Hammond Power Solutions Sees Sales Growth and Increased Backlog in Q1 2025

Hammond Power Solutions ( ($TSE:HPS.A) ) has issued an update.

Hammond Power Solutions reported a 5.6% increase in sales for the first quarter of 2025, reaching $201 million, despite facing trade-tariff uncertainties. The company’s backlog grew by 17.7% from the previous quarter, driven by strong demand in certain markets, particularly data centers. Although there was a slight decline in gross margin due to increased material and labor costs, the company anticipates a favorable shift towards more custom product shipments with the early completion of a new factory. The company also announced a price increase to offset higher costs, which began to take effect in April 2025.

Spark’s Take on TSE:HPS.A Stock

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

Hammond Power Solutions has a strong financial performance with robust revenue growth and profitability, supported by strategic expansions and acquisitions. The stock’s technical indicators suggest mixed momentum, but the company’s reasonable valuation and positive earnings outlook reinforce its investment appeal. Potential risks include market uncertainties and input cost pressures, yet the company’s strategic positioning and financial health provide a stable foundation for future growth.

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 markets that demand high-quality power solutions, including data centers and custom power applications.

YTD Price Performance: -24.86%

Average Trading Volume: 6,556

Technical Sentiment Signal: Sell

Current Market Cap: $792.3M

For a thorough assessment of HPS.A stock, go to TipRanks’ Stock Analysis page.