity ratio of 0.02 TTM, indicating low leverage. The equity ratio is 72.7% TTM, suggesting a solid capital structure. However, the company's total assets have decreased, which may limit future growth opportunities. The return on equity is high at 92.6% TTM, driven by the positive net income.
Cash Flow
40
Negative
The company has a negative operating cash flow of -$2.76M TTM, indicating challenges in generating cash from operations. Free cash flow is also negative at -$6.90M TTM. The free cash flow to net income ratio is negative, highlighting a disconnect between reported earnings and cash generation. Despite these challenges, the company has a substantial cash reserve, which provides some financial flexibility.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue23.06M22.88M41.49M27.00M18.31M19.49M
Gross Profit4.59M5.51M8.35M4.61M1.39M881.00K
EBITDA-4.23M-4.18M-1.24M-4.68M-3.42M-3.82M
Net Income32.92M31.86M-1.90M-3.64M-2.17M-2.99M
Balance Sheet
Total Assets39.12M65.95M33.02M37.17M27.93M21.29M
Cash, Cash Equivalents and Short-Term Investments18.00M41.62M3.58M10.30M9.92M7.57M
Total Debt849.00K775.00K1.21M2.27M1.42M1.41M
Total Liabilities6.08M30.52M18.80M20.24M8.38M7.43M
Stockholders Equity33.04M35.43M14.22M16.93M19.55M13.86M
Cash Flow
Free Cash Flow-12.68M-9.97M-6.39M-7.16M-2.58M-3.61M
Operating Cash Flow-8.80M-6.21M-3.90M-5.65M-2.34M-3.61M
Investing Cash Flow36.55M38.88M-2.50M4.72M-237.00K2.63M
Financing Cash Flow-16.27M5.38M-323.00K-479.00K7.56M337.00K

Pioneer Power Solutions Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.42
Price Trends
50DMA
3.75
Positive
100DMA
3.23
Positive
200DMA
3.36
Positive
Market Momentum
MACD
0.20
Positive
RSI
57.76
Neutral
STOCH
32.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPSI, the sentiment is Positive. The current price of 4.42 is above the 20-day moving average (MA) of 4.22, above the 50-day MA of 3.75, and above the 200-day MA of 3.36, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 57.76 is Neutral, neither overbought nor oversold. The STOCH value of 32.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PPSI.

Pioneer Power Solutions Risk Analysis

Pioneer Power Solutions disclosed 33 risk factors in its most recent earnings report. Pioneer Power Solutions reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Pioneer Power Solutions Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
59
Neutral
$48.04M-43.18%-19.60%-483.35%
55
Neutral
$63.98M-9.51123.50%9.22%20.66%
43
Neutral
$32.32M-0.14431.89%4.80%16.72%
43
Neutral
$23.28M-0.26-2271.61%-16.98%2.43%
26
Underperform
$26.48M-0.5625.87%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PPSI
Pioneer Power Solutions
4.42
0.81
22.44%
FLUX
Flux Power Holdings
4.47
1.61
56.29%
GWH
ESS Tech
1.60
-4.53
-73.90%
SDST
Stardust Power
3.08
-71.02
-95.84%
DFLI
Dragonfly Energy Holdings Corp
0.66
-4.02
-85.90%
RAYA
Erayak Power Solution Group Incorporation Class A
8.60
-149.80
-94.57%

Pioneer Power Solutions Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Pioneer Power Secures $10M Award for e-Boost Expansion
Positive
Jun 24, 2025

On June 24, 2025, Pioneer Power Solutions announced a $10 million award from the largest U.S. Charging-as-a-Service company to accelerate the deployment of its e-Boost technology. This partnership aims to address grid infrastructure delays by providing fast, mobile EV charging solutions, marking a significant expansion for the CaaS company into new U.S., Canadian, and Mexican markets.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025