ROSEVILLE, Minn., Sept. 17, 2025 (GLOBE NEWSWIRE) -- Hawkins, Inc. (Nasdaq: HWKN), a leading water treatment and specialty ingredients company, today announced that it has been named one of America’s Greatest Companies 2025 by Newsweek, a recognition that underscores the company’s continued commitment to excellence, innovation, and service. This recognition adds to a series of notable honors Hawkins has received this year: Great Place to Work® Certified – Recognizing Hawkins’ dedication to fostering an incl ...

Company Overview - Hawkins, Inc. is a leading water treatment and specialty ingredients company founded in 1938, headquartered in Roseville, Minnesota, with 64 facilities across 28 states [3] - The company generated $974 million in revenue for fiscal 2025 and employs approximately 1,100 people [3] Acquisition Details - Hawkins, Inc. has completed the acquisition of StillWaters Technology, Inc., which distributes water treatment chemicals and equipment in Alabama [1] - This acquisition is part of Hawkins' strategy to expand its customer base in the southern U.S. and enhance its water treatment business [2] Strategic Intent - The CEO of Hawkins, Patrick H. Hawkins, emphasized that the acquisition will help build a larger customer base in Alabama and demonstrates the company's ability to execute its growth strategy [2] - Hawkins intends to maintain the strong community connections established by StillWaters, indicating a focus on local engagement and integration [3]

Company Overview - Hawkins, Inc. is a leading water treatment and specialty ingredients company founded in 1938, headquartered in Roseville, Minnesota [4] - The company formulates, manufactures, distributes, and blends products for Water Treatment, Food & Health Sciences, and Industrial Solutions customers [4] - Hawkins, Inc. generated $974 million in revenue for fiscal 2025 and employs approximately 1,100 people [4] Upcoming Conference Participation - Patrick Hawkins, CEO, and Jeff Oldenkamp, CFO, will participate in Sidoti & Company's small cap virtual investor conference on September 17, 2025 [1] - The conference is attended by nearly 500 North American institutional investment firms interested in small-cap companies [2] - Hawkins management will be available for individual one-on-one virtual meetings during the conference [2]

Group 1: Hawkins (HWKN) - Hawkins distributes, blends, and manufactures bulk and specialty chemicals and health and nutrition products across various industries [1] - The company has a Zacks Rank of 1 (Strong Buy) and a 0.9% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - Hawkins' shares increased by 35.3% over the last three months, outperforming the S&P 500's gain of 7.9%, and holds a Momentum Score of A [2] Group 2: Talen Energy Corporation (TLN) - Talen Energy owns and operates power infrastructure primarily in the United States [2] - The company has a Zacks Rank of 1 and a 7.6% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [2] - Talen Energy's shares gained 52.6% over the last three months, significantly exceeding the S&P 500's gain of 7.9%, and has a Momentum Score of B [3] Group 3: Magic Software Enterprises (MGIC) - Magic Software develops, markets, and supports software development and deployment technology for enterprises [4] - The company has a Zacks Rank of 1 and a 10.1% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [4] - Magic Software's shares rose by 28.3% over the last three months, again outperforming the S&P 500's gain of 7.9%, and holds a Momentum Score of B [5]

Core Insights - Hawkins (NASDAQ: HWKN) has experienced nearly 70% capital gains in less than six months, despite previous assessments indicating it was too expensive [1]. Group 1: Company Performance - Hawkins has shown significant growth in its stock value, indicating strong market performance [1]. Group 2: Investment Opportunities - The investing group "Value In Corporate Events" focuses on identifying opportunities in IPOs, mergers & acquisitions, earnings reports, and corporate capital allocation changes, covering 10 major events monthly [1].

Company Overview - Hawkins, Inc. is a leading water treatment and specialty ingredients company founded in 1938, headquartered in Roseville, Minnesota [3] - The company operates 64 facilities across 28 states and employs approximately 1,100 people [3] - In fiscal 2025, Hawkins, Inc. generated $974 million in revenue [3] Upcoming Conference Participation - The company will participate in Seaport Research Partners' 14th Annual Summer Investor Conference, which will be held virtually from August 19 to August 20, 2025 [2] - CEO Patrick Hawkins and CFO Jeff Oldenkamp will represent the company, with Hawkins scheduled to speak on August 20, 2025 [1][2] - The conference is expected to attract over 500 institutional buy-side investors and will include one-on-one and small group meetings [2]

Core Insights - FUCHS SE - Unsponsored ADR (FUPBY) is currently viewed as a more attractive investment option compared to Hawkins (HWKN) based on various valuation metrics and earnings outlook [3][7]. Valuation Metrics - FUPBY has a forward P/E ratio of 16.92, significantly lower than HWKN's forward P/E of 36.97, indicating that FUPBY may be undervalued [5]. - The PEG ratio for FUPBY is 1.95, while HWKN's PEG ratio stands at 2.70, suggesting that FUPBY offers better value relative to its expected earnings growth [5]. - FUPBY's P/B ratio is 3.12, compared to HWKN's P/B of 6.84, further highlighting FUPBY's more favorable valuation [6]. Earnings Outlook - FUPBY has experienced stronger estimate revision activity, which is a positive indicator for its earnings outlook compared to HWKN [7]. Value Grades - FUPBY has received a Value grade of B, while HWKN has a Value grade of D, reflecting the overall assessment of their valuation metrics [6].

Core Insights - Hawkins reported record GAAP revenue and gross profit for Q1 FY2026, but fell short of analyst expectations for both revenue and earnings per share [1][2] - Actual GAAP revenue was $293.3 million, below the consensus estimate of $302.3 million, while GAAP earnings per share were $1.40 compared to the estimated $1.45 [1][2] - The company achieved a 15% year-over-year increase in GAAP revenue, with the Water Treatment segment being a key growth driver [1][5] Financial Performance - Q1 FY2026 GAAP revenue was $293.3 million, a 14.6% increase from $255.9 million in Q1 FY2025 [2] - GAAP earnings per share were $1.40, reflecting a 1.4% increase from $1.38 in the same quarter last year [2] - Adjusted EBITDA rose 13.2% to $57.6 million, while gross profit increased by 11.9% to $72.4 million [2][8] - Net income for the quarter was $29.2 million, a slight increase of 1.0% from $28.9 million in Q1 FY2025 [2] Business Segments Overview - The Water Treatment segment led growth with sales increasing 28% year-over-year to $149.6 million, driven by the WaterSurplus acquisition [5][6] - The Food & Health Sciences segment reported GAAP revenue of $89.2 million, up 5% year-over-year, but gross profit fell 3% due to competitive pricing pressures [6] - Industrial Solutions saw modest revenue growth of 2%, reaching $54.5 million, but faced profitability pressures with operating income declining [7] Strategic Focus and Future Outlook - Hawkins is focusing on the Water Treatment segment, pursuing acquisitions to enhance operations and capture higher-margin business [4] - The company expects all segments to achieve profitable growth in FY2026 but did not provide specific revenue or profit guidance [10] - Management anticipates an effective annual tax rate of 26% to 27% for FY2026 [10]

分组1 - Hawkins reported quarterly earnings of $1.4 per share, exceeding the Zacks Consensus Estimate of $1.33 per share, and showing a slight decrease from $1.38 per share a year ago, resulting in an earnings surprise of +5.26% [1] - The company achieved revenues of $293.27 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.38% and increasing from $255.88 million year-over-year [2] - Hawkins shares have increased approximately 30.9% year-to-date, significantly outperforming the S&P 500's gain of 8.3% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $1.19 on revenues of $278.75 million, while for the current fiscal year, the estimate is $4.28 on revenues of $1.08 billion [7] - The Zacks Industry Rank indicates that the Chemical - Specialty sector is currently in the bottom 32% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] 分组3 - The estimate revisions trend for Hawkins was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

PART I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company's Q1 FY2026 financial statements reflect significant growth in assets and liabilities due to acquisitions, with sales up 15% to $293.3 million and net income at $29.2 million [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$988.3 million** driven by acquisitions, while liabilities rose to **$503.7 million** due to increased long-term debt Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 29, 2025 | March 30, 2025 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$988,274** | **$769,867** | **+28.4%** | | Goodwill | $218,899 | $135,409 | +61.7% | | Intangible assets, net | $239,975 | $150,121 | +59.9% | | **Total Liabilities** | **$503,702** | **$309,575** | **+62.7%** | | Long-term debt, less current portion | $288,281 | $138,906 | +107.5% | | **Total Shareholders' Equity** | **$484,572** | **$460,292** | **+5.3%** | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Sales increased **14.6%** to **$293.3 million**, but operating income growth was limited to **3.9%** due to higher SG&A expenses Quarterly Income Statement Highlights (in thousands, except per-share data) | Metric | Q1 FY2026 (ended June 29, 2025) | Q1 FY2025 (ended June 30, 2024) | YoY Change | | :--- | :--- | :--- | :--- | | Sales | $293,272 | $255,879 | +14.6% | | Gross Profit | $72,362 | $64,655 | +11.9% | | Operating Income | $41,333 | $39,791 | +3.9% | | Net Income | $29,175 | $28,879 | +1.0% | | Diluted EPS | $1.40 | $1.38 | +1.4% | | Cash Dividends per Share | $0.18 | $0.16 | +12.5% | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to **$31.5 million**, while investing activities used **$164.5 million** primarily for acquisitions, funded by **$142.5 million** in financing Quarterly Cash Flow Summary (in thousands) | Activity | Three Months Ended June 29, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $31,490 | $17,586 | | Net cash used in investing activities | ($164,545) | ($35,804) | | - Acquisitions | ($151,328) | ($25,400) | | Net cash provided by financing activities | $142,454 | $19,952 | | - Proceeds from revolving loan borrowings | $160,000 | $45,000 | | **Net Increase in Cash** | **$9,399** | **$1,734** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail segment realignment, the **$149.9 million** WaterSurplus acquisition, and the **$400 million** credit facility expansion to fund growth - Effective Q1 FY2026, the company realigned its reporting segments to Water Treatment, Food & Health Sciences, and Industrial Solutions to better reflect its business operations[16](index=16&type=chunk)[53](index=53&type=chunk) - On April 25, 2025, the company acquired WaterSurplus for an initial purchase price of approximately **$149.9 million**, plus a potential earnout of up to **$53.7 million**, adding **$82.7 million** to goodwill and **$94.0 million** to identifiable intangible assets[21](index=21&type=chunk) - To fund the WaterSurplus acquisition, the company amended its credit agreement, increasing the senior secured revolving credit facility to **$400.0 million**, maturing on April 25, 2030[43](index=43&type=chunk)[44](index=44&type=chunk) Goodwill by Segment (in thousands) | Segment | Balance at March 30, 2025 | Addition due to acquisitions | Balance at June 29, 2025 | | :--- | :--- | :--- | :--- | | Water Treatment | $83,968 | $83,490 | $167,458 | | Food & Health Sciences | $46,149 | — | $46,149 | | Industrial Solutions | $5,292 | — | $5,292 | | **Total** | **$135,409** | **$83,490** | **$218,899** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses **15%** sales growth driven by acquisitions, limited operating income growth due to higher SG&A, and strong liquidity from an expanded **$400 million** credit facility [Business Acquisitions](index=20&type=section&id=Business%20Acquisitions) The company completed six acquisitions in fiscal 2025 and Q1 FY2026, primarily in Water Treatment, with WaterSurplus being the largest at **~$149.9 million** - Completed six acquisitions in fiscal 2025 and Q1 fiscal 2026, with an aggregate annual revenue of approximately **$102 million**, all within the Water Treatment segment[62](index=62&type=chunk)[63](index=63&type=chunk) - Key acquisitions include WaterSurplus for **~$149.9 million**, Amerochem for **$44.0 million**, and Intercoastal for **$22.0 million**[67](index=67&type=chunk) [Results of Operations](index=21&type=section&id=Results%20of%20Operations) Total sales increased **15%** to **$293.3 million**, led by Water Treatment's **28%** growth, while gross margin declined and SG&A expenses rose **24%** Segment Sales Performance (YoY) | Segment | Q1 FY2026 Sales | YoY Change | | :--- | :--- | :--- | | Water Treatment | $149.6M | +28% | | Food & Health Sciences | $89.2M | +5% | | Industrial Solutions | $54.5M | +2% | | **Total** | **$293.3M** | **+15%** | - Gross profit increased by **$7.7 million (12%)**, but gross margin as a percentage of sales slightly declined to **24.7%** from **25.3%** in the prior year[75](index=75&type=chunk) - SG&A expenses rose by **$6.1 million (24%)**, largely due to **$4.9 million** in added costs from acquired businesses, including **$2.0 million** in amortization and **$0.9 million** in acquisition costs[79](index=79&type=chunk) [Liquidity and Capital Resources](index=23&type=section&id=Liquidity%20and%20Capital%20Resources) Cash increased by **$9.4 million** to **$14.5 million**, with **$31.5 million** from operations and **$150.0 million** net borrowings from the expanded **$400 million** credit facility - Cash provided by operations was **$31.5 million**, a significant increase from **$17.6 million** in the prior-year period[85](index=85&type=chunk) - Net borrowings were **$150.0 million**, primarily to fund the acquisition of WaterSurplus[87](index=87&type=chunk) - The company did not repurchase any common stock during the quarter ended June 29, 2025[87](index=87&type=chunk)[89](index=89&type=chunk) - The revolving credit facility was increased to **$400.0 million** and matures on April 25, 2030, with the company in compliance with all debt covenants as of June 29, 2025[90](index=90&type=chunk)[95](index=95&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces commodity price and interest rate risks, mitigating the latter with a **$60 million** interest rate swap, with minimal foreign currency exposure - The company is subject to risk from commodity chemical price volatility but attempts to pass cost changes to customers[101](index=101&type=chunk) - To manage interest rate risk on its variable-rate debt, the company uses a **$60.0 million** interest rate swap agreement that terminates on May 1, 2027[102](index=102&type=chunk) - A hypothetical **25-basis point** change in interest rates on unhedged variable-rate debt would change annual interest expense by about **$0.1 million**[102](index=102&type=chunk) [Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 29, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period, June 29, 2025[104](index=104&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[105](index=105&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material pending legal proceedings beyond routine litigation incidental to its business - There are no material pending legal proceedings to which the company is a party[107](index=107&type=chunk) [Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have been reported from the fiscal 2025 Form 10-K disclosure - No material changes to risk factors from the fiscal 2025 Form 10-K have been reported[108](index=108&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=26&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares were repurchased under the plan this quarter, with **731,544** shares remaining available for future repurchases - No shares were repurchased under the company's publicly announced plan during the quarter[109](index=109&type=chunk) - A total of **731,544** shares remain available for repurchase under the existing program as of June 29, 2025[109](index=109&type=chunk) [Exhibits](index=27&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including CEO/CFO certifications and the amended credit agreement incorporated by reference - Exhibits filed include CEO and CFO certifications (31.1, 31.2, 32.1, 32.2) and the iXBRL formatted financial statements (101)[113](index=113&type=chunk) - The Joinder, Consent and Second Amendment to the Credit Agreement dated April 25, 2025, is incorporated by reference[113](index=113&type=chunk)[114](index=114&type=chunk)