Pioneer Power Solutions Inc. reported second-quarter earnings that fell short of analyst expectations, with adjusted earnings per share of $0.01, missing estimates by $0.09. Revenue for the period totaled $38.2 million, a 15% decrease from the same quarter last year and below the $42.1 million consensus forecast.
The company, which designs and manufactures power conversion and control equipment, cited weaker demand in its core markets as the primary driver of the shortfall. Management noted ongoing supply chain challenges and project delays as contributing factors to the revenue decline.
Gross margin contracted to 23.4% from 26.1% in the prior-year period, reflecting higher material costs and operational inefficiencies. Operating expenses rose 8% year-over-year, partly due to increased labor and logistics expenses.
Pioneer Power maintained its full-year guidance, reaffirming revenue expectations of $160 million to $170 million and adjusted EBITDA of $18 million to $22 million. The company stated it expects sequential improvements in the second half of the year as supply chain conditions stabilize and demand recovers.
Shares of Pioneer Power were down 4.2% in pre-market trading following the release.
