Hammond Power Solutions Inc

HPS.A

Equity

ISIN CA4085491039 / Valor 1178688

Toronto Stock Exchange (2025-03-28)

CAD 79.45-2.41%

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 Growth

Hammond Power Solutions Inc. reported a year-over-year sales growth of 6.9% in the third quarter of 2024. The company also experienced a year-to-date growth of 10.9%, driven by increased demand for custom products, particularly in emerging sectors like data centers.

Gross Margin Improvement

The gross margin rate for Hammond Power Solutions Inc. increased by 460 basis points to 33.8% in the third quarter of 2024, compared to 31.7% in the same quarter of the previous year. This improvement was attributed to continued operating leverage, a favorable product mix, and a price increase implemented earlier in the year.

Geographical Sales Performance

In the third quarter of 2024, Hammond Power Solutions Inc. saw a 15% increase in sales in India, primarily due to strong shipments in the renewables sector. Meanwhile, the U.S. market experienced a slower demand for standard products, influenced by weaknesses in commercial construction and general industrial markets.

Strategic Investments

Hammond Power Solutions Inc. announced a $20 million investment in its capital program in the third quarter of 2024. This investment aims to expand the company's large custom power transformer capacity, remove capacity bottlenecks, and significantly enhance future revenue capacity.

Acquisition and Expansion

In October 2024, Hammond Power Solutions Inc. completed the acquisition of Micron Industries Corporation's assets. This acquisition is expected to enhance the company's ability to serve U.S. and North American customers and expand its sales of power quality products and other offerings.

Summarized from source with an LLMView Source

Key figures

-45.2%1Y

573%3Y

1,260%5Y

Performance

57.9%1Y

49.0%3Y

46.6%5Y

Volatility