Hammond Power Solutions reported record third-quarter sales and adjusted EPS that beat estimates by 7.9%. Its acquisition of AEG and rising data-centre demand both shaped the results.
Hammond Power Solutions Inc. (TSX: HPS.A; HPS-A.TO) reported its third-quarter 2026 results after markets closed on October 29. Adjusted earnings per share came in at C$3.13, above the C$2.90 estimate. Sales reached a record C$446.3 million, up 104.4% from a year earlier. Gross margin rose to 34.4% from about 30.1%.
Recent earnings trend
Hammond Power Solutions Inc
HPS-A.TO
HPS-A.TO
Hammond Power Solutions Inc
WealthAwesomeMarket cap
$3.00B
P/E
48.7x
Div. yield
0.46%
Div. / share
$1.10
52W high
$364.67
52W low
$150.01
1W change
+11.31%
Beta
0.98
Analyst Price Targets
Based on analyst covering HPS-A · as of Oct 15, 2026
Wall Street analysts forecast HPS-A stock price to rise 56.5% over the next 12 months.
Consensus
BullishBased on avg. target vs last close (formal rating unavailable for Canadian listings)
Avg. Target
C$383.50
+56.5% Upside
Previously C$384.13 on Oct 12, 2026
Current Price
C$245.02
Last close
Targets are snapshotted when they change. Unchanged figures keep their original date. Not financial advice.
Wealth Awesome Price Forecast
WA ModelStatistical 90-day price range based on HPS-A's historical volatility
30-Day Vol
67.2%
Annualized
90-Day Vol
66.7%
Annualized
Trend (90d)
-38.7%
Annualized drift
90d Mean
C$213.42
Expected price
| Horizon | Expected | 68% Range (1σ) |
|---|---|---|
| 30 trading days | C$234.00 | C$185.57 – C$295.07 |
| 60 trading days | C$223.47 | C$160.99 – C$310.21 |
| 90 trading days | C$213.42 | C$142.82 – C$318.91 |
Methodology: Range is calculated using 30-day realized volatility via geometric Brownian motion (log-normal model). 68% band = ±1σ, 95% band = ±2σ. This is a statistical model, not a prediction. Past volatility does not guarantee future results. Not financial advice.
Analyst coverage: 5 analyst(s) cover this name; upcoming EPS consensus is available.
Beat estimates in 4 of the last 4 comparable quarter(s).
| Fiscal period | Report date | Actual EPS | Estimate | Surprise |
|---|---|---|---|---|
| 2026-09-30 | 2026-10-29 | 3.1300 | 2.9000 | +7.9% |
| 2026-06-30 | 2026-07-30 | 2.7600 | 2.1000 | +31.4% |
| 2026-03-31 | 2026-05-05 | 2.0800 | 1.7800 | +16.9% |
| 2025-12-31 | 2026-03-19 | 1.9800 | 1.7100 | +15.8% |
| 2025-09-30 | 2025-10-23 | 1.4600 | 1.5800 | -7.6% |
| 2025-06-30 | 2025-07-24 | 1.1200 | 1.8500 | -39.5% |
This was the first full quarter to include AEG Power Solutions, which HPS acquired on June 29. As a result, the sharp increase in sales reflects both business performance and the larger company.
Investor takeaway: HPS delivered strong reported growth, higher margins and solid cash generation. But investors should separate organic growth from the impact of AEG. The company said data-centre shipments drove significant growth in the U.S. Its Power Magnetics backlog was 61.1% higher than a year earlier, though it fell 3.8% from the previous quarter.
Reported EPS was C$2.33, below adjusted EPS of C$3.13. HPS cited one-time AEG acquisition costs, foreign-exchange losses on acquisition hedges and higher interest among the factors weighing on reported results. The next test is whether HPS can integrate AEG and turn demand and backlog into lasting, profitable growth.
C$446.3 million
HPS’s third-quarter sales hit a record, rising 104.4% year over year. That comparison includes AEG’s first full quarter in HPS’s results, so it doesn’t represent organic growth alone. Gross margin increased to 34.4% from about 30.1%, and adjusted EPS of C$3.13 topped the C$2.90 estimate. The recent-earnings trend table shows the quarter-by-quarter comparison.
Bull case
Record sales, higher gross margins and strong adjusted EBITDA growth point to solid operating momentum. Adjusted EBITDA reached C$84 million, or 18.8% of sales, up 177.5% from a year earlier.
Power Magnetics backlog was much higher year over year, mainly because of large data-centre project orders, according to HPS. The company also generated C$76 million in cash from operations during the quarter.
Bear case
The year-over-year growth rate doesn’t show underlying growth clearly because this was the first full quarter with AEG included. Backlog also fell from the second quarter. Despite higher sales, net earnings for the first nine months were C$56.7 million, compared with C$57.0 million a year earlier.
HPS still has work to do integrating AEG and must manage rising input costs. Management said pricing, output, product mix and efficiency helped offset tariffs and higher copper and aluminum costs. The share valuation and uncertainty around future results add to the risks.
Best next step
Keep exploring this topic
If you want to go deeper, these are the most useful follow-up pages and tools for this topic.
Broker comparison
Best trading platforms in Canada
Compare $0-commission brokers before you act on a ticker story.
Safe cash
Best GIC rates in Canada
If the story makes you want to de-risk, compare guaranteed rates next.
HISA roundup
Best high-interest savings accounts
Keep dry powder in a no-fee savings account instead of chequing.
TFSA room
Check TFSA contribution room
Shelter the next contribution before you buy.
Wealth Awesome
Timely coverage of Canadian stocks, earnings, dividends, and market movers for DIY investors. Stories are checked against exchange data and public filings.
View Full Profile →✅ Reviewed by Certified Financial Professionals
This content has been reviewed by CFA® charterholders and Certified Financial Planners (CFP®) with over a decade of experience in Canadian financial markets. All information is fact-checked against official Canadian sources and regulations.
Why these credentials matter: CFA® charterholders complete 900+ hours of rigorous study in investment analysis and ethics. CFP® professionals are held to the highest standards of financial planning competency and fiduciary duty in Canada.
⚠️ Professional Disclaimer
This content is for educational purposes only and should not be considered personalized financial advice. While our team brings professional expertise, individual circumstances vary. For personalized guidance, consult with a qualified financial advisor, tax professional, or mortgage specialist.
