Hammond Power Solutions Reports Fourth Quarter 2025 Financial Results

Executive Summary

• Hammond Power Solutions reported record annual sales of $898.3 M, up 13.9% YoY, and a record adjusted EBITDA of $133.3 M (14.8% of sales).
• Q4 2025 revenue reached $254.1 M; backlog grew 122% year‑over‑year, providing strong visibility into 2026 demand.
• The Board declared a quarterly cash dividend of $0.275 per share (Class A & B) payable December 11 2025.

Key Details

• Revenue
• Q4 2025: $254,092 k (↑ 21.9% YoY)
• FY 2025: $898,255 k (↑ 13.9% YoY)
• Adjusted EBITDA
• Q4 2025: $38,727 k (13.5% of sales)
• FY 2025: $133,330 k (14.8% of sales)
• Adjusted EPS
• Q4 2025: $1.98 (vs. $1.90 YoY)
• FY 2025: $6.81 (vs. $7.10 YoY) – adjusted EPS down 4.1% YoY but up 0.8% QoQ.
• Backlog
• End‑Dec 2025 backlog $122 % higher than Dec 2024 and 74 % higher than Q3 2025.
• Geographic Mix (Q4 2025)
• U.S. & Mexico: $175,419 k (+24.5% YoY)
• Canada: $72,374 k (+24.1% YoY)
• India: $6,299 k (‑32.0% YoY)
• Margins
• Gross margin FY 2025: 30.3% (down from 32.8% in 2024).
• Q4 2025 gross margin: 29.2%.
• Operating Expenses
• Selling & distribution expense FY 2025: $100,537 k (↑ 20.5% YoY; 11.2% of sales).
• General & administrative expense FY 2025: $67,763 k (↓ 11.0% YoY; 7.5% of sales).
• Capital Spending
• FY 2025 capital spending: $35.6 M (below projected range), enabling capacity expansions for Q1 2026 shipments.
• Cash & Working Capital
• Net cash position improved in Q4 2025; working‑capital efficiency noted by CFO.
• Dividend
• Quarterly cash dividend declared: $0.275 per Class A Subordinate Voting Share and $0.275 per Class B Common Share, paid Dec 11 2025.
• YTD dividend paid: $1.10 per share (both classes).

Notable Quotes

• “HPS delivered a strong finish to 2025… Growth was driven by continued strength in the U.S., particularly in private label and custom‑engineered solutions supporting data centre expansion, infrastructure investment and industrial electrification.” – Adrian Thomas, CEO
• “EBITDA margins recovered in the quarter versus the third quarter primarily due to the record revenue recorded… Capital spending during the year was $35 M, at the low end of our projected range, and we completed key capacity initiatives for Q1 2026 shipments.” – Richard Vollering, CFO