Hammond Power Solutions
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Hammond Power Solutions (HPS) investor relations material

Hammond Power Solutions Q1 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q1 2026 earnings summary6 May, 2026

Executive summary

  • Achieved record Q1 sales of CAD 264.8 million (USD 265 million), up 31.5% year-over-year, driven by strong U.S. and Mexico demand, especially for custom products and data center applications.

  • Gross margin improved sequentially to 30.1% from 29.2% in Q4 2025, though down from 31.5% a year ago due to tariff and commodity cost pressures.

  • Backlog increased significantly year-over-year and sequentially, providing strong visibility for the remainder of 2026.

  • Announced agreement to acquire AEG Power Solutions, expected to close in Q2 2026, expanding technology and geographic reach.

  • New factory in Mexico began shipping, supporting growth and expanding market reach.

Financial highlights

  • Sales reached CAD 264.8 million, up from CAD 201.4 million in Q1 2025.

  • U.S. and Mexico sales grew 41.8% year-over-year; Canada up 3.2%; India up 33.5%.

  • Net earnings were CAD 19.6 million, down from CAD 26.2 million in the prior year, reflecting higher costs.

  • Basic EPS was CAD 1.64; adjusted EPS was CAD 2.08, up from CAD 1.60 in Q1 2025.

  • Adjusted EBITDA was CAD 41 million (15.5% of sales), up from CAD 30.9 million a year ago.

Outlook and guidance

  • Strong backlog and healthy demand trends in electrification and data centers support a positive outlook for 2026.

  • Confident in ability to execute through the year despite input cost variability and project timing risks.

  • Acquisition of AEG Power Solutions expected to close in Q2 2026, enhancing product and service offerings.

Drivers of General and Administrative expenses
Factors behind Canadian market pricing pressure
Custom product mix impact on distribution costs
Decision criteria for capacity expansion post-2027
Margin impact of revised Section 232 tariffs
Cross-selling strategy for AEG in North America
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