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1. Company Snapshot

1.a. Company Description

Pioneer Power Solutions, Inc., together with its subsidiaries, designs, manufactures, sells, and services electric power systems, distributed energy resources, used and new power generation equipment, and mobile EV charging solutions in the United States, Canada, and internationally.The company operates in two segments, Transmission & Distribution Solutions and Critical Power Solutions.The Transmission & Distribution Solutions segment provides electric power systems, including e-Bloc, and distributed energy resources that help customers effectively and efficiently protect, control, transfer, monitor, and manage their electric energy requirements.


It also provides low voltage switchgears and transfer switches.The Critical Power Solutions segment provides new and used power generation equipment, and aftermarket field-services to ensure smooth and uninterrupted power to operations during times of emergency.The company serves utility, industrial, commercial, and backup power markets.


The company was incorporated in 2008 and is headquartered in Fort Lee, New Jersey.Pioneer Power Solutions, Inc.is a subsidiary of Provident Pioneer Partners, L.P.

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1.b. Last Insights on PPSI

Pioneer Power Solutions' recent performance was negatively impacted by a decline in revenue and profitability. The company's Q4 2024 earnings call revealed a 12% year-over-year decrease in revenue, primarily due to lower sales in the power generation equipment segment. Additionally, the company's gross margin contracted by 150 basis points, further exacerbating the decline in profitability. The lack of visibility on future demand and the impact of supply chain disruptions also contributed to the company's cautious outlook.

1.c. Company Highlights

2. Pioneer Power Solutions' Q3 2025 Earnings: A Strong Revenue Growth Story

Pioneer Power Solutions, Inc. reported a revenue of $6.9 million for the third quarter of 2025, representing a 7.4% year-over-year increase, primarily driven by an increase in service sales from its critical power business. The year-to-date revenue stood at $22 million, up 68% compared to the same period last year, driven by demand for its eBoost mobile charging solutions. The gross profit was $640,000, or a gross margin of approximately 9%, compared to a gross profit of $1.5 million, a gross margin of approximately 20% in the third quarter of last year. The actual EPS came out at '-0.16', in line with estimates.

Publication Date: Nov -29

📋 Highlights
  • Year-to-Date Revenue Surge: Achieved $22M, up 68% YoY, driven by demand for eBoost mobile charging solutions.
  • Q3 Revenue Growth: Recorded $6.9M revenue, a 7.4% increase YoY, led by critical power service sales.
  • Strong Gross Profit Decline: Gross margin dropped to 9% ($640K) from 20% ($1.5M) in Q3 2024.
  • Cash and Liquidity Position: Maintained $17.3M cash, zero debt, and $22.8M working capital as of Q3 2025.
  • New Product & Contract Wins: Secured $725K order for eBoost mobile stretch unit and $1.6M order from SparkCharge for PowerCore units.

Operational Highlights and New Developments

The company completed the delivery of a 25-unit order for a landmark school district project totaling $1.3 million and delivered its eBoost Mobile OpenFlex unit to the city of Portland. It also received a $725,000 order from the city of Long Beach, California, for an eBoost mobile stretch unit. Additionally, the company is launching a pre-engineered scalable power block system designed to meet the increasing energy requirements of large data centers, industrials, universities, and hospitals by the end of 2025.

Strategic Partnerships and Future Plans

Pioneer Power Solutions, Inc.'s strategic partner, SparkCharge, placed an additional order for four new eBoost pure energy 275-kilowatt units, valued at $1.6 million. The company is also expanding its product line with PowerCore, a scalable, always-on power platform that integrates natural gas power generation and combines fast DC charging into a single system architecture. This product represents the next chapter in Pioneer Power Solutions, Inc.'s evolution toward providing fully resilient distributed power solutions.

Valuation and Growth Prospects

The company is reaffirming its full-year 2025 revenue guidance of $27 million to $29 million, representing approximately 20% year-over-year growth. Analysts estimate next year's revenue growth at 10.3%. With a P/S Ratio of 2.22, the market is pricing in a certain level of growth. The ROE of 94.81% is notably high, but it's worth noting that this is likely due to the company's negative equity. The EV/EBITDA ratio stands at -4.85, indicating that the company's enterprise value is not backed by its EBITDA. The company's robust pipeline and strategic product launches position it well for future growth.

3. NewsRoom

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Pioneer Power Solutions (PPSI) Upgraded to Buy: What Does It Mean for the Stock?

Nov -19

Source: zacks.com

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Pioneer Power Solutions, Inc. (PPSI) Q3 2025 Earnings Call Transcript

Nov -14

Source: seekingalpha.com

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Pioneer Power Solutions, Inc. (PPSI) Q2 2025 Earnings Conference Call Transcript

Aug -14

Source: seekingalpha.com

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Pioneer Power Solutions, Inc. (PPSI) Q1 2025 Earnings Call Transcript

May -20

Source: seekingalpha.com

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Pioneer Power Solutions, Inc. (PPSI) Q4 2024 Earnings Call Transcript

Apr -15

Source: seekingalpha.com

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Pioneer Power to Host 2024 Fourth Quarter and Year End Financial Results Conference Call on Tuesday, April 15, 2025 at 4:30 p.m. ET

Apr -02

Source: businesswire.com

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Pioneer Power Solutions: Riding The Rise Of EVs With Portable DC Fast Charging

Jan -07

Source: seekingalpha.com

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Pioneer Power Awarded Pilot Project from Fortune 100 E-Commerce Retailer

Dec -03

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.18%)

6. Segments

Transmission & Distribution Solutions

Expected Growth: 6.17%

Pioneer Power Solutions' Transmission & Distribution Solutions segment growth of 6.17% is driven by increasing demand for efficient power transmission and distribution infrastructure, government initiatives for grid modernization, and rising adoption of renewable energy sources. Additionally, the company's focus on innovative products and services, such as its E-Busway system, contributes to its growth momentum.

Critical Power Solutions

Expected Growth: 8.9%

Critical Power Solutions' 8.9% growth driven by increasing demand for data center infrastructure, rising adoption of cloud computing, and growing need for reliable backup power systems. Additionally, Pioneer Power Solutions' strategic acquisitions and expansion into new markets have contributed to the segment's growth.

7. Detailed Products

Transformer Solutions

Pioneer Power Solutions, Inc. offers a range of transformer solutions, including dry-type, liquid-filled, and cast-coil transformers, designed for industrial, commercial, and utility applications.

Switchgear Solutions

The company provides switchgear solutions, including medium-voltage switchgear, low-voltage switchgear, and arc-resistant switchgear, designed for industrial, commercial, and utility applications.

Electrical Distribution Equipment

Pioneer Power Solutions, Inc. offers a range of electrical distribution equipment, including switchboards, panelboards, and busway systems, designed for industrial, commercial, and institutional applications.

Critical Power Solutions

The company provides critical power solutions, including UPS systems, DC power systems, and power distribution units, designed for data centers, telecommunications, and other critical infrastructure applications.

Electrical Engineering Services

Pioneer Power Solutions, Inc. offers electrical engineering services, including design, testing, and commissioning, for industrial, commercial, and utility applications.

8. Pioneer Power Solutions, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Pioneer Power Solutions, Inc. is medium due to the availability of alternative power solutions such as solar and wind power.

Bargaining Power Of Customers

The bargaining power of customers for Pioneer Power Solutions, Inc. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Pioneer Power Solutions, Inc. is medium due to the company's dependence on a few key suppliers for raw materials.

Threat Of New Entrants

The threat of new entrants for Pioneer Power Solutions, Inc. is high due to the relatively low barriers to entry in the power solutions industry.

Intensity Of Rivalry

The intensity of rivalry for Pioneer Power Solutions, Inc. is high due to the competitive nature of the power solutions industry and the presence of several established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.00%
Debt Cost 3.95%
Equity Weight 100.00%
Equity Cost 7.16%
WACC 7.16%
Leverage 0.00%

11. Quality Control: Pioneer Power Solutions, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Pioneer Power Solutions

A-Score: 5.4/10

Value: 8.0

Growth: 4.2

Quality: 6.9

Yield: 10.0

Momentum: 2.0

Volatility: 1.0

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Value: 8.0

Growth: 6.9

Quality: 5.5

Yield: 0.0

Momentum: 7.5

Volatility: 0.3

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Value: 6.0

Growth: 5.2

Quality: 3.6

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

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Solid Power

A-Score: 4.1/10

Value: 6.6

Growth: 3.2

Quality: 4.0

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

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Servotronics

A-Score: 4.1/10

Value: 6.2

Growth: 3.0

Quality: 5.2

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

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RF Industries

A-Score: 3.9/10

Value: 4.7

Growth: 3.7

Quality: 3.1

Yield: 0.0

Momentum: 10.0

Volatility: 2.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.33$

Current Price

4.33$

Potential

-0.00%

Expected Cash-Flows