Hawkins, Inc. Reports Fourth Quarter and Fiscal Year 2026 Results
Rhea-AI Summary
Hawkins (Nasdaq: HWKN) reported record fiscal 2026 results, with sales of $1.08 billion, up 11%, and gross profit of $245.1 million, up 9%. Adjusted EBITDA reached $179.0 million, a 6% increase, and operating cash flow rose 30% to $144.3 million.
Net income was $81.5 million, with diluted EPS of $3.91, down 3% mainly from higher amortization, interest and earnout-related expense tied to six acquisitions, including WaterSurplus. Water Treatment sales grew 22% to $543.3 million. The company paid dividends of $0.75 per share and ended the year with $244.0 million of debt and 1.37x leverage.
Positive
- Fiscal 2026 sales $1.08 billion, up 11% year over year
- Water Treatment segment sales $543.3 million, up 22% from 2025
- Adjusted EBITDA $179.0 million, increasing 6% versus prior year
- Operating cash flow $144.3 million, up 30% from fiscal 2025
- Record net income $81.5 million despite higher acquisition-related expenses
- Six acquisitions completed with $167.1 million in spending
- Annual dividend $0.75 per share, 7% higher than prior year
- Return on equity 16.4% based on 2026 net income and average equity
Negative
- Diluted EPS $3.91, down 3% from $4.03 in fiscal 2025
- Fourth-quarter diluted EPS $0.74, 5% below prior-year quarter
- Food and Health Sciences sales down 1% year over year
- Food and Health Sciences gross profit down 6%, margin from 22% to 21%
- SG&A expenses up 16% to $123.8 million, including higher acquisition costs
- Total debt increased to $244.0 million, leverage up from 0.86x to 1.37x adjusted EBITDA
- LIFO reserve increase reduced gross profit by $1.5 million in fiscal 2026
News Market Reaction – HWKN
In the May 14 session, HWKN declined 3.25%, reflecting a moderate negative market reaction. Argus tracked a peak move of +11.1% during that session. Argus tracked a trough of -2.8% from its starting point during tracking. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| 2025-10-29 | Q2 FY26 earnings | Positive | -5.0% | Record Q2 FY26 revenue and adjusted EBITDA, led by Water Treatment growth. |
| 2025-07-30 | Q1 FY26 earnings | Positive | +2.6% | Record Q1 results, 15% revenue growth and WaterSurplus acquisition close. |
| 2025-05-14 | FY25 earnings | Positive | -0.7% | Record FY25 sales and EPS with strong Water Treatment expansion. |
| 2025-01-29 | Q3 FY25 earnings | Positive | -8.4% | Record Q3 FY25 revenue and adjusted EBITDA, driven by Water Treatment. |
| 2024-10-30 | Q2 FY25 earnings | Positive | -8.9% | Record Q2 FY25 revenue with strong Water Treatment growth and low leverage. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have generally been positive operationally but often met with negative next-day price reactions.
Recent earnings history for Hawkins shows consistent revenue and adjusted EBITDA growth led by the Water Treatment segment, but EPS has periodically been pressured by higher amortization and interest from acquisitions. Prior earnings reports on 2025-10-29, 2025-07-30, 2025-05-14, 2025-01-29, and 2024-10-30 highlighted record sales and rising leverage. Today’s FY2026 results, with sales of $1,083.7M and EPS of $3.91, continue that pattern of strong top-line growth with acquisition-related EPS drag.
Key Terms
adjusted EBITDA financial
earnout liability financial
LIFO reserve financial
return on equity financial
non-GAAP financial
leverage ratio financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
ROSEVILLE, Minn., May 13, 2026 (GLOBE NEWSWIRE) -- Hawkins, Inc. (Nasdaq: HWKN) today announced fourth quarter and full-year results for its fiscal year ended March 29, 2026.
Fourth Quarter Fiscal Year 2026 Highlights:
- Record fourth quarter sales of
$265.9 million , an8% increase over the same quarter of the prior year, led by Water Treatment segment sales growth of16% over the same quarter in the prior year. All segments grew revenue in the fourth quarter 2026. - Record fourth quarter gross profit of
$54.2 million , a4% increase over the same quarter of the prior year. - Fourth quarter diluted earnings per share (EPS) of
$0.74 , a decrease of$0.04 , or5% , due primarily to an approximately$4.4 million increase in amortization, interest expense, and fair value accretion related to the earnout liability from the six acquisitions completed in fiscal 2026, including the largest, WaterSurplus, which closed in the first quarter of fiscal 2026. Assuming the acquisition of WaterSurplus had occurred at the beginning of the prior fiscal year, pro forma EPS would have been9% higher than the comparable prior year. - Fourth quarter operating cash flow of
$37.7 million , an increase of$6.9 million , or22% over the same quarter in the prior year.
Full-Year Fiscal Year 2026 Highlights:
- Sales of approximately
$1.1 billion , an increase of$109.3 million , or11% from fiscal 2025. - Gross profit of
$245.1 million , an increase of$19.5 million , or9% from fiscal 2025. - Operating cash flow of
$144.3 million , an increase of$33.2 million , or30% from fiscal 2025. - Diluted earnings per share (EPS) of
$3.91 , a decrease of$0.12 , or3% , from fiscal 2025, due primarily to an approximately$16.5 million increase in amortization, interest expense, and fair value accretion related to the earnout liability from the six acquisitions completed in fiscal 2026, including WaterSurplus. Assuming the acquisition of WaterSurplus had occurred at the beginning of the prior fiscal year, pro forma EPS would have increased by$0.32 , or9% , over the prior fiscal year. - Net income was
$81.5 million , while Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (Adjusted EBITDA), a non-GAAP measure, was$179.0 million , an increase of6% over the prior fiscal year. - Continued our acquisitions strategy and closed on six transactions during the fiscal year, mainly focused on accelerating growth in the Water Treatment segment.
- Paid cash dividends of
$0.75 per share for the year, an increase of7% over the prior year, marking our 41st consecutive year of paying a dividend.
Executive Commentary – Patrick H. Hawkins, Chief Executive Officer and President:
“Fiscal 2026 was another milestone year for our company, as we crossed
Mr. Hawkins continued, “Our disciplined M&A strategy remained a core competency for us and has again contributed to growth of Water Treatment, our largest reporting segment, which now represents
Mr. Hawkins continued, “Our Water Treatment segment achieved sales growth of
Mr. Hawkins concluded, “Looking ahead to fiscal 2027, we are well positioned to grow revenue and operating income in each of our business segments and expect EPS to grow as well. We expect our balance sheet to remain strong, and with the diversity of our businesses and the overall strength of our company, we believe we will continue to generate strong operating cash flow. This will allow us to fund future growth investments and continue to pay down our debt during fiscal year 2027 as we expect to achieve a leverage ratio of approximately 1x adjusted EBITDA by the end of fiscal year 2027.”
Fourth Quarter and Fiscal Year Financial Highlights:
NET INCOME
For the fourth quarter of fiscal 2026, the company reported net income of
For the full year, the Company reported record net income of
REVENUE
For the fourth quarter of fiscal 2026, sales were
For fiscal 2026, sales were
GROSS PROFIT
Gross profit for fiscal 2026 increased
Gross profit for the Water Treatment segment increased
Gross profit for our Food and Health Sciences segment decreased
Gross profit for the Industrial Solutions segment increased
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
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 March 29, 2026, was
INCOME TAXES
Our effective tax rate was approximately
BALANCE SHEET
Our operating cash flow of
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 return on equity. 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 reflects an additional way of viewing aspects of our operations that, when viewed with our GAAP results, provides 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, and charges for the employee stock purchase plan and restricted stock grants, non-recurring items of income or expense, and non-cash earnout related expense. The non-cash earnout related expense adjustment is a new adjustment which was made to better reflect results from operations.
| Adjusted EBITDA | Three Months Ended | Fiscal Year Ended | |||||||||||
| (In thousands) | March 29, 2026 | March 30, 2025 | March 29, 2026 | March 30, 2025 | |||||||||
| Net income (GAAP) | $ | 15,463 | $ | 16,327 | $ | 81,548 | $ | 84,345 | |||||
| Interest expense, net | 2,972 | 1,526 | 13,507 | 5,432 | |||||||||
| Income tax expense | 4,461 | 6,095 | 27,792 | 30,038 | |||||||||
| Amortization of intangibles | 5,494 | 3,553 | 21,292 | 12,764 | |||||||||
| Depreciation expense | 8,085 | 7,027 | 31,250 | 27,184 | |||||||||
| Non-cash compensation expense | 2,135 | 1,476 | 8,573 | 6,498 | |||||||||
| Non-recurring acquisition expense | 18 | 649 | 1,239 | 1,229 | |||||||||
| Non-cash earnout related expense | $ | (1,410 | ) | $ | 342 | $ | (6,177 | ) | $ | 1,375 | |||
| Adjusted EBITDA | $ | 37,218 | $ | 36,995 | $ | 179,024 | $ | 168,865 | |||||
Beginning with the Q4 and fiscal 2026 earnings release, we are including a return on equity. We define return on equity as net income divided by average shareholders' equity.
| Return on Equity | |||
| ($ in thousands) | Fiscal Year Ended March 29, 2026 | ||
| Net income (GAAP) | $ | 81,548 | |
| Shareholders' equity at beginning of period | $ | 460,292 | |
| Shareholders' equity at end of period | 534,009 | ||
| Average shareholders' equity | $ | 497,151 | |
| Return on equity | 16.4 | % | |
| HAWKINS, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In thousands, except share and per-share data) | ||||||||||||||||
| Three Months Ended | Fiscal Year Ended | |||||||||||||||
| March 29, 2026 | March 30, 2025 | March 29, 2026 | March 30, 2025 | |||||||||||||
| (unaudited) | ||||||||||||||||
| Sales | $ | 265,910 | $ | 245,318 | $ | 1,083,696 | $ | 974,431 | ||||||||
| Cost of sales | (211,673 | ) | (193,081 | ) | (838,641 | ) | (748,893 | ) | ||||||||
| Gross profit | 54,237 | 52,237 | 245,055 | 225,538 | ||||||||||||
| Selling, general and administrative expenses | (30,773 | ) | (27,662 | ) | (123,762 | ) | (106,364 | ) | ||||||||
| Operating income | 23,464 | 24,575 | 121,293 | 119,174 | ||||||||||||
| Interest expense, net | (2,972 | ) | (1,526 | ) | (13,507 | ) | (5,432 | ) | ||||||||
| Other income (expense) | (568 | ) | (627 | ) | 1,554 | 641 | ||||||||||
| Income before income taxes | 19,924 | 22,422 | 109,340 | 114,383 | ||||||||||||
| Income tax expense | (4,461 | ) | (6,095 | ) | (27,792 | ) | (30,038 | ) | ||||||||
| Net income | $ | 15,463 | $ | 16,327 | $ | 81,548 | $ | 84,345 | ||||||||
| Weighted average number of shares outstanding-basic | 20,751,747 | 20,728,528 | 20,736,815 | 20,803,872 | ||||||||||||
| Weighted average number of shares outstanding-diluted | 20,870,810 | 20,848,118 | 20,861,860 | 20,936,502 | ||||||||||||
| Basic earnings per share | $ | 0.75 | $ | 0.79 | $ | 3.93 | $ | 4.05 | ||||||||
| Diluted earnings per share | $ | 0.74 | $ | 0.78 | $ | 3.91 | $ | 4.03 | ||||||||
| HAWKINS, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands, except share and per-share data) | ||||||
| March 29, 2026 | March 30, 2025 | |||||
| ASSETS | ||||||
| CURRENT ASSETS: | ||||||
| Cash and cash equivalents | $ | 3,914 | $ | 5,103 | ||
| Trade accounts receivables, net | 139,796 | 131,795 | ||||
| Inventories | 78,199 | 83,512 | ||||
| Income taxes receivable | 891 | 2,864 | ||||
| Prepaid expenses and other current assets | 8,665 | 7,417 | ||||
| Total current assets | 231,465 | 230,691 | ||||
| PROPERTY, PLANT, AND EQUIPMENT: | ||||||
| Land | 21,223 | 18,679 | ||||
| Buildings and improvements | 193,210 | 163,913 | ||||
| Machinery and equipment | 175,495 | 150,981 | ||||
| Transportation equipment | 89,220 | 78,064 | ||||
| Office furniture and equipment | 10,514 | 9,316 | ||||
| 489,662 | 420,953 | |||||
| Less accumulated depreciation | 223,406 | 195,667 | ||||
| Net property, plant, and equipment | 266,256 | 225,286 | ||||
| OTHER ASSETS: | ||||||
| Right-of-use assets | 16,840 | 13,449 | ||||
| Goodwill | 223,042 | 135,409 | ||||
| Intangible assets, net | 232,887 | 150,121 | ||||
| Deferred compensation plan assets | 12,812 | 11,185 | ||||
| Other assets | 2,988 | 3,907 | ||||
| Total other assets | 488,569 | 314,071 | ||||
| Total assets | $ | 986,290 | $ | 770,048 | ||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
| CURRENT LIABILITIES: | ||||||
| Accounts payable — trade | $ | 59,835 | $ | 61,195 | ||
| Accrued payroll and employee benefits | 20,092 | 19,659 | ||||
| Short-term lease liabilities | 3,000 | 2,900 | ||||
| Contract liability | 1,580 | — | ||||
| Accrued real estate taxes | 1,224 | 1,030 | ||||
| Current portion of deferred compensation liability | 1,334 | 538 | ||||
| Container deposits | 1,383 | 1,914 | ||||
| Current portion of earnout liability | 4,529 | — | ||||
| Environmental remediation | 7,700 | 7,700 | ||||
| Other current liabilities | 4,167 | 2,286 | ||||
| Total current liabilities | 104,844 | 97,222 | ||||
| LONG-TERM LIABILITIES: | ||||||
| Long-term debt | 244,000 | 149,000 | ||||
| Long-term lease liabilities | 14,457 | 10,920 | ||||
| Pension withdrawal liability | 2,763 | 3,155 | ||||
| Deferred income taxes | 25,110 | 22,356 | ||||
| Deferred compensation liability | 14,850 | 13,132 | ||||
| Earnout liability | 44,898 | 12,604 | ||||
| Other long-term liabilities | 1,359 | 1,367 | ||||
| Total long-term liabilities | 347,437 | 212,534 | ||||
| Total liabilities | 452,281 | 309,756 | ||||
| COMMITMENTS AND CONTINGENCIES | ||||||
| SHAREHOLDERS’ EQUITY: | ||||||
| Common shares; authorized: 60,000,000 shares of | 208 | 207 | ||||
| Additional paid-in capital | 32,678 | 24,094 | ||||
| Retained earnings | 500,142 | 434,259 | ||||
| Accumulated other comprehensive income | 981 | 1,732 | ||||
| Total shareholders’ equity | 534,009 | 460,292 | ||||
| Total liabilities and shareholders’ equity | $ | 986,290 | $ | 770,048 | ||
| HAWKINS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In thousands) | ||||||||
| Fiscal Year Ended | ||||||||
| March 29, 2026 | March 30, 2025 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 81,548 | $ | 84,345 | ||||
| Reconciliation to cash flows: | ||||||||
| Depreciation and amortization | 52,542 | 39,948 | ||||||
| Change in fair value of earnout liability | (6,177 | ) | 1,369 | |||||
| Operating leases | 3,982 | 3,475 | ||||||
| Gain on deferred compensation assets | (1,554 | ) | (641 | ) | ||||
| Deferred income taxes | 3,053 | 461 | ||||||
| Stock compensation expense | 8,573 | 6,498 | ||||||
| Gain from asset disposals | (202 | ) | (61 | ) | ||||
| Other, net | 179 | 87 | ||||||
| Changes in operating accounts (using) providing cash, net of acquisitions: | ||||||||
| Trade receivables | (2,467 | ) | (11,230 | ) | ||||
| Inventories | 10,053 | (6,572 | ) | |||||
| Accounts payable | (5,841 | ) | 2,445 | |||||
| Accrued liabilities | 2,195 | 476 | ||||||
| Lease liabilities | (3,775 | ) | (3,468 | ) | ||||
| Income taxes | 2,071 | (4,807 | ) | |||||
| Other, net | 147 | (1,229 | ) | |||||
| Net cash provided by operating activities | 144,327 | 111,096 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Additions to property, plant, and equipment | (58,239 | ) | (41,096 | ) | ||||
| Acquisitions | (167,108 | ) | (87,400 | ) | ||||
| Proceeds from asset disposals | 1,248 | 544 | ||||||
| Net cash used in investing activities | (224,099 | ) | (127,952 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Cash dividends paid | (15,665 | ) | (14,635 | ) | ||||
| ESPP shares issued | 3,040 | 2,658 | ||||||
| Shares surrendered for payroll taxes | (3,028 | ) | (2,541 | ) | ||||
| Shares repurchased | — | (20,676 | ) | |||||
| Payments for debt issuance costs | (764 | ) | — | |||||
| Payments on senior secured revolving loan | (75,000 | ) | (60,000 | ) | ||||
| Borrowings on senior secured revolving loan | 170,000 | 110,000 | ||||||
| Net cash provided by (used in) financing activities | 78,583 | 14,806 | ||||||
| NET DECREASE IN CASH AND CASH EQUIVALENTS | (1,189 | ) | (2,050 | ) | ||||
| CASH AND CASH EQUIVALENTS - beginning of year | 5,103 | 7,153 | ||||||
| CASH AND CASH EQUIVALENTS - end of year | $ | 3,914 | $ | 5,103 | ||||
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION- | ||||||||
| Cash paid during the year for income taxes, net of refunds | $ | 22,685 | $ | 34,386 | ||||
| Cash paid for interest | 13,650 | 5,785 | ||||||
| Noncash investing activities - Capital expenditures in accounts payable | 2,536 | 1,841 | ||||||
| HAWKINS, INC. REPORTABLE SEGMENTS (UNAUDITED) (In thousands) | ||||||||||||||||
| Water Treatment | Food and Health Sciences | Industrial Solutions | Total | |||||||||||||
| Fiscal Year Ended March 29, 2026: | ||||||||||||||||
| Sales | $ | 543,303 | $ | 320,700 | $ | 219,693 | $ | 1,083,696 | ||||||||
| Cost of sales - materials | (327,821 | ) | (233,960 | ) | (174,415 | ) | (736,196 | ) | ||||||||
| Cost of sales - operational overhead | (70,529 | ) | (19,408 | ) | (12,508 | ) | (102,445 | ) | ||||||||
| Gross profit | 144,953 | 67,332 | 32,770 | 245,055 | ||||||||||||
| Selling, general, and administrative expenses | (76,865 | ) | (32,981 | ) | (13,916 | ) | (123,762 | ) | ||||||||
| Operating income | $ | 68,088 | $ | 34,351 | $ | 18,854 | $ | 121,293 | ||||||||
| Fiscal Year Ended March 30, 2025: | ||||||||||||||||
| Sales | $ | 446,489 | $ | 322,560 | $ | 205,382 | $ | 974,431 | ||||||||
| Cost of sales - materials | (259,722 | ) | (231,621 | ) | (160,199 | ) | (651,542 | ) | ||||||||
| Cost of sales - operational overhead | (64,934 | ) | (19,021 | ) | (13,396 | ) | (97,351 | ) | ||||||||
| Gross profit | 121,833 | 71,918 | 31,787 | 225,538 | ||||||||||||
| Selling, general, and administrative expenses | (62,287 | ) | (30,720 | ) | (13,357 | ) | (106,364 | ) | ||||||||
| Operating income | $ | 59,546 | $ | 41,198 | $ | 18,430 | $ | 119,174 | ||||||||
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,” “estimate,” “can,” “could,” “expect,” “intend,” "plan," “may,” “predict,” “should,” "would," 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 30, 2025, 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 |
