Power Solutions International amends engine supply deal with HD Construction Equipment

Power Solutions International entered into an amendment on November 9, 2026, to its supply agreement dated December 11, 2007, as previously amended, with HD Construction Equipment Co., Ltd. HD Construction Equipment is the successor to HD Hyundai Infracore Co., Ltd., formerly Doosan Infracore Co., Ltd., under the agreement. Under the supply agreement, the company buys engine long blocks from HD Construction Equipment and integrates them into its power systems products.

The amendment covers GV22TI 22-liter natural gas engine long blocks for calendar years 2027 and 2028. Power Solutions International said it fixes the unit price for engines ordered and shipped on or before December 31, 2028, and that no price increase applies unless both parties agree in writing. At the fixed price, the 2027 and 2028 volumes represent aggregate purchases of approximately $121.9 million.

The company said it will pay an advance payment equal to 10% of the total contract value of each year's volume. The advance for 2027 volume is due by November 30, 2026, and the advance for 2028 volume is due by June 30, 2027. Power Solutions International said HD Construction Equipment will repay each advance through a 10% reduction to its invoices for products shipped during that year.

The company said the parties may agree on reasonable measures if deliveries are delayed or volumes are temporarily reduced. Power Solutions International said that, if its actual purchases over the 24-month period are less than 90% of the scheduled volume, the parties will discuss and agree on a recovery mechanism. The company said that, if its actual purchases over the 24-month period are less than 90% of the scheduled volume, that mechanism may include a price increase applicable in 2029.

The amendment also confirms the assignment of the supply agreement to HD Construction Equipment, effective January 1, 2026, and ratifies the agreement. All other terms remain in effect.