(Corrects currency in second bullet of Overview section to C$,

not $)

Overview

* Hammond Power Q3 sales rise 13.7% yr/yr, beating analyst

expectations

* Adjusted EPS for Q3 2025 was C$1.56, down from C$1.80 in

Q3 2024

* Company's U.S. market sales grew 21.5%, offsetting softer

Canadian market

Outlook

* Company expects data center orders to ship primarily in

2026

* HPS to reconfigure Mexico facilities for increased data

center

volume

* Company anticipates higher capital requirements in next

two

quarters

Result Drivers

* U.S. MARKET GROWTH - Strong sales in the U.S.,

particularly in

private label and distribution channels, offset weaker Canadian

market

* MARGIN PRESSURE - Material cost inflation and overhead

costs

from new Mexican facilities pressured margins

* DATA CENTER ORDERS - Significant data center orders

received

post-quarter, expected to ship in 2026

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Beat C$218 C$217.10

mln mln (4

Analysts

)

Q3 EPS C$1.46

Q3 Net C$17.40

Income mln

Q3 Gross 30.10%

Margin

Q3 C$1.56

Adjusted

EPS

Analyst Coverage

* The current average analyst rating on the shares is "buy"

and

the breakdown of recommendations is 4 "strong buy" or "buy", no

"hold" and no "sell" or "strong sell"

* The average consensus recommendation for the heavy

electrical

equipment peer group is "buy"

* Wall Street's median 12-month price target for Hammond

Power

Solutions Inc ( HMDPF ) is C$150.00, about 8.1% above its October 21

closing price of C$137.91

* The stock recently traded at 19 times the next 12-month

earnings

vs. a P/E of 17 three months ago

Press Release:

For questions concerning the data in this report, contact

[email protected]. For any other questions or feedback,

contact .

(This story was created using Reuters automation and AI based

on LSEG and company data. It was checked and edited by a Reuters

journalist prior to publication.)