Power Solutions International

PSIX

Market cap $1.75B

Power Solutions International is upgraded to a cautious Buy after a significant valuation reset and two consecutive quarters of robust revenue and earnings growth. PSIX's pivot to data center power systems is gaining traction, with management guiding for 45% sales growth in 2025, though gross margin pressure persists. Valuation multiples have contracted from ~4.35x to ~2.4x EV/forward revenue, improving risk-reward and bringing fair value estimates closer to current levels.

AI power demands have been a massive tailwind for Power Solutions International, but the stock is trading like all of those tailwinds have vanished. A low P/E ratio and excellent revenue growth make the decline more confusing.

After a parabolic run and brutal 54% drawdown, Power Solutions now trades like a cyclical industrial despite increasingly structural exposure to AI data centers and resilient power demand. Q3 sales surged 62% YoY and EPS rose 60% YoY, despite a 500 bps gross margin decline driven by mix and ramp-up costs. PSIX is strategically shifting toward higher-margin, data center-focused products, positioning for cyclical resilience and margin recovery.

Power Solutions International (PSIX) delivered record Q3 2025 revenue of $203.9 million, driven by surging demand in its power system segment. Despite strong topline growth, PSIX faced margin pressure in the last quarter. However, this weakness appears temporary and is expected to recover as volume expands in high-growth end markets. Structural tailwinds from AI infrastructure and data center expansion position PSIX for sustained double-digit growth, with capacity investments supporting future volume increases.

The Undercovered Dozen highlights 12 lesser-followed stocks and ETFs, offering fresh investment ideas and sparking community discussion on Seeking Alpha. This week's edition covers articles published between Nov. 7 and Nov. 13, offering fresh investment ideas. Ratings range from strong buy (ACHR, VICI, PSEC) to hold (JEPQ, MSTY) and sell (EOSE, VGT, XLK), with detailed justifications based on valuation, yield, and growth prospects.

ATLANTA, Nov. 11, 2025 (GLOBE NEWSWIRE) -- Holzer & Holzer, LLC is investigating whether Power Solutions International, Inc. (“Power Solutions” or “the Company”) (NASDAQ: PSIX) complied with federal securities laws. On November 6, 2025, Power Solutions announced its third quarter 2025 results, revealing a decrease of $4.7 million and $2.6 million within the industrial and transportation end markets. The Company stated that “the decline in industrial sales is largely attributable to softer demand in the materials handling market.” Following this news, the price of the Company's stock dropped.

Power Solutions International (PSIX) delivered record Q3 2025 revenue and profits, but shares plunged due to margin pressure and cautious outlook. PSIX's gross margin declined, cash flow weakened, and receivables rose, raising concerns about sustainability of recent growth and profitability. Management highlighted strong energy segment demand but warned of flat industrial and transportation markets, signaling potential for slower growth ahead.

LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP, a leading national shareholder rights law firm, today announced that it has commenced an investigation on behalf of Power Solutions International, Inc. (“Power Solutions” or the “Company”) (NASDAQ: PSIX) investors concerning the Company's possible violations of the federal securities laws. IF YOU ARE AN INVESTOR WHO LOST MONEY ON POWER SOLUTIONS INTERNATIONAL, INC. (PSIX), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO R.

BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces an investigation on behalf of Power Solutions International, Inc. (“Power Solutions” or the “Company”) (NASDAQ: PSIX) investors concerning the Company's possible violations of federal securities laws. IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN POWER SOLUTIONS INTERNATIONAL, INC. (PSIX), CONTACT THE LAW OFFICES OF HOWARD G. SMITH ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS. Contact the Law Offices of Howard G.

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces an investigation of Power Solutions International, Inc. (“Power Solutions” or the “Company”) (NASDAQ: PSIX) on behalf of investors concerning the Company's possible violations of federal securities laws. IF YOU ARE AN INVESTOR WHO LOST MONEY ON POWER SOLUTIONS INTERNATIONAL, INC. (PSIX), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING A CLAIM TO RECOVER YOUR LOSS. What Is The Investigation About? On November 6, 2025, Powe.