Hammond Power Solutions Reports Record Revenue in Q3 2026

GUELPH, Ontario — 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.

QUARTERLY HIGHLIGHTS:

• Record quarterly sales of $446 million, a 4% increase versus Q3 2025. Gross margin improvement to 34.4%;
• Quarterly adjusted EBITDA of $84 million, or 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 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

“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.”

Overall Corporate Performance

Sales 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.

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”).

Power Magnetics

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 year

The 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.

“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”.

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.

View the full press release here.