Hammond Power Solutions (HMDPF) AI Stock Analysis

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Hammond Power Solutions

(Other OTC:HMDPF)

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Positive Factors

Strong Revenue Growth and DemandRapid sales growth across several end markets indicates expanding demand for HPS power equipment, not reliance on a single temporary customer program. Continued data center, infrastructure, industrial and electrification spending can support revenue momentum over the next several quarters.

Negative Factors

Material Increase in LeverageThe sharp increase in leverage reduces financial flexibility compared with HPS's historically conservative balance sheet. Higher debt can raise financing costs, constrain capital allocation and make the company more sensitive to weaker demand or execution issues during a cyclical downturn.

Hammond Power Solutions (HMDPF) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $1.77B
Dividend Yield: 0.54%
Average Volume (3M): 6,535
Price to Earnings (P/E): 35.1
Beta (1Y): 1.81
Revenue Growth: 52.23%
EPS Growth: -10.07%
Country: US
Employees: 2,121
Sector: Industrials
Sector Strength: 63
Industry: Electrical Equipment & Parts

Hammond Power Solutions Business Overview & Revenue Model

Company Description

Hammond Power Solutions Inc. (HPS) specializes in the engineering, manufacturing, and sale of a broad spectrum of electrical power products. Their portfolio includes tailored magnetic components, alongside a comprehensive range of standard dry-type,...

Hammond Power Solutions Earnings Call Summary

Earnings Call Date:Oct 29, 2026(Q3-2026)|% Change Since:-14.40%|Next Earnings Date:Mar 04, 2027

Earnings Call SentimentPositive

The call was strongly positive overall, supported by record sales, substantial year-over-year growth, improving gross and EBITDA margins, strong cash generation, successful capacity expansion, and positive early integration and customer interest in AEG. The company also acknowledged challenges in Canada, softer AEG product activity, project timing variability, acquisition-related costs, higher interest expense, and commodity and tariff pressures.

Positive Updates

Record Quarterly Sales and Profitability

HPS reported a record third quarter with consolidated sales of $446.3 million, more than double the third quarter of last year, adjusted EBITDA of $84 million, and adjusted earnings per share of $3.13. Year-to-date sales surpassed $1 billion, reaching $1.04 billion through the first nine months.

Negative Updates

Challenging Canadian Market

Management described Canada as a more challenging environment, with slower market activity and more competitive pricing. Canada sales were $57.6 million, up 12.1% year over year as certain large custom project orders were completed, but the year-to-date decline narrowed only to 3.7%.

Company Guidance

Management said power magnetics capacity is “sort of that $1.4 billion to $1.45 billion in the near term,” with Fort Worth adding an additional $250 million of capacity and expected to start ramping “in Q4 and Q1 of 2028”; it believes it can manage business growth until Fort Worth is operating, while operating leverage can sustain margins “provided the volume stays.” Backlog is “roughly 2 to 3 quarters on average of business,” typically providing visibility into Q1 and “kind of Q2,” while AEG bookings are expected to increase in 2027, with North American revenue potentially emerging “late '27, into '28 and '29.”

Hammond Power Solutions Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

HMDPF against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSE:HMM.A	77Outperform	CAD 300.36M	13.36	16.10%	0.22%	17.66%	32.06%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TSE:GRID	57Neutral	CAD 255.21M	-231.19	-5.42%	―	20.11%	55.61%
TSE:ELVA	52Neutral	CAD 349.49M	50.91	7.92%	―	29.42%	247.98%
TSE:EGT	41Neutral	CAD 3.98M	-1.04	9.87%	―	―	―
TSE:LPS	38Underperform	CAD 17.20M	-7.83	6067.59%	―	0.60%	50.19%

* Industrials Sector Average

Performance Comparison

HMDPF and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HMDPF	Hammond Power Solutions (OTC)	149.03	32.97	28.41%
TSE:ELVA	Electrovaya Inc.	7.16	0.16	2.29%
TSE:EGT	Eguana Technologies	0.09	-0.05	-37.14%
TSE:HMM.A	Hammond Mfg Cl A SV	26.86	15.09	128.21%
TSE:LPS	Legend Power Systems	0.10	-0.03	-19.23%
TSE:GRID	Tantalus Systems Holding Inc	4.55	0.96	26.74%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Hammond Power Solutions AI Stock Analysis