Power Solutions (PSIX) AI Stock Analysis

• Market Cap: $1.31B
• Dividend Yield: N/A
• Average Volume (3M): 649.36K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 3.08
• Revenue Growth: 54.78%
• EPS Growth: 122.61%
• Country: US
• Employees: 700
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.71
• Shares Outstanding: 23,050,450
• 10 Day Avg. Volume: 979,351
• 30 Day Avg. Volume: 649,355
• PEG Ratio: 0.18
• Price to Book (P/B): 7.37
• Price to Sales (P/S): 1.82
• P/FCF Ratio: 93.03
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 1.96
• Enterprise Value/Gross Profit: 7.71
• Enterprise Value/Ebitda: 12.07
• 1Y Price Target: $109.00
• Price Target Upside: 92.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 5.61
• Revenue Forecast (FY): $842.64M

• Rating: 54 Neutral
• Price Target: $58.00 ▲(2.22% Upside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is driven mainly by improved multi-year fundamentals and a reasonable P/E, but is held back by notably weak technicals (price below key averages and negative MACD) and elevated uncertainty from weaker 2025 cash generation and inconsistent recent revenue reporting. Positive corporate developments around data-center momentum and vertical integration provide a partial offset.

Positive Factors

Revenue Growth & Data Center Demand

Sustained, broad-based revenue growth driven by data center demand signals a durable market shift toward higher-growth end markets. Persistent hyperscale and backup-power needs can support multi-year top-line expansion and scale benefits even as short-term ramp costs pressure margins.

Vertical Integration (MTL Acquisition)

Bringing MTL's fabrication capacity and UL certifications in-house strengthens supply-chain control, shortens lead times, and lowers reliance on external suppliers. Those structural benefits support margin sustainability, faster delivery to hyperscale customers, and a clearer competitive position over multiple years.

Improved Capitalization

Equity recovery and materially improved leverage provide greater financial flexibility to fund capacity builds and acquisitions without immediate dilution. A stronger capital base reduces bankruptcy risk and enables strategic investments that can compound operating improvements over the medium term.

Negative Factors

Weakened 2025 Cash Generation

A sharp drop in operating and free cash flow, and low cash conversion versus net income (~0.26x), indicates earnings are not reliably translating to cash. Persistent weak cash generation constrains reinvestment, debt paydown, and resiliency to cyclicality in industrial end markets.

Income Reporting Quality

A material inconsistency in reported revenue undermines visibility into organic growth and margin trends. Structural confidence in forecasting, covenant management, and capital allocation is impaired when core top-line data are unreliable, increasing execution and governance risk over months.

Elevated Absolute Debt

Although leverage improved, remaining debt obligations are substantial for a mid-sized industrial. Debt servicing absorbs cash flow and limits flexibility for capex or buybacks; in cyclical or slower demand periods this elevated debt can magnify downside and restrict strategic optionality.

Power Solutions Business Overview & Revenue Model

Company Description

Power Solutions International, Inc. designs, engineers, manufactures, markets, and sells engines and power systems in the United States, North America, the Pacific Rim, Europe, and internationally. The company offers alternative-fueled power systems for original equipment manufacturers of off-highway industrial equipment and on-road vehicles; and large custom-engineered integrated electrical power generation systems. It also provides basic engine blocks integrated with fuel system parts, as well as complete packaged power systems, including combined front accessory drives, cooling systems, electronic systems, air intake systems, fuel systems, housings, power takeoff systems, exhaust systems, hydraulic systems, enclosures, brackets, hoses, tubes, packaging, telematics, and other assembled components. In addition, the company offers compression and spark-ignited internal combustion engines that run on various fuels, such as natural gas, propane, gasoline, diesel, and biofuels in the energy, industrial, and transportation markets. Further, it provides standby and prime power generation, demand response, microgrid, renewable energy resiliency, arbor equipment, and combined heat and power; forklifts, wood chippers, stump grinders, sweepers/industrial scrubbers, aerial lift platforms/scissor lifts, irrigation pumps, oil and gas compression, oil lifts, off road utility vehicles, ground support equipment, ice resurfacing equipment, and pump jacks; and light and medium duty vocational trucks and vans, school and transit buses, and terminal and utility tractors. The company has a strategic collaboration agreement with Weichai Power Co., Ltd. Power Solutions International, Inc. was founded in 1985 and is headquartered in Wood Dale, Illinois.

How the Company Makes Money

Power Solutions Financial Statement Overview

Summary

Profitability and capitalization improved materially versus earlier years (strong 2023–2024 profitability; equity turning positive and leverage moderating). Offsetting this, 2025 cash flow weakened sharply versus 2023–2024 and the provided income-statement data has a major inconsistency (revenue shown as 0), increasing uncertainty around the latest trend.

Income Statement

Operating performance improved sharply from 2020–2021 losses to strong profitability in 2023–2024, with net margin rising from 5.7% (2023) to 14.6% (2024) and solid expansion in gross and operating margins. Revenue growth was modest in 2024 (+3.7%) after a 2023 decline (-4.6%). The main weakness is 2025 reporting quality/consistency: revenue is shown as 0 despite significant profit, which makes 2025 margin and growth figures (including -100% revenue growth) not economically interpretable and increases uncertainty around the latest trend.

Balance Sheet

The balance sheet shows a meaningful turnaround in equity: stockholders’ equity was negative in 2021–2023 but became positive in 2024 ($65.3M) and expanded further in 2025 ($178.6M), signaling improved capitalization. Leverage also improved materially, with debt-to-equity moving from very stressed levels (negative equity years) to high but positive in 2024 (~2.24x) and more moderate in 2025 (~0.85x). Offsetting this, total debt remains sizable ($152.4M in 2025), and the company’s returns on equity are extremely high and volatile (including distortions when equity was low/negative), indicating elevated risk and less stable balance-sheet math across years.

Cash Flow

Cash generation strengthened versus the negative operating and free cash flow in 2020–2022, with healthy positive free cash flow in 2023 ($65.5M) and 2024 ($57.8M). However, cash flow weakened materially in 2025, with operating cash flow down to $24.1M and free cash flow down to $14.1M (free cash flow growth -72.7%). Cash conversion is also mixed: operating cash flow is a low fraction of net income (about 0.26x in 2024–2025), suggesting earnings are not consistently turning into operating cash at the same pace.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Mar 2023	Mar 2022
Income Statement
Total Revenue	722.40M	475.97M	458.97M	481.33M	456.25M
Gross Profit	183.68M	140.54M	105.86M	88.56M	41.27M
EBITDA	115.45M	86.84M	49.88M	31.29M	-34.16M
Net Income	113.99M	69.28M	26.31M	11.27M	-48.47M
Balance Sheet
Total Assets	444.40M	328.18M	284.30M	319.91M	300.54M
Cash, Cash Equivalents and Short-Term Investments	44.95M	55.25M	22.76M	24.30M	6.25M
Total Debt	153.10M	146.04M	174.20M	224.90M	195.17M
Total Liabilities	265.79M	262.93M	288.22M	350.29M	342.56M
Stockholders Equity	178.61M	65.25M	-3.92M	-30.37M	-42.02M
Cash Flow
Free Cash Flow	14.14M	57.83M	65.48M	-10.20M	-63.45M
Operating Cash Flow	24.11M	62.39M	70.51M	-8.85M	-61.48M
Investing Cash Flow	-9.96M	-4.56M	-5.02M	-1.35M	398.00K
Financing Cash Flow	-27.69M	-25.93M	-66.80M	28.37M	46.55M

Power Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 56.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSIX, the sentiment is Negative. The current price of 56.74 is below the 20-day moving average (MA) of 75.07, below the 50-day MA of 74.35, and below the 200-day MA of 75.53, indicating a bearish trend. The MACD of -6.89 indicates Positive momentum. The RSI at 37.63 is Neutral, neither overbought nor oversold. The STOCH value of 27.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PSIX.

Power Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPAC	75 Outperform	$1.89B	25.78	21.10%	0.10%	3.91%	1.48%
SXI	68 Neutral	$3.08B	308.57	7.72%	0.57%	18.51%	-28.69%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CXT	56 Neutral	$2.43B	18.62	13.54%	1.42%	9.30%	-12.55%
PSIX	54 Neutral	$1.31B	11.54	81.27%	―	54.78%	122.61%
ENOV	52 Neutral	$1.32B	-0.73	-54.42%	―	11.57%	-1016.39%
XMTR	50 Neutral	$1.91B	-48.93	-21.90%	―	22.40%	-18.99%

Power Solutions Corporate Events

Power Solutions Details Q4 Realignment and Growth Strategy

On March 11, 2026, Power Solutions International held two investor calls to discuss its Q4 2025 realignment efforts, including expanded warehouse and fabrication capacity in Wisconsin and the ramp-up of its MTL acquisition to support vertical integration and efficiency gains. Management reported a Q4 gross margin of 21.9% driven by ramp-up inefficiencies, signaled expectations for margin improvement and a longer-term focus on businesses that can support gross margins around 25%, and highlighted ongoing infrastructure investments and level-loaded production to support controlled growth.

The company emphasized strong and growing demand for its enclosure business serving data center backup power, its engine-agnostic strategy, and its effort to capitalize on hyperscale opportunities while evaluating expansion into continuous power and large diesel solutions. Executives also addressed an oil-and-gas slowdown after a strong early 2025, detailed a phantom stock plan tied to share performance, and reiterated that an unauthorized transcript of the March 11 calls posted online after the meetings was not approved and is disclaimed in its entirety.

The most recent analyst rating on (PSIX) stock is a Hold with a $54.00 price target. To see the full list of analyst forecasts on Power Solutions stock, see the PSIX Stock Forecast page.

Power Solutions Adopts 2026 Phantom Unit Incentive Plan

On March 6, 2026, Power Solutions International, Inc.’s board approved a new 2026 Phantom Unit Plan that grants cash-settled awards linked to the company’s share price, without conferring actual equity, voting rights, or dividends. The plan calculates awards using a 30‑day average share price, vests in three annual installments, allows accelerated vesting on death, disability, or certain change-in-control events, and is subject to clawback policies, underscoring a shift toward performance-aligned, cash-based incentives that tie key talent retention directly to shareholder value.

Settlement of phantom units will occur in lump-sum cash payments within 60 days of vesting, with payout amounts undetermined at grant due to their dependence on future market prices. By giving the board broad discretion over grants and vesting terms and aligning awards with post‑Dodd‑Frank recoupment standards under Delaware law, the company is reinforcing governance controls while seeking to motivate and retain service providers through long-term, market-based compensation.

The most recent analyst rating on (PSIX) stock is a Hold with a $58.00 price target. To see the full list of analyst forecasts on Power Solutions stock, see the PSIX Stock Forecast page.

Power Solutions Reports Record 2025 Results, Data Center Momentum

On March 2, 2026, Power Solutions International reported record results for 2025, with full-year net sales rising 52% to $722.4 million and net income jumping 65% to $114.0 million, or $4.94 per diluted share, driven by strong demand in power systems and industrial markets, particularly data centers. Fourth-quarter 2025 sales climbed 33% to $191.2 million but net income fell 31% to $16.1 million as margins were pressured by ramp-up inefficiencies in new capacity and a higher effective tax rate, even as the company reduced debt and benefited from a $38.3 million tax valuation allowance release that boosted full-year earnings.

Management highlighted a strategic mix shift away from transportation and toward higher-growth sectors such as data centers and oil and gas, supported by increased manufacturing capacity and specialized product lines. The recent acquisition of MTL Manufacturing & Equipment, a steel welding and fabrication specialist, is expected to strengthen PSI’s vertical integration and competitive position in the data center market by improving supply chain control, shortening lead times and leveraging MTL’s UL certifications, positioning the company for continued sales growth and moderate margin improvement despite expected headwinds in oil and gas.

The most recent analyst rating on (PSIX) stock is a Buy with a $79.00 price target. To see the full list of analyst forecasts on Power Solutions stock, see the PSIX Stock Forecast page.

Power Solutions Acquires MTL to Boost Data Center Capabilities

On March 2, 2026, Power Solutions International, Inc. announced it had acquired MTL Manufacturing & Equipment Inc., a Beloit, Wisconsin-based specialist in welded and fabricated steel components such as switchgear subbases, electrical enclosure assemblies and fuel tanks for large power generation and data center applications. PSI purchased 100% of MTL’s stock using existing cash and assumed certain equipment-related debt, while MTL’s management will remain in place to maintain operational continuity.

The deal brings MTL’s 185,000 square feet of vertically integrated manufacturing capacity, engineering expertise and UL-certified products into PSI’s operations, closely aligning with PSI’s nearby enclosure facilities and strengthening its data center-focused power generation offerings. By internalizing key steel fabrication capabilities, PSI expects greater supply chain control and shorter lead times, sharpening its competitive position in the rapidly expanding data center market and offering operational benefits to customers reliant on reliable power infrastructure.

The most recent analyst rating on (PSIX) stock is a Buy with a $79.00 price target. To see the full list of analyst forecasts on Power Solutions stock, see the PSIX Stock Forecast page.