HPS.A — Hammond Power Solutions
Stub from Eric Jhonsa tweet (Mar 25, 2026). Needs full profile + deep-dive. Adjacent to GEV, FPS, LGN and ai-infrastructure hub.
Identity
- Company: Hammond Power Solutions
- Tickers: HPS.A (TSX), HMDPF (US OTC)
- Sector: Electrical equipment / industrials
- Business: Transformers and electrical gear — private label and custom-engineered solutions for data centers, infrastructure, industrial electrification
Thesis (Eric Jhonsa, Mar 25, 2026)
"One of the more compelling valuations among AI industrials. Trades for 17x 2027E GAAP EPS, and 2027 estimates might still be conservative given 100%+ Y/Y backlog growth."
The setup: AI/data center electrification + custom power systems, with backlog growing faster than revenue. Capacity expansion in Mexico. Cheaper than other AI infra industrials.
FY2025 highlights
- Record annual sales $898.3M (+13.9% YoY)
- Q4 sales $254.1M
- Q4 adj EBITDA $38.7M (13.5% margin)
- Annual adj EBITDA $133.3M (14.8% margin)
- Annual adj EPS $6.81 (vs GAAP EPS $6.07)
- Backlog +122% YoY (Q4 2025 vs Q4 2024), +74% sequentially
CEO Adrian Thomas: "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. Custom and higher-value solutions continued to outpace standard products, reflecting sustained demand for resilient power systems."
Analyst estimate trend (per screenshot)
| Metric | 2025A | 2026E | 2027E |
|---|---|---|---|
| Sales, Adj | $898.3M | $1,252.1M | $1,489.0M |
| YoY % | 13.9% | 39.4% | 18.9% |
| Price/Sales | 2.1x | 1.8x | 1.5x |
| EV/Sales | 2.2x | 1.9x | 1.6x |
| Gross Profit, Adj | $272.2M | $378.6M | $456.6M |
| EBITDA, Adj | $133.3M | $186.0M | $230.9M |
| EBITDA Margin | 14.8% | 14.9% | 15.5% |
| EBIT, Adj | $104.0M | $122.5M | $163.6M |
| EBIT Margin | 11.6% | 9.8% | 11.0% |
Research needed
- Revenue mix: data center vs infrastructure vs industrial vs utility
- Customer concentration — who are the hyperscaler/colo end-customers?
- Mexico capacity expansion details + capex
- Competitive position vs Eaton, Hitachi Energy, Schneider, Hammond Power's actual moat
- Why backlog is doubling — is this AI-driven secular or one-time orders?
- Why 2027 estimates might be conservative (Jhonsa's claim)
- Valuation vs other transformer/grid plays (GEV, Eaton, etc.)
Decision log
- 2026-04-07 — Captured from Eric Jhonsa tweet via screenshot. Added to inv-q. Stub page; needs
/profile HPS.Aor/deep-dive HPS.Ato flesh out.