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)

Financial Performance - Hawkins' 2025 revenue reached $9744 million[10] - The company's 5-year EPS CAGR is 25%[10] - Net income in fiscal year 2025 was $843 million, with a 24% CAGR[67] - Adjusted EBITDA in fiscal year 2025 was $1675 million, with a 21% CAGR[69] - Diluted EPS in fiscal year 2025 was $403, with a 25% CAGR[74] - Q1 Fiscal Year 2026 revenue reached a record $2933 million, a 15% increase year-over-year[81] - Q1 Fiscal Year 2026 Adjusted EBITDA reached a record $574 million, a 13% increase year-over-year[81] Business Segments - Water Treatment accounted for 46% of revenue, totaling $4465 million[15] - Food & Health Sciences accounted for 33% of revenue, totaling $3225 million[15] - Industrial Solutions accounted for 21% of revenue, totaling $2054 million[15] Capital Allocation - The company has consistently returned capital to shareholders through dividends and share repurchases[32] - Hawkins has a track record of 40 consecutive years of cash dividends[33]

Core Insights - Hawkins, Inc. reported record revenue of $293 million for the first quarter of fiscal 2026, marking a 15% increase year-over-year, with all three reporting segments contributing to this growth [3][6][7] - The Water Treatment segment experienced significant growth, with a 28% increase in sales, driven by both acquired businesses and improved pricing [3][8] - The company successfully completed the acquisition of WaterSurplus, enhancing its capabilities in water treatment and positioning for future growth [3][6][19] Financial Performance - Net income for the first quarter was $29.2 million, or $1.40 per diluted share, compared to $28.9 million, or $1.38 per diluted share in the prior year [5][6] - Adjusted EBITDA increased by 13% to $57.6 million, with trailing twelve-month adjusted EBITDA exceeding $170 million [6][17] - Gross profit rose by 12% to $72.4 million, maintaining a gross margin of 25% [6][11] Segment Performance - Water Treatment segment sales increased by $32.4 million, or 28%, to $149.6 million [8][32] - Food & Health Sciences segment sales grew by $4.1 million, or 5%, to $89.2 million, with agricultural products driving the increase despite competitive pricing pressures [9][32] - Industrial Solutions segment sales saw a modest increase of $0.9 million, or 2%, to $54.5 million, primarily due to higher sales volumes [10][32] Expenses and Balance Sheet - Selling, general and administrative expenses rose by 24% to $31 million, largely due to costs associated with the WaterSurplus acquisition [15][32] - The company's leverage ratio at the end of the first quarter was 1.6x, reflecting a strong balance sheet despite increased debt from the acquisition [3][19] - Working capital increased by $22 million compared to the end of fiscal 2025, driven by higher inventories and receivables [19][27]

Hawkins, Inc. was founded in 1938 and is a leading water treatment and specialty ingredients company that formulates, manufactures, distributes and blends products for its Water Treatment, Food & Health Sciences and Industrial Solutions customers. Headquartered in Roseville, Minnesota, the Company has 64 facilities in 28 states and creates value for its customers through superb customer service and support, quality products and personalized applications. Hawkins, Inc. generated $974 million of revenue in fi ...

Exploits Discovery Advances Hawkins Gold Project and Strengthens Technical Team with Appointment of Dr. Natalie Pietrzak-Renaud July 29, 2025 6:00 AM EDT | Source: Exploits Discovery Corp. Toronto, Ontario--(Newsfile Corp. - July 29, 2025) - Exploits Discovery Corp. (CSE: NFLD) (OTCQB: NFLDF) (FSE: 634) ("Exploits" or the "Company") is pleased to announce progress on its exploration initiatives at the Hawkins Gold Project in Northern Ontario, including the completion of a project site visit, drill permit ap ...

Core Insights - New analyst coverage is essential in navigating heightened economic uncertainty, providing updated insights into company fundamentals and risk exposures [2][3] - Recent initiations of coverage on companies like KALA BIO, Graham Corporation, Arq, and Hawkins reflect the growing need for sharper analysis amid inflationary pressures and weakening demand [3][10] Analyst Coverage Importance - Analysts possess specialized knowledge that offers critical insights into a company's financial health, growth potential, and industry trends, which are often difficult for individual investors to acquire independently [4] - New coverage typically indicates a higher investor inclination towards a stock, as it suggests that the company holds potential value [5][7] Value Creation by Analysts - Analysts create value for companies by initiating coverage, acting as intermediaries with extensive access to relevant data, which helps mitigate inefficiencies in the market [6] - Stocks chosen for new coverage usually reflect a positive outlook envisioned by analysts, often leading to more favorable ratings compared to continuously covered stocks [7][8] Market Impact of New Coverage - New analyst coverage can lead to immediate stock price volatility, with positive ratings attracting bullish sentiment and driving share prices higher, while negative ratings may trigger sell-offs [9] - Favorable coverage from multiple analysts can enhance investor confidence, leading to sustained upward momentum in stock valuations [9] Recent Stock Performances - KALA BIO shares increased by 96.1% over the past three months, with a narrowing loss per share estimate for 2025 [10][15] - Graham Corporation shares rose by 75.2% in the same period, with an increasing EPS estimate for fiscal 2026 [10][16] - Arq shares gained 57%, with an unchanged EPS estimate indicating improvement from the previous year's loss [10][17] - Hawkins shares saw a 25.6% increase, despite an unchanged EPS estimate indicating a year-over-year decline [10][18] Screening Criteria for Investment - Stocks with increased analyst coverage and improving average ratings are prioritized, alongside other parameters such as price and average daily volume [12][13]

Core Viewpoint - Element Solutions (ESI) is currently positioned as a more attractive investment option compared to Hawkins (HWKN) based on various valuation metrics and earnings outlook [1][3][7]. Valuation Metrics - ESI has a forward P/E ratio of 16.98, significantly lower than HWKN's forward P/E of 36.02, indicating that ESI may be undervalued [5]. - The PEG ratio for ESI is 1.75, while HWKN's PEG ratio stands at 2.63, suggesting that ESI offers better value relative to its expected earnings growth [5]. - ESI's P/B ratio is 2.32 compared to HWKN's P/B of 7.16, further highlighting ESI's relative undervaluation [6]. Earnings Outlook - ESI is experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]. - ESI holds a Zacks Rank of 2 (Buy), while HWKN has a Zacks Rank of 3 (Hold), indicating a stronger earnings improvement for ESI [3]. Value Grades - ESI has a Value grade of B, whereas HWKN has a Value grade of D, reflecting ESI's superior valuation metrics [6].

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] Upcoming Financial Results - Hawkins, Inc. is set to release its financial results for the first quarter of fiscal 2026, which ended on June 29, 2025, after market close on July 30, 2025, at approximately 4:10 p.m. Eastern Time [1]

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] Upcoming Financial Results - Hawkins, Inc. is set to release its financial results for the first quarter of fiscal 2026, which ended on June 29, 2025, after market close on July 30, 2025, at approximately 4:10 p.m. Eastern Time [1]

Core Insights - Hawkins, Inc. has completed the acquisition of PhillTech, LLC, enhancing its water treatment business and market position [1][8] - The company reported a 10% year-over-year revenue increase to $245.3 million in the fiscal fourth quarter of 2024, driven by a 21% growth in the Water Treatment segment [2] - Recent acquisitions, including Industrial Research Corporation and Wofford Water Service, align with Hawkins' growth strategy in key regions, expanding its market presence [3] - The acquisition of Amerochem assets and WaterSurplus further strengthens Hawkins' Water Treatment footprint [4] - Hawkins' shares have increased by 58.9% over the past year, outperforming the industry average of 4.2% [6] Company Strategy - The acquisition of PhillTech is part of Hawkins' strategy to solidify and expand its production capabilities in coagulants and corrosion control products [1][8] - The company emphasizes a judicious pricing strategy to counteract cost inflation, supporting overall performance [4] Market Performance - Hawkins' Water Treatment segment is experiencing strong growth, reflecting the successful integration of recent acquisitions [2] - The company has established a long-standing partnership with PhillTech, which is valued for its strong industry relationships [8]