Q1 26 EPS
$0.36
MISS 30.77%
Est. $0.52
Q1 26 Revenue
$128.6M
MISS 20.03%
Est. $160.8M
Did PSIX Beat Earnings? Q1 2026 Results
Power Solutions International delivered a sharply disappointing first quarter of 2026, missing Wall Street expectations on both the top and bottom lines as softening demand and operational headwinds weighed heavily on results. The industrial engine m… Read more Power Solutions International delivered a sharply disappointing first quarter of 2026, missing Wall Street expectations on both the top and bottom lines as softening demand and operational headwinds weighed heavily on results. The industrial engine maker posted adjusted diluted EPS of $0.36, falling 30.77% short of the $0.52 consensus estimate, while revenue of $128.59 million trailed forecasts by 20.03% and declined 5.1% year over year. The primary culprit was weakness in the company's Power Systems segment, where a $10.20 million sales decline reflected soft oil and gas demand alongside uneven order timing for data center products, with gross margin compressing to 22.9% from 29.7% a year ago as Wisconsin facility ramp-up costs bit into profitability. The results arrive as multiple securities class action lawsuits allege the company misled investors about its capacity to meet data center demand. Looking ahead, management guided for Q2 revenue roughly in line with Q1 sequentially, projecting a stronger recovery in the second half of 2026 as larger Power Systems orders move into production, though timing uncertainty remains a persistent caveat.
Key Takeaways
- • Softer oil and gas demand weighed on Power Systems end market sales
- • Uneven order patterns and shipment timing for data center-related products
- • Elevated production costs from capacity ramp-up at Wisconsin operations
- • Unfavorable product mix with lower contribution from higher-margin oil and gas products
- • Sequential gross margin improvement of approximately 100 basis points from Q4 2025
- • Strong data center demand continued but shipment timing remained variable
PSIX Forward Guidance & Outlook
PSI is not providing formal full-year 2026 guidance due to ongoing variability in order timing and market conditions. The company expects Q2 2026 revenue to be generally consistent with Q1 on a sequential basis. Stronger sales growth is anticipated in the second half of 2026, approximately in line with H2 2025, as larger Power Systems orders move into production and are recognized as revenue. However, the timing and volume of shipments remain subject to customer scheduling, manufacturing throughput, supply chain factors, and other variables. Continued softness in the oil and gas end market is expected to weigh on quarterly revenue trends, and capacity ramp-up costs at Wisconsin operations are expected to persist, impacting gross margins.
PSIX YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
“Our first quarter results were below the strong prior-year period, which had benefited from significant growth in our Power Systems business. The year-over-year declines in sales and profitability primarily reflected softer oil and gas demand, the timing of certain Power Systems shipments, and elevated production costs associated with the capacity ramp-up in our Wisconsin operations.”
— Dino Xykis, Q1 2026 Earnings Press Release
PSIX Earnings Trends
PSIX vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
PSIX EPS Trend
Earnings per share: estimate vs actual
PSIX Revenue Trend
Quarterly revenue: estimate vs actual
PSIX Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 MISS | $0.52 | $0.36 | -30.77% | $128.6M | -20.03% |
| Q4 25 BEAT FY | $0.65 | $0.70 | +7.69% | $191.2M | +13.02% |
| FY Full Year | — | $4.94 | — | $722.4M | — |
| Q3 25 BEAT | $0.98 | $1.20 | +22.45% | $203.8M | +22.86% |
| Q2 25 BEAT | $0.87 | $2.24 | +157.47% | $191.9M | +40.59% |
| Q1 25 BEAT | $0.46 | $0.83 | +80.43% | $135.4M | +27.06% |