Hawkins Inc. reported record third quarter results driven by strong performance in its Water Treatment and Industrial Solutions segments, fueled by strategic acquisitions and improved pricing. While overall revenue and adjusted EBITDA grew, net income and EPS saw a slight decline due to increased acquisition-related expenses, with management expecting accretive benefits in the next fiscal year.
Record third quarter results for revenue, gross profit, operating income, and adjusted EBITDA.
positiveRevenue grew 8% to $244.1 million, with Water Treatment up 21% and Industrial Solutions up 10%.
positiveAdjusted EBITDA increased 3% to $34.8 million, with trailing 12-month Adjusted EBITDA at $179 million.
positiveOperating cash flow of $35 million was generated, with $15 million used to pay down debt, lowering the leverage ratio below 1.5x.
positiveDiluted EPS decreased by 4% to $0.69, primarily due to approximately $5 million in increased amortization and interest expense from six acquisitions.
attentionFood & Health Sciences segment sales decreased 10% to $70.0 million due to decreased sales volumes.
attentionGross profit for the Food & Health Sciences segment decreased 15% to $13.8 million, primarily as a result of the decrease in sales.
attentionLeverage ratio increased to 1.47x trailing twelve-month adjusted EBITDA from 0.86x at the end of fiscal 2025 due to acquisitions.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Water Treatment | N/A | — | — | — |
Food & Health Sciences | N/A | — | — | — |
Industrial Solutions | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Record third quarter results in revenue, gross profit, operating income and Adjusted EBITDA.
Key drivers were ongoing acquisition activity within the Water Treatment segment and continued improvement in Industrial Solutions.
Proforma EPS grew 10% in the quarter over the prior year, and Adjusted EBITDA continued to grow.
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