Power Solutions International Q1 net income falls on weak sales

Power Solutions International

11/05/2026 21:33

Overview

US engine and power systems maker's Q1 net sales fell 5% yr/yr

Q1 net income dropped 62% yr/yr on lower sales and higher production costs

Company expects Q2 revenue to be similar to Q1, with stronger sales in H2 2026

Outlook

Company expects Q2 2026 revenue to be generally consistent with Q1 2026

Company anticipates stronger sales growth in H2 2026, in line with H2 2025

Continued softness in oil and gas end market expected to weigh on revenue trends

Result Drivers

OIL AND GAS SOFTNESS - Co said lower sales and profitability were mainly due to weaker demand in the oil and gas market

PRODUCTION COSTS - Elevated costs from capacity ramp-up at Wisconsin operations weighed on gross margin

SHIPMENT TIMING - Uneven order patterns and timing of Power Systems shipments affected sales

Company press release: ID:nGNX75GrjX

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 EPS
$0.32
Q1 Net Income
$7.30 mln
Q1 Gross Margin
22.90%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

Wall Street's median 12-month price target for Power Solutions International Inc is $107.00, about 41% above its May 8 closing price of $75.91

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 12 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)