Hammond Power Solutions reports record $208 million sales

Hammond Power Solutions Inc. (HPS) has reported its financial results for the fourth quarter of 2024. The company, based in Guelph, Ontario, achieved record sales of CAD 208 million. This growth was driven by strong shipments in Canada, India, and the U.S., along with significant projects in progress. CEO Adrian Thomas expressed satisfaction with the results, highlighting an 11% increase in sales for the year. He noted a shift towards more custom and configured products. The company's backlog remained stable, and lead times on custom orders were reduced. In the U.S., HPS saw strong growth in the distributor channel, mostly for custom products, while the general economy faced challenges. Canadian markets performed well, showing growth in multiple sectors such as construction and utilities. The company reported a gross margin of 32.8%, up slightly from the previous year. Net earnings reached CAD 71.5 million, a 12.8% increase from 2023. HPS has declared a quarterly cash dividend of CAD 0.275 per Class A and Class B share, reflecting its commitment to returning value to shareholders. Despite some late-year expenses linked to acquisitions, expectations for future performance remain positive.