Hawkins(US:HWKN)2025-10-29 20:14Sales 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].