ROSEVILLE, Minn., Dec. 03, 2025 (GLOBE NEWSWIRE) -- Hawkins, Inc. (Nasdaq: HWKN), a leading water treatment and specialty ingredients company, has completed the acquisition of the assets of Redbird Chemical, Inc. (“Redbird”). Redbird distributes chemicals to its customers in eastern Texas within both the water treatment and industrial markets. “The acquisition of Redbird Chemical is important as we continue to expand in Texas, and we see opportunities to grow our Water Treatment business through the industr ...

Group 1 - Hawkins, Inc. (HWKN) is experiencing significant activity in the options market, particularly with the Dec 19, 2025 $70.00 Call showing high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to a rally or sell-off [2] - Hawkins currently holds a Zacks Rank 5 (Strong Sell) in the Chemical - Specialty industry, which is in the bottom 28% of the Zacks Industry Rank, indicating a negative outlook [3] Group 2 - Over the past 60 days, no analysts have raised their earnings estimates for Hawkins, while three have lowered their estimates, resulting in a decrease in the Zacks Consensus Estimate from 87 cents to 72 cents per share for the current quarter [3] - The high implied volatility may present a trading opportunity, as options traders often seek to sell premium on options with elevated implied volatility, aiming for the underlying stock to not move as much as expected at expiration [4]

Core Insights - Symrise AG Unsponsored ADR (SYIEY) is currently viewed as a better investment option compared to Hawkins (HWKN) for those seeking undervalued stocks [1][3][7] Valuation Metrics - SYIEY has a forward P/E ratio of 17.76, significantly lower than HWKN's forward P/E of 31.81, indicating that SYIEY may be undervalued [5] - The PEG ratio for SYIEY is 1.19, while HWKN's PEG ratio stands at 1.99, suggesting SYIEY has a more favorable growth outlook relative to its valuation [5] - SYIEY's P/B ratio is 2.69 compared to HWKN's P/B of 5.23, further supporting the notion that SYIEY is undervalued [6] Earnings Outlook - SYIEY is experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]

Core Viewpoint - Symrise AG Unsponsored ADR (SYIEY) is currently positioned as a better value opportunity compared to Hawkins (HWKN) based on various financial metrics and rankings [1][3][7] Valuation Metrics - SYIEY has a forward P/E ratio of 17.93, significantly lower than HWKN's forward P/E of 31.74, indicating that SYIEY may be undervalued [5] - The PEG ratio for SYIEY is 1.20, while HWKN's PEG ratio is 1.98, suggesting that SYIEY has a more favorable earnings growth outlook relative to its price [5] - SYIEY's P/B ratio stands at 2.72, compared to HWKN's P/B of 5.22, further supporting the argument that SYIEY is more attractively valued [6] Earnings Estimates - SYIEY holds a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions, while HWKN has a Zacks Rank of 5 (Strong Sell), suggesting a less favorable earnings outlook [3][7] - The stronger estimate revision activity for SYIEY implies an improving earnings outlook compared to HWKN [7] Value Grades - SYIEY has a Value grade of B, while HWKN has a Value grade of D, reflecting the relative undervaluation of SYIEY based on traditional metrics [6]

Sales Performance - Sales for the three months ended September 28, 2025, were $280.4 million, an increase of $33.4 million, or 14%, from $247.0 million in the same period a year ago[75]. - Sales for the six months ended September 28, 2025, were $573.7 million, an increase of $70.8 million, or 14%, from $502.9 million in the same period a year ago[88]. - Water Treatment segment sales increased $26.4 million, or 21%, to $150.9 million for the three months ended September 28, 2025, from $124.5 million in the same period a year ago[76]. - Water Treatment segment sales increased $58.8 million, or 24%, to $300.5 million for the six months ended September 28, 2025, from $241.7 million in the same period a year ago[89]. Profitability - Gross profit for the three months ended September 28, 2025, increased $7.4 million, or 12%, to $67.6 million, or 24% of sales, compared to $60.2 million, or 24% of sales, in the same period a year ago[79]. - Gross profit for the six months ended September 28, 2025, increased $15.1 million, or 12%, to $140.0 million, or 24% of sales, compared to $124.9 million, or 25% of sales, in the same period a year ago[92]. - Gross profit for the Food & Health Sciences segment decreased by $1.1 million, or 3%, to $34.8 million, representing 21% of sales for the six months ended September 28, 2025[94]. - Gross profit for the Industrial Solutions segment increased by $0.4 million, or 2%, to $18.2 million, representing 16% of sales for the six months ended September 28, 2025[95]. - Operating income for the three months ended September 28, 2025, increased $0.2 million, or 1%, to $33.9 million, or 12% of sales, from $33.7 million, or 14% of sales, in the same period a year ago[84]. - Operating income increased by $1.8 million, or 2%, to $75.3 million, representing 13% of sales for the six months ended September 28, 2025[97]. Expenses - Selling, general and administrative expenses increased $7.2 million, or 27%, to $33.7 million, or 12% of sales, for the three months ended September 28, 2025, from $26.5 million, or 11% of sales, in the same period a year ago[83]. - SG&A expenses increased by $13.4 million, or 26%, to $64.7 million, representing 11% of sales for the six months ended September 28, 2025[96]. Interest and Financing - Interest expense increased $2.4 million to $3.8 million for the three months ended September 28, 2025, compared to $1.4 million in the same period a year ago[85]. - Interest expense increased by $4.4 million to $7.1 million for the six months ended September 28, 2025, primarily due to increased borrowings for the acquisition of WaterSurplus[98]. - The effective interest rate on borrowings was 5.1% as of September 28, 2025[109]. Cash Flow - Cash provided by operating activities was $71.0 million for the six months ended September 28, 2025, compared to $59.2 million in the same period a year ago[102]. - Cash used in investing activities was $185.8 million for the six months ended September 28, 2025, including acquisition spending of $162.5 million[103]. - Cash provided by financing activities was $120.1 million for the six months ended September 28, 2025, compared to cash used of $12.5 million in the same period a year ago[104]. Acquisitions and Stock Repurchase - The company completed acquisitions totaling approximately $106 million in annual revenue from nine businesses in fiscal 2025 and the first half of fiscal 2026[68]. - The company has authorized the repurchase of up to 2.6 million shares of common stock, with 731,544 shares remaining available for repurchase as of September 28, 2025[106].

Core Insights - Hawkins, Inc. reported strong growth across all three segments for the second consecutive quarter, with Water Treatment leading the way with over 21% revenue growth [3][7] - The company achieved record second quarter revenue of $280 million and adjusted EBITDA of $50.4 million, driven by a strategy focused on high-margin businesses [3][7] - Net income for the second quarter was $22.6 million, or $1.08 per diluted share, a decrease from $24.1 million, or $1.16 per diluted share, in the same period last year [5][7] Financial Performance - Revenue increased by 14% year-over-year, with sales reaching $280.4 million compared to $247.0 million in the prior year [8][7] - Gross profit rose by 12% to $67.6 million, maintaining a gross margin of 24% [12][7] - Adjusted EBITDA increased by 9% to $50.4 million, with trailing 12-month adjusted EBITDA exceeding $178 million [17][7] Segment Performance - Water Treatment segment sales grew by 21% to $150.9 million, attributed to $23 million from acquired businesses and increased organic sales [9][7] - Food & Health Sciences segment sales increased by 2% to $72.9 million, driven by higher sales volumes in agricultural and health products [10][7] - Industrial Solutions segment sales rose by 11% to $56.6 million, primarily due to increased sales volumes of manufactured products [11][7] Expenses and Income - Selling, general and administrative expenses increased by 27% to $33.7 million, largely due to costs associated with the WaterSurplus acquisition [16][7] - The effective income tax rate remained stable at 27% for the current quarter [18][7] - The company reduced its debt by $20 million during the quarter, with total debt outstanding at $279 million [20][7] Strategic Outlook - The company anticipates continued growth in Water Treatment and Industrial Solutions, while Food and Health Sciences may face flat to declining performance due to competitive pressures [3][7] - Hawkins, Inc. is focused on integrating the WaterSurplus acquisition, which is expected to be accretive in fiscal 2027 [3][7] - The company plans to maintain its strategy of investing in high-margin businesses and pursuing accretive acquisitions [3][7]

Company Overview - Hawkins, Inc. is a leading water treatment and specialty ingredients company founded in 1938, headquartered in Roseville, Minnesota [2] - The company operates 64 facilities across 28 states and employs approximately 1,100 people [2] - In fiscal 2025, Hawkins, Inc. generated $974 million in revenue [2] Dividend Declaration - The Board of Directors declared a quarterly cash dividend of $0.19 per share, payable on November 28, 2025 [1] - Shareholders of record will be those on the books at the close of business on November 14, 2025 [1] - Hawkins, Inc. has consistently paid dividends since 1985, indicating a stable financial history [1]

Core Viewpoint - The article compares Element Solutions (ESI) and Hawkins (HWKN) to determine which stock is more attractive to value investors [1] Valuation Metrics - ESI has a forward P/E ratio of 17.56, while HWKN has a forward P/E of 38.08 [5] - ESI's PEG ratio is 1.68, indicating a more favorable expected earnings growth rate compared to HWKN's PEG ratio of 2.38 [5] - ESI's P/B ratio is 2.32, significantly lower than HWKN's P/B of 7.24, suggesting ESI is more undervalued [6] Analyst Outlook - ESI currently holds a Zacks Rank of 2 (Buy), indicating an improving earnings estimate revision activity, while HWKN has a Zacks Rank of 3 (Hold) [3][7] - Based on the valuation metrics and analyst outlook, ESI is considered the superior value option at this time [7]

Core Insights - Hawkins, Inc. is set to release its financial results for the fiscal 2026 second quarter on October 29, 2025, after market close [1] - The company generated $974 million in revenue for fiscal 2025 and employs approximately 1,100 people [2] Company Overview - Hawkins, Inc. was founded in 1938 and specializes in water treatment and specialty ingredients [2] - The company operates 64 facilities across 28 states, focusing on customer service, quality products, and personalized applications [2]

Core Viewpoint - Hawkins (HWKN) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive shift in earnings estimates which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [3][5]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, thus affecting stock prices [3]. Business Outlook for Hawkins - The upgrade reflects an improvement in Hawkins' underlying business, suggesting that investors may respond positively by driving the stock price higher [4]. - Hawkins is projected to earn $4.41 per share for the fiscal year ending March 2026, with no year-over-year change, but the Zacks Consensus Estimate has increased by 1% over the past three months [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [6]. - The system maintains a balanced distribution of ratings, ensuring that only the top 20% of stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [8][9].