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Power Solutions International (PSIX): What It Makes and How It’s Performing

Power Solutions International makes fuel-flexible engines and integrated power systems for business customers. Its record 2025 results were followed by year-over-year declines in sales and net income in Q2 2026.
From TheFinanceBase Team5 min to read
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Power Solutions International, Inc. (Nasdaq: PSIX) makes engines and integrated power systems for original equipment manufacturers (OEMs) and other business customers. Its fuel-flexible products serve power generation, industrial equipment, and specialized transportation applications. PSI reported record sales and net income for 2025, followed by a year-over-year decline in both sales and earnings in the second quarter of 2026. That contrast makes the company’s growth opportunity—and its exposure to production and shipment timing—important to understand.

What Power Solutions International makes

PSI designs, engineers, manufactures, markets, and sells emission-certified engines and power systems. Its fuel options include natural gas, propane, biofuels, gasoline, and diesel. The company reports one operating segment and sells primarily to OEMs and end users, rather than operating as a mass-market generator brand. Its products range from engines integrated with fuel-system components to packaged systems that bring together components such as cooling, electronic controls, air intake, fuel, exhaust, hydraulics, enclosures, and telematics. PSI says its systems are tested and validated against applicable quality, safety, durability, and environmental standards; configurations and emissions compliance vary by product and market. PSI’s 2025 annual report and its product information describe the offering.

Where PSI’s products are used

Power systems

PSI supplies stationary and mobile generator sets for emergency standby, rental, prime power, demand response, microgrids, oil and gas, data centers, renewable-energy resilience, and combined heat and power. These use cases differ in duty cycle and operating requirements: standby equipment, for example, is not interchangeable by default with equipment intended to provide prime power.

Industrial equipment

Industrial applications include forklifts and other material-handling equipment, agricultural and turf equipment, arbor-care equipment, pumps and irrigation, construction machinery, compressors, utility vehicles, sweepers, and aerial lifts.

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#1 Best Overall

Specialized transportation and aftermarket support

Transportation uses include specialized trucks, buses, terminal tractors, and vocational or other non-road vehicles. PSI’s disclosed scope does not establish it as a supplier of passenger-car engines. The company also describes internal service-parts distribution and OEM-developed service-parts programs.

How PSI performed: strong 2025, weaker second quarter of 2026

PSI’s results show why annual growth and the latest quarterly trend should be considered separately. The figures below are company-reported; annual and quarterly comparisons cover different periods.

Rank #2
6KW Diesel Generator
  • - Electric Start - Yanmar Heavy Duty L100 9.3HP Industrial 3600 RPM Air Cooled Electric Start Diesel Engine - Recoil Backup - Industrial Generator End - Automatic Voltage Regulator - 3.5 Gallon Fuel Tank (8 Hr Run Time) - Roll bar skid - 12 Volt Starter - Alternator - Control Panel (Key Switch & Low Oil Shutdown) - Receptacle Panel with 120V Duplex - 120V 30A twist lock - 240V 20A Twist lock plug - 12VDC Receptacle (8.3A Battery Charging) - Engine Oil - Fuel & Oil Filters - Battery Included Shop Tested.
Period Net sales Net income Diluted EPS What PSI reported
FY 2025, year ended Dec. 31, 2025 $722.4 million, up 52% from 2024 $114.0 million, up 65% $4.94 Growth was driven by power-systems markets, including data-center and oil-and-gas products, partly offset by lower sales in more mature, lower-margin industrial markets. Source: FY 2025 results.
Q4 2025 $191.2 million, up 33% year over year $16.1 million, down 31% year over year not stated in the cited FY 2025 release Quarterly sales growth did not translate into quarterly net-income growth. Source: FY 2025 results.
Q2 2026, ended June 30, 2026 $152.5 million, down 21% year over year $16.9 million, down 67% year over year $0.73 PSI cited lower power-systems shipments, uneven order patterns and data-center shipment timing, as well as softness in oil and gas. Source: Q2 2026 results.

What is driving PSI’s growth—and what could interrupt it?

Power-systems demand has led recent growth

For 2025, PSI attributed higher sales primarily to power-systems markets, including data-center and oil-and-gas products. That mix shift helped lift annual sales and earnings, while lower sales in mature, lower-margin industrial markets partly offset the gains. It is a company-reported explanation of results, not evidence that every end market is growing at the same pace.

Data-center demand is an opportunity, not a revenue forecast

In its August 6, 2026 Q2 release, PSI said it continued to see strong demand for data-center power solutions, but said the timing and ultimate volume of revenue recognized depended on customer schedules, manufacturing throughput, supply-chain factors, and other variables. The company did not forecast a specific data-center revenue level for a future period. Demand therefore should not be treated as a guarantee of shipments or recognized sales in a particular quarter.

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Rank #3
Sale
DuroStar DS13000MX 13,000-Watt 500cc Dual Fuel Portable Generator - Gas and Propane, Remote Electric Start, Whole Home Power Backup, Transfer Switch Ready, RV & Emergency Ready
  • 13,000 Watts of Reliable Power for Home Power Backup – Keep your home, job site, or RV powered during storms and outages with dual fuel capability and a heavy-duty build.
  • Dual Fuel Technology – Gasoline or Propane – Choose between gasoline for maximum power or propane for longer run times and cleaner emissions, ensuring fuel flexibility in any emergency.
  • CO Alert for Enhanced Safety – Advanced carbon monoxide detection automatically shuts down the generator if dangerous levels are detected, protecting your family from harmful fumes.
  • Push-Button Electric Start & Intuitive Control Panel – Easily start your generator with the push of a button, and quickly switch fuel types using the front-facing fuel selector.
  • Transfer Switch-Ready with 50-Amp Outlet – Power your entire home by connecting directly to a transfer switch, thanks to the 50A heavy-duty outlet.

Management expected second-half sales to exceed first-half sales

In the same Q2 release, management said PSI’s then-current production schedule led it to expect second-half 2026 sales to exceed first-half sales as larger power-systems orders entered production. It also cautioned that shipment timing and quarterly results could vary. This is management’s expectation, not a reported outcome or a guarantee.

Capacity ramp costs and operating execution matter

PSI said elevated production costs related to its Wisconsin capacity ramp would persist. Management said further margin progress depended on product mix, throughput, and other operating factors. Even with customer demand, the ability to produce and ship orders on schedule can affect when revenue is recognized and how profitable that revenue is.

Rank #4
DuroMax XP15000HXT 15,000 Watt Tri Fuel Portable Home Power Backup HXT Generator w/CO Alert
  • With 15,000 watts of power, the XP15000HXT Tri Fuel generator will keep your whole home running during a storm or power outage, while protecting your family from harmful fumes with CO Alert.
  • Run your generator on gasoline, propane, or natural gas. With Tri Fuel, we offer the ultimate freedom and flexibility of fuel choice
  • Powerful 500cc OHV Engine: At the heart of this generator resides a robust DuroMax engine designed to provide you with the most power.
  • The XP15000HXT comes with a push button start, a front facing interface that allows you to change your fuel type in seconds, and a wide variety of outlets including a transfer switch-ready 50 amp outlet.
  • Push Button Start and Remote Start: Turn on your generator with a simple push of a button, or use the remote to conveniently start your generator from a distance.
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How to assess PSI as a business or potential investment

PSI’s results are relevant to investors, but they do not by themselves establish whether the stock is suitable for an individual’s financial situation. The company’s reported growth is concentrated in power-systems demand, while the latest reported quarter showed lower sales and earnings year over year. The company’s own caveats highlight customer scheduling, manufacturing capacity, supply-chain conditions, order patterns, and product mix as variables to watch. The available company materials do not establish an independent analyst consensus or a third-party market-size estimate, so those should not be inferred from PSI’s statements.

PSI’s investor-relations page lists an announcement dated September 30, 2026, for a $220 million committed revolving credit facility. The announcement alone does not establish how much is undrawn, covenant headroom, or the company’s overall financial health; those details require the facility agreement and relevant filings. See the credit-facility announcement.

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Best Value
Sale
DuroMax XP13000EH 13,000-Watt Dual Fuel Portable Generator - Gas & Propane, Electric Start, Whole Home Backup Power, Transfer Switch Ready, RV & Emergency Ready
  • With 13,000 watts of power, the XP13000EH Dual Fuel generator will keep your whole home running during a storm or power outage
  • DuroMax is the industry leader in Dual Fuel portable generator technology, with a full assortment ranging from digital inverters to generators that can power your entire home
  • At the core of all our products resides a robust DuroMax engine. Designed for Power. Designed to Last
  • The XP13000EH comes with a push button start, a front facing interface that allows you to change your fuel type in seconds, and a wide variety of outlets (including a transfer switch-ready 50 amp outlet)
  • Constructed with a heavy-duty all metal frame and power panel - No plastic parts

What buyers should compare before choosing an engine or power system

For a business evaluating PSI alongside other suppliers, the product’s intended use matters more than a broad claim of fuel flexibility. Compare options against the actual operating site and equipment requirements:

  • Application and duty cycle: Identify the machine or site use and whether operation is standby, rental, intermittent, or continuous.
  • Output and operating role: Specify required output and whether the system must provide prime or standby power.
  • Fuel and emissions: Confirm fuel availability and the emissions rules that apply in the installation’s jurisdiction; verify compliance for the particular configuration.
  • Integration needs: Establish what the supplier provides for controls, cooling, air intake, fuel, exhaust, hydraulics, enclosure, and telematics—and what the OEM or customer must supply.
  • Delivery and service: Check production capacity, expected shipment timing, service-parts coverage, and support arrangements for the specific application.
  • Lifecycle economics: Compare total lifecycle cost for the intended operating profile, not only the initial equipment price.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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