Power Solutions International, Inc. (PSI) reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. Total assets increased to $339.1 million from $284.3 million at the end of 2023, driven by a rise in current assets, which grew from $205.4 million to $265.2 million. Cash and cash equivalents saw a notable increase from $22.8 million to $40.5 million, while accounts receivable rose from $67.0 million to $77.5 million. Inventories also increased, reaching $104.9 million compared to $84.9 million at the end of 2023.

The company reported net sales of $89.4 million for the three months ended September 30, 2024, a slight increase from $88.0 million in the same period of 2023. However, net sales for the nine months decreased to $234.3 million from $275.9 million year-over-year. Gross profit for the three months rose significantly to $36.4 million, up from $27.9 million, while gross profit for the nine months increased to $97.4 million from $78.3 million. Operating income also improved, reaching $20.5 million for the three months and $56.5 million for the nine months, compared to $12.1 million and $31.9 million, respectively, in the prior year.

Net income for the three months ended September 30, 2024, was $17.3 million, a substantial increase from $7.8 million in the same quarter of 2023. For the nine months, net income rose to $46.0 million from $17.9 million. Earnings per share (EPS) for the three months was $0.75, up from $0.34, and for the nine months, EPS increased to $2.00 from $0.78.

Strategically, PSI refinanced its debt in August 2024, securing a new short-term credit facility of $120 million and a Shareholder’s Loan Agreement with Weichai for $105 million, both maturing in 2025. The company is focused on enhancing manufacturing capacity to meet demand, particularly in the data center market, while also managing inflationary pressures and tariff costs.

Despite these positive developments, management expressed substantial doubt about the company's ability to continue as a going concern within one year from the issuance of the financial statements. Plans to address this include seeking extensions or amendments to existing debt agreements and obtaining additional liquidity before maturity dates in 2025.