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Hammond Power Solutions Achieves Record Sales in Q2 2025 Amid Cost Challenges

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Hammond Power Solutions Achieves Record Sales in Q2 2025 Amid Cost Challenges

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Hammond Power Solutions ( ($TSE:HPS.A) ) has provided an announcement.

Hammond Power Solutions reported record sales of $224 million in Q2 2025, a 13.8% increase from the previous year, despite facing cost headwinds. The company’s gross margin decreased due to rising input costs and investments in new facilities, such as the new production site in Mexico. The U.S. market showed significant growth, particularly in private label channels, while the Canadian market expanded through distribution channels in sectors like EV charging and data centers. Despite a decrease in backlog from Q1 2025, it remains higher than the end of 2024. The company’s financial performance reflects strategic expansions and market adaptations, although challenges in supply chain and inflation impacted margins.

The most recent analyst rating on ($TSE:HPS.A) stock is a Buy with a C$169.00 price target. To see the full list of analyst forecasts on Hammond Power Solutions stock, see the TSE:HPS.A Stock Forecast page.

Spark’s Take on TSE:HPS.A Stock

According to Spark, TipRanks’ AI Analyst, TSE:HPS.A is a Outperform.

Hammond Power Solutions displays strong financial performance with significant revenue growth and profitability, supported by a stable balance sheet. Technical indicators show bullish momentum, though valuation metrics suggest the stock is fairly valued with limited dividend yield. The earnings call highlighted both growth prospects and operational challenges, while recent corporate events reinforced positive investor sentiment. Overall, the stock presents a balanced opportunity with potential for growth amidst some financial pressures.

To see Spark’s full report on TSE:HPS.A stock, click here.

More about Hammond Power Solutions

Hammond Power Solutions Inc. (HPS) is a leading manufacturer in the electrical industry, specializing in dry-type transformers, power quality products, and related magnetics. The company focuses on providing solutions across various markets including the U.S., Canada, and India, with a strong emphasis on private label and OEM channels.

Average Trading Volume: 34,669

Technical Sentiment Signal: Buy

Current Market Cap: C$1.66B

Find detailed analytics on HPS.A stock on TipRanks’ Stock Analysis page.

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