Power Solutions International第二季銷售跌20.5% 淨利潤大減受累高基數

psix-202606300001137091--12-312026Q2falseP6MP1YP1Yhttp://fasb.org/us-gaap/2026#PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortizationhttp://fasb.org/us-gaap/2026#PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortizationxbrli:sharesiso4217:USDiso4217:USDxbrli:sharesxbrli:purepsix:boardMemberpsix:segmentpsix:letterOfCreditpsix:daypsix:installment00011370912026-01-012026-06-3000011370912026-07-3000011370912026-06-3000011370912025-12-310001137091us-gaap:RelatedPartyMember2026-06-300001137091us-gaap:RelatedPartyMember2025-12-310001137091us-gaap:RelatedPartyMember2026-04-012026-06-300001137091us-gaap:RelatedPartyMember2025-04-012025-06-300001137091us-gaap:RelatedPartyMember2026-01-012026-06-300001137091us-gaap:RelatedPartyMember2025-01-012025-06-3000011370912026-04-012026-06-3000011370912025-04-012025-06-3000011370912025-01-012025-06-300001137091us-gaap:CommonStockMember2026-03-310001137091us-gaap:AdditionalPaidInCapitalMember2026-03-310001137091us-gaap:RetainedEarningsMember2026-03-310001137091us-gaap:TreasuryStockCommonMember2026-03-3100011370912026-03-310001137091us-gaap:RetainedEarningsMember2026-04-012026-06-300001137091us-gaap:AdditionalPaidInCapitalMember2026-04-012026-06-300001137091us-gaap:CommonStockMember2026-06-300001137091us-gaap:AdditionalPaidInCapitalMember2026-06-300001137091us-gaap:RetainedEarningsMember2026-06-300001137091us-gaap:TreasuryStockCommonMember2026-06-300001137091us-gaap:CommonStockMember2025-03-310001137091us-gaap:AdditionalPaidInCapitalMember2025-03-310001137091us-gaap:RetainedEarningsMember2025-03-310001137091us-gaap:TreasuryStockCommonMember2025-03-3100011370912025-03-310001137091us-gaap:RetainedEarningsMember2025-04-012025-06-300001137091us-gaap:AdditionalPaidInCapitalMember2025-04-012025-06-300001137091us-gaap:TreasuryStockCommonMember2025-04-012025-06-300001137091us-gaap:CommonStockMember2025-06-300001137091us-gaap:AdditionalPaidInCapitalMember2025-06-300001137091us-gaap:RetainedEarningsMember2025-06-300001137091us-gaap:TreasuryStockCommonMember2025-06-3000011370912025-06-300001137091us-gaap:CommonStockMember2025-12-310001137091us-gaap:AdditionalPaidInCapitalMember2025-12-310001137091us-gaap:RetainedEarningsMember2025-12-310001137091us-gaap:TreasuryStockCommonMember2025-12-310001137091us-gaap:RetainedEarningsMember2026-01-012026-06-300001137091us-gaap:AdditionalPaidInCapitalMember2026-01-012026-06-300001137091us-gaap:TreasuryStockCommonMember2026-01-012026-06-300001137091us-gaap:CommonStockMember2024-12-310001137091us-gaap:AdditionalPaidInCapitalMember2024-12-310001137091us-gaap:RetainedEarningsMember2024-12-310001137091us-gaap:TreasuryStockCommonMember2024-12-3100011370912024-12-310001137091us-gaap:RetainedEarningsMember2025-01-012025-06-300001137091us-gaap:AdditionalPaidInCapitalMember2025-01-012025-06-300001137091us-gaap:TreasuryStockCommonMember2025-01-012025-06-300001137091psix:WeichaiAmericaCorpMemberpsix:PowerSolutionsInternationalInc.Member2026-06-300001137091srt:MinimumMemberpsix:PowerSolutionsInternationalInc.Memberpsix:FoundersMember2026-06-300001137091srt:MaximumMemberpsix:PowerSolutionsInternationalInc.Memberpsix:FoundersMember2026-06-300001137091us-gaap:CustomerConcentrationRiskMemberpsix:CustomerBMemberus-gaap:RevenueFromContractWithCustomerMember2026-04-012026-06-300001137091us-gaap:CustomerConcentrationRiskMemberpsix:CustomerBMemberus-gaap:RevenueFromContractWithCustomerMember2025-04-012025-06-300001137091us-gaap:CustomerConcentrationRiskMemberpsix:CustomerBMemberus-gaap:RevenueFromContractWithCustomerMember2026-01-012026-06-300001137091us-gaap:CustomerConcentrationRiskMemberpsix:CustomerBMemberus-gaap:RevenueFromContractWithCustomerMember2025-01-012025-06-300001137091us-gaap:CustomerConcentrationRiskMemberpsix:CustomerCMemberus-gaap:RevenueFromContractWithCustomerMember2026-04-012026-06-300001137091us-gaap:CustomerConcentrationRiskMemberpsix:CustomerCMemberus-gaap:RevenueFromContractWithCustomerMember2026-01-012026-06-300001137091us-gaap:CustomerConcentrationRiskMemberpsix:CustomerEMemberus-gaap:RevenueFromContractWithCustomerMember2025-01-012025-06-300001137091us-gaap:CustomerConcentrationRiskMemberpsix:CustomerFMemberus-gaap:RevenueFromContractWithCustomerMember2025-01-012025-06-300001137091us-gaap:CustomerConcentrationRiskMemberpsix:CustomerBMemberus-gaap:AccountsReceivableMember2026-01-012026-06-300001137091us-gaap:CustomerConcentrationRiskMemberpsix:CustomerBMemberus-gaap:AccountsReceivableMember2025-01-012025-12-310001137091us-gaap:CustomerConcentrationRiskMemberpsix:CustomerCMemberus-gaap:AccountsReceivableMember2026-01-012026-06-300001137091us-gaap:CustomerConcentrationRiskMemberpsix:CustomerCMemberus-gaap:AccountsReceivableMember2025-01-012025-12-310001137091us-gaap:CustomerConcentrationRiskMemberpsix:CustomerEMemberus-gaap:AccountsReceivableMember2025-01-012025-12-310001137091us-gaap:CustomerConcentrationRiskMemberpsix:CustomerGMemberus-gaap:AccountsReceivableMember2025-01-012025-12-310001137091us-gaap:SupplierConcentrationRiskMemberus-gaap:CostOfGoodsTotalMemberpsix:SupplierAMember2025-04-012025-06-300001137091us-gaap:SupplierConcentrationRiskMemberus-gaap:CostOfGoodsTotalMemberpsix:SupplierAMember2025-01-012025-06-300001137091psix:ContractWithCustomerMember2025-12-310001137091psix:ContractWithCustomerMember2026-06-300001137091psix:IEEPATariffRefundMember2026-04-012026-06-300001137091psix:IEEPATariffRefundMember2026-06-300001137091psix:ManufacturingEquipmentInc.MTLMember2026-01-090001137091psix:ManufacturingEquipmentInc.MTLMember2026-01-092026-01-090001137091us-gaap:SecuredDebtMemberpsix:PromissoryNoteMember2026-01-090001137091psix:ManufacturingEquipmentInc.MTLMemberus-gaap:TradeNamesMember2026-01-090001137091psix:ManufacturingEquipmentInc.MTLMember2026-01-012026-06-300001137091psix:ManufacturingEquipmentInc.MTLMember2025-01-012025-06-300001137091psix:EnergyEndMarketMember2026-04-012026-06-300001137091psix:EnergyEndMarketMember2025-04-012025-06-300001137091psix:EnergyEndMarketMember2026-01-012026-06-300001137091psix:EnergyEndMarketMember2025-01-012025-06-300001137091psix:IndustrialEndMarketMember2026-04-012026-06-300001137091psix:IndustrialEndMarketMember2025-04-012025-06-300001137091psix:IndustrialEndMarketMember2026-01-012026-06-300001137091psix:IndustrialEndMarketMember2025-01-012025-06-300001137091psix:TransportationEndMarketMember2026-04-012026-06-300001137091psix:TransportationEndMarketMember2025-04-012025-06-300001137091psix:TransportationEndMarketMember2026-01-012026-06-300001137091psix:TransportationEndMarketMember2025-01-012025-06-300001137091country:US2026-04-012026-06-300001137091country:US2025-04-012025-06-300001137091country:US2026-01-012026-06-300001137091country:US2025-01-012025-06-300001137091psix:NorthAmericaExcludingUnitedStatesMember2026-04-012026-06-300001137091psix:NorthAmericaExcludingUnitedStatesMember2025-04-012025-06-300001137091psix:NorthAmericaExcludingUnitedStatesMember2026-01-012026-06-300001137091psix:NorthAmericaExcludingUnitedStatesMember2025-01-012025-06-300001137091psix:PacificRimMember2026-04-012026-06-300001137091psix:PacificRimMember2025-04-012025-06-300001137091psix:PacificRimMember2026-01-012026-06-300001137091psix:PacificRimMember2025-01-012025-06-300001137091srt:EuropeMember2026-04-012026-06-300001137091srt:EuropeMember2025-04-012025-06-300001137091srt:EuropeMember2026-01-012026-06-300001137091srt:EuropeMember2025-01-012025-06-300001137091psix:OtherGeographicalAreasMember2026-04-012026-06-300001137091psix:OtherGeographicalAreasMember2025-04-012025-06-300001137091psix:OtherGeographicalAreasMember2026-01-012026-06-300001137091psix:OtherGeographicalAreasMember2025-01-012025-06-3000011370912026-07-012026-06-3000011370912027-01-012026-06-3000011370912028-01-012026-06-3000011370912023-03-222023-03-220001137091us-gaap:LeaseholdImprovementsMember2026-06-300001137091us-gaap:LeaseholdImprovementsMember2025-12-310001137091us-gaap:MachineryAndEquipmentMember2026-06-300001137091us-gaap:MachineryAndEquipmentMember2025-12-310001137091us-gaap:ConstructionInProgressMember2026-06-300001137091us-gaap:ConstructionInProgressMember2025-12-310001137091us-gaap:CustomerRelationshipsMember2026-06-300001137091us-gaap:DevelopedTechnologyRightsMember2026-06-300001137091us-gaap:TrademarksAndTradeNamesMember2026-06-300001137091us-gaap:CustomerRelationshipsMember2025-12-310001137091us-gaap:DevelopedTechnologyRightsMember2025-12-310001137091us-gaap:TrademarksAndTradeNamesMember2025-12-310001137091us-gaap:LineOfCreditMemberpsix:RevolvingCreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2026-06-300001137091us-gaap:LineOfCreditMemberpsix:RevolvingCreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2025-12-310001137091us-gaap:SecuredDebtMemberpsix:PromissoryNoteMember2026-06-300001137091us-gaap:SecuredDebtMemberpsix:PromissoryNoteMember2025-12-310001137091us-gaap:SecuredDebtMemberpsix:FirstMasterLoanAgreementMember2026-06-300001137091us-gaap:SecuredDebtMemberpsix:FirstMasterLoanAgreementMember2025-12-310001137091us-gaap:SecuredDebtMemberpsix:SecondMasterLoanAgreementMember2026-06-300001137091us-gaap:SecuredDebtMemberpsix:SecondMasterLoanAgreementMember2025-12-310001137091us-gaap:SecuredDebtMemberpsix:SBALoanMember2026-06-300001137091us-gaap:SecuredDebtMemberpsix:SBALoanMember2025-12-310001137091us-gaap:LineOfCreditMemberpsix:RevolvingCreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2024-08-300001137091us-gaap:LineOfCreditMemberpsix:RevolvingCreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2024-08-302024-08-300001137091us-gaap:LineOfCreditMemberpsix:FourthAmendedAndRestatedCreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2024-08-302024-08-300001137091us-gaap:SubordinatedDebtMemberpsix:PreviousShareholderLoanAgreementsWeichaiMember2024-08-302024-08-300001137091us-gaap:SubordinatedDebtMemberpsix:ShareholdersLoanAgreementWeichaiMember2024-08-300001137091us-gaap:SubordinatedDebtMemberpsix:ShareholdersLoanAgreementWeichaiMember2024-08-302024-08-300001137091us-gaap:SubordinatedDebtMemberpsix:PreviousShareholderLoanAgreementsWeichaiMember2024-08-300001137091us-gaap:LineOfCreditMemberpsix:RevolvingCreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2025-07-300001137091us-gaap:LineOfCreditMemberpsix:RevolvingCreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2025-07-302025-07-300001137091us-gaap:LineOfCreditMemberpsix:RevolvingCreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2025-07-300001137091us-gaap:LineOfCreditMemberpsix:RevolvingCreditAgreementInEventMajorityShareholderHoldsLessThan50OfEquityMemberus-gaap:RevolvingCreditFacilityMember2025-07-302025-07-300001137091psix:MTLManufacturingEquipmentInc.Member2026-01-092026-01-090001137091us-gaap:SecuredDebtMemberpsix:PromissoryNoteMemberpsix:MTLManufacturingEquipmentInc.Member2026-01-090001137091us-gaap:SecuredDebtMemberpsix:FirstMasterLoanAgreementMember2025-08-140001137091us-gaap:SecuredDebtMemberpsix:SecondMasterLoanAgreementMember2025-10-230001137091us-gaap:SecuredDebtMemberpsix:SBALoanMember2022-07-270001137091us-gaap:SecuredDebtMemberpsix:SBALoanMember2026-06-302026-06-300001137091us-gaap:NotesPayableOtherPayablesMember2024-06-140001137091us-gaap:NotesPayableOtherPayablesMember2024-06-142024-06-140001137091us-gaap:NotesPayableOtherPayablesMember2026-06-300001137091us-gaap:NotesPayableOtherPayablesMember2025-12-310001137091us-gaap:NotesPayableOtherPayablesMember2026-06-300001137091us-gaap:NotesPayableOtherPayablesMember2025-12-310001137091us-gaap:CostOfGoodsAndServicesSold2026-04-012026-06-300001137091us-gaap:CostOfGoodsAndServicesSold2025-04-012025-06-300001137091us-gaap:CostOfGoodsAndServicesSold2026-01-012026-06-300001137091us-gaap:CostOfGoodsAndServicesSold2025-01-012025-06-300001137091us-gaap:ResearchAndDevelopmentExpense2026-04-012026-06-300001137091us-gaap:ResearchAndDevelopmentExpense2025-04-012025-06-300001137091us-gaap:ResearchAndDevelopmentExpense2026-01-012026-06-300001137091us-gaap:ResearchAndDevelopmentExpense2025-01-012025-06-300001137091us-gaap:SellingGeneralAndAdministrativeExpense2026-04-012026-06-300001137091us-gaap:SellingGeneralAndAdministrativeExpense2025-04-012025-06-300001137091us-gaap:SellingGeneralAndAdministrativeExpense2026-01-012026-06-300001137091us-gaap:SellingGeneralAndAdministrativeExpense2025-01-012025-06-300001137091us-gaap:InterestExpenseNonoperating2026-04-012026-06-300001137091us-gaap:InterestExpenseNonoperating2025-04-012025-06-300001137091us-gaap:InterestExpenseNonoperating2026-01-012026-06-300001137091us-gaap:InterestExpenseNonoperating2025-01-012025-06-300001137091psix:RevolvingCreditAgreementMember2026-06-300001137091psix:RevolvingCreditAgreementMemberus-gaap:FairValueInputsLevel1Member2026-06-300001137091psix:RevolvingCreditAgreementMemberus-gaap:FairValueInputsLevel2Member2026-06-300001137091psix:RevolvingCreditAgreementMemberus-gaap:FairValueInputsLevel3Member2026-06-300001137091us-gaap:FairValueInputsLevel1Member2026-06-300001137091us-gaap:FairValueInputsLevel2Member2026-06-300001137091us-gaap:FairValueInputsLevel3Member2026-06-300001137091psix:PromissoryNoteMember2026-06-300001137091psix:PromissoryNoteMemberus-gaap:FairValueInputsLevel1Member2026-06-300001137091psix:PromissoryNoteMemberus-gaap:FairValueInputsLevel2Member2026-06-300001137091psix:PromissoryNoteMemberus-gaap:FairValueInputsLevel3Member2026-06-300001137091psix:FirstMasterLoanAgreementMember2026-06-300001137091psix:FirstMasterLoanAgreementMemberus-gaap:FairValueInputsLevel1Member2026-06-300001137091psix:FirstMasterLoanAgreementMemberus-gaap:FairValueInputsLevel2Member2026-06-300001137091psix:FirstMasterLoanAgreementMemberus-gaap:FairValueInputsLevel3Member2026-06-300001137091psix:SecondMasterLoanAgreementMember2026-06-300001137091psix:SecondMasterLoanAgreementMemberus-gaap:FairValueInputsLevel1Member2026-06-300001137091psix:SecondMasterLoanAgreementMemberus-gaap:FairValueInputsLevel2Member2026-06-300001137091psix:SecondMasterLoanAgreementMemberus-gaap:FairValueInputsLevel3Member2026-06-300001137091psix:RevolvingCreditAgreementMember2025-12-310001137091psix:RevolvingCreditAgreementMemberus-gaap:FairValueInputsLevel1Member2025-12-310001137091psix:RevolvingCreditAgreementMemberus-gaap:FairValueInputsLevel2Member2025-12-310001137091psix:RevolvingCreditAgreementMemberus-gaap:FairValueInputsLevel3Member2025-12-310001137091us-gaap:FairValueInputsLevel1Member2025-12-310001137091us-gaap:FairValueInputsLevel2Member2025-12-310001137091us-gaap:FairValueInputsLevel3Member2025-12-310001137091psix:MastPowertrainV.TheCompanyMember2020-02-012020-02-290001137091psix:MastPowertrainV.TheCompanyMember2020-03-012020-03-310001137091psix:MastPowertrainV.TheCompanyMember2021-07-012021-07-310001137091psix:MastPowertrainV.TheCompanyMember2025-12-310001137091psix:MastPowertrainV.TheCompanyMember2023-09-012023-09-300001137091psix:MastPowertrainV.TheCompanyMember2026-06-300001137091psix:GaryWinemasterVersusTheCompanyMember2021-08-012021-08-310001137091psix:GaryWinemasterVersusTheCompanyMember2024-06-012024-06-300001137091psix:GaryWinemasterVersusTheCompanyMemberus-gaap:SellingGeneralAndAdministrativeExpense2024-06-012024-06-300001137091us-gaap:CommonStockMember2026-01-012026-06-300001137091us-gaap:PhantomShareUnitsPSUsMember2026-03-062026-03-060001137091us-gaap:PhantomShareUnitsPSUsMember2026-03-062026-06-300001137091psix:SWIECMemberus-gaap:RelatedPartyMember2025-01-012025-01-310001137091psix:WeichaiAmericaCorpMemberus-gaap:RelatedPartyMember2025-02-012025-02-280001137091psix:MORAgreementFeeMemberpsix:WeichaiAmericaCorpMemberus-gaap:RelatedPartyMember2026-04-012026-06-30

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026    
or

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________to________
Commission file number 001-35944

POWER SOLUTIONS INTERNATIONAL, INC.
(Exact Name of Registrant as Specified in its Charter)

Delaware33-0963637
(State or Other Jurisdiction of Incorporation or Organization)(I.R.S. Employer Identification No.)
201 Mittel Drive, Wood Dale, IL
60191
(Address of Principal Executive Offices)(Zip Code)
(630) 350-9400

(Registrant’s Telephone Number, Including Area Code)
Securities Registered Pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common Stock, par value $0.001 per sharePSIXNasdaq Stock Market
Securities Registered Pursuant to Section 12(g) of the Act:
__________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒     No   ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒     No   ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act: 

Large accelerated filer☒Accelerated filer☐

Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐   No ☒
As of July 30, 2026, there were 23,065,450 outstanding shares of the Common Stock of the registrant.

1

TABLE OF CONTENTS

Page
PART I – FINANCIAL INFORMATION
Forward-Looking Statements3

Item 1.Financial Statements4

Consolidated Balance Sheets 4

Consolidated Statements of Income5

Consolidated Statements of Stockholders’ Equity 6

Consolidated Statements of Cash Flows7

Notes to Consolidated Financial Statements8

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations28

Item 3.Quantitative and Qualitative Disclosures About Market Risk37

Item 4.Controls and Procedures37

PART II – OTHER INFORMATION
Item 1.Legal Proceedings38

Item 1A.Risk Factors38

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds38

Item 3.Defaults Upon Senior Securities38

Item 4.Mine Safety Disclosures38

Item 5.Other Information38

Item 6.Exhibits39

Signatures39

FORWARD-LOOKING STATEMENTS
Certain statements contained in this Quarterly Report on Form 10-Q for the three months ended June 30, 2026, (the “Quarterly Report”) that are not historical facts are intended to constitute “forward-looking statements” entitled to the safe-harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements may involve risks and uncertainties. These statements often include words such as “anticipate,” “believe,” “budgeted,” “contemplate,” “estimate,” “expect,” “forecast,” “guidance,” “may,” “outlook,” “plan,” “projection,” “should,” “target,” “will,” “would” or similar expressions, but these words are not the exclusive means for identifying such statements. These forward-looking statements include statements regarding Power Solutions International, Inc.’s, a Delaware corporation (“Power Solutions,” “PSI” or the “Company”), projected sales, potential profitability and liquidity, strategic initiatives, future business strategies, warranty mitigation efforts and market opportunities, improvements in its business, improvement of product margins, and product market conditions and trends. These statements are not guarantees of performance or results, and they involve risks, uncertainties and assumptions. Although the Company believes that these forward-looking statements are based on reasonable assumptions, there are many factors that could affect the Company’s results of operations and liquidity and could cause actual results, performance or achievements to differ materially from those expressed in, or implied by, the Company’s forward-looking statements.
The Company cautions that the risks, uncertainties and other factors that could cause its actual results to differ materially from those expressed in, or implied by, the forward-looking statements include, without limitation: the timing and ultimate conversion of Power Systems orders into revenue, including data-center-related orders, and the volume and timing of related shipments; quarterly variability in product mix and the corresponding effect on gross profit and gross margin; the cost, pace, throughput and operational outcomes of capacity ramp-up activities at the Company’s Wisconsin operations, including the duration and magnitude of related production costs; Company’s ability to execute operational improvement initiatives on the anticipated timetable; the level and persistence of customer demand in the power systems, industrial and transportation end markets; volatility in oil and gas prices and corresponding demand for related products; supply-chain disruptions, component availability and supplier performance; macroeconomic, regulatory and trade conditions, including U.S. tariffs and trade restrictions; integration of recent and future acquisitions, including the acquisition of MTL Manufacturing and Equipment; the outcome of pending or threatened litigation and regulatory inquiries, including the previously disclosed putative federal securities class action; changes in management or other personnel, including the timing of any related disclosures; the ability to recruit and retain key employees; the impact of changes in our effective tax rate or applicable tax legislation; and the other risks and uncertainties described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and in the Company’s subsequent filings with the U.S. Securities and Exchange Commission (the “SEC”), all of which are incorporated by reference into this press release.
The Company’s forward-looking statements speak only as of the date of this filing. Except as required by law, the Company expressly disclaims any intention or obligation to revise or update any forward-looking statement, whether as a result of new information, future events or otherwise. Investors are cautioned not to place undue reliance on any forward-looking statements.
AVAILABLE INFORMATION
The Company is subject to the reporting and information requirements of the Exchange Act, and as a result, it is obligated to file annual, quarterly and current reports, proxy and information statements and other information with the SEC. The Company makes these filings available free of charge on its website (http://www.psiengines.com) as soon as reasonably practicable after it electronically files them with, or furnishes them to, the SEC. Information on the Company’s website does not constitute part of this Quarterly Report. In addition, the SEC maintains a website (http://www.sec.gov) that contains the annual, quarterly and current reports, proxy and information statements, and other information the Company electronically files with, or furnishes to, the SEC.
3

PART I – FINANCIAL INFORMATION

Item 1.    Financial Statements.

POWER SOLUTIONS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par values)As of June 30, 2026 (unaudited)As of December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents$70,062 $41,250 
Restricted cash4,461 3,698 
Accounts receivable, net of allowances of $1,734 and $967 as of June 30, 2026 and December 31, 2025, respectively; (from related parties $200 and $415 as of June 30, 2026 and December 31, 2025, respectively)
80,180 90,446 
Income tax receivable2,879 6,442 
Inventories, net127,582 127,363 
Prepaid expenses3,859 4,500 
Contract assets12,507 15,965 
Other current assets1,004 1,256 
Total current assets302,534 290,920 
Property, plant and equipment, net31,908 23,014 
Operating lease right-of-use assets, net59,267 52,911 
Intangible assets, net1,327 1,236 
Goodwill34,921 29,835 
Deferred tax assets9,517 13,322 
Customs-related deposits13,424 12,893 
Other noncurrent assets419 614 
TOTAL ASSETS$453,317 $424,745 

LIABILITIES AND STOCKHOLDERS’ EQUITY 
Current liabilities:
Accounts payable (to related parties $8,700 and $4,126 as of June 30, 2026 and December 31, 2025, respectively)
$49,508 $48,196 
Tariff refund liability22,687 — 
Current maturities of long-term debt935 28 

Finance lease liability, current397 355 
Operating lease liability, current7,561 6,346 
Other short-term financing250 — 
Other accrued liabilities (to related parties $53 and $60 as of June 30, 2026 and December 31, 2025, respectively)
36,247 37,353 
Total current liabilities117,585 92,278 

Long-term debt, net of current maturities4,848 10 
Revolving line of credit, long-term65,000 95,000 
Finance lease liability, long-term1,219 1,224 
Operating lease liability, long-term53,676 49,397 
Noncurrent contract liabilities1,649 1,699 
Other noncurrent liabilities6,272 6,528 
TOTAL LIABILITIES$250,249 $246,136 

Commitments and Contingencies (Note 11)

STOCKHOLDERS’ EQUITY

Common stock – $0.001 par value; 50,000 shares authorized; 23,117 shares issued; 23,050 and 23,041 shares outstanding at June 30, 2026 and December 31, 2025, respectively
23 23 
Additional paid-in capital158,308 157,602 
Retained earnings46,637 22,476 
Treasury stock, at cost, 67 and 76 shares at June 30, 2026 and December 31, 2025, respectively
(1,900)(1,492)
TOTAL STOCKHOLDERS’ EQUITY203,068 178,609 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$453,317 $424,745 

See Notes to Condensed Consolidated Financial Statements
4

POWER SOLUTIONS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

(in thousands, except per share amounts)For the Three Months Ended June 30,For the Six Months Ended June 30,
2026202520262025
Net sales
(to related parties $10 and $402 for the three months ended June 30, 2026 and 2025, respectively, $19 and $865 for the six months ended June 30, 2026 and 2025, respectively)
$152,544 $191,907 $281,136 $327,353 
Cost of sales
(derived from related party net sales $3 and $271 for the three months ended June 30, 2026 and 2025, respectively, and $8 and $587 for the six months ended June 30, 2026 and 2025, respectively)
111,176 137,824 210,344 232,976 
Gross profit41,368 54,083 70,792 94,377 
Operating expenses:
Research and development expenses5,051 4,615 9,856 8,859 
Selling, general and administrative expenses12,117 16,680 25,095 27,789 

Amortization of intangible assets280 306 529 613 
Total operating expenses17,448 21,601 35,480 37,261 
Operating income23,920 32,482 35,312 57,116 
Other expense (income), net:
Interest expense (from related parties of $0 and $219 for the three months ended June 30, 2026 and 2025, respectively, and $0 and $634 for the six months ended June 30, 2026 and 2025, respectively)
1,570 1,700 3,315 3,466 

Other expense (income)(122)(295)(208)(295)
Total other expense, net1,448 1,405 3,107 3,171 
Income before income taxes22,472 31,077 32,205 53,945 
Income tax expense (benefit)5,611 (20,135)8,044 (16,349)
Net income$16,861 $51,212 $24,161 $70,294 

Weighted-average common shares outstanding:
Basic23,050 23,009 23,048 23,007 
Diluted23,072 23,067 23,067 23,064 
Earnings per common share:
Basic$0.73 $2.23 $1.05 $3.06 
Diluted$0.73 $2.22 $1.05 $3.05 
See Notes to Condensed Consolidated Financial Statements
5

POWER SOLUTIONS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(UNAUDITED)

(in thousands)For the Three Months Ended
Common StockAdditional Paid-in CapitalRetained Earnings (Accumulated Deficit)Treasury StockTotal Stockholders’ Equity
Balance at March 31, 2026$23 $157,878 $29,776 $(1,900)$185,777 
Net income— — 16,861 — 16,861 

Stock-based compensation expense— 430 — — 430 

Balance at June 30, 2026$23 $158,308 $46,637 $(1,900)$203,068 

Balance at March 31, 202523 157,648 (72,429)(899)84,343 
Net income— — 51,212 — 51,212 

Stock Appreciation Rights (“SAR”) exercised— (27)— 27 — 
Stock-based compensation expense— 154 — — 154 

Repurchases to settle tax withholding obligations for stock-based compensation awards— — — (58)(58)

Balance at June 30, 2025$23 $157,775 $(21,217)$(930)$135,651 

(in thousands)For the Six Months Ended
Common StockAdditional Paid-in CapitalRetained Earnings (Accumulated Deficit)Treasury StockTotal Stockholders’ Equity
Balance at December 31, 2025$23 $157,602 $22,476 $(1,492)$178,609 
Net income— — 24,161 — 24,161 

Stock Appreciation Rights (“SAR”) issued— (148)148 — 

Stock-based compensation expense— 854 — — 854 

Repurchases to settle tax withholding obligations for stock-based compensation awards— — — (556)(556)

Balance at June 30, 2026$23 $158,308 $46,637 $(1,900)$203,068 

Balance at December 31, 2024$23 $157,561 $(91,511)$(823)$65,250 
Net income— — 70,294 — 70,294 
Stock Appreciation Rights (“SAR”) exercised— (93)— 93 — 
Stock-based compensation expense— 307 — 307 

Repurchases to settle tax withholding obligations for stock-based compensation awards— — — (200)(200)

Balance at June 30, 2025$23 $157,775 $(21,217)$(930)$135,651 
 See Notes to Condensed Consolidated Financial Statements
6

POWER SOLUTIONS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

(in thousands)For the Six Months Ended June 30,
20262025
CASH FLOWS FROM OPERATING ACTIVITIES 
Net income$24,161 $70,294 
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of intangible assets529 613 
Depreciation2,844 2,000 
Noncash lease expense3,336 2,974 
Stock-based compensation expense854 307 
Amortization of financing fees302 331 
Deferred income taxes3,805 (26,925)

Provision (credit) for losses in accounts receivable767 (57)
Increase in allowance for inventory obsolescence, net984 75 

Other adjustments, net159 56 
Changes in operating assets and liabilities, net of effects of business combinations:
Accounts receivable12,594 (13,081)
Inventories3,992 (49,527)
Prepaid expenses641 2,177 
Contract assets3,459 290 

Other assets(285)3,208 
Accounts payable(49)31,007 
Tariff refund liability22,687 — 
Income taxes receivable3,564 986 
Accrued expenses and other current liabilities(4,528)5,965 
Other noncurrent liabilities(4,092)(5,219)
Net cash provided by operating activities75,724 25,474 
CASH FLOWS FROM INVESTING ACTIVITIES 
Capital expenditures(2,736)(5,439)
Proceeds from disposal of assets— 11 

Business acquisition(11,911)— 

Net cash used in investing activities(14,647)(5,428)
CASH FROM FINANCING ACTIVITIES 

Repayment of long-term debt and lease liabilities(30,938)(219)

Repayment of short-term financings— (25,000)

Repurchases to settle tax withholding obligations for stock-based compensation awards(556)(200)
Other financing activities, net(8)— 
Net cash used in financing activities(31,502)(25,419)
Net increase (decrease) in cash, cash equivalents, and restricted cash29,575 (5,373)
Cash, cash equivalents, and restricted cash at beginning of the period44,948 58,491 
Cash, cash equivalents, and restricted cash at end of the period$74,523 $53,118 

(in thousands)As of June 30,
20262025
Reconciliation of cash, cash equivalents, and restricted cash to the Consolidated Balance Sheets
Cash and cash equivalents$70,062 $49,459 
Restricted cash4,461 3,659 
Total cash, cash equivalents, and restricted cash$74,523 $53,118 

See Notes to Condensed Consolidated Financial Statements
7

POWER SOLUTIONS INTERNATIONAL, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1.    Summary of Significant Accounting Policies and Other Information 
Nature of Business Operations
Power Solutions International, Inc. (“Power Solutions,” “PSI” or the “Company”), a Delaware corporation, is a global producer and distributor of a broad range of high-performance, certified, low-emission power systems, including alternative-fueled power systems for original equipment manufacturers (“OEMs”) of off-highway industrial equipment and large custom-engineered integrated electrical power generation systems. 
The Company’s customers include large, industry-leading and multinational organizations. The Company’s products and services are sold predominantly to customers throughout North America as well as to customers located throughout the Pacific Rim and Europe. The Company’s power systems are highly engineered, comprehensive systems which, through the Company’s technologically sophisticated development and manufacturing processes, including its in-house design, prototyping, testing and engineering capabilities and its analysis and determination of the specific components to be integrated into a given power system (driven in large part by emission standards and cost considerations), allow the Company to provide its customers with power systems customized to meet specific OEM application requirements, other customers’ technical specifications and requirements imposed by environmental regulatory bodies.
The Company’s power system configurations range from a basic engine integrated with appropriate fuel system components to completely packaged power systems that include any combination of cooling systems, electronic systems, air intake systems, fuel systems, housings, power takeoff systems, exhaust systems, hydraulic systems, enclosures, brackets, hoses, tubes and other assembled componentry. The Company also designs and manufactures large, custom-engineered integrated electrical power generation systems for both standby and prime power applications. The Company purchases engines from third-party suppliers and produces internally designed engines, all of which are then integrated into its power systems. 
Of the other components that the Company integrates into its power systems, a substantial portion consist of internally designed components and components for which it coordinates significant design efforts with third-party suppliers, with the remainder consisting largely of parts that are sourced off-the-shelf from third-party suppliers. Some of the key components (including purchased engines) embody proprietary intellectual property of the Company’s suppliers. As a result of its design and manufacturing capabilities, the Company is able to provide its customers with a power system that can be incorporated into a customer’s specified application. In addition to the certified products described above, the Company sells diesel, gasoline and non-certified power systems and after market components.
During the first quarter of 2026, the Company acquired MTL Manufacturing & Equipment, Inc. (“MTL”), which engages in the welding, fabrication, painting, and assembly of steel components. The acquisition expands the Company’s manufacturing capabilities and vertical integration.
Stock Ownership and Control
Weichai America Corp., a wholly-owned subsidiary of Weichai Power Co., Ltd. (HK2338, SZ000338) (herein collectively referred to as “Weichai”), owns approximately 46.0% of the outstanding shares of the Company’s Common Stock as of June 30, 2026. Weichai has entered into an Investor Rights Agreement (the “Rights Agreement”) with the Company. The Rights Agreement provides Weichai with representation on the Company’s Board of Directors (the “Board”) and management representation rights. Weichai currently has four representatives on the Board, which constitutes the majority of the directors serving on the Board. In addition, the Company and Weichai have entered into a Shareholders Agreement with the Company’s founders (the “Founders”), pursuant to which the Founders have agreed to vote in favor of Weichai’s designees to the Board and for certain other matters. The Founders currently own between 5% - 10% of the Company’s Common Stock as of June 30, 2026. As a result, Weichai is able to exercise control over matters requiring stockholders’ approval, including the election of directors, amendment of the Company’s Certificate of Incorporation (the “Charter”) and approval of significant corporate transactions. This control could have the effect of delaying or preventing a change of control of the Company or changes in management and will make the approval of certain transactions impractical without the support of Weichai.
According to the Rights Agreement, during any period when the Company is a “controlled company” within the meaning of the Nasdaq Listing Rules, it will take such measures as to avail itself of the “controlled company” exemptions available under Rule 5615 of the Nasdaq Listing Rules from Rules 5605(b), (d) and (e) to the extent applicable.
8

Basis of Presentation and Consolidation
The Company is filing this Form 10-Q for the quarterly period ended June 30, 2026, which contains unaudited condensed consolidated financial statements as of June 30, 2026 and for the three and six months ended June 30, 2026 and 2025.
The consolidated financial statements include the accounts of Power Solutions International, Inc. and its wholly-owned subsidiaries and majority-owned subsidiaries in which the Company exercises control. The consolidated financial statements were prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and rules and regulations of the SEC for interim financial reporting. All intercompany balances and transactions have been eliminated in consolidation.
Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q and include all of the information and disclosures required by U.S GAAP for interim financial reporting. These unaudited Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements of the Company and related footnotes for the year ended December 31, 2025, included in the 2025 Annual Report on Form 10-K, filed with the SEC on March 2, 2026 (the “2025 Annual Report”). There have been no material changes in the Company’s significant accounting policies as compared to the significant accounting policies described in the Company’s 2025 Annual Report. The accompanying interim financial information is unaudited; however, the Company believes the financial information reflects all adjustments (consisting of items of a normal recurring nature) necessary for a fair presentation of its financial position, results of operations and cash flows in conformity with U.S. GAAP. Operating results for interim periods are not necessarily indicative of annual operating results.
Segments
The Company operates as one business and geographic operating segment. Operating segments are defined as components of a business that can earn revenues and incur expenses for which discrete financial information is available that is evaluated on a regular basis by the chief operating decision maker (“CODM”). The Company’s CODM is its principal executive officer, who decides how to allocate resources and assess performance. A single management team reports to the CODM, who manages the entire business. The Company’s CODM reviews consolidated statements of income to make decisions, allocate resources and assess performance, and the CODM does not evaluate the profit or loss from any separate geography or product line.
Concentrations
The following table presents customers individually accounting for more than 10% of the Company’s net sales:

For the Three Months Ended June 30,For the Six Months Ended June 30,
2026202520262025

Customer B22 %13 %17 %22 %
Customer C19 %**23 %**

Customer E******11 %
Customer F******11 %

The following table presents customers individually accounting for more than 10% of the Company’s trade accounts receivable:

As of June 30, 2026As of December 31, 2025

Customer B19 %14 %
Customer C17 %10 %

Customer E**11 %

Customer G**11 %

The following table presents suppliers individually accounting for more than 10% of the Company’s purchases:

For the Three Months Ended June 30,For the Six Months Ended June 30,
2026202520262025
Supplier A**20 %**20 %

**Less than 10% of the total
9

Use of Estimates
The preparation of consolidated financial statements in conformity with U.S. GAAP requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates and assumptions include the valuation of allowances for uncollectible receivables, inventory reserves, warranty reserves, stock-based compensation, evaluation of goodwill, other intangibles, property, plant and equipment for impairment, income tax valuation allowances and determination of useful lives of long-lived assets. Actual results could materially differ from those estimates.
Restricted Cash
Restricted cash consists of funds that are contractually restricted as to usage or withdrawal due to required minimum levels of cash collateral for letters of credits and contractual agreements with customers. As of June 30, 2026 and December 31, 2025, the Company had restricted cash of $4.5 million and $3.7 million, respectively, which includes $1.4 million restricted cash held in escrow which could be required to be refunded to the customer if conditions occur as defined in the agreement with the customer. The Company has not recognized revenue associated with the restricted cash. The liability is included within Noncurrent Contract Liabilities on the Consolidated Balance Sheet.
Inventories
The Company’s inventories consist primarily of engines and parts. Engines are valued at the lower of cost, including estimated freight-in or net realizable value. Parts are valued at the lower of cost or net realizable value, except for integral parts provided by customers for installation on custom ordered engines. Such parts are accounted for as noncash consideration which is valued at fair value. Net realizable value approximates replacement cost. Cost is principally determined using the first-in, first-out or average-cost method and includes material, labor and manufacturing overhead. It is the Company’s policy to review inventories on a continuing basis for obsolete, excess and slow-moving items and to record valuation adjustments for such items in order to eliminate non-recoverable costs from inventory. Valuation adjustments are recorded in an inventory reserve account and reduce the cost basis of the inventory in the period in which the reduced valuation is determined. Inventory reserves are established based on quantities on hand, usage and sales history, customer orders, projected demand and utilization within a current or future power system. Specific analysis of individual items or groups of items is performed based on these same criteria, as well as on changes in market conditions or any other identified conditions.
Inventories consist of the following:

(in thousands)

Inventories
As of June 30, 2026As of December 31, 2025
Raw materials $109,361 $105,225 
Work in process3,574 5,103 
Finished goods23,883 25,288 
Total inventories136,818 135,616 
Inventory allowance(9,236)(8,253)
Inventories, net$127,582 $127,363 

Activity in the Company’s inventory allowance was as follows:

(in thousands)For the Six Months Ended June 30,
Inventory Allowance20262025
Balance at beginning of period$8,253 $8,135 
Charged to expense1,219 122 
Write-offs(236)(47)
Balance at end of period$9,236 $8,210 

As of June 30, 2026 and December 31, 2025, the Company’s inventory included $2.9 million and $0.2 million, respectively, of raw materials provided by its customers for installation in the fulfillment of its performance obligations to these customers and recorded an associated contract liability. See Note 3. Revenue for further information regarding contract assets and contract liabilities.
10

Other Accrued Liabilities
Other accrued liabilities consisted of the following:

(in thousands)

Other Accrued Liabilities
As of June 30, 2026As of December 31, 2025
Accrued product warranty$5,874 $6,634 
Accrued litigation 1
1,700 1,400 
Contract liabilities14,337 3,486 
Accrued compensation and benefits7,196 19,565 

Accrued interest expense181 268 

Stock appreciation rights liability 2
— 1,070 
Non-interest bearing note payable841 740 
Customs accrual1,944 1,248 
Taxes payable244 257 
Other3,930 2,685 
Total$36,247 $37,353 

1 As of June 30, 2026 and December 31, 2025 accrued litigation includes accruals related to various ongoing legal matters including associated legal fees. See Note 11. Commitments and Contingencies for further information regarding the various ongoing legal matters.
2 The Company has an incentive compensation plan, which authorizes the granting of a variety of different types of awards including, but not limited to, non-qualified stock options, incentive stock options, Stock Appreciation Rights (“SARs”), Restricted Stock Awards (“RSAs”), deferred stock and performance units to its executive officers, employees, consultants and Directors. The liability classified SAR awards were exercised and paid during the quarter ended June 30, 2026. See Note 14. Stock-Based Compensation in the Company’s 2025 Annual Report for additional information on the SARs and RSAs.
Warranty Costs
The Company offers a standard limited warranty on the workmanship of its products that in most cases covers defects for a defined period. Warranties for certified emission products are mandated by the U.S. Environmental Protection Agency (the “EPA”) and/or the California Air Resources Board (the “CARB”) and are longer than the Company’s standard warranty on certain emission-related products. The Company’s products also carry limited warranties from suppliers. The Company’s warranties generally apply to engines fully manufactured by the Company and to the modifications the Company makes to supplier base products. Costs related to supplier warranty claims are generally borne by the supplier and passed through to the end customer. 
Warranty estimates are based on historical experience and represent the projected cost associated with the product. A liability and related expense are recognized at the time products are sold. The Company adjusts estimates when it is determined that actual costs may differ from initial or previous estimates. The Company’s warranty liability is generally affected by failure rates, repair costs and the timing of failures. Future events and circumstances related to these factors could materially change the estimates and require adjustments to the warranty liability. In addition, new product launches require a greater use of judgment in developing estimates until historical experience becomes available.
Accrued product warranty activities included in Other noncurrent liabilities on the Consolidated Balance Sheet are presented below:

(in thousands)For the Six Months Ended June 30,
Accrued Product Warranty20262025
Balance at beginning of period$8,193 $13,972 
Current period provision *
1,189 2,446 

Changes in estimates for preexisting warranties **
872 79 
Payments made during the period(3,390)(7,132)

Balance at end of period6,864 9,365 
Less: current portion5,874 6,918 
Noncurrent accrued product warranty 
(included with Other Noncurrent liabilities)$990 $2,447 

*Warranty costs, net of supplier recoveries and other adjustments, were $2.1 million and $2.5 million for the six months ended June 30, 2026 and 2025, respectively. There were no supplier recoveries for both six months ended June 30, 2026 and 2025.
11

**Changes in estimates for preexisting warranties reflect changes in the Company’s estimate of warranty costs for products sold in prior periods. Such adjustments typically occur when claims experience deviates from historical and expected trends. During the six months ended June 30, 2026, the Company recorded a cost for changes in estimates of preexisting warranties of $0.9 million, or $0.04 per diluted share. During the six months ended June 30, 2025, the Company recorded a cost for changes in estimates of preexisting warranties $0.1 million, or $0.00 per diluted share. 
Tariff Refunds
The Company accounts for tariff refunds under Accounting Standards Codification Topic 450-30, Gain Contingencies. Tariff refunds are recognized when all contingencies are resolved and the gain is realized or realizable. Tariff refunds received prior to meeting the criteria for recognition are recorded as a liability within tariff refund liability.
During the second quarter of 2026, the Company received tariff refunds totaling $22.7 million relating to the International Emergency Economic Powers Act (“IEEPA”) ruling. The refunds received may be subject to potential customer refund obligations. The final methodology for calculating individual customer paybacks has not yet been determined, and the final amounts to be refunded to customers or retained by the Company is unknown as the of the issuance of these consolidated financial statements. Accordingly, the full $22.7 million has been recorded as a customer