Hawkins, Inc. Reports First Quarter Fiscal 2027 Results
Rhea-AI Summary
Hawkins (Nasdaq: HWKN) reported first quarter fiscal 2027 revenue of $315.7 million, up 8% year over year, with all segments growing: Water Treatment +6% to $158.3 million, Food & Health Sciences +9% to $97.3 million, and Industrial Solutions +10% to $60.1 million.
Gross profit reached a record $74.0 million (23% margin), up 2%, while diluted EPS declined 4% to $1.35 and net income fell 3% to $28.3 million. Adjusted EBITDA rose 1% to a record $56.9 million. Free cash flow increased over 30% to $23.5 million, supporting $7.0 million of share repurchases, $4.0 million in dividends and the $3.6 million acquisition of Aqua-Chem to expand the Water Treatment footprint. Total debt was $244.0 million with a leverage ratio of 1.36x trailing twelve‑month adjusted EBITDA.
Positive
- Record quarterly revenue $315.7 million, up 8% year over year
- Segment sales growth: Water Treatment +6%, Food & Health Sciences +9%, Industrial Solutions +10%
- Record adjusted EBITDA $56.9 million, up 1% year over year
- Free cash flow up over 30% to $23.5 million in Q1
- Returned capital via $7.0 million share repurchases and $4.0 million dividends
- Acquired Aqua-Chem for $3.6 million to support Water Treatment growth
- Leverage ratio modest at 1.36x trailing twelve‑month adjusted EBITDA
Negative
- Net income down 3% to $28.3 million and diluted EPS down 4% to $1.35
- Gross margin compressed from 25% to 23%, pressured by LIFO and freight costs
- SG&A expenses up 14% to $35.3 million, partly from acquisitions and non‑recurring comparisons
News Explained
At June 28, 2026, cash was $7,977 against $244.0 million debt; earnings faced LIFO, freight, and acquired-cost pressures.
The quarter ended June 28 is now reported; Hawkins held
Reported gross profit was affected by a
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 15 | Earnings date notice | Neutral | +3.0% | Scheduled first-quarter fiscal 2027 results release for July 29 after market close |
| May 13 | Annual earnings report | Positive | -3.3% | Reported record fiscal 2026 sales, gross profit, adjusted EBITDA, and operating cash flow |
| May 13 | Dividend declaration | Positive | -3.3% | Declared quarterly cash dividend of $0.19 per share payable June 12 |
| Apr 30 | Aqua-Chem acquisition | Positive | +0.0% | Completed Aqua-Chem asset acquisition supporting Water Treatment expansion in Nebraska and Iowa |
| Apr 29 | Earnings date notice | Neutral | -0.9% | Scheduled fourth-quarter and fiscal 2026 results release for May 13 |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent earnings coverage diverged from reported operating results, with the May 13 earnings release followed by a -3.25% reaction despite record fiscal-year results.
Key Terms
adjusted ebitda financial
lifo reserve financial
free cash flow financial
leverage ratio financial
non-gaap financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
ROSEVILLE, Minn., July 29, 2026 (GLOBE NEWSWIRE) -- Hawkins, Inc. (Nasdaq: HWKN) today announced results for the three months ended June 28, 2026, its first quarter of fiscal 2027.
First Quarter Fiscal Year 2027 Highlights:
(All comparisons are to the first quarter of fiscal 2026 unless otherwise noted.)
- Record first quarter revenue of
$315.7 million , with growth of8% , driven by increased sales across all segments, including Water Treatment segment growth of6% , Food & Health Sciences segment growth of9% , and Industrial Solutions segment growth of10% . - Record first quarter gross profit of
$74.0 million , an increase of2% . - Diluted earnings per share ("EPS") of
$1.35 decreased$0.05 , or4% . - Net income of
$28.3 million decreased3% , with trailing twelve-month net income of$80.6 million . Record Earnings Before Interest, Taxes, Depreciation and Amortization (“adjusted EBITDA”), a non-GAAP measure, of$56.9 million , a1% increase. Trailing twelve-month adjusted EBITDA of$179.8 million . - Generated operating cash flow of
$35.2 million , an increase of12% . Free cash flow, defined as net cash provided by operating activities less capital expenditures, increased over30% , to$23.5 million , which we allocated to repurchasing$7.0 million of stock, paying$4.0 million in dividends, and acquiring Aqua-Chem, Inc. for$3.6 million . - We continued to execute on our Water Treatment growth strategy with the purchase of Aqua-Chem, Inc., a distributor of water treatment products mainly in Nebraska and Iowa.
Executive Commentary – Patrick H. Hawkins, Chief Executive Officer and President:
“Our first quarter was a solid start to the year, highlighted by another quarter of record results in revenue, gross profit, and adjusted EBITDA” said Patrick Hawkins, Chief Executive Officer and President. “Our record revenue of
Mr. Hawkins continued, “The first quarter brought raw material volatility. Our great team members stayed close to our suppliers and our customers, managing input costs while continuing to deliver the products and level of service expected from Hawkins. As we exited the quarter, raw material costs had largely stabilized.”
Mr. Hawkins concluded, “Our balance sheet remains strong, and our leverage ratio at the end of the first quarter was 1.36x adjusted EBITDA. We continue to generate strong free cash flow and we expect to continue to pay down debt during fiscal 2027. We will also continue to deliver on our strategy of investing in our higher-margin businesses, acquiring companies that are accretive to Hawkins, and servicing the needs of our customers to the highest level possible.”
First Quarter Financial Highlights:
NET INCOME
For the first quarter of fiscal 2027, we reported net income of
REVENUE
Sales were
Water Treatment segment sales increased
Food & Health Sciences segment sales increased
Industrial Solutions segment sales increased
GROSS PROFIT
Gross profit increased
Gross profit for the Water Treatment segment increased
Gross profit for the Food & Health Sciences segment was
Gross profit for the Industrial Solutions segment of
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative (“SG&A”) expenses increased
ADJUSTED EBITDA
Adjusted EBITDA, a non-GAAP financial measure, is an important performance indicator and a key compliance measure under the terms of our credit agreement. An explanation of the computation of adjusted EBITDA is presented below. Adjusted EBITDA for the three months ended June 28, 2026 was
INCOME TAXES
Our effective income tax rate was
BALANCE SHEET
As of June 28, 2026, our working capital was
About Hawkins, Inc.
Hawkins, Inc. was founded in 1938 and is a leading water treatment and specialty ingredients company that formulates, manufactures, distributes, and blends products for its Water Treatment, Food & Health Sciences, and Industrial Solutions customers. Headquartered in Roseville, Minnesota, the Company has 66 facilities in 28 states and creates value for its customers through superb customer service and support, quality products and personalized applications. Hawkins, Inc. generated approximately
Reconciliation of Non-GAAP Financial Measures
We report our consolidated financial results in accordance with U.S. generally accepted accounting principles (GAAP). To assist investors in understanding our financial performance between periods, we have provided certain financial measures not computed according to GAAP, including adjusted EBITDA and free cash flow. These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures. The method we use to produce non-GAAP results is not computed according to GAAP and may differ from the methods used by other companies.
Management uses these non-GAAP financial measures internally to understand, manage and evaluate our business and to make operating decisions. Management believes that these non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of the factors and trends affecting our financial condition and results of operations.
We define adjusted EBITDA as GAAP net income adjusted for the impact of the following: net interest expense resulting from our net borrowing position; income tax expense; non-cash expenses including amortization of intangibles, depreciation, charges for the employee stock purchase plan and restricted stock grants, non-recurring items of income or expense, and earnout-related expense or income. The non-cash earnout related expense or income adjustment was added to our definition in the third quarter of fiscal 2026 to better reflect results from operations. Prior period amounts have been recast to conform to the current definition.
We define free cash flow as net cash provided by operating activities less purchases of property, plant, and equipment. Management believes free cash flow is a useful measure of the cash generated by our business that is available for, among other things, debt repayment, acquisitions, dividends, and share repurchases.
| Adjusted EBITDA | Three months ended | Trailing twelve months ended | |||||||||||||
| (In thousands) | June 28, 2026 | June 29, 2025 | June 28, 2026 | June 29, 2025 | |||||||||||
| Net Income (GAAP) | $ | 28,254 | $ | 29,175 | $ | 80,627 | $ | 84,641 | |||||||
| Interest expense, net | 2,773 | 3,269 | 13,011 | 7,438 | |||||||||||
| Income tax expense | 9,070 | 9,831 | 27,031 | 30,061 | |||||||||||
| Amortization of intangibles | 5,516 | 4,821 | 21,987 | 14,783 | |||||||||||
| Depreciation expense | 8,429 | 7,470 | 32,209 | 28,127 | |||||||||||
| Non-cash compensation expense | 2,235 | 2,212 | 8,596 | 7,243 | |||||||||||
| Non-recurring acquisition expenses(1) | 63 | 870 | 432 | 1,911 | |||||||||||
| Non-cash earnout related expense (income) | 535 | (1,583 | ) | (4,059 | ) | (553 | ) | ||||||||
| Adjusted EBITDA | $ | 56,875 | $ | 56,065 | $ | 179,834 | $ | 173,651 | |||||||
| (1) | Acquisition expenses consist of legal, professional, and other direct costs incurred in connection with business acquisitions. These costs are transaction-specific and not part of normal recurring operations. |
| Free Cash Flow Reconciliation | Three months ended | ||||||
| (In thousands) | June 28, 2026 | June 29, 2025 | |||||
| Net cash provided by operating activities | $ | 35,152 | $ | 31,490 | |||
| Less: Purchases of property, plant & equipment | (11,605 | ) | (13,544 | ) | |||
| Free cash flow | $ | 23,547 | $ | 17,946 | |||
| HAWKINS, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In thousands, except share and per-share data) | ||||||||
| Three months ended | ||||||||
| June 28, 2026 | June 29, 2025 | |||||||
| Sales | $ | 315,675 | $ | 293,272 | ||||
| Cost of sales | (241,668 | ) | (220,910 | ) | ||||
| Gross profit | 74,007 | 72,362 | ||||||
| Selling, general and administrative expenses | (35,335 | ) | (31,029 | ) | ||||
| Operating income | 38,672 | 41,333 | ||||||
| Interest expense, net | (2,773 | ) | (3,269 | ) | ||||
| Other income | 1,425 | 942 | ||||||
| Income before income taxes | 37,324 | 39,006 | ||||||
| Income tax expense | (9,070 | ) | (9,831 | ) | ||||
| Net income | $ | 28,254 | $ | 29,175 | ||||
| Weighted average number of shares outstanding - basic | 20,777,481 | 20,717,485 | ||||||
| Weighted average number of shares outstanding - diluted | 20,853,991 | 20,810,562 | ||||||
| Basic earnings per share | $ | 1.36 | $ | 1.41 | ||||
| Diluted earnings per share | $ | 1.35 | $ | 1.40 | ||||
| Cash dividends declared per common share | $ | 0.19 | $ | 0.18 | ||||
| HAWKINS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands, except share data) | ||||||||
| June 28, 2026 | March 29, 2026 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 7,977 | $ | 3,914 | ||||
| Trade accounts receivables, net | 151,773 | 139,796 | ||||||
| Inventories | 79,864 | 78,199 | ||||||
| Prepaid expenses and other current assets | 9,165 | 9,556 | ||||||
| Total current assets | 248,779 | 231,465 | ||||||
| Property, plant, and equipment | 501,792 | 489,662 | ||||||
| Less accumulated depreciation | 231,206 | 223,406 | ||||||
| Net property, plant, and equipment | 270,586 | 266,256 | ||||||
| OTHER ASSETS: | ||||||||
| Right-of-use assets | 16,081 | 16,840 | ||||||
| Goodwill | 223,828 | 223,042 | ||||||
| Intangible assets, net | 229,018 | 232,887 | ||||||
| Deferred compensation plan asset | 16,477 | 12,812 | ||||||
| Other | 1,474 | 2,988 | ||||||
| Total other assets | 486,878 | 488,569 | ||||||
| Total assets | $ | 1,006,243 | $ | 986,290 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable — trade | $ | 62,845 | $ | 59,835 | ||||
| Accrued payroll and employee benefits | 15,750 | 20,092 | ||||||
| Income tax payable | 8,236 | 98 | ||||||
| Environmental remediation | 7,700 | 7,700 | ||||||
| Other current liabilities (Note 8) | 15,083 | 17,119 | ||||||
| Total current liabilities | 109,614 | 104,844 | ||||||
| LONG-TERM LIABILITIES: | ||||||||
| Long-term debt | 244,000 | 244,000 | ||||||
| Long-term lease liabilities | 13,703 | 14,457 | ||||||
| Pension withdrawal liability | 2,663 | 2,763 | ||||||
| Deferred income taxes | 25,065 | 25,110 | ||||||
| Deferred compensation liability | 17,330 | 14,850 | ||||||
| Earnout liabilities | 45,433 | 44,898 | ||||||
| Other long-term liabilities | 231 | 1,359 | ||||||
| Total long-term liabilities | 348,425 | 347,437 | ||||||
| Total liabilities | $ | 458,039 | $ | 452,281 | ||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| SHAREHOLDERS' EQUITY: | ||||||||
| Common stock; authorized: 60,000,000 shares of | 207 | 208 | ||||||
| Additional paid-in capital | 22,750 | 32,678 | ||||||
| Retained earnings | 524,425 | 500,142 | ||||||
| Accumulated other comprehensive income | 822 | 981 | ||||||
| Total shareholders’ equity | 548,204 | 534,009 | ||||||
| Total liabilities and shareholders’ equity | $ | 1,006,243 | $ | 986,290 | ||||
| HAWKINS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In thousands) | ||||||||
| Three months ended | ||||||||
| June 28, 2026 | June 29, 2025 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 28,254 | $ | 29,175 | ||||
| Reconciliation to cash flows: | ||||||||
| Depreciation and amortization | 13,945 | 12,291 | ||||||
| Change in fair value of earnout liabilities | 535 | (1,583 | ) | |||||
| Operating leases | 1,040 | 923 | ||||||
| Gain on deferred compensation assets | (1,425 | ) | (942 | ) | ||||
| Stock compensation expense | 2,235 | 2,212 | ||||||
| Other, net | 58 | (25 | ) | |||||
| Changes in operating accounts providing (using) cash: | ||||||||
| Trade receivables | (12,462 | ) | (2,651 | ) | ||||
| Inventories | (1,474 | ) | (8,487 | ) | ||||
| Accounts payable | 2,218 | (3,812 | ) | |||||
| Accrued liabilities | (6,448 | ) | (6,735 | ) | ||||
| Lease liabilities | (1,269 | ) | (973 | ) | ||||
| Income taxes | 9,029 | 9,831 | ||||||
| Other, net | 916 | 2,266 | ||||||
| Net cash provided by operating activities | 35,152 | 31,490 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchases of property, plant, and equipment | (11,605 | ) | (13,544 | ) | ||||
| Acquisitions | (3,600 | ) | (151,328 | ) | ||||
| Proceeds from asset disposals | 260 | 327 | ||||||
| Net cash used in investing activities | (14,945 | ) | (164,545 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Cash dividends declared and paid | (3,971 | ) | (3,754 | ) | ||||
| Payroll taxes paid in exchange for shares withheld | (5,143 | ) | (3,028 | ) | ||||
| Shares repurchased | (7,021 | ) | — | |||||
| Payments on senior secured revolving loan | (5,000 | ) | (10,000 | ) | ||||
| Payments for debt issuance costs | — | (764 | ) | |||||
| Borrowings on senior secured revolving loan | 5,000 | 160,000 | ||||||
| Other | (9 | ) | — | |||||
| Net cash (used in) provided by financing activities | (16,144 | ) | 142,454 | |||||
| NET INCREASE IN CASH AND CASH EQUIVALENTS | 4,063 | 9,399 | ||||||
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 3,914 | 5,103 | ||||||
| CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 7,977 | $ | 14,502 | ||||
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||||
| Cash paid for interest | $ | 2,816 | $ | 3,286 | ||||
| Noncash investing activities - capital expenditures in accounts payable | $ | 3,001 | $ | 1,493 | ||||
| HAWKINS, INC. REPORTABLE SEGMENTS (UNAUDITED) (In thousands) | ||||||||||||||||
| Water Treatment | Food & Health Sciences | Industrial Solutions | Total | |||||||||||||
| Three months ended June 28, 2026: | ||||||||||||||||
| Sales | $ | 158,293 | $ | 97,250 | $ | 60,132 | $ | 315,675 | ||||||||
| Cost of sales - materials | (94,481 | ) | (73,345 | ) | (47,858 | ) | (215,684 | ) | ||||||||
| Cost of sales - operational overhead | (18,316 | ) | (4,630 | ) | (3,038 | ) | (25,984 | ) | ||||||||
| Gross profit | 45,496 | 19,275 | 9,236 | 74,007 | ||||||||||||
| Selling, general, and administrative expenses | (23,670 | ) | (8,028 | ) | (3,637 | ) | (35,335 | ) | ||||||||
| Operating income | 21,826 | 11,247 | 5,599 | 38,672 | ||||||||||||
| Three months ended June 29, 2025: | ||||||||||||||||
| Sales | $ | 149,566 | $ | 89,177 | $ | 54,529 | $ | 293,272 | ||||||||
| Cost of sales - materials | (89,159 | ) | (65,814 | ) | (42,848 | ) | (197,821 | ) | ||||||||
| Cost of sales - operational overhead | (16,660 | ) | (4,015 | ) | (2,414 | ) | (23,089 | ) | ||||||||
| Gross profit | 43,747 | 19,348 | 9,267 | 72,362 | ||||||||||||
| Selling, general, and administrative expenses | (19,085 | ) | (8,381 | ) | (3,563 | ) | (31,029 | ) | ||||||||
| Operating income | 24,662 | 10,967 | 5,704 | 41,333 | ||||||||||||
Forward-Looking Statements. Various remarks in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include those relating to consumer demand for products containing our ingredients and the impacts of those demands, expectations for results in our business segments and the timing of our filings with the Securities and Exchange Commission. These statements are not historical facts, but rather are based on our current expectations, estimates and projections, and our beliefs and assumptions. Forward-looking statements may be identified by terms, including “anticipate,” “believe,” “can,” “could,” “expect,” “intend,” “may,” “predict,” “should,” or “will” or the negative of these terms or other comparable terms. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Actual results may vary materially from those contained in forward looking statements based on a number of factors, including, but not limited to, changes in competition and price pressures, changes in demand and customer requirements or processes for our products, availability of product and disruptions to supplies, interruptions in production resulting from hazards, transportation limitations or other extraordinary events outside our control that may negatively impact our business or the supply chains in which we participate, changes in imported products and tariff levels, the availability of products and the prices at which they are available, the acceptance of new products by our customers and the timing of any such acceptance, changes in product supplies, the availability of target acquisitions, and changes in interest rates. Additional information concerning potential factors that could affect future financial results is included in our Annual Report on Form 10-K for the fiscal year ended March 29, 2026, as updated from time to time in amendments and subsequent reports filed with the SEC. Investors should take such risks into account when making investment decisions. Shareholders and other readers are cautioned not to place undue reliance on forward-looking statements, which reflect our management’s view only as of the date hereof. We do not undertake any obligation to update any forward-looking statements.
| Contacts: | Jeffrey P. Oldenkamp Executive Vice President and Chief Financial Officer 612/331-6910 ir@HawkinsInc.com |
