Core Insights - Hawkins, Inc. (HWKN) shares have increased by 30.5% over the past three months, outperforming the industry's decline of 0.7% and the S&P 500's increase of approximately 6.3% during the same period [1][8] Group 1: Stock Performance - The stock's performance is driven by the growth in Hawkins' Water Treatment division, which has shown a 10% year-over-year revenue increase to a record $245.3 million in the fiscal fourth quarter, supported by a 21% rise in Water Treatment unit sales [3][8] - The Zacks Consensus Estimate for HWKN's fiscal 2026 earnings has risen by 2.6%, while the estimate for the fiscal first quarter has increased by 3.1% in the past 60 days, enhancing investor confidence [5][8] Group 2: Strategic Growth Initiatives - Hawkins' acquisition of Industrial Research Corporation aligns with its growth strategy in central and northern Louisiana, eastern Texas, and southern Arkansas, enhancing market presence [4] - The acquisition of Wofford Water Service has strengthened HWKN's position in Mississippi and facilitated expansion into the southern United States, where its Water Treatment business had previously been limited [4] - Additional acquisitions, including Amerochem assets and WaterSurplus, have further increased Hawkins' presence in the Water Treatment sector [4] Group 3: Market Position and Outlook - The company's cautious pricing strategy to combat cost inflation is supporting its performance and commitment to increasing shareholder value [4] - Hawkins currently holds a Zacks Rank 3 (Hold), indicating a stable outlook within the basic materials sector [9]

Core Insights - Hawkins, Inc. (HWKN) shares reached a new 52-week high of $140.58, closing at $136.78, with a year-over-year gain of 51.6% compared to a 1.2% decline in the industry [1][7] - The company has a market capitalization of approximately $2.8 billion and holds a Zacks Rank 3 (Hold) [2] Growth Drivers - The Water Treatment segment is experiencing rapid growth, with fiscal Q4 revenues increasing by 10% year-over-year to a record $245.3 million, driven by a 21% rise in Water Treatment segment sales [3][7] - Recent acquisitions, including Industrial Research Corporation and Wofford Water Service, are enhancing market presence in key regions such as Louisiana, Texas, Arkansas, and Mississippi, supporting the company's growth strategy [4] - A prudent pricing strategy to combat cost inflation is contributing positively to performance, alongside a commitment to increasing shareholder value [4] Earnings Estimates - The Zacks Consensus Estimate for HWKN's fiscal 2026 earnings has increased by 2.6% over the past 60 days, with an expected year-over-year growth of 8.4%, currently pegged at $4.37 per share [5][7]

Company Overview - Hawkins, Inc. is a leading water treatment and specialty ingredients company founded in 1938, headquartered in Roseville, Minnesota [3] - The company formulates, manufactures, distributes, and blends products for Water Treatment, Food & Health Sciences, and Industrial Solutions customers [3] - Hawkins, Inc. generated $974 million in revenue for fiscal 2025 and employs approximately 1,100 people [3] Conference Participation - Hawkins, Inc. will participate in the CJS Securities 25th Annual New Ideas Summer Conference on July 10, 2025 [1] - The conference will take place at the Metropolis Country Club in White Plains, NY, and will be attended by targeted institutional investors [2] - Each company at the conference will have a presentation slot and will be available for one-on-one meetings with investors [2]

Core Viewpoint - Hawkins, Inc. (HWKN) has experienced a significant share price increase of approximately 31.5% over the past three months, driven by strong performance in its Water Treatment segment and strategic acquisitions [1] Group 1: Stock Performance - HWKN has outperformed its industry over the past year, with shares rising 52.8% compared to the industry's growth of 1.4% [2][7] - The stock's performance is attributed to the company's strategic focus and growth in the Water Treatment segment [7] Group 2: Earnings Growth Prospects - The Zacks Consensus Estimate for Hawkins' earnings for fiscal 2026 is currently $4.37 per share, indicating an expected year-over-year growth of 8.4% [4] - Earnings estimates for HWKN have increased by 2.6% over the past 60 days, reflecting stronger growth expectations [5][7] - The consensus estimate for the fiscal first quarter has also been revised upward by 3.1% during the same period, boosting investor confidence [5] Group 3: Strategic Initiatives - Hawkins is focusing on its Water Treatment segment, which has seen a revenue increase of 10% year-over-year, reaching a record $245.3 million in the fiscal fourth quarter, driven by a 21% sales growth in this segment [8] - Recent acquisitions, including Industrial Research Corporation and Wofford Water Service, align with Hawkins' growth strategy and enhance its market presence in key regions [9] - The company has implemented a pricing strategy to counter cost inflation, which is supporting its financial results and commitment to enhancing shareholder value [9]

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]

Financial Performance Highlights - Hawkins reported record full-year revenue of $9744 million in fiscal year 2025, a 6% increase compared to the prior year[75] - The company achieved a record full-year gross profit of $2255 million, representing a 16% growth over the previous year[75] - Hawkins' diluted earnings per share (EPS) reached a record $403, which is 12% higher than the prior year[75] - Adjusted EBITDA for fiscal year 2025 was a record $1675 million, a 17% increase compared to the trailing twelve-month (TTM) period[75] - The company's sales have grown at a compound annual growth rate (CAGR) of 13% from fiscal year 2020 to 2025[59] Segment Performance - Water Treatment segment sales reached $4465 million in fiscal year 2025[42] - Industrial segment sales were $3825 million in fiscal year 2025[42] - Health & Nutrition segment recorded sales of $1455 million in fiscal year 2025[42] Capital Allocation and Shareholder Returns - Hawkins has consistently paid out dividends since 1985[7] - The company's dividend CAGR is 105%[31] - The dividend per share has increased from $046 in fiscal year 2021 to $070 in fiscal year 2025[29] Strategic Initiatives - The company aims to grow all 51 water treatment facilities and add new locations through acquisitions or greenfield expansion[47] - Hawkins intends to grow its pharmaceutical, food, and agricultural business through new product development and investments[47] - The company focuses on growing specialty branded products with technical expertise[47]

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].