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Hammond Power Solutions is rated buy, driven by expanded capacity, strong data center demand, and the strategic AEG acquisition. HPS's production expansion and AEG integration position it as a platform player, with forecasted 2027 revenue of C$1.7B and C$13.40 adjusted EPS. Key risks include backlog declines, margin compression below 30%, and failure to deleverage post-acquisition; monitoring execution and market…

Hammond Power Solutions TSE: HPS.A reported record second-quarter sales as expanded manufacturing capacity supported higher shipments, particularly into U.S. data center and critical-infrastructure markets, while the company also completed its acquisition of AEG Power Solutions shortly after the quarter ended.

GUELPH, Ontario, June 29, 2026 (GLOBE NEWSWIRE) -- Hammond Power Solutions Inc. (“HPS” or the “Company”) (TSX: HPS.A) today announced it has completed the previously disclosed acquisition of AEG Power Solutions (“AEGPS”) for approximately CAD $365 million, following receipt of all required regulatory approvals.

Hammond Power Solutions earns a buy rating, justified by strong demand visibility and a premium valuation reflecting a structural demand cycle. HMDPF benefits from surging demand in data centers, renewables, EV charging, and grid upgrades, evidenced by record Q1 2026 sales and a 95% y/y backlog increase. Scale, capacity expansion, and technical customization position HMDPF to capture large project orders and…