ROSEVILLE, Minn, June 11, 2025 (GLOBE NEWSWIRE) -- – Hawkins, Inc. (Nasdaq: HWKN), a leading water treatment and specialty ingredients company, today announced that it will participate in the CJS Securities 25th Annual New Ideas Summer Conference on July 10, 2025. The conference will be held at the Metropolis Country Club in White Plains, NY. The conference will be attended by a group of targeted institutional investors, where each company in attendance will have a presentation slot and will be available fo ...

Key Takeaways HWKN stock has surged 52.8% in a year, sharply outperforming its industry's 1.4% growth. Earnings estimates for HWKN's fiscal 2026 rose 2.6% in 60 days, reflecting stronger growth expectations. Hawkins' Water Treatment segment is poised for strong growth on strategic acquisitions.Hawkins, Inc.’s (HWKN) shares have rallied roughly 31.5% over the past three months. It is benefiting from the strength in its Water Treatment segment and strategic acquisitions.We are positive about HWKN’s prospect ...

Core Points - Hawkins, Inc. will participate in the Wells Fargo Industrials Conference on June 10, 2025 [1][2] - The conference will take place at the Loews Chicago from June 10 to June 12, 2025, featuring fireside chats and one-on-one meetings with senior executives [2] - Hawkins, Inc. generated $974 million in revenue for fiscal 2025 and employs approximately 1,100 people [3] Company Overview - Hawkins, Inc. was founded in 1938 and specializes in water treatment and specialty ingredients [3] - The company formulates, manufactures, distributes, and blends products for various sectors including Water Treatment, Food & Health Sciences, and Industrial Solutions [3] - Hawkins, Inc. is headquartered in Roseville, Minnesota, and operates 63 facilities across 28 states [3]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging due to inherent risks and volatility [1] Group 1: Company Overview - Hawkins (HWKN) is identified as a promising growth stock, currently recommended based on its favorable Growth Score and top Zacks Rank [2] - The company has a historical EPS growth rate of 23.3%, with projected EPS growth of 12.5% this year, significantly outperforming the industry average of 5.6% [4] Group 2: Financial Metrics - Hawkins exhibits a year-over-year cash flow growth of 16%, surpassing the industry average of 6%, which is crucial for its expansion without relying on external funding [5] - The historical annualized cash flow growth rate for Hawkins over the past 3-5 years is 18.3%, compared to the industry average of 4.1% [6] Group 3: Earnings Estimates - There is a positive trend in earnings estimate revisions for Hawkins, with the current-year earnings estimates increasing by 2.3% over the past month [7] - Hawkins has achieved a Growth Score of B and a Zacks Rank 1 due to these favorable earnings estimate revisions [8]

Company Performance - Hawkins reported quarterly earnings of $0.78 per share, exceeding the Zacks Consensus Estimate of $0.74 per share, and up from $0.66 per share a year ago, representing an earnings surprise of 5.41% [1] - The company posted revenues of $245.32 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 6.62%, compared to $223.02 million in the same quarter last year [2] - Over the last four quarters, Hawkins has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Future Outlook - The sustainability of Hawkins' stock price movement will depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.34 on revenues of $268.31 million, and for the current fiscal year, it is $4.54 on revenues of $1.05 billion [7] - The estimate revisions trend for Hawkins is currently favorable, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Chemical - Specialty industry, to which Hawkins belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can materially affect stock performance [5][8]

Nasdaq: HWKN FISCAL 2025, QUARTER 4 Investor Presentation Published: May 14, 2025 FORWARD-LOOKING STATEMENTS The information contained in this presentation includes "forward-looking statements" which reflect management's expectations or beliefs as of the date of this presentation. Hawkins, Inc. cautions that actual future results could differ materially from the forward-looking statements in this presentation. Actual results may be affected by many important factors including risks and uncertainties identif ...

Financial Performance - Fiscal 2025 sales were $974.4 million, an increase of $55.2 million, or 6%, from fiscal 2024 sales of $919.2 million[118]. - Gross profit for fiscal 2025 was $225.5 million, an increase of $31.9 million, or 16%, from $193.6 million in fiscal 2024[129]. - Diluted earnings per share (EPS) for fiscal 2025 were $4.03, an increase of $0.44, or 12%, from fiscal 2024[118]. - Operating income for fiscal 2025 increased by $15.2 million, or 15%, to $119.2 million[134]. Segment Performance - The Water Treatment segment saw sales increase by $83.2 million, or 23%, to $446.5 million in fiscal 2025[126]. - The Industrial segment experienced a sales decrease of $27.0 million, or 7%, to $382.5 million in fiscal 2025[127]. - Health and Nutrition segment sales decreased by $0.9 million, or 1%, to $145.5 million in fiscal 2025[128]. Expenses and Cash Flow - Selling, general and administrative expenses increased by $16.8 million, or 19%, to $106.4 million in fiscal 2025[133]. - Cash provided by operating activities in fiscal 2025 was $111.1 million, down from $159.5 million in fiscal 2024[140]. Acquisitions and Investments - The company acquired four businesses in fiscal 2025, contributing approximately $67 million in annual revenue[122]. - Cash used in investing activities was $128.0 million in fiscal 2025, up from $122.5 million in fiscal 2024, with acquisition spending for the Water Treatment group at $87.4 million in fiscal 2025 compared to $83.5 million in fiscal 2024[141]. - The fair value of the earnout liability related to the Water Solutions acquisition is based on achieving certain targets payable three years after acquisition, amounting to $12.6 million[156]. Financing and Capital Structure - Cash used in financing activities decreased to $14.8 million in fiscal 2025 from $37.4 million in fiscal 2024, including net debt borrowings of $50.0 million in fiscal 2025[142]. - The cash balance was $5.1 million at March 30, 2025, a decrease of $2.1 million compared to March 31, 2024, primarily due to cash expended for acquisitions and capital expenditures[143]. - The company has a Revolving Loan Facility totaling $400.0 million, with $149 million outstanding as of March 30, 2025[144]. - The effective interest rate on borrowings was 4.3% as of March 30, 2025, with a Term SOFR margin between 1.0% and 1.85% based on the leverage ratio[145]. - A 25-basis point change in interest rates on the variable-rate portion of debt not covered by the interest rate swap could potentially affect annual interest expense by approximately $0.2 million[158]. Future Outlook - Total capital expenditures were $41.1 million in fiscal 2025, with an anticipated increase to approximately $60 million for fiscal 2026[153]. - The company plans to pursue acquisitions or strategic relationships to expand its existing businesses and customer base[151]. - The company is in compliance with all covenants of the Credit Agreement as of March 30, 2025, and expects to remain compliant for the next 12 months[148].

Core Insights - Hawkins, Inc. reported record sales, gross margin, operating income, EPS, and adjusted EBITDA for fiscal year 2025, marking a continued growth trajectory with a focus on sustained performance [4][5][7]. Fourth Quarter Fiscal Year 2025 Highlights - Fourth quarter sales reached $245.3 million, a 10% increase from the same quarter last year, driven by a 21% growth in the Water Treatment segment [5][8]. - Gross profit for the fourth quarter was $52.2 million, up 15% year-over-year, contributing to an operating income of $24.6 million, a 22% increase [5][7]. - Diluted EPS for the fourth quarter was $0.78, an 18% increase compared to the prior year [5][7]. - Adjusted EBITDA for the fourth quarter was $36.7 million, reflecting an 18% increase from the same period last year [5][16]. Full-Year Fiscal Year 2025 Highlights - Total annual sales were $974.4 million, a 6% increase from the previous fiscal year, with the Water Treatment segment achieving a 23% sales growth [5][9]. - Annual gross profit reached $225.5 million, a 16% increase year-over-year, leading to an operating income of $119.2 million, a 15% increase [5][10]. - Record diluted EPS for the year was $4.03, which is $0.44 or 12% higher than fiscal 2024 [5][7]. - Adjusted EBITDA for the full year was $167.5 million, a 17% increase from fiscal 2024 [5][16]. Executive Commentary - The CEO highlighted the company's disciplined M&A strategy, contributing to the growth of the Water Treatment segment, which is now the largest segment [4]. - The company completed four acquisitions during the fiscal year and has made a total of 13 acquisitions over the last five years [4]. - Looking ahead, the company anticipates revenue to exceed $1 billion for the first time in its history in fiscal 2026, with expectations for EPS growth, albeit at a slower rate due to increased interest and amortization expenses [4][6]. Financial Performance - The Water Treatment segment generated $446.5 million in sales for the year, a 23% increase from $363.3 million in the previous year [9]. - The Industrial segment saw a decline in sales to $382.5 million, down 7% from $409.5 million [9]. - Health and Nutrition segment sales were $145.5 million, a slight decrease of 1% from the previous year [9]. Balance Sheet and Cash Flow - At the end of fiscal 2025, the company reported net debt of $143.9 million with a leverage ratio of 0.86x adjusted EBITDA [5][18]. - Operating cash flow for the year was $111.1 million, with significant investments in acquisitions and capital expenditures [5][18]. - The company paid cash dividends of $0.70 per share, marking the 40th consecutive year of dividend payments, reflecting an 11% increase over the prior year [5][18].

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps investors identify stocks with momentum by focusing on key metrics [2] Group 2: Company Analysis - Hawkins (HWKN) - Hawkins currently holds a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance [3][4] - Over the past week, HWKN shares increased by 2.36%, while the Zacks Chemical - Specialty industry rose by 2.56% [6] - In the last month, HWKN's shares rose by 11.02%, outperforming the industry's 1.83% [6] - Over the past quarter, HWKN shares increased by 3.88%, and over the last year, they surged by 54.74%, compared to the S&P 500's -6.91% and 13.12% respectively [7] Group 3: Trading Volume and Earnings Outlook - HWKN's average 20-day trading volume is 109,595 shares, which is a useful indicator of price movement and market interest [8] - In the past two months, one earnings estimate for HWKN increased, raising the consensus estimate from $4.00 to $4.01 [10] - For the next fiscal year, one estimate has also moved upwards, with no downward revisions noted [10] Group 4: Conclusion - Given the positive momentum indicators and earnings outlook, HWKN is positioned as a strong buy and a promising investment opportunity [12]

Company Overview - Hawkins, Inc. is a leading water treatment and specialty ingredients company founded in 1938, headquartered in Roseville, Minnesota [2] - The company operates 63 facilities across 28 states and employs approximately 1,100 people [2] - In fiscal 2024, Hawkins, Inc. generated $919 million in revenue [2] Financial Results Announcement - Hawkins, Inc. is set to release its financial results for the fourth quarter and fiscal year ended March 30, 2025, after market close on May 14, 2025, at approximately 4:10 p.m. Eastern Time [1]