Power Solutions International Announces Third Quarter 2026 Financial Results

Richard Hu, Chief Executive Officer of Power Solutions International, Inc.

“Our third quarter results demonstrate the operating leverage we are building into the business. Our net sales increased 32.5% sequentially, net income grew 77.5% to $29.9 million compared with the second quarter of 2026, operating income reached a record $40.9 million, and gross margin expanded 580 basis points to 29.7% compared with the third quarter of 2025, reflecting improved manufacturing efficiency at our Wisconsin operations and a $3.8 million tariff refund recognized as a reduction in cost of sales, partially offset by unfavorable year-over-year product mix from lower oil and gas sales. The tariff refund is not expected to recur. With larger Power Systems orders moving into production, we are raising our outlook and now expect second-half 2026 net sales to exceed second-half 2025 net sales, although shipment timing and quarterly results may vary.”

Richard Hu, Chief Executive Officer of Power Solutions International, Inc.

“Our priorities under the recently introduced Power Boost 2030 vision are clear: deliver on customer commitments, expand our presence in the rapidly growing data center power market, and invest in the manufacturing capabilities to support sustainable, profitable growth.”

Kenneth Li, Chief Financial Officer of Power Solutions International, Inc.

“Third quarter operating cash flow of $40.9 million enabled us to reduce total debt by $34.9 million and end the quarter with approximately $72.0 million of cash and cash equivalents against total debt of approximately $37.7 million, resulting in a net cash position of approximately $34.3 million, compared with net debt of approximately $55.3 million at the start of the year. Our new $220.0 million committed revolving credit facility, which lowered our borrowing spread by 80 basis points and extended our maturity to September 2029, provides the liquidity to fund the working capital and capacity investments required as larger Power Systems orders move through production.”