Power Solutions International, Inc. (PSIX) is a global entity operating across the United States, North America, the Pacific Rim, and Europe, specializing ...
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Operator: Good afternoon and welcome to Power Solutions International Second Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to hand the conference over to Ken Jenke, VP, Corporate Controller, PSI. Sir, please go ahead. Ken Jenke: Good afternoon, and welcome to Power Solutions International's second quarter 2026 earnings conference call. I'm Ken Jenke, Vice President and Corporate Controller. And joining me today is Ken Li, our Interim Chief Executive Officer and Chief Financial Officer. Before we begin, I would like to remind everyone that today's prepared remarks and responses to questions may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and assumptions, speak only as of today and are subject to risks and uncertainties that could cause actual results to differ materially. Important factors include the timing and ultimate conversion of power systems orders into revenue, including data center-related orders, quarterly variability in product mix and the corresponding effect on gross profit and gross margin. The cost, pace, throughput and operational outcomes of capacity ramp-up activities at our Wisconsin operations' ability to execute operational improvement initiatives, the level and persistence of customer demand, including demand conditions in the oil and gas end market, supply chain and component availability, integration of recent acquisitions, including MTL Manufacturing & Equipment, macroeconomic, regulatory and trade conditions, including U.S. tariffs and trade restrictions, changes in management or other personnel and the outcome of pending or threatened litigation and other legal or regulatory matters. Additional information concerning factors that could cause actual results to differ materially is contained in the cautionary language in today's earnings release and in the factors and other cautionary disclosures in our most recent Form 10-K, subsequent 10-Qs and other SEC filings. Those disclosures are incorporated by reference for purposes of today's call and are available in the Investor Relations section of our website and at sec.gov. We undertake no obligation to update any forward-looking statements except as required by law. We will also reference certain non-GAAP financial measures in today's call. EBITDA margin represents EBITDA as a percentage of net sales. A definition of EBITDA and a reconciliation to net income appear in today's earnings release, which is available in the Investor Relations section of our website. With that, I will turn the call over to Ken. Xun Li: Thank you, Ken, and good afternoon, everyone. Thank you for joining us. Before we review the second quarter results, I would like to briefly address the leadership transition we announced on July 27. Richard Hu will become PSI's Chief Executive Officer on August 17. …
Est. EPS $0.93 · Revenue $200.10M · 1 analysts
Est. EPS $0.89 · Revenue $199.80M · 1 analysts
| Metric | Latest | YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength. | QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes. |
|---|---|---|---|
| The total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three). |
| Name | Title | Compensation | Gender | Year Born | Status |
|---|---|---|---|---|---|
Richard Hu | Chief Executive Officer | USD 2,425,216 | Male | 1974 | Active |
Xun Li | Chief Financial Officer | USD 1,304,100 |
| Male |
| 1970 |
| Active |
Jason C. Lin | Chief Quality Officer | USD 421,895 | Male | 1954 | Active |
Matthew Thomas | Corporate Controller | USD 391,860 | Male | 1986 | Active |
William Alan Buzogany | VP of Human Resources & Senior Counsel | USD 385,107 | Male | 1963 | Active |
Zhaoying Du | General Counsel & Corporate Secretary | USD 277,376 | Female | 1978 | Active |
Ken Jenke | VP & Corporate Controller | — | — | — | Active |
Est. EPS $2.93 · Revenue $673.33M · 2 analysts
Est. EPS $0.61 · Revenue $170.90M · 1 analysts
| $722.4M |
| +51.8% |
| +18.6% |
| Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day. | $114.0M | +64.5% | +131.0% |
| Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials. | +25.4% | -13.9% | +19.5% |
| Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on). | +15.2% | -11.5% | +77.0% |
| Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales. | +15.8% | +8.4% | +94.7% |
| Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock. | $14.1M | -75.5% | +223.4% |
| FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine. | +2.0% | -83.9% | +172.6% |
| Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe. | 85.7% | -61.7% | -26.3% |
| Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking. | 3.15x | +182.1% | -24.8% |
| Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground. | $444.4M | +35.4% | +5.3% |
| Metric | Annual (A vs E) | Annual Surprise | Quarter (A vs E) | Quarter Surprise |
|---|---|---|---|---|
| EPS Surprise | 4.94 vs 4.92 | +0.4% | 0.73 vs 0.27 | +170.4% |
| Revenue Surprise | $722.4M vs $701.6M | +3.0% | $152.5M vs $133.9M | +13.9% |
| Date | Executive | Title | Security | Side | Shares | Price |
|---|---|---|---|---|---|---|
| Aug 17, 2026 | Hu Nan (Richard) | officer: Chief Executive Officer | Phantom Stock | A | 5,867 | — |
| Aug 17, 2026 | Hu Nan (Richard) | — | — | — | 0 | — |
| Mar 6, 2026 | Li Xun | officer: CFO | Phantom Stock | A | 1,665 | — |
| Mar 6, 2026 | Du Zhaoying | officer: GC and Corp Secy | Phantom Stock | A | 1,492 | — |
| Feb 12, 2026 | Li Xun | officer: CFO | Common Stock | A | 7,500 | $2.00 |
