Hammond Power Solutions Reports Record Third Quarter 2026 Financial Results

Skip to Content News Archives Economy Defence Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Defence Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Defence Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeGlobeNewswireThis section is The content in this section is supplied by GlobeNewswire for the purposes of distributing press releases on behalf of its clients. Postmedia has not reviewed the content. by GlobeNewswire Hammond Power Solutions Reports Record Third Quarter 2026 Financial ResultsAuthor of the article:(Dollar amounts are in thousands, in Canadian currency unless otherwise specified)THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountGUELPH, Ontario, Oct. 29, 2026 (GLOBE NEWSWIRE) — Hammond Power Solutions Inc. (“HPS” or the “Company”) (TSX: HPS.A) a leading provider of magnetic and power electronic solutions, today announced its financial results for the third quarter 2026.Record quarterly sales of $446 million, a 104.4% increase versus Q3 2025. Gross margin improvement to 34.4%;Quarterly adjusted EBITDA of $84 million, or 18.8% of sales, an increase of 177.5% from Q3 2025. Year-to-date adjusted EBITDA of $178.3 million or 17.2% of sales, an increase of 88.5% from 2025;Quarterly adjusted earnings per share of $3.13. Earnings per share of $2.33. Year-to-date adjusted earnings per share of $7.68 and earnings per share of $4.76;Power Magnetics Backlog is 61.1% higher than Q3 2025;Cash generated from operations at $76 million in the quarter;Third quarter 2026 represents the first full quarter in which AEG’s results are included in HPS’s consolidated results.This advertisement has not loaded yet, but your article continues below.“We delivered an outstanding quarter across every key financial measure, with record revenue, strong margin expansion and exceptional cash generation. These results reflect robust customer demand and disciplined execution by our teams across the business,” said Adrian Thomas, CEO. “While the integration of AEG is still in its early stages, we are increasingly excited by the opportunities ahead. We remain focused on realizing its full potential while continuing to drive disciplined, profitable growth.”Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againOverall Corporate PerformanceSales for the third quarter were $446,263, compared to $218,341 in the third quarter of 2025, an increase of $227,922 or 104.4%. Year-to-date sales were $1,035,905, compared to $644,163 in 2025, an increase of $391,742 or 60.8%. Gross margin increased to $153,361, or 34.4% of sales, compared to $65,686, or approximately 30.1% of sales, in the third quarter of 2025, an improvement of approximately 430 basis points. Year-to-date gross margin increased to $335,414 or 32.4% in 2026 compared to $198,010 or 30.7% in the prior-year period, an increase of 170 basis points.This advertisement has not loaded yet, but your article continues below.Earnings from operations increased to $71,638, compared to $24,928 in the prior-year quarter. Year-to-date earnings from operations were $123,873 in 2026, an increase of $41,816 or 51.0% from the 2025 value of $82,057.Net earnings for the quarter were $27,696, or $2.33 earnings per share, compared to $17,440, or $1.46 earnings per share in the third quarter of 2025. Year-to-date net earnings were $56,655 or $4.76 earnings per share in 2026 compared to $57,038 or $4.79 per share in 2025.Beginning in the third quarter of 2026, following the acquisition of AEG Power Solutions (“AEG”) on June 29, 2026, HPS began reporting its results through two reportable operating segments: Power Magnetics and Integrated Electrical Solutions (“IES”).GeographyQuarter 3,2026Quarter 3,2025$Change%ChangeYTD2026YTD2025$Change%Change US & Mexico*288,728153,699135,02987.9%745,349446,518298,83166.9%Canada57,62251,3956,22712.1%155,567161,607(6,040)(3.7%)India9,1598,9312282.6%28,42926,0542,3759.1%Total355,509214,025141,48466.1%929,345634,179295,16646.5%This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Power Magnetics sales in the U.S. market were $288,728 in the third quarter of 2026, increasing 87.9% from $153,699 in the third quarter of 2025. The U.S. market continued to drive significant year-over-year growth, driven by increases in data centre shipments, along with modest improvements in industrial markets versus the prior year. The Canadian market sales increased in Quarter 3 to $57,622 as certain large custom project orders were completed. The quarter increase reduced the year-to-date decline to $6,040 or 3.7% from prior yearThe Company’s Quarter 3, 2026 Power Magnetics backlog increased by 61.1% as compared to Quarter 3, 2025, primarily due to large project orders driven by data centre activity. Backlog decreased 3.8% from Quarter 2, 2026. While Quarter 3 2026 bookings were higher than in Quarter 2 2026, shipments (excluding AEG) were also higher by 12%, driving a decrease in backlog. The Company saw an increase in its Power Magnetics gross margin rate for Quarter 3, 2026 which was 34.3% compared to 29.7% in Quarter 3, 2025, representing an increase of 460 basis points. On a year-to-date basis, gross margin was 31.8% in 2026, compared to 30.4% in the prior year, an increase of 140 basis points.This advertisement has not loaded yet, but your article continues below.“Our third-quarter was strong in many key aspects. Sales of $446.3 million were up 104% from last year, adjusted EBITDA nearly tripled to $84.0 million, and adjusted earnings per share doubled to $3.13. Gross margin reached 34.4%, up from 30.1% a year ago, as pricing actions, higher factory output, more custom products and better efficiency helped us offset tariffs and rising copper and aluminum costs. Reported earnings of $2.33 per share include one-time costs tied to the AEG acquisition, foreign exchange losses on acquisition hedges and higher interest on acquisition debt, while adjusted earnings, at $3.13, give a clearer picture of how well the underlying business performed”, said Richard Vollering, CFO of Hammond Power Solutions. “Cash conversion was high in the quarter, with cash generated from operations at $76.0 million in the quarter, compared with a small outflow a year ago, and we ended the quarter with a net operating cash position of $51.6 million, an improvement of more than $88 million since the end of June. As we move into the fourth quarter, our focus will be on maintaining tight operating discipline, continuing to generate cash, complete a successful integration of AEG and invest in the growth ahead”.This advertisement has not loaded yet, but your article continues below.Integrated Electrical Solutions IES sales were $90,754 for the quarter made up of a mixture of end markets including oil and gas, power generation, and offshore wind. Other emerging markets with notable shipments in the quarter include nuclear and data centres. The IES business achieved a gross margin rate of 39.5% for Quarter 3, 2026, excluding the impact of purchase accounting amortization recorded on consolidation, compared to 49.7% in 2025. The decrease is due to the change in product and service mix due to the inclusion of the AEG business.Consolidated Financial PerformanceTotal selling and distribution expenses were $57,080 in Quarter 3, 2026, representing 12.8% of sales, compared to $24,224 or 11.1% of sales, in Quarter 3, 2025, an increase of $32,856. Year-to-date selling and distribution expenses were $120,262, or 11.6% of sales, compared to $71,209, or 11.1% of sales, in the prior period. AEG’s underlying operations contributed $15,041 of selling and distribution expenses, while purchase accounting amortization associated with acquired customer relationships contributed a further $1,844. The increase was primarily driven by higher Power Magnetics sales volumes and associated distribution costs required to support growth.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.General and administrative and share-based compensation expenses were $23,675, or 5.3% of sales, in Quarter 3, 2026 compared to $16,534, or 7.6% of sales, in Quarter 3, 2025, an increase of $7,141. Year-to-date general and administrative expenses were $90,311 or 8.7% of sales, compared to $44,744 or 6.9% of sales in the prior-year period. The change is mainly due to share-based compensation costs, ongoing strategic investments in people and resources to support our growth strategies and higher levels of general business activity.Net earnings for Quarter 3, 2026 were $27,696, compared to $17,440 in Quarter 3, 2025, an increase of $10,256, or 58.8%. Year-to-date, net earnings were $56,655 in 2026, compared to $57,038 in the prior-year period, a decrease of $383, or 0.7%. The change was primarily driven by higher share-based compensation expenses, increased selling, distribution, general and administrative expenses, acquisition-related costs, and higher interest and foreign exchange expenses partially offset by higher sales and increased gross margin dollarsThis advertisement has not loaded yet, but your article continues below.EBITDA for Quarter 3, 2026 was $68,783, compared to $28,746 in Quarter 3, 2025, an increase of $40,037. Adjusted EBITDA1, which excludes foreign exchange losses, share-based compensation expenses and acquisition-related costs, was $84,045 for Quarter 3, 2026, compared to $30,290 in Quarter 3, 2025, an increase of $53,755. Year-to-date EBITDA was $125,532 in 2026, compared to $93,163 in 2025, an increase of $32,369 or 34.7%. Year-to-date adjusted EBITDA was $178,333 in 2026 and $94,603 in 2025, an increase of $83,730 or 88.5%.Basic earnings per share for Quarter 3, 2026 were $2.33, compared to $1.46 in Quarter 3, 2025, an increase of $0.87. Year-to-date the basic earnings per share were $4.76 in 2026, compared to $4.79 in 2025, a decrease of $0.03. Adjusted earnings per share1, which excludes the impact of foreign exchange losses, share-based compensation expense and acquisition-related costs, were $3.13 for Quarter 3, 2026, compared to $1.56 in Quarter 3, 2025, an increase of $1.57. Year-to-date adjusted earnings per share were $7.68 in 2026, compared to $4.88 in 2025, an increase of $2.80.This advertisement has not loaded yet, but your article continues below.The Board of Directors of HPS declared a quarterly cash dividend of twenty-nine cents ($0.29) per Class A Subordinate Voting Share of HPS and a quarterly cash dividend of twenty-nine cents ($0.29) per Class B Common Share of HPS paid on September 24, 2026 to shareholders of record at the close of business on September 17, 2026. The ex-dividend date was September 17, 2026. Year-to-date the Company has paid a cash dividend of eighty-four cents ($0.84) per Class A Subordinate Voting Share and of eighty-four cents ($0.84) per Class B Shares.__________________________1 Refer to “Additional GAAP and Non-GAAP measures” in the Company’s Q3 2026 Management’s Discussion and AnalysisTHREE MONTHS ENDED:(dollars in thousands) September 26,2026 September 27,2025 Change Sales$446,263 $218,341 $227,922 Earnings from operations$71,638 $24,928 $46,710 Exchange loss$8,189 $57 $8,132 Net earnings$27,696 $17,440 $10,256 Earnings per shareBasicAdjusted*Diluted $$$ 2.333.132.33 $$$ 1.461.561.46 $$$ 0.871.570.87 Cash (used in) generated by operations$ 76,087 $(2,137)$78,224 EBITDA $68,783 $28,746 $40,037 Adjusted EBITDA*$84,045 $30,290 $53,755 Capital Spending$6,638 $7,366 $(728)This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.NINE MONTHS ENDED:(dollars in thousands) September 26,2026 September 27,2025 Change Sales$1,035,905 $644,163 $391,742 Earnings from operations$123,873 $82,057 $41,816 Exchange loss$11,000 $1,704 $9,296 Net earnings$56,655 $57,038 $(383)Earnings per shareBasicAdjusted*Diluted $$$ 4.767.684.76 $$$ 4.794.884.79 $$$ (0.032.80(0.03) )Cash generated by (used in) operations$81,040 $(5,103)$86,143 EBITDA $125,532 $93,163 $32,369 Adjusted EBITDA*$178,333 $94,603 $83,730 Capital Spending$21,533 $27,048 $(5,515)* Adjusted for foreign exchange gain or loss, share based compensation and acquisition costsCaution Regarding Forward-Looking InformationThis press release contains forward-looking statements that involve a number of risks and uncertainties, including statements that relate to among other things, HPS’s 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, changing interest rates, and the availability of external capital); 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 advertisement has not loaded yet, but your article continues below.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.HPS enables electrification through its portfolio of power conversion, power distribution and power quality solutions, including dry-type transformers, power electronics and related products used across critical electrical infrastructure and industrial applications. The Company has manufacturing plants in North America, Europe, and Asia, 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 WorldFor further information, please contact:David FeickInvestor Relations519-822-2441ir@hammondpowersolutions.comThis advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.