HWKN · Hawkins, Inc.

Hawkins, Inc. achieved record fourth quarter sales of $265.9 million, up 8% year-over-year, with all segments contributing to growth led by Water Treatment's 16% increase to $122.3 million from acquisitions and higher legacy volumes. Full-year sales reached $1,083.7 million, a 11% rise, crossing the $1 billion threshold for the first time, driven by 22% Water Treatment growth to $543.3 million (50% of total revenue), while Food and Health Sciences was flat and Industrial Solutions up 7%. Gross profit rose 9% to $245.1 million at 23% of sales, supported by higher volumes despite a $1.5 million LIFO reserve increase from rising material costs. SG&A expenses grew 16% to $123.8 million due to $19.3 million in acquisition-related costs, including $8.9 million amortization and earnout adjustments from six deals, notably WaterSurplus. This led to Q4 net income of $15.5 million ($0.74 EPS, down 5%) and full-year $81.5 million ($3.91 EPS, down 3%), with pro forma EPS up 9% adjusting for WaterSurplus timing. Adjusted EBITDA increased 6% to $179.0 million, reflecting operational strength. CEO Patrick H. Hawkins highlighted disciplined M&A accelerating Water Treatment growth, full product portfolio expansion, and expectations for FY2027 revenue, operating income, and EPS growth, strong cash flow, debt reduction to 1x leverage by year-end, amid 41st year of dividends up 7% to $0.75/share. Operating cash flow surged 30% to $144.3 million, funding $167.1 million in acquisitions and $58.2 million capex, with debt at $244.0 million.