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Globe and Mail
11-08-2025
- Business
- Globe and Mail
Power Solutions International, Inc. Secured $135 Million Long-Term Committed Credit Facility to Support Strategic Growth
WOOD DALE, Ill., Aug. 11, 2025 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. ('PSI' or the 'Company') is excited to announce a significant financial milestone. On July 30, 2025, PSI entered into a Second Amendment (the 'Amendment') to its existing Uncommitted Revolving Credit Agreement with Standard Chartered Bank, acting as administrative agent alongside participating lenders (collectively, the 'Lenders'). This newly Amended Credit Agreement increases PSI's committed borrowing capacity to $135.0 million, providing enhanced flexibility and strategic firepower to support our continued growth and innovation. The agreement now extends through July 30, 2027, solidifying our financial foundation for the next two years. Dino Xykis, Chief Executive Officer, commented, 'This milestone is a powerful affirmation of the trust and confidence our financial partners have in PSI's strong operational performance, disciplined financial management, compelling results, and our long-term strategy. The expanded and extended credit facility reinforces our robust capital structure, with the backing of world-class financial institutions and the commitment of our talented team, PSI is well-positioned to deliver sustainable value creation for all stakeholders including our customers, shareholders, employees, and strategic partners.' Kenneth Li, Chief Financial Officer, stated, 'The Company has achieved profitability, has been generating positive cash flows from operating activities for several years, and has successfully amended the Revolving Long Term Credit Agreement. The Company has concluded that its existing cash and cash equivalents and cash from operations will be sufficient for the Company to continue as a going concern for at least twelve months from the issuance of these condensed consolidated financial statements. As a result, the Company released valuation allowance previously recorded against its deferred tax assets, and increased net income and stockholders' equity $29.2 million from the tax benefits as of June 30, 2025.' The Amended Credit Agreement remains subject to customary events of default and covenants, including minimum adjusted EBITDA, minimum interest coverage ratio and maximum gross leverage ratio covenants. Borrowings under the Amended Credit Agreement will incur interest at the applicable Secured Overnight Financing Rate ('SOFR') plus 2.10% per annum. In the event the Company's majority shareholder, Weichai America Corp. ('Weichai') holds less than fifty percent (50%) of the common equity of the Company, the interest rate under the Amended Credit Agreement will increase to the applicable SOFR plus 2.60% per annum. The obligations under the Amended Credit Agreement remain unconditionally guaranteed, on a joint and several basis, by certain wholly-owned, existing and subsequently acquired or formed direct and indirect domestic subsidiaries of the Company, subject to customary exceptions. The obligations under the Amended Credit Agreement remain secured by substantially all assets of the Company and the Company's wholly-owned subsidiaries. Prior to entering into the Amendment, the Company paid all outstanding borrowings, including principal and interest, under the Shareholder's Loan Agreement, dated as of August 30, 2024 by and between the Company and Weichai (the 'Shareholder's Loan Agreement'). About Power Solutions International, Inc. Power Solutions International, Inc. (PSI) is a leader in the design, engineering and manufacture of a broad range of advanced, emission-certified engines and power systems. PSI provides integrated turnkey solutions to leading global original equipment manufacturers and end-user customers within the power systems, industrial and transportation end markets. The Company's unique in-house design, prototyping, engineering and testing capabilities allow PSI to customize clean, high-performance engines using a fuel agnostic strategy to run on a wide variety of fuels, including natural gas, propane, gasoline, diesel and biofuels. PSI develops and delivers complete power systems that are used worldwide in stationary and mobile power generation applications supporting standby, prime, demand response, and microgrid solutions, as well as products and packages supporting the rapidly growing data center markets. PSI's industrial end market provides engine and battery powertrain solutions to serve applications such as forklifts, agricultural and turf, arbor care, industrial sweepers, aerial lifts, irrigation pumps, ground support, and construction equipment. PSI's transportation end market provides engine powertrain solutions to specialized applications such as terminal tractors, port equipment, military vehicles, and other non-road vocational vehicles. For more information on PSI, visit Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements regarding the current expectations of the Company about its prospects and opportunities. These forward-looking statements are 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 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 impact of the macro-economic environment in both the U.S. and internationally on our business and expectations regarding growth of the industry; uncertainties arising from global events (including the Russia-Ukraine and Israel-Hamas conflicts), natural disasters or pandemics, and their impact on material prices; the effects of strategic investments on our operations, including our efforts to expand our global market share and actions taken to increase sales growth; the ability to develop and successfully launch new products; labor costs and other employment-related costs; loss of suppliers and disruptions in the supply of raw materials; the Company's ability to continue as a going concern; the Company's ability to raise additional capital when needed and its liquidity; uncertainties around the Company's ability to meet funding conditions under its financing arrangements and access to capital thereunder; the potential acceleration of the maturity at any time of the loans under the Company's uncommitted revolving credit agreement through the exercise by any lender of its demand right in its Revolving Credit Agreement; the impact of rising interest rates; changes in economic conditions, including inflationary trends in the price of raw materials; our reliance on information technology and the associated risk involving potential security lapses and/or cyber-attacks; the ability of the Company to accurately forecast sales, and the extent to which sales result in recorded revenues; changes in customer demand for the Company's products; volatility in oil and gas prices; the impact of U.S. tariffs on imports and exports; the impact of supply chain interruptions and raw material shortages, including compliance disruptions such as the UFLPA delaying goods from China; the potential impact of higher warranty costs and the Company's ability to mitigate such costs; any delays and challenges in recruiting and retaining key employees consistent with the Company's plans; the potential effects of damage to our reputation or other adverse consequences if our employees, suppliers, sub-suppliers or other contract parties, agents or business partners violate anti-bribery, competition, export and import, trade sanctions, data privacy, environmental, human rights or other laws; the impact of unanticipated changes in our effective tax rate, the adoption of new tax legislation or exposure to additional income tax liabilities; and the risks and uncertainties described in reports filed by the Company with the SEC, including without limitation its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and the Company's subsequent filings with the SEC. The Company's forward-looking statements are presented as of the date hereof. Except as required by law, the Company expressly disclaims any intention or obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise.
Yahoo
07-08-2025
- Business
- Yahoo
Thomson Reuters reports higher second-quarter revenue, AI helps drive growth
By Kenneth Li NEW YORK (Reuters) -Thomson Reuters reported higher revenue for the second quarter, during which it launched new AI features in its tax and accounting and legal divisions. The Toronto-based content and technology company reaffirmed its full year 2025 guidance of a 7% rise in organic revenue, which tracks income from existing businesses on a constant currency basis. "We saw good momentum continue in the second quarter, with revenue in-line and margins modestly ahead of our expectations," Steve Hasker, Chief Executive Officer of Thomson Reuters, said in a statement on Wednesday after the results were released. The owner of Westlaw legal database, Reuters news agency and the Checkpoint tax and accounting service reported second-quarter adjusted earnings per share of 87 cents, beating Wall Street expectations of 82 cents per share. The shares were down 8% on the Toronto Stock Exchange by late morning, however, with some analysts disappointed the company did not raise its financial guidance. Up to Tuesday's close, Thomson Reuters shares have risen 19% this year, outpacing a 7% rise in the S&P 500. Edward Jones analyst Faisal Hersi, who has a "hold" rating on the stock, said in a research note after the results that the stock is trading on a multiple of 46-times estimated 2026 earnings, above a five-year average of 39 and fully pricing in the current positive outlook. He said the company's investments in AI-related products could limit "operating profitability expansion" but will support longer-term sales growth. Thomson Reuters continues to expect 2026 organic revenue to rise by 7% to 7.5%, executives said in an interview following the release of the financial report. Quarterly revenue rose 3% to $1.78 billion for the period ending June 30, against $1.74 billion a year ago and analyst expectations of $1.79 billion according to LSEG data. Organic revenue rose 7%. Organic revenue in the "big three" segments of legal, corporates and tax and accounting professionals rose 9%, contributing about 82% of the company's total revenue. The Reuters News division's organic revenue rose 5% from higher revenue at its agency and professionals business and a contractual price increase from the London Stock Exchange. Thomson Reuters has launched new AI features, known as agentic AI, for its tax and accounting and legal businesses which employ AI to take actions without users having to prompt systems with specific instructions. "With these advanced agentic AI offerings, we continue to leverage our authoritative content and deep expertise to bring transformative professional-grade AI solutions to our markets," Hasker said. Michael Eastwood, Thomson Reuters Chief Financial Officer, said the contribution of generative AI-enhanced products has continued to rise since the company began tracking it late last year. As of the second quarter, generative AI's contribution to the group's underlying contract value has risen to 22% from about 15% late last year. "That's a pretty strong signal that generative AI enabled products are continuing to be a strong growth tailwind for us," Eastwood said. The company has earmarked about $10 billion for potential acquisitions, executives said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-05-2025
- Business
- Yahoo
Thomson Reuters maintains 2025 financial forecasts amid economic turmoil
By Kenneth Li NEW YORK (Reuters) -Thomson Reuters on Thursday confirmed 2025 financial guidance amid tariff-induced global economic turmoil that has led some companies to revise or scrap forecasts altogether. The Toronto-based content and technology company reported quarterly revenue rising 1% to $1.9 billion, slightly below analyst expectations of $1.93 billion, according to LSEG data. Organic revenue, which strips out the impact of currency moves, acquisitions and asset sales, rose 6%. Chief Executive Officer Steve Hasker said businesses and government agencies were broadly more cautious about investment decisions amid the turmoil, but most of Thomson Reuters revenue was recurring in nature, often locked into multi-year contracts. "Everyone is bracing themselves," Hasker said in a post-results interview of the unstable economic backdrop caused in part by U.S. President Donald Trump's tariff policies. "But as we've seen with Microsoft, we haven't seen any impact yet ... We've made a good start to the year, meeting or exceeding our expectations," he added, referring to Wednesday's results from the U.S. tech giant. Thomson Reuters is also expected to uphold its 2026 organic revenue growth target of 7.5% to 8%, Chief Financial Officer Mike Eastwood said. "Steve and I remain confident in delivering all aspects of our 2026 framework." At 1410 GMT, Thomson Reuters shares were up 0.8% at C$258.66 on the Toronto Stock Exchange. The company, which owns the Westlaw legal database, Reuters news agency and the Checkpoint tax and accounting service, reported first-quarter adjusted earnings per share of $1.12. Wall Street expected a profit of $1.05 per share. Shares of Thomson Reuters, which have risen 15% since the beginning of the year, have outpaced the S&P 500 index, which has fallen 5% over the same period. Organic revenue for the company's "Big 3" business segments, comprising its legal, corporates and tax and accounting businesses, rose 9% in the quarter. Revenue at constant currencies in the legal professionals business fell 3% due to the impact of the sale of legal marketing business FindLaw. Revenue in the tax and accounting division rose 12%, boosted by the purchase of SafeSend. Reuters News revenue fell 7% after benefiting from non-recurring generative AI licensing revenue a year ago. Second-quarter company-wide organic revenue is expected to pick up from the first quarter and rise 7%. The company reaffirmed its forecast for full-year organic revenue to increase by 7% to 7.5%. Thomson Reuters purchased tax automation company cPaperless, LLC, owner of SafeSend, for $600 million in cash in the first quarter. The company has said it has $10 billion to spend on potential acquisitions through 2027. Sign in to access your portfolio
Yahoo
06-02-2025
- Business
- Yahoo
Thomson Reuters sees revenue growth picking as AI spending continues
By Kenneth Li (Reuters) -Thomson Reuters on Thursday forecast a pickup in underlying revenue growth over this year and next as it continues to invest in AI-driven products for its legal, accounting and other professional customers. The Toronto-based content and technology company said it expects organic revenue, which strips out the impact of currency moves, acquisitions and asset sales, to rise by 7% to 7.5% in 2025 and 7.5% to 8% in 2026. The growth rate was 7% in 2024. The forecasts came as the company reported a 5% increase in revenue for the fourth quarter of 2024 to $1.909 billion, slightly ahead of analyst expectations of $1.907 billion, according to LSEG data. Adjusted earnings per share of $1.01 beat Wall Street's expectation of 96 cents per share. At 1445 GMT, Thomson Reuters shares were up 6.7% to C$253.4 on the Toronto Stock Exchange and up 4.8% to $177.29 on the New York Stock Exchange. "2024 marked important progress at Thomson Reuters," said CEO Steve Hasker in a prepared statement. "Looking ahead to 2025, we continue to focus on investing in content-driven technology that helps professionals make complex decisions with confidence." Thomson Reuters, which owns the Westlaw legal database, Reuters news agency and the Checkpoint tax and accounting service, spent more than $200 million on AI investments in 2024 and expects to continue at that pace in 2025, executives said. Overall, the company has said it has about $10 billion to spend on potential acquisitions through 2027. Heavy spending on AI and infrastructure investments by big technology companies has come under scrutiny this year after the surprise launch of China's DeepSeek AI, which was purported to have been developed at a fraction of the cost of models from industry leaders OpenAI, backed by Microsoft, and Alphabet's Google.. The low cost, and performance that is on par with some of OpenAI and Meta's most advanced models, has attracted the attention of enterprise customers in the U.S. and sent major AI stocks like AI chip maker Nvidia plunging in late January. Its ownership by a Chinese company has also raised alarm among governments and institutions. Italy has banned DeepSeek over concerns about its data collection practices. Taiwan, Australia and South Korea have banned its use on government devices. U.S. lawmakers are also pushing for such a ban. Thomson Reuters said it was currently testing DeepSeek in a separate and secure environment. Its fourth-quarter operating profit rose 29% to $722 million, boosted by the sale of FindLaw. The company raised its annualized dividend per share by 10%. In the fourth quarter, Thomson Reuters said it acquired Materia, a startup that develops AI agents for the tax and accounting sector. In the first quarter of this year, it purchased cPaperless, LLC, owner of SafeSend, a provider of technology for tax and accounting businesses, for $600 million in cash. Sign in to access your portfolio
