Hammond Power Solutions Inc

HPS.A

Equity

ISIN CA4085491039 / Valor 1178688

Toronto Stock Exchange (2024-09-17)

CAD 131.00+1.21%

Hammond Power Solutions Inc
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About company

Hammond Power Solutions Inc. (HPS), founded in 1917, specializes in the design and manufacture of custom, high-quality dry-type and oil-filled transformers, as well as related engineered magnetic devices. The company is a significant supplier of essential components for electrical infrastructure, particularly within the alternative energy market. HPS distinguishes itself as one of the few global companies capable of offering drive-related products utilizing all three primary transformer insulation technologies: vacuum pressure impregnation (VPI), cast resin, and oil-filled. This diverse technological capability positions HPS as a versatile and critical player in the electrical and energy sectors.

Summarized from source with an LLMView SourceSector: Technology

Sales Overview Q1 2024

In the first quarter of 2024, Hammond Power Solutions Inc reported a total revenue of $190,680 thousand, marking an 11.4% increase from $171,134 thousand in the first quarter of 2023. The U.S. and Mexico regions contributed significantly with a 10% growth, while Canadian sales saw a substantial rise of 32.6%. However, sales in India decreased by 26.8%, influenced by the timing of revenue recognition from previous quarters.

Gross Margin Analysis Q1 2024

Hammond Power Solutions Inc experienced a slight decline in gross margin during the first quarter of 2024, recording a margin of 31.7% compared to 31.8% in the same quarter of the previous year. This marginal decrease reflects stable market conditions, with the company maintaining efficiency through high factory throughput and managing cost inputs effectively across various sales channels and regions.

Backlog Status Q1 2024

The backlog of Hammond Power Solutions Inc at the end of the first quarter of 2024 increased by 11.1% compared to the first quarter of 2023. This growth indicates strong demand and customer commitments moving forward, although there was a slight decrease of 1.1% from the fourth quarter of 2023, aligning with the company's high shipment levels and stable order bookings.

Operational Highlights Q1 2024

During the first quarter of 2024, Hammond Power Solutions Inc continued to expand its operational capacity by adding equipment to existing facilities, allowing for increased production without the need for expanding the physical footprint. Additionally, the company began construction on a new factory in Mexico, aimed at enhancing production capabilities and supporting future growth.

Financial Stability Q1 2024

Hammond Power Solutions Inc demonstrated financial stability in the first quarter of 2024, with no significant price increases reported. The growth in sales was attributed to factors other than pricing, such as enhanced operational efficiency and market expansion, particularly in the Canadian and U.S. markets. This strategic focus supports the company's ongoing commitment to delivering value to its stakeholders.

Summarized from source with an LLMView Source

Key figures

155%1Y

1,061%3Y

1,501%5Y

Performance

54.6%1Y

45.6%3Y

44.4%5Y

Volatility