QUARTER 4 2023 FINANCIAL RESULTS

Posted: Mar 27,2024

Investor Relations  

GUELPH, Ontario, March 27, 2024 -- Hammond Power Solutions Inc. (“HPS”) (TSX: HPS.A) a leading manufacturer of dry-type
transformers, power quality products and related magnetics, today announced its financial results for the fourth quarter 2023.

“Hammond Power Solutions continued to deliver exceptional results with 2023 showing robust growth across all geographies
and channels. Financially, the fourth quarter ended with record shipments of $187 million globally. This represents a 30%
increase over the fourth quarter last year and a 27% increase on a year-to-date basis. This is a new record top line also helped
us to achieve our margin and profit targets,” said Adrian Thomas, CEO of HPS. “In late 2022, we embarked on the largest
capital program in our company’s history, allocating $52 million to growing manufacturing capacity at our facilities in Mexico,
Guelph, and our Mesta location in Pennsylvania. Through 2023, our efforts to build capacity to support demand growth have
paid off, as inventory levels recovered and lead times for many facilities came back in line with customer expectations. In 2024,
the bulk of our announced capital expenditures will be spent and will provide us with more than $900 million in yearly
manufacturing capacity by 2025.”

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