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  5. HPS.A: Is it too late buy HPS. [Hammond Power Solutions Inc. Class A Subordinate Voting Shares]
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Q: Is it too late buy HPS.A after the great run it’s had,could you tell me what tailwinds it still has for a 1-2 year hold and a2-4% position,as always thanks for the great service.
Asked by Greg on May 07, 2026
5i Research Answer:

EPS of $2.08 beat estimates of $1.75 and sales of $264.84M beat estimates of $235.88M. Sales grew by 31.5% and adjusted EPS was up 30%. Even though tariff-related costs put pressure on gross margins, its backlog was the realy story here - with its backlog growing 94.6% year-over-year. Roughly 53% of its backlog was attributed to data center orders. The results were solid and the market is liking the numbers so far. It trades at a forward P/E of 33.5X, but forward estimates continue to trend higher, the long-term secular theme is intact, and while we think that there can be some volatility along the way (the potential for the odd 5% to 10% down days), we continue to like the name given the data center demand, aging grid infrastructure themes, and reshoring of manufacturing in North America.