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Hammond Power Solutions ( ($TSE:HPS.A) ) has shared an update.
Hammond Power Solutions reported record annual sales of $898.3 million for 2025, up 13.9% from 2024, driven largely by strong U.S. demand for private label and custom-engineered products tied to data centre expansion, infrastructure investment and industrial electrification. The company’s backlog at year-end jumped 122% year over year and 74% sequentially, providing strong revenue visibility into 2026, though gross margin compressed to 30.3% due to unabsorbed costs at a new factory, higher material costs and tariffs.
Quarterly adjusted EBITDA reached $38.7 million, contributing to a record annual adjusted EBITDA of $133.3 million and annual adjusted earnings per share of $6.81, while the net cash position and working capital improved. Hammond invested $35 million in capital spending, expanding capacity in Mexico and other key locations to reduce lead times and support large projects starting in early 2026, even as selling and distribution expenses rose with higher freight, commissions and growth-related investments, and general and administrative costs declined versus the prior year.
The most recent analyst rating on ($TSE:HPS.A) stock is a Buy with a C$223.00 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 HPS.A Stock
According to Spark, TipRanks’ AI Analyst, HPS.A is a Neutral.
Hammond Power Solutions’ overall stock score is driven by strong financial performance and positive earnings call insights, despite challenges in cash flow and valuation concerns. The technical analysis suggests potential short-term weakness, while the valuation indicates the stock may be overvalued.
To see Spark’s full report on HPS.A stock, click here.
More about Hammond Power Solutions
Hammond Power Solutions Inc. is a Canadian manufacturer of dry-type transformers, power quality products and related magnetics, serving markets in the U.S., Mexico, Canada and India. The company focuses on private label and custom-engineered solutions for data centres, infrastructure projects, industrial electrification and other applications requiring resilient power systems.
Average Trading Volume: 65,388
Technical Sentiment Signal: Strong Buy
Current Market Cap: C$2.21B
For a thorough assessment of HPS.A stock, go to TipRanks’ Stock Analysis page.