Hammond Power Solutions Inc. Class A · TSX:HPS.A
Hammond Power Solutions Inc. Class A — Q1 2026 Earnings Presentation
40 slides from Hammond Power Solutions Inc. Class A's earnings presentation, May 6, 2026
Slide 1: Q1 Report 2026
For the three months ended March 28, 2026 Q1 Report 2026
Slide 2: Contents
Contents Message to Shareholders 03 Reports and Statements Management’s Discussion and Analysis 04 Financial Statements 22 Notes to Consolidated Financial Statements 28 Corporate Information HPS Global Offices 36 Corporate Information 36 Directors and Officers 37
Slide 3: Who We Are
Who We Are Hammond Power Solutions is a North American leader in dry-type transformers and power quality solutions, providing engineered products for the safe and reliable distribution of electrical power across industries including renewable energy, industrial facilities, commercial construction, d
Slide 4: Built for What's Next
Built for With the evolution of the power landscape and technologies, Hammond Power Solutions is well positioned to lead. Decades of What’s engineering expertise, expanding capabilities, and strong customer relationships provide a solid foundation as demand for reliable electrical infrastructure con
Slide 5: CEO's Message to Shareholders
CEO’s Message to Shareholders Dear Shareholders, Hammond Power Solutions began 2026 with solid Strategically, we made significant progress on our momentum, reflecting the strength of our diversified growth initiatives. During the quarter, we announced our markets, expanding manufacturing footprint,
Slide 6: Management's Discussion and Analysis
Management’s Discussion and Analysis Hammond Power Solutions Inc. (“HPS” or the “Company”) enables electrification through its broad range of dry-type transformers, power quality products and related magnetics. HPS’ standard and custom-designed products are essential and ubiquitous in electrical dis
Slide 7: Additional GAAP and Non-GAAP Measures
DOLLARS IN THOUSANDS UNLESS OTHERWISE STATED or implied in such statements. Important factors that litigation risk related to product defects, misuse, failures could cause actual results to differ materially from or alleged damages; Insurance risk, including the risk expectations include but are not
Slide 8: Hammond Power Solutions Q1 Report 2026
MANAGEMENT’S DISCUSSION AND ANALYSIS or net indebtedness is defined as the bank operating EBITDA”, “adjusted EPS”, “order bookings”, “backlog” and lines of credit net of cash and cash equivalents. Net “book value per share” do not have any standardized income taxes payable or receivable is defined a
Slide 9: Backlog Gross margin
DOLLARS IN THOUSANDS UNLESS OTHERWISE STATED the first quarter of 2025, but also slowed versus the activity, long lead times are often a limiting factor for fourth quarter of 2025, driven by the timing of some backlog growth, as excessive lead times will lead certain large custom projects. Canada is
Slide 10: Hammond Power Solutions Q1 Report 2026
MANAGEMENT’S DISCUSSION AND ANALYSIS annual price increase in the first quarter of 2026. Key drivers for the current quarter increase are The Company continues to focus on long-term as follows: investment to fuel future sales and margin growth. • Approximately $1,404 of the change in the current Gro
Slide 11: Income tax expense Net earnings
DOLLARS IN THOUSANDS UNLESS OTHERWISE STATED Net interest expense for Quarter 1, 2026 was $1,038, The consolidated effective tax rate2 for Quarter an increase of $607 compared to the Quarter 1, 2025 1, 2026 was 27.1% and Quarter 1, 2025 was 27.0%. Any expense of $431. Interest expense increased due
Slide 12: Earnings per share and EBITDA
MANAGEMENT’S DISCUSSION AND ANALYSIS Earnings per share Basic earnings per share were $1.64 for Quarter 1, 2026 versus $2.20 in Quarter 1, 2025, a decrease of $0.56. Adjusted for foreign exchange loss/gain and share-based compensation expenses adjusted earnings per share1 were $2.08 for Quarter 1, 2
Slide 13: Summary of quarterly financial information
DOLLARS IN THOUSANDS UNLESS OTHERWISE STATED Summary of quarterly financial information (unaudited) Fiscal 2026 Quarters Q1, 2026 Sales $ 264,840 Net earnings $ 19,565 Net earnings per share – basic $ 1.64 Net earnings per share – diluted $ 1.64 Average U.S. to Canadian $ 1.372 exchange rate Fiscal
Slide 14: Hammond Power Solutions Q1 Report 2026
MANAGEMENT’S DISCUSSION AND ANALYSIS Cash used in investing activities increased year-over-year with cash used of $8,687 in Quarter 1, 2026 from $7,922 in Quarter 1, 2025, an increase of $765. Capital expenditures were $8,678 in Quarter 1, 2026 compared to $7,922 for Quarter 1, 2025, an increase of
Slide 15: Regular quarterly dividend Risks and uncertainties
DOLLARS IN THOUSANDS UNLESS OTHERWISE STATED Regular quarterly dividend Risks and uncertainties The Board of Directors of HPS declared a quarterly The Company’s goal is to proactively manage risks in cash dividend of twenty-seven and a half cents ($0.275) a structured approach in conjunction with st
Slide 16: Hammond Power Solutions Q1 Report 2026
MANAGEMENT’S DISCUSSION AND ANALYSIS market, sell or install our products. These requirements at very low margins, or at little to no profit, for sustained may change, be reinterpreted, or be applied more periods in order to gain market share. If we are unable to stringently, which could require pro
Slide 17: to reach end users.
DOLLARS IN THOUSANDS UNLESS OTHERWISE STATED to reach end users. control such as changes in their project schedules, In addition, consolidation among distributors or funding constraints, permitting or regulatory delays, other intermediaries could increase their negotiating supply chain issues, desig
Slide 18: Hammond Power Solutions Q1 Report 2026
MANAGEMENT’S DISCUSSION AND ANALYSIS global commodity prices, including prices for copper, In addition, the Company may be required to aluminum and electrical steel may put margins at risk. record goodwill or intangible asset impairment charges There is a risk in our ability to recoup the rapid esca
Slide 19: Financial instruments Off-balance sheet arrangements Transactions with related parties
DOLLARS IN THOUSANDS UNLESS OTHERWISE STATED sales and material purchases are denominated in U.S. definitive agreement to acquire AEG Power Solutions. dollars. There is a natural hedge, as sales denominated Completion of the acquisition is subject to foreign direct in U.S. dollars are partially offs
Slide 20: Hammond Power Solutions Q1 Report 2026
MANAGEMENT’S DISCUSSION AND ANALYSIS reasonable under the circumstances. of discount rates and royalty rates. Such assumptions and estimates are evaluated The Company records a provision for warranties on an ongoing basis and form the basis for making based on historical warranty claim information a
Slide 21: Driving organic growth through continuing investments
o Driving organic growth through continuing investments are also expected to support HPS’ supply to develop our National Association of chain resilience initiatives. Equipment Distributors (“NAED”) channel; During Quarter 1, 2026 HPS continued to make o Offering competitive products, including an si
Slide 22: Hammond Power Solutions Q1 Report 2026
manufacturing strengthens our service to customers for being an industry leader and is both operationally across the U.S. and North America, supporting our and financially strong. HPS is well positioned to meet domestic growth and industrialization efforts. The the evolving needs of our traditional
Slide 23: Selected Annual and Quarterly Information
Selected Annual and Quarterly Information (tabular amounts in thousands of dollars) The information contained in the following table presents the historic audited annual financial information as at December 31 and the unaudited financial information for the previous eight quarters up to and includin
Slide 24: Consolidated Statements of Financial Position
Consolidated Statements of Financial Position (unaudited) (in thousands of dollars) As at March 28, 2026 December 31, 2025 Assets Current assets Cash and cash equivalents $ 38,933 $ 40,910 Accounts receivable 203,587 168,074 Inventories 173,482 172,381 Income taxes receivable 13,042 9,106 Prepaid ex
Slide 25: Consolidated Statements of Operations
Consolidated Statements of Operations (unaudited) (in thousands of dollars except for per share amounts) Three Months Ending March 28, 2026 March 29, 2025 Sales (note 11) $ 264,840 $ 201,403 Cost of sale 185,049 137,891 Gross margin 79,791 63,512 Selling and distribution 26,893 22,320 General and ad
Slide 26: Consolidated Statements of Comprehensive Income
Consolidated Statements of Comprehensive Income (unaudited) (in thousands of dollars) Three Months Ending March 28, 2026 March 29, 2025 Net earnings $ 19,565 $ 26,222 Other comprehensive income (loss) Item that will be recognized within profit and loss: Foreign currency translation differences for f
Slide 27: Consolidated Statements of Changes in Equity
Consolidated Statements of Changes in Equity (unaudited) (in thousands of dollars) For the three months ended March 28, 2026 SHARE CONTRIBUTED AOCI* RETAINED TOTAL CAPITAL SURPLUS EARNINGS SHAREHOLDERS’ EQUITY Balance at January 1, 2026 $ 15,761 $ 2,289 $ 11,239 $ 322,768 $ 352,057 Total comprehensi
Slide 28: Condensed Consolidated Statements of Changes in Equity
Condensed Consolidated Statements of Changes in Equity (unaudited) (in thousands of dollars) For the three months ended March 29, 2025 SHARE CONTRIBUTED AOCI* RETAINED TOTAL CAPITAL SURPLUS EARNINGS SHAREHOLDERS’ EQUITY Balance at January 1, 2025 $ 15,761 $ 2,289 $ 26,365 $ 263,622 $ 308,037 Total c
Slide 29: Condensed Consolidated Statements of Cash Flows
Condensed Consolidated Statements of Cash Flows (unaudited) (in thousands of dollars) Three Months Ending March 28, 2026 March 29, 2025 Cash flows from operating activities Net earnings $ 19,565 $ 26,222 Adjustments for: Amortization of property, plant and equipment 5,685 4,013 Amortization of intan
Slide 30: Notes to the Consolidated Financial Statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Three months ended March 28, 2026 and March 29, 2025 (tabular amounts in thousands of dollars except share and per share amounts) The accompanying unaudited interim financial statements of Hammond Power Solutions Inc., (“HPS” or the “Company”) have been
Slide 31: Changes to accounting policies
Three months ended March 28, 2026 and March 29, 2025 (tabular amounts in thousands of dollars except share and per share amounts) Changes to accounting policies The Company adopted the amendments to IFRS 9 and IFRS 7, Classification and Measurement of Financial Instruments, in its financial statemen
Slide 32: Investments in properties
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Three months ended March 28, 2026 and March 29, 2025 (tabular amounts in thousands of dollars except share and per share amounts) 6. Investments in properties March 28, 2026 December 31, 2025 Glen Ewing Property $ 1,044 $ 1,044 Marnate Property 1,589 1,
Slide 33: Lease and other long-term liabilities
Three months ended March 28, 2026 and March 29, 2025 (tabular amounts in thousands of dollars except share and per share amounts) 8. Lease and other long-term liabilities March 28, 2026 December 31, 2025 Lease liabilities $ 25,200 $ 25,490 Contingent consideration 858 847 $ 26,058 $ 26,337 Current $
Slide 34: Deferred Share Units
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Three months ended March 28, 2026 and March 29, 2025 (tabular amounts in thousands of dollars except share and per share amounts) b) Deferred Share Units The Company maintains a deferred share unit plan in order to issue deferred share units (“DSUs”) to
Slide 35: PSUs and RSUs
Three months ended March 28, 2026 and March 29, 2025 (tabular amounts in thousands of dollars except share and per share amounts) Number of Number of Total Number Closing Share PSUs RSUs of Units Price Issued Balance at January 1, 2026 42,491 28,326 70,817 Units issued 7,532 5,020 12,552 Issued Bala
Slide 36: Related party transactions
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Three months ended March 28, 2026 and March 29, 2025 (tabular amounts in thousands of dollars except share and per share amounts) 12. Related party transactions William G. Hammond, Chair of the Board, directly and indirectly, through Arathorn Investment
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Slide 38: HPS Global Offices
HPS Global Offices Canada Mexico Hammond Power Solutions Inc. Hammond Power Solutions S.A. Corporate Head Office de C.V. 595 Southgate Drive Ave. Avante #810 Guelph, Ontario N1G 3W6 Parque Industrial Guadalupe Guadalupe, Nuevo León, C.P. 67190 Delta Transformers Inc. Monterrey, México 795 Industriel
Slide 39: Corporate Officers and Directors
Corporate Officers and Directors Officers Adrian Thomas Richard Vollering John Bailey Paul Gaynor Chief Executive Officer Chief Financial Officer Chief Operations Officer Chief Information Officer & Director David Kinsella Kyle Kuepfer Catherine McKeown Norman Bates Chief Commercial Officer Chief Le
Slide 40: HAMMONDPOWERSOLUTIONS.COM
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