Power Solutions International, Inc. (NASDAQ:PSIX) shares fell in premarket trading Tuesday after the company reported first-quarter results that missed Wall Street estimates on both earnings and revenue.

Earnings And Revenue Miss Estimates

The company reported adjusted earnings of 36 cents per share, below analysts' expectations of 74 cents per share.

Revenue totaled $128.6 million, missing the consensus estimate of $160.8 million.

Sales declined 5% year over year, driven by a $10.2 million drop in the power systems segment amid softer oil and gas demand and uneven timing of data center-related orders.

Margins Pressure Results

Gross profit fell 27% year over year to $29.4 million. Gross margin contracted to 22.9% from 29.7% in the prior-year quarter.

The company said the margin decline reflected a weaker oil and gas sales mix, along with higher production costs tied to expanding data center-related manufacturing capacity in Wisconsin.

Power Solutions International said demand for its data center power solutions remains strong and expects higher sales in the second half of 2026. However, shipment timing and order volumes continue to depend on customer schedules, manufacturing capacity and supply-chain conditions.

As of March 31, 2026, cash and cash equivalents totaled $45.1 million.

Outlook Remains Uncertain

The company did not provide full-year 2026 guidance, citing variability in order timing and broader market conditions.

Management expects second-quarter revenue to remain broadly in line with first-quarter levels on a sequential basis. The company anticipates stronger growth in the second half of 2026 as larger power systems orders move into production and are recognized as revenue.

Power Solutions International also warned that continued weakness in the oil and gas market and ongoing capacity ramp-up efforts in Wisconsin are likely to continue pressuring gross margins.

PSIX Price Action: Power Solutions shares were down 32.75% at $42.00 during premarket trading on Tuesday, according to Benzinga Pro data.

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