Power Solutions International posted Q1 net sales of $128.6 million, a 5% decrease from $135.4 million a year ago, and net income of $7.3 million, down 62% from $19.1 million. Diluted earnings per share were $0.32 versus $0.83 in the prior-year quarter.

Sales in the power systems end market fell by $10.2 million due to softer oil and gas demand and shipment timing, while industrial and transportation segments contributed increases of $3.0 million and $0.3 million, respectively. Demand for data center power solutions remains solid, though order timing and throughput variables affect recognition.

Gross profit declined to $29.4 million and gross margin compressed to 22.9% from 29.7%, driven by an unfavorable product mix and elevated production costs related to capacity ramp-up at the Wisconsin facility. Sequentially, gross margin improved by approximately 100 basis points on efficiency gains, partially offset by mix headwinds.

As of March 31, the company held $45.1 million in cash and $103.4 million in total debt, including $95.0 million drawn under its revolving credit facility. No formal full-year guidance was provided; management expects Q2 revenue to track Q1 levels and anticipates stronger second-half sales as larger power systems orders move into production, subject to scheduling and supply constraints.