Hammond Power Solutions (OTC) ( (HMDPF) ) has released its Q2 earnings. Here is a breakdown of the information Hammond Power Solutions (OTC) presented to its investors.
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Hammond Power Solutions Inc. (HPS) is a prominent manufacturer in the electrical industry, specializing in dry-type transformers, power quality products, and related magnetics, with a global presence through its manufacturing facilities in Canada, the U.S., Mexico, and India.
In the second quarter of 2025, HPS reported record sales of $224 million, marking a 13.8% increase compared to the same period in 2024. Despite facing challenges such as rising input costs and strategic investments, the company managed to achieve solid profits and maintain a strong market position.
Key financial highlights for the quarter include an adjusted EBITDA of $33 million, representing 14.9% of sales, and a gross margin of $68 million or 30.7% of sales. Net earnings were $13.4 million, with adjusted earnings per share at $1.72. The company also noted a decrease in backlog by 8% from the first quarter of 2025, although it remains 9% higher than the end of 2024.
HPS continues to expand its market presence, particularly in the U.S. and Canada, with significant growth in private label and distribution channels. The completion of a new production facility in Mexico is expected to bolster future shipments and operational efficiency.
Looking ahead, HPS remains cautiously optimistic, focusing on managing supply chain uncertainties and capital expenditures while leveraging its strategic investments to drive future growth and maintain its competitive edge in the industry.