Hammond Power Solutions (OTC) ( (HMDPF) ) has released its Q4 earnings. Here is a breakdown of the information Hammond Power Solutions (OTC) presented to its investors.
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 plants in Canada, the U.S., Mexico, and India.
Hammond Power Solutions reported impressive financial results for the fourth quarter of 2024, achieving record sales of $208 million, an 11.5% increase compared to the previous year. The company also recorded significant year-to-date sales of $788 million, marking an 11% rise from 2023, driven by strong shipments in key markets like Canada, India, and the United States.
Key financial metrics for the quarter include an adjusted EBITDA of $32.5 million, representing 15.6% of sales, and a gross margin of 32.7%. The company reported net earnings of $23.7 million, translating to earnings per share of $1.99. For the entire year, net earnings reached $71.5 million, with earnings per share of $6.01. The U.S. market showed robust growth, particularly in custom and configured products, while the Canadian market excelled in distribution channels and large projects.
Despite some late-year charges related to acquisitions and investments, the company maintained strong profitability. General and administrative expenses increased due to strategic investments, while capital expenditures reached $41 million for capacity expansion. The company anticipates completing its expansion program by the end of 2025, enhancing its total capacity to over $1.1 billion.
Looking ahead, Hammond Power Solutions remains optimistic about its growth prospects, focusing on strategic investments and capacity expansion to support future demand. The company aims to continue building a stronger foundation for sustained growth in the coming years.