Summary
- 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.
- I am downgrading PSIX to hold, citing lost momentum, valuation risks, and the need for clearer signs of profitability stabilization before considering a buy.
Aleksandr Potashev/iStock via Getty Images
Power Solutions International ([PSIX](h…
Summary
- 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.
- I am downgrading PSIX to hold, citing lost momentum, valuation risks, and the need for clearer signs of profitability stabilization before considering a buy.
Aleksandr Potashev/iStock via Getty Images
Power Solutions International (PSIX) shares fell after Q3 2025 earnings. Premarket was a mayhem if we put it bluntly, I saw it going down around 30%. Yes, I have given this company strong buy not that long ago
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