Hammond Power Solutions stock expands with Texas plant plans

Hammond Power Solutions stock is set to gain a new manufacturing platform in Texas, with the Fort Worth facility expected to add CAD 250 million in annual capacity from Q4 2027. GlobeNewswire reported the lease on September 22, 2026, including CAD 50 million of planned equipment and commissioning spending.

Texas capacity adds a new growth leg

The initial Fort Worth phase is designed for large standard and custom-engineered transformers serving U.S. customers. The site could support CAD 400 million of total annual capacity after further investment and demand growth, according to GlobeNewswire.

The timing matters because HPS is already converting elevated demand into sales. Management said the facility will support data center, electrification and power infrastructure projects, while the company continues operating plants across North America, Europe and Asia.

Q2 sales show the operating leverage

In Q2 2026, sales reached CAD 324.8 million, up 44.7 percent from CAD 224.4 million in Q2 2025. Adjusted EPS increased to CAD 2.76 from CAD 1.72, a 60.47 percent year-over-year gain, while adjusted EBITDA rose to CAD 53.2 million from CAD 33.4 million, according to the Yahoo Finance transcript for the July 31, 2026 earnings call.

Backlog was 96.9 percent higher than a year earlier, although it declined 6.9 percent from Q1 as shipments increased. Gross margin was 31.5 percent in Q2, compared with 32.7 percent a year earlier, showing that volume growth came with continued cost and mix pressure.

Analysts keep a bullish stance

MarketBeat reported on September 13, 2026, that all seven covering firms rated the stock Buy and that the average 12-month price target was CAD 371.86. Individual targets ranged from CAD 355.00 to CAD 430.00, leaving the consensus dependent on continued execution and demand from data center and infrastructure projects.

Market value and yearly range

Hammond Power Solutions had a market capitalization of CAD 3.4 billion on September 29, 2026. Its 52-week range was CAD 122.11 to CAD 365.12, placing the business value against a wide trading history as investors weigh capacity expansion, backlog conversion and the integration of AEG Power Solutions.