Power Solutions International Q3 net income rises 8% as gross margin expands
PSIX•Power Solutions International’s Q3 net income and adjusted EPS each rose 8% year over year, while gross margin expanded 580 basis points to 29.7%. The company raised its outlook and expects second-half 2026 net sales to exceed the same period in 2025.
1. Quarterly results
Q3 net sales fell 1% year over year but rose 32.5% sequentially. Net income was $29.90 million and EPS was $1.30, both up 8% year over year; gross margin rose 580 basis points to 29.7%.
2. Outlook and drivers
The company raised its outlook and expects second-half 2026 net sales to exceed second-half 2025 net sales. It expects Q4 2026 gross margin to be modestly lower than Q3 2026, citing continued softness in oil and gas markets that it expects to be offset by higher data center product sales. Improved manufacturing efficiency at Wisconsin operations and a one-time $3.8 million tariff refund boosted gross margin, partly offset by less favorable product mix.
