Hammond Manufacturing Company L (HMFAF) research, news, and more from GeoInvesting

Company description

Mon, 04 May 2026 19:30:16 GMT

Hammond Manufacturing Co Ltd provides electrical and electronic components to Original Equipment Manufacturers (OEM) through a network of agents and distributors. Its product categories include Electrical Enclosures, Small Enclosures, Rack Mounting Solutions, PDUs & Outlet Strips, Transformers, and Classic Transformers & Chokes. Its geographical segments are Canada, the United States, and other countries, of which key revenue is derived from the United States.

Research

Wed, 04 Nov 2026 16:46:20 GMT

Hammond Manufacturing Company L (OOTC:HMFAF) (TSX:HMM-A) ($26.08; $223.3M market cap) announced Q3 2026 results:

Q3 sales of $86.5 million vs. $70.8 million in the prior year
Q3 2026 EPS: $0.73 vs. $0.34 in the prior year
Q3 2026 Adj. EPS: $0.66 vs. $0.34 in the prior year
Reported record quarterly revenue and earnings, supported by continued North American demand, lower U.S. tariff costs, and a one-time IEEPA tariff refund.
Approved an additional C$87 million investment to construct a 160,000-square-foot manufacturing facility in Fergus, Ontario, and modernize its Guelph facility.
The Fergus facility is expected to open in H2 2028, with Guelph upgrades completed by H2 2029.
The previously announced 85,000-square-foot Palmerston expansion is expected to become operational in H2 2027.
Combined investments are expected to provide at least C$200 million in additional annual revenue capacity once fully utilized.
Management believes its efforts to protect U.S. operations have improved its competitive position despite ongoing trade uncertainty.

Our Quick Take:

The Hammond Manufacturing story is just another example of how one of the best Multi Bagger factors to monitor is companies going through capacity expansions. This is especially true for those that are considered to be value traps trading at deep value levels because investors have lost faith in management’s commitment to shareholder-friendly capital allocation initiatives. We saw that happen with MUEL before it rose 10x, and now we’re seeing it happen with Hammond Manufacturing.

Q3 was undoubtedly a strong quarter: sales rose 22% to C$86.5M and adjusted EPS nearly doubled to C$0.66. But it also confirmed that Hammond’s constraint is now capacity, not demand. The sequential numbers tell the story. Excluding FX, sales grew only 0.9% over Q2, and US sales only 0.8%, even though US sales were up 26% year over year. The plants appear to be capped at about C$345M a year, or C$86M a quarter. That becomes a problem from Q2 2027, when Hammond starts lapping full-capacity quarters.

That is why the board’s C$87M commitment to Fergus and Guelph is such a strong signal. Together with Palmerston, it adds up to about C$113M, for at least C$200M of new revenue capacity, about 1.6x today’s. Robert Hammond is a conservative 79-year-old controlling shareholder, and he is betting more than a third of the company’s value on future demand.

The risk is now timing; the new capacity arrives in 2028-29, and Palmerston has already slipped from H1 to H2 2027. In the meantime, a slower 2027 may look like fading demand to investors who don’t know the plants are full, which is the opportunity if the 2028 ramp delivers.

Hammond Manufacturing Company Limited designs and manufactures electrical enclosures, electronic enclosures, rack mounting products, power distribution units, and transformers for electrical, electronic, datacom, utility, and institutional customers.

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Research

Wed, 29 Jul 2026 19:45:50 GMT

Hammond Manufacturing Company L (OOTC:HMFAF) (TSX:HMM-A) ($17.43; $149.5M market cap) announced Q2 2026 results:

Q2 sales of $85.0 million vs. $71.3 million in the prior year
Q2 2026 EPS: $0.64 vs. $0.34 in the prior year
Revenue and earnings reached record levels, supported by North American strength and temporarily lower U.S. tariff-related costs.
The company is adding an 85,000-square-foot facility and expanding paint and metal fabrication capacity across its sites.

Our Quick Take:

Excellent Q2, with EPS nearly doubling YoY. For context, we started taking a closer look at HMFAF after the company reported Q1 2026 results earlier this year. At the time, it announced an 85,000-square-foot facility expansion to add painting and metal fabrication capacity.

The company never spelled out why it was expanding capacity, but we reported that we suspected it was tied to rising demand from increased AI spending. HMFAF has several products geared toward data centers (ladders, frames, etc.), which makes it an indirect AI beneficiary.

Worth noting too: HMFAF sells through distributors (Wesco, Rexel, Avnet, etc.), and if you listen to those distributors' conference calls, they explicitly call out data centers as a significant growth driver.

See contributor article from MS Microcaps from May 2026 for more color on the story.

Research

Tue, 05 May 2026 20:26:37 GMT

Adding HMFAF To Our Data Center Tracker

Hammond Manufacturing Company L (OOTC:HMFAF) (TSX:HMM-A.TO) recently reported Q1 2026 results:

Sales of $75.2 million vs $67.2 million
EPS of $0.47 vs $0.42

Besides being a deep value play with TTM EPS of $1.32, what has us intrigued is that the company’s products are used for the electronic and electrical product industries, including metallic and non-metallic enclosures, racks, small cases, outlet strips, surge protectors, and electronic transformers.

The company’s website states “data center” as one of the key markets. Below is an AI summary of HMFAF’s role in the data center market.

“Data centers are a clearly identified vertical market for Hammond, particularly through their Rack Mounting Solutions division, and they actively market products to the segment and publish content about industry trends.

However, in their formal investor filings and earnings releases, data centers aren't typically called out as a distinct revenue driver or growth catalyst the way you might see at a larger company.”

Given the deep value and data center angle, we are adding the stock to our Data Center Tracker Screen.