Company Overview - Hawkins, Inc. is a leading water treatment and specialty ingredients company founded in 1938, headquartered in Roseville, Minnesota [2] - The company operates 65 facilities across 28 states and employs approximately 1,100 people [2] - In fiscal 2025, Hawkins, Inc. generated $974 million in revenue [2] Dividend Announcement - The Board of Directors declared a quarterly cash dividend of $0.19 per share, payable on February 27, 2026 [1] - Shareholders of record will be those on the books at the close of business on February 13, 2026 [1] - Hawkins, Inc. has consistently paid dividends since 1985, indicating a long-standing commitment to returning value to shareholders [1]

Core Insights - Five years ago, an investment of $1,000 in Hawkins Inc (NASDAQ: HWKN) would have grown to $5,840 today, indicating a significant return on investment [1] Company Performance - Hawkins Inc has demonstrated strong performance over the past five years, outperforming many tech stocks and meme stocks that were popular among investors during the same period [1]

Core Insights - Hawkins Inc has achieved a remarkable 484% return over the past five years, significantly outperforming the S&P 500's 83% return during the same period [2][8] - The company's business model focuses on blending specialty chemicals for water treatment and other industries, emphasizing reliability and essential services rather than disruptive innovation [3][5] Financial Performance - In fiscal 2018, Hawkins reported a loss of $9.2 million, but by 2019, the company returned to profitability [4] - Revenue increased from $597 million in fiscal 2021 to $974 million, while net income grew from $41 million to $84 million, indicating a doubling of earnings [4][8] - Gross margins improved from 20.7% to 23.1%, reflecting enhanced pricing power in a commodity-adjacent business [5][8] Growth Drivers - The acceleration of water infrastructure spending across the U.S. has positioned Hawkins as a key supplier for necessary upgrades [5] - Strategic acquisitions, including WaterSurplus, StillWaters Technology, and Redbird Chemical, have expanded the company's footprint in the water treatment sector [5] - Operational discipline has contributed to margin expansion and overall financial health [5] Recent Developments - Despite strong long-term performance, Hawkins' stock has recently faced challenges, including a 3.3% decline over the past week and trading 18% below its 52-week high [7] - The company missed earnings estimates in October, reporting $1.08 per share against a consensus of $1.23, leading to a 15% drop in stock price that week [7][8] - Water Treatment revenue still grew 21% year-over-year, indicating resilience despite the earnings miss [8]

Core Viewpoint - Hawkins, Inc. is set to release its financial results for the fiscal 2026 third quarter on January 28, 2026, after market close [1] Company Overview - Hawkins, Inc. was founded in 1938 and is a prominent company in water treatment and specialty ingredients, serving various sectors including Water Treatment, Food & Health Sciences, and Industrial Solutions [2] - The company is headquartered in Roseville, Minnesota, and operates 65 facilities across 28 states [2] - In fiscal 2025, Hawkins, Inc. generated $974 million in revenue and employs approximately 1,100 individuals [2]

Core Viewpoint - The comparison between Green Plains Renewable Energy (GPRE) and Hawkins (HWKN) indicates that GPRE is more attractive to value investors due to its stronger earnings estimate revisions and more favorable valuation metrics [1][3][7] Valuation Metrics - GPRE has a forward P/E ratio of 24.56, while HWKN has a forward P/E of 37.14, suggesting GPRE is undervalued compared to HWKN [5] - GPRE's PEG ratio is 0.72, indicating a better growth expectation relative to its price compared to HWKN's PEG ratio of 2.32 [5] - GPRE's P/B ratio is 0.88, significantly lower than HWKN's P/B of 6.18, further supporting GPRE's valuation attractiveness [6] Analyst Outlook - GPRE holds a Zacks Rank of 2 (Buy), reflecting a more favorable analyst outlook due to stronger estimate revision activity compared to HWKN, which has a Zacks Rank of 3 (Hold) [3][7] - The Value grade for GPRE is A, while HWKN has a Value grade of C, indicating GPRE's superior valuation metrics [6]

Core Insights - Hawkins, Inc. has completed the acquisition of Redbird Chemical, enhancing its presence in the Texas market and expanding its Water Treatment business [1][2] Company Overview - Hawkins, Inc. is a leading water treatment and specialty ingredients company, founded in 1938, with a revenue of $974 million in fiscal 2025 and approximately 1,100 employees [3] - The company operates 65 facilities across 28 states, focusing on customer service, quality products, and personalized applications [3] Acquisition Details - The acquisition of Redbird Chemical is viewed as a strategic move to leverage growth opportunities in Texas, particularly within the industrial sector [2] - Hawkins CEO, Patrick H. Hawkins, emphasized the importance of maintaining Redbird's local community connections post-acquisition [3]

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].