HPS Reports Fourth Quarter Results
April 15, 2025
Hammond Power Solutions Inc. (“HPS”) (TSX: HPS.A) a leading manufacturer of dry-type transformers, power quality products and related magnetics, has announced its financial results for the fourth quarter 2024.
Highlights
- Record sales of $208 million in the quarter, an increase of 11.5% versus 2023. Year-to-date sales were $788
million, an increase of 11% versus 2023. - Adjusted EBITDA of $32,548 in the quarter, or 15.6% of sales.
- Year-to-date Adjusted EBITDA is $130,484, or 16.6% of sales.
- Gross margin of 32.7% for the quarter, 32.8% year-to-date.
- Net earnings of $23.7 million and earnings per share of $1.99 for quarter 4, 2024.
- Net earnings of $71.5 million and earnings per share of $6.01 year-to-date 2024.
“We are very pleased that we completed the year with record sales of $208 million. Strong shipments in the quarter were seen in Canada, India, and the United States. Significant Mesta projects also shipped in the quarter, and we reported nearly a full quarter of Micron sales, on track with our expectations” said Adrian Thomas, CEO of Hammond Power Solutions.
“As with the previous quarter, there was a notable shift in product mix towards custom and configured products. On a year-to-date basis, sales were up 11%, and backlog remained steady from Q3 to Q4 as we shortened our lead times on custom power products while at the same time shipping more products overall in the quarter. Gross margins remained strong in the quarter and for the year. The high volume drove a record earnings per share of $1.99 for the quarter and $6.01 for the year. 2024 closed as another record year for HPS in terms of profitability, but just as importantly, we were successful at continuing to build a stronger company to continue growth into the future.”
| Geography | Q4 2024 | Q4 2023 | $ Change | % Change | 2024 | 2023 | $ Change | % Change |
| U.S. & Mexico | $ 140,894 | $ 123,703 | 17,191 | 13.9% | $ 534,888 | $ 489,579 | 45,309 | 9.3% |
| Canada | 58,324 | 51,694 | 6,630 | 12.8% | 215,394 | 175,619 | 39,775 | 22.6% |
| India | 9,258 | 11,561 | (2,303) | -19.9% | 38,058 | 44,866 | (6,808) | -15.2% |
| Total | $ 208,476 | $ 186,958 | 21,518 | 11.5% | 788,340 | 710,064 | 78,276 | 11.0% |
The U.S. market experienced its strongest growth in the distributor channel with growth primarily driven by increasing sales in custom and configured products. General economic conditions in the U.S. deteriorated mid-year with slower industrial and commercial construction markets. The lower sales primarily affected standard stock and flow product, while shipments of custom product remained resilient. The Original Equipment Manufacturer (“OEM”) and private label channels grew moderately year-over-year, led by stronger sales to private label, capital equipment, mining and data centres.
The Canadian market was very strong in the year. It continued to achieve year-over-year growth through distribution channels in both stock and flow product and large projects in commercial construction, data centres, public infrastructure, mining and utilities.
The Company’s December 31, 2024 backlog decreased by 0.3% as compared to December 31, 2023 and has decreased
0.1% from Quarter 3, 2024. During the second half of the year, commercial construction and industrial markets began to
moderate in their growth profile, while our capacity additions allowed us to ship more backlog than previous quarters.
More Information
Read the rest of the press release here
Related Story
Hammond Power Solutions Announces $56,957,490 Bought Deal Secondary Offering of Class A Subordinate Voting Shares
Hammond Power Solutions Inc. (TSX: HPS.A) (the “Company” or “HPS”) and 1000925271 Ontario Inc., a wholly-owned subsidiary of Arathorn Investments Inc., (the “Selling Shareholder”) announced on September 24, 2024, that they have entered into an agreement with Acumen Capital Finance Partners Limited and Canaccord Genuity Corp. (the “Co-Lead Underwriters”), pursuant to which the Co-Lead Underwriters have agreed to purchase, on a bought deal basis, 434,790 Class A Subordinate Voting Shares (the “Offered Shares”) from the Selling Shareholder at a price of $131.00 per Offered Share for gross proceeds to the Selling Shareholder of approximately $56,957,490 (the “Offering”). HPS will not receive any proceeds from the Offering.
