Core Insights - Hammond Power Solutions Inc. (HPS) reported record sales of approximately $224 million in Q2 2025, reflecting a 14% increase compared to Q2 2024 [3][6] - The company faced rising input costs, leading to a slight decrease in gross margin to 30.7% from 32.8% in the previous year [3][7] - HPS's new production facility in Mexico is complete, with shipments expected to start later in 2025 [3][5] Financial Performance - Q2 2025 net earnings were $13.4 million, down from $23.6 million in Q2 2024, primarily impacted by share-based compensation [10][12] - Adjusted EBITDA for Q2 2025 was $33 million, representing 14.9% of sales, an increase from $32.6 million in Q2 2024 [6][11] - Year-to-date sales reached $425.8 million, a 9.8% increase from $387.9 million in the same period of 2024 [15] Market Segmentation - The U.S. market saw significant growth, with sales increasing by 18.3% to $157.6 million in Q2 2025 [3][15] - Canadian sales grew by 4.9% to $58.6 million, while sales in India showed a slight increase of 1.0% [3][15] - The backlog increased by 8.4% compared to Q2 2024, although it decreased by 8.0% from Q1 2025 [4] Cost Structure - Selling and distribution expenses rose to $24.7 million in Q2 2025, accounting for 11.0% of sales, up from 10.4% in Q2 2024 [8] - General and administrative expenses increased significantly to $24.5 million, or 10.9% of sales, compared to 4.6% in the previous year [9] - Capital spending for Q2 2025 was $11.8 million, an increase from $9.9 million in Q2 2024 [14] Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.275 per share for both Class A and Class B shares [13]

Company Announcement - Hammond Power Solutions Inc. will release its financial results for the Second Quarter ended June 28, 2025, on July 24, 2025, after markets close [1] - A conference call and webcast will be held on July 25, 2025, at 9:00 a.m. Eastern Time to discuss the financial results [1] Company Overview - Hammond Power Solutions Inc. specializes in electrification through a wide range of dry-type transformers, power quality products, and related magnetics [3] - The company has manufacturing plants in Canada, the United States, Mexico, and India, and sells its products globally [3] - HPS shares are listed on the Toronto Stock Exchange under the symbol HPS.A [3]

Core Points - Hammond Power Solutions Inc. (HPS) held its Annual General Meeting on May 8, 2025, in Guelph, Ontario, where shareholders voted in favor of all proposed business items [1] - The company is a leading manufacturer of dry-type transformers, power quality products, and related magnetics, with a global presence and manufacturing plants in Canada, the U.S., Mexico, and India [4] Election of Directors - All director nominees were elected with significant support, including: - William G. Hammond received 98.61% of votes in favor - Dahra Granovsky received 99.36% of votes in favor - Fred M. Jaques received 93.46% of votes in favor - David M. Wood received 98.76% of votes in favor - Anne Marie Turnbull received 99.61% of votes in favor - Christopher Huether received 99.45% of votes in favor - Adrian Thomas received 99.53% of votes in favor - Nathalie Pilon received 99.52% of votes in favor - Gregory Yull received 99.42% of votes in favor [2] Appointment of Auditors - KPMG LLP was appointed as the outside auditors with 94.61% of votes in favor, while 5.39% of votes were against the appointment [3]

Core Insights - Hammond Power Solutions Inc. reported a 5.6% increase in same-quarter sales, reaching $201 million, demonstrating business resilience amid trade-tariff uncertainties [3][6] - The company experienced a 17.7% increase in backlog compared to Q4 2024, driven by strong demand in certain markets, particularly data center activities [3][4] - Gross margin for Q1 2025 was 31.5%, slightly down from 31.7% in Q1 2024, attributed to increased material and labor costs [5][6] Sales Performance - Sales in the U.S. and Mexico increased by 7.8% year-over-year to $140.9 million, while Canadian sales rose by 6.9% to $51.6 million [3] - Sales in India decreased by 23.9% to $8.9 million, reflecting challenges in that market [3] - Private label sales saw significant growth, particularly in data center applications [3] Financial Metrics - Adjusted EBITDA for Q1 2025 was $30.9 million, representing 15.4% of sales, while net earnings reached $26.2 million, a substantial increase from $8 million in Q1 2024 [6][10] - Basic earnings per share were $2.20, up from $0.67 in the same quarter last year [11] - Total selling and distribution expenses increased to $22.3 million, or 11.1% of sales, reflecting higher variable freight and commission expenses [7] Backlog and Future Outlook - The backlog increased by 18.9% compared to Q1 2024, indicating strong future demand driven by large projects [4] - The company anticipates a favorable shift towards more custom product shipments in the latter half of the year due to the new factory coming online faster than planned [3] Cost Management - General and administrative expenses significantly decreased to $3.7 million, or 1.9% of sales, primarily due to the recovery of share-based compensation costs [8] - The company announced a price increase in February 2025 to offset rising material and labor costs, effective for catalogue-based products starting April 2025 [5]

Group 1 - Hammond Power Solutions Inc. (HPS) will release its financial results for the First Quarter ended March 29, 2025, on May 1, 2025, after market close [1] - A conference call and webcast will be held on May 2, 2025, at 9:00 a.m. Eastern Time to discuss the financial results [1] - The company provides a range of dry-type transformers, power quality products, and related magnetics essential for electrical distribution networks [3] Group 2 - HPS has manufacturing plants in Canada, the United States, Mexico, and India, and sells its products globally [3] - The company's shares are listed on the Toronto Stock Exchange under the symbol HPS.A [3] - HPS aims to enable electrification through its diverse product offerings [3]