PSI set for inclusion in key Russell and MSCI indexes

Published 09/06/2025, 21:06
PSI set for inclusion in key Russell and MSCI indexes

WOOD DALE, Ill. - Power Solutions International, Inc. (NASDAQ: PSIX), a company specializing in the design and manufacture of emission-certified engines and power systems, is expected to join the Russell 3000®, Russell 2000®, and Russell Microcap® indexes following a preliminary announcement from FTSE Russell on June 6. The final addition to the indexes is slated for after the U.S. market opens on June 30, 2025. The company, currently valued at $1.09 billion, has shown remarkable market performance with a 908% return over the past year. According to InvestingPro analysis, the stock is trading near its 52-week high of $47.63, suggesting potential overvaluation based on their Fair Value model.

This anticipated inclusion comes on the heels of the company’s recent addition to the Morgan Stanley Capital International (MSCI) US Small Cap Index on May 30. The annual reconstitution of the Russell US indexes, which took place as of April 30, ranks the 4,000 largest U.S. stocks by total market capitalization. InvestingPro data reveals the company maintains a strong financial health score of 3.4 (rated as "GREAT"), with a healthy current ratio of 1.16 and moderate debt levels.

Dino Xykis, CEO of Power Solutions International, expressed that the company is honored by the preliminary inclusion, seeing it as a reflection of PSI’s progress in strengthening its business and delivering value to customers and shareholders. He noted that this milestone underscores PSI’s growing presence in various markets, including power systems, data centers, and industrial engines, and could potentially enhance its visibility among institutional and retail investors. The company’s financial performance supports this outlook, with analysts setting a target price of $64 and projecting continued profitability for the year. Subscribers to InvestingPro can access 13 additional investment tips and comprehensive financial metrics for PSIX.

The Russell indexes, which are reconstituted annually, are widely utilized by investment managers and institutional investors for creating index funds and as benchmarks for active investment strategies. Approximately $10.6 trillion in assets are benchmarked against these indexes as of June 2024.

MSCI’s US Small Cap Index, which PSI has also joined, aims to measure the performance of the small cap segment of the US equity market, representing about 14% of the free float-adjusted market capitalization in the U.S.

FTSE Russell CEO Fiona Bassett stated that the Russell indexes are continually adapted to reflect the U.S. economy’s evolution and that the switch to a semi-annual reconstitution from 2026 will help maintain the indexes as effective market benchmarks.

The information reported is based on a press release statement from Power Solutions International.

In other recent news, Power Solutions reported a strong first quarter for fiscal year 2025, surpassing market expectations with impressive sales and margins. The company’s adjusted EBIT margins were notably higher than consensus, reaching €14 million, a significant improvement from the anticipated €(29) million. This performance was driven by robust order volume intake and higher-margin deliveries, particularly in the United States. Despite potential challenges from US tariffs, Power Solutions has maintained its full-year guidance, projecting revenues between €18-20 billion and an adjusted EBIT margin of 4-7%. RBC analysts highlighted the strong quarterly results and the company’s ability to meet its full-year targets, suggesting structural improvements in the industry.

Additionally, Power Solutions announced the departure of its General Counsel, Randall D. Lehner, effective March 4, 2024. The separation was mutually agreed upon, with Lehner receiving a severance package totaling $407,325.82. The company has not yet named a successor for the General Counsel position. Power Solutions remains focused on ensuring a smooth transition in its legal affairs, as detailed in its regulatory filing with the SEC.

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