Power Solutions International, Inc. (PSI) reported significant financial growth in its latest quarterly filing for the period ending June 30, 2025. The company achieved net sales of $191.9 million for the three months ended June 30, 2025, a 74% increase from $110.6 million in the same period last year. For the first half of 2025, net sales reached $327.4 million, up 59% from $205.8 million in the prior year. The gross profit for the second quarter was $54.1 million, reflecting a 54% increase year-over-year, while the gross margin decreased slightly to 28.2% from 31.8% due to a shift towards lower-margin products and production ramp-up inefficiencies.
The company’s operating income for the second quarter was $32.5 million, a 28% increase compared to $25.3 million in the same quarter of 2024. This growth was supported by a notable rise in selling, general, and administrative expenses, which surged by 269% to $16.7 million, primarily due to increased costs associated with employee incentive programs and administrative expenses to support business growth. Research and development expenses decreased slightly to $4.6 million from $5.0 million year-over-year, indicating a strategic focus on cost management.
In terms of operational developments, PSI has been actively expanding its manufacturing capacity to meet rising demand, particularly in the data center sector. The company has also amended its Revolving Credit Agreement, increasing its borrowing capacity to $135 million and extending the maturity date to July 30, 2027. This move is expected to enhance liquidity and support ongoing operational needs. As of June 30, 2025, PSI reported total assets of $437.7 million, up from $328.2 million at the end of 2024, with cash and cash equivalents totaling $49.5 million.
The company’s customer base remains concentrated, with significant sales attributed to a few key clients. For the three months ended June 30, 2025, the U.S. market accounted for 93% of total sales, underscoring the company's reliance on North American operations. The company is also navigating challenges posed by macroeconomic conditions, including fluctuating oil and gas prices and tariff costs affecting its supply chain. Despite these challenges, PSI's management remains optimistic about future growth, focusing on higher-margin markets and strategic partnerships to drive profitability.
Looking ahead, PSI anticipates continued growth driven by its strategic focus on high-demand sectors and enhanced manufacturing capabilities. The company is committed to managing expenses effectively while pursuing opportunities for expansion in both existing and new markets. The outlook remains cautiously optimistic, with management emphasizing the importance of adapting to market conditions and maintaining operational efficiency to sustain growth and profitability in the coming quarters.
About POWER SOLUTIONS INTERNATIONAL, INC.
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