Hammond Power Solutions Reports Second Quarter 2025 Financial Results
GUELPH, Ontario, July 24, 2025 (GLOBE NEWSWIRE) — Hammond Power Solutions Inc. ('HPS') (TSX: HPS.A) a leading manufacturer of dry-type transformers, power quality products and related magnetics, today announced its financial results for the second quarter 2025.
HIGHLIGHTS
We are pleased to share that HPS delivered another strong quarter in Q2 2025, achieving record sales and solid profits despite navigating some cost headwinds. Our quarterly revenue reached approximately $224 million, marking a new record quarter with 14% growth compared to Q2 2024. Our gross margin was slightly lower than the previous year due to rising input costs and further investments in our manufacturing footprint.', said Adrian Thomas, CEO of Hammond Power Solutions. 'Our new production facility in Mexico is complete and we will start shipments later this year. We are also proud to announce that we were awarded Great Place to Work for all of our facilities globally. This honour means a lot to us and reaffirms our belief that our employees are at the core of our success.'
Year-to-date, the U.S. market experienced its strongest growth in the private label channel and steady growth in the distribution channel. The Company continued to grow both the number of new customers, as well as sales within existing customers. The Original Equipment Manufacturer ('OEM') channel and private labels channels have increased in the quarter versus prior year, with relatively more business shifting to private label. The two channels have also increased on a year-to-date basis with strong sales to switchgear manufacturers, motor control, mining, and data centres. The Canadian market continued to grow through the distribution channel in both stock and flow product and large projects in commercial construction, electric vehicle ('EV') charging, data centres, public infrastructure, oil and gas, mining, utilities and motor control.
The Company's Quarter 2, 2025 backlog increased by 8.4% as compared to Quarter 2, 2024. The Company's backlog decreased 8.0% from Quarter 1, 2025.
'The second quarter was notable in the heightened level of uncertainty in our supply chain and our customer markets. However, the impact of that uncertainty proved to be relatively small, although gross margins did decline below our expectations. Some of this was due to under absorbed overheads in our new Mexico factories as they ramp up, and some to due inflation we are seeing in our supply chain. Adjusted EBITDA margins, while still above 15% on a YTD basis, dropped in the quarter as a result of the lower gross margin', said Richard Vollering, CFO of Hammond Power Solutions. 'As sales increased to record levels, working capital requirements increased. This, combined with high capital expenditures associated with our capital expansion plan, resulted in a net cash outflow, which we expect will begin to reverse in the third quarter.'
The Company saw a decrease in its gross margin rate for the three months of Quarter 2, 2025 which was 30.7% compared to Quarter 2, 2024 margin rate of 32.8%, a decrease of 210 basis points. The year-to-date gross margin rate has decreased from 32.3% in 2024 to 31.1% in 2025, a decrease of 120 basis points. The decline in gross margin is mainly the result of higher material costs related to commodity volatility and inflation in the supply chain.
Total selling and distribution expenses were $24,665 in Quarter 2, 2025 or 11.0% of sales versus $20,591 in Quarter 2, 2024 or 10.4% of sales, an increase of $4,074 or an increase of 60 basis points. Year-to-date selling and distribution expenses were $46,985 or 11.0% of sales in 2025 compared to $41,658 or 10.7% of sales in 2024, an increase of $5,327 or 30 basis points. The quarter and year-to-date increase in selling and distribution expenses is a result of higher variable freight and commission expenses attributed to the increase in sales.
General and administrative expenses were $24,465 or 10.9% of sales for Quarter 2, 2025 compared to Quarter 2, 2024 expenses of $9,062 or 4.6% of sales , an increase of $15,403 or 170 basis points. Year-to-date general and administration expenses were $28,210 or 6.6% of sales in 2025 compared to $38,201 or 9.8% of sales in 2024, a decrease of $9,991 or 320 basis points. The increase is mainly due to an increase in share-based compensation costs, ongoing strategic investments in people and resources to support our growth strategies as well as supporting higher levels of general business activity.
Net earnings for Quarter 2, 2025 finished at $13,376 compared to net earnings of $23,590 in Quarter 2, 2024, a decrease of $10,214. Year-to-date net earnings for 2025 finished at $39,598 compared to net earnings of $31,542 in Quarter 2, 2024, an increase of $8,056.
EBITDA for Quarter 2, 2025 was $23,720 versus $36,711 in Quarter 2, 2024, a decrease of $12,991 or 35.4%. Adjusted for foreign exchange loss/gain and share-based compensation expenses adjusted EBITDA[1] for Quarter 2, 2025 was $33,396 versus $32,587 in Quarter 2, 2024, an increase of $809 or 2.5%. Year-to-date EBITDA was $64,417 in 2025 and $51,710 in 2024, an increase of $12,707 or 24.6%. Year-to-date adjusted EBITDA was $64,312 in 2025 and $63,559 in 2024, an increase of $753 or 1.2%.
Basic earnings per share were $1.12 for Quarter 2, 2025 versus $1.98 in Quarter 2, 2024, a decrease of $0.86. Year-to-date the basic earnings per share were $3.33 in 2025 compared to $2.65 in 2024, an increase of $0.68. Adjusted1 for foreign exchange losses and share-based compensation expenses adjusted earnings per share were $1.72 for Quarter 2, 2025 versus $1.73 for Quarter 2, 2024. Year-to-date adjusted earnings per share were $3.32 for 2025 compared to $3.37 in 2024.
The Board of Directors of HPS declared a quarterly cash dividend of twenty-seven and a half cents ($0.275) per Class A Subordinate Voting Share of HPS and a quarterly cash dividend of twenty-seven and a half cents ($0.275) per Class B Common Share of HPS paid on June 27, 2025. Year-to-date the Company has paid a cash dividend of fifty-five cents ($0.55) per Class A Subordinate Voting Share and of fifty-five cents ($0.55) per Class B Shares.
THREE MONTHS ENDED:
(dollars in thousands)
SIX MONTHS ENDED:
(dollars in thousands)
* EBITDA adjusted for foreign exchange gain or loss and share based compensation
Caution Regarding Forward-Looking Information
This press release contains forward-looking statements that involve a number of risks and uncertainties, including statements that relate to among other things, Hammond Power Solutions Inc.'s (the 'Corporation' or 'HPS') strategies, intentions, plans, beliefs, expectations and estimates, in connection with general economic and business outlook, prospects and trends of the industry, expected demand for products and services, product development and the Corporation's competitive position. Forward-looking statements can generally be identified, but not limited to, the use of words such as 'may', 'will', 'could', 'should', 'would', 'likely', 'expect', 'intend', 'estimate', 'anticipate', 'believe', 'plan', 'objective' and 'continue' and words and expressions of similar import. Although the Corporation believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual results to differ materially from expectations include but are not limited to: general business and economic conditions (including but not limited to risks related to foreign currency fluctuations and changing interest rates); risks associated with the Corporation's business environment (such as risks associated with the financial condition of the oil and gas, mining and infrastructure project business); geopolitical risks; climate related risks; changes in laws and regulations; operational risks (such as risks related to existing and developing new products and services; doing business with partners and suppliers; product sales and performance; legal and regulatory proceedings; dependence on certain customers and suppliers; costs associated with raw materials, products and services; human resources; and the ability to execute strategic plans.) The Corporation does not undertake any obligation to update publicly or to revise any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except as required by law.
This forward-looking information represents our views as of the date of this press release and such information should not be relied upon as representing our views as of any date subsequent to the date of this press release. We have attempted to identify important factors that could cause actual results, performance or achievements to vary from those current expectations or estimated, expressed or implied by the forward-looking information. However, there may be other factors that cause results, performance or achievements not to be as expected or estimated and that could cause actual results, performance or achievements to differ materially from current expectations.
There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those expected or estimated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.
ABOUT HAMMOND POWER SOLUTIONS INC.
Hammond Power Solutions Inc. ('HPS' or the 'Company') enables electrification through its broad range of dry-type transformers, power quality products and related magnetics. HPS' standard and custom-designed products are essential and ubiquitous in electrical distribution networks through an extensive range of end-user applications. The Company has manufacturing plants in Canada, the United States (U.S.), Mexico and India and sells its products around the globe. HPS shares are listed on the Toronto Stock Exchange and trade under the symbol HPS.A.
Hammond Power Solutions – Energizing Our World
For further information, please contact:
David Feick
Investor Relations
519-822-2441 x453
ir@hammondpowersolutions.com
1 Refer to Non-GAAP financial measures on page 3 of this quarterly report
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Wire
11 minutes ago
- Business Wire
Ryan Named One of the UK's Best Workplaces for Women™ by Great Place To Work® for Fourth Consecutive Year
LONDON--(BUSINESS WIRE)--Ryan, a leading global tax services and software provider, has been named one of the UK's Best Workplaces for Women™ by Great Place To Work® for the fourth consecutive year, ranking 39 in the Medium Company category on this year's list. 'Being recognised as a best place to work for women highlights Ryan's unwavering dedication to fostering an environment where every team member can excel and achieve their goals,' said Tom Shave, President of Ryan's European and Asia-Pacific Operations. 'We are proud to champion an inclusive culture that empowers women to thrive and supports lasting work-life success.' This honour reaffirms Ryan's commitment to building and maintaining a great workplace that fosters trust, collaboration, and advancement opportunities. The 2025 list is made up of employers who have told Great Place To Work® UK they work for a place that is inclusive and equitable for all. The 350 companies on the list are committed to ensuring a reasonable balance of women and men across the organisation; removing barriers to women's career advancement; and creating workplaces where all employees, regardless of gender, can flourish. 'This recognition is a reflection of the intentional work we've done to build a culture where people can grow, belong, and do their best work,' said Amy Tice, Senior Vice President and Chief People Officer. 'We're proud to be among so many inspiring organisations across the UK.' Ryan is leading the way for women through purposeful advancement and growth opportunities, as well as generous family and personal leave policies. Programmes such as RyanTHRIVE, a wellness initiative offering training modules focused on physical, career, emotional, and financial wellbeing, and myRyan, an innovative, results-based approach to working, also play a crucial role in promoting healthy work-life success. 'This year's UK's Best Workplaces for Women list highlights organisations that are moving beyond good intentions and delivering real, measurable progress,' said Benedict Gautrey, Managing Director at Great Place To Work UK. 'These companies are dismantling outdated norms, prioritising women's health, and building clear, supported pathways to leadership. This recognition is driven by what matters most: the voices of women who work there. They've said, in their own words, that their workplace is one where they're respected, empowered, and able to succeed.' For information about exciting career opportunities at Ryan, visit the careers page of our website. About Great Place To Work® Great Place To Work is the global authority on workplace culture, helping organisations to create exceptional, high-performing workplaces where employees feel trusted and valued. The UK's Best Workplaces™ for Women awards enable these outstanding organisations to celebrate their achievements, build their employer brand, and inspire others to take action. For more information, visit About Ryan Ryan, an award-winning global tax services and software provider, is the largest Firm in the world dedicated exclusively to business taxes. The Firm provides an integrated suite of international tax services on a multijurisdictional basis, including cost management, compliance, consulting, technology and transformation, and innovation funding. Ryan is an 11-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognised as the most innovative in the tax services industry, Ryan's multidisciplinary team of more than 5,900 professionals and associates serves over 77,000 clients in more than 80 countries, including many of the world's most prominent Global 5000 companies. More information about Ryan can be found at
Business Wire
11 minutes ago
- Business Wire
Ryan Named One of the UK's Best Workplaces for Women ™ by Great Place To Work ® for Fourth Consecutive Year
LONDON--(BUSINESS WIRE)-- Ryan, a leading global tax services and software provider, has been named one of the UK's Best Workplaces for Women ™ by Great Place To Work ® for the fourth consecutive year, ranking 39 in the Medium Company category on this year's list. 'Being recognised as a best place to work for women highlights Ryan's unwavering dedication to fostering an environment where every team member can excel and achieve their goals,' said Tom Shave, President of Ryan's European and Asia-Pacific Operations. 'We are proud to champion an inclusive culture that empowers women to thrive and supports lasting work-life success.' This honour reaffirms Ryan's commitment to building and maintaining a great workplace that fosters trust, collaboration, and advancement opportunities. The 2025 list is made up of employers who have told Great Place To Work ® UK they work for a place that is inclusive and equitable for all. The 350 companies on the list are committed to ensuring a reasonable balance of women and men across the organisation; removing barriers to women's career advancement; and creating workplaces where all employees, regardless of gender, can flourish. 'This recognition is a reflection of the intentional work we've done to build a culture where people can grow, belong, and do their best work,' said Amy Tice, Senior Vice President and Chief People Officer. 'We're proud to be among so many inspiring organisations across the UK.' Ryan is leading the way for women through purposeful advancement and growth opportunities, as well as generous family and personal leave policies. Programmes such as RyanTHRIVE, a wellness initiative offering training modules focused on physical, career, emotional, and financial wellbeing, and myRyan, an innovative, results-based approach to working, also play a crucial role in promoting healthy work-life success. 'This year's UK's Best Workplaces for Women list highlights organisations that are moving beyond good intentions and delivering real, measurable progress,' said Benedict Gautrey, Managing Director at Great Place To Work UK. 'These companies are dismantling outdated norms, prioritising women's health, and building clear, supported pathways to leadership. This recognition is driven by what matters most: the voices of women who work there. They've said, in their own words, that their workplace is one where they're respected, empowered, and able to succeed.' For information about exciting career opportunities at Ryan, visit the careers page of our website. About Great Place To Work ® Great Place To Work is the global authority on workplace culture, helping organisations to create exceptional, high-performing workplaces where employees feel trusted and valued. The UK's Best Workplaces™ for Women awards enable these outstanding organisations to celebrate their achievements, build their employer brand, and inspire others to take action. For more information, visit About Ryan Ryan, an award-winning global tax services and software provider, is the largest Firm in the world dedicated exclusively to business taxes. The Firm provides an integrated suite of international tax services on a multijurisdictional basis, including cost management, compliance, consulting, technology and transformation, and innovation funding. Ryan is an 11-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognised as the most innovative in the tax services industry, Ryan's multidisciplinary team of more than 5,900 professionals and associates serves over 77,000 clients in more than 80 countries, including many of the world's most prominent Global 5000 companies. More information about Ryan can be found at
Business Wire
11 minutes ago
- Business Wire
GTJAI Successfully Issued the First Publicly Offered Digital Bond of a Chinese Securities Firm
HONG KONG--(BUSINESS WIRE)--Recently, Guotai Junan International Holdings Limited ('GTJAI' or the 'Company', stock code: a company of Guotai Haitong Group, successfully issued its first digitally native bond. This bond, the first digital bond via public offering issued by a Chinese securities firm, was structured as a direct issue, denominated in U.S. dollars, with an amount of no more than US$300 million and a maturity of 3 years. GTJAI acted as left lead joint global coordinator and B&D bank for this issuance, using HSBC Orion 1 as the digital assets platform. Digital bonds are bonds issued using blockchain or decentralized ledger technology (DLT). Their core features are digitization, programmability, and automated execution, which provide greater transparency, reducing costs and risks of settlement failures. In recent years, GTJAI has been making breakthroughs in the field of financial innovation and has actively led the innovative development of digital finance and digital asset business, of which the issue of digital bonds is one of the important initiatives in its deployment of blockchain technology and digitalized finance. In the first half of 2025, the Company submitted its digital bond business plan and received confirmation from the Hong Kong Securities and Futures Commission that it had no further questions on the plan and formally commenced its digital bond issue business. Mr. Zhang Xueming, Chief Financial Officer of GTJAI, said, 'Successfully issuing the first publicly offered digital bond of a Chinese brokerage firm is a testament to our unwavering commitment to financial innovation and a showcase of our professional capabilities in digital finance and contribution to promoting digital assets. This transaction not only enhances operational efficiency and transparency for our clients and investors but also solidifies GTJAI's leadership in pioneering next-generation capital market solutions.' Mr. John O'Neill, Group Head of Digital Assets & Currencies at HSBC, said, 'We are pleased to support GTJAI in the first digital bond issuance by a Chinese brokerage firm in Hong Kong. This transaction demonstrates the capabilities of HSBC Orion to enable both a broader range of digital bonds and issuers. At HSBC, we are committed to building liquidity in digital fixed income, and see more corporations and financial institutions recognising the benefits of digital assets.' The Company will also take this issue as an opportunity to further explore innovative directions such as cross-border digital asset circulation and the digitization of green finance, with a view to providing more digital solutions to the global financial market and contributing to the intelligent transformation and sustainable development of the international financial system. About GTJAI Guotai Junan International ('GTJAI', Stock Code: a company of Guotai Haitong Group, is the market leader and first mover for internationalization of Chinese Securities Company as well as the first Chinese securities broker listed on the Main Board of The Hong Kong Stock Exchange through initial public offering. Based in Hong Kong with subsidiaries in Singapore, Vietnam and Macau, GTJAI's business covers major markets around the world, offering high-quality and diversified comprehensive financial services for clients' overseas asset allocation. Core business includes brokerage, corporate finance, asset management, loans and financing, financial products, which cover three dimensions including individual finance (wealth management), institutional finance (institutional investor services and corporate finance) and investment management. GTJAI has been assigned 'Baa2' and 'BBB+' long term issuer rating from Moody and Standard & Poor respectively, as well as an MSCI ESG 'A' rating, Wind ESG 'A' rating and SynTao Green Finance 'A' rating in ESG. Additionally, its S&P Global ESG score leads 84% of its global peers. The controlling shareholder, Guotai Haitong Securities (Stock Code: is the comprehensive financial provider with a long-term, sustainable and overall leading position in the China's capital markets. For more information about GTJAI, please visit
