Hammond Power Solutions (HPS) investor relations material

Strategic overview

• Celebrating a century of innovation and customer focus, with a legacy in power solutions.

• Operates 18 locations globally, employing 2,700 people and working with over 2,800 distributors.

• Products are essential in stepping down voltage for commercial, industrial, and residential applications.

• Key product functions include power transformation, filtering harmonics, and providing controlled heating.

Market presence and diversification

• Serves diverse markets: industrial, data centers, commercial construction, mobility, renewables, microgrids, utilities, and semiconductors.

• Transformers are widely used across sectors such as commercial construction, data centers, mining, and public infrastructure.

• Geographic sales split: 71% U.S. & Mexico, 25% Canada, 4% India.

• Industry diversification: 49% distribution, 15% traditional segments, 36% emerging segments like renewables and EV charging.

Market trends and growth drivers

• Global electricity generation projected to reach 50 trillion kWh by 2050, driving demand for electrification.

• Worldwide transformer market valued at $65 billion, with North America at $10 billion; 28% of North American market is dry-type transformers.

• Demand driven by aging infrastructure, new legislation, renewables growth, reshoring, and high-growth markets.

• Plays a key role in clean energy transformation, grid upgrades, and transportation electrification.