Hawkins(US:HWKN)2026-01-28 21:14Sales Performance - Sales for the three months ended December 28, 2025, were $244.1 million, an increase of $17.9 million, or 8%, compared to $226.2 million in the same period a year ago[74]. - Sales for the nine months ended December 28, 2025, were $817.8 million, an increase of $88.7 million, or 12%, from $729.1 million in the same period a year ago[88]. - Water Treatment segment sales increased by $20.7 million, or 21%, to $120.5 million for the three months ended December 28, 2025, driven by approximately $19 million from acquired businesses[75]. - Water Treatment segment sales for the nine months ended December 28, 2025, increased by $79.5 million, or 23%, to $421.0 million, with approximately $70 million from acquired businesses[89]. - Industrial Solutions segment sales increased by $11.3 million, or 7%, to $164.7 million for the nine months ended December 28, 2025[91]. - Food & Health Sciences segment sales decreased by $7.7 million, or 10%, to $70.0 million for the three months ended December 28, 2025, primarily due to decreased volumes[76]. Profitability - Gross profit for the three months ended December 28, 2025, increased by $2.4 million, or 5%, to $50.8 million, representing 21% of sales[79]. - Gross profit increased by $17.5 million, or 10%, to $190.8 million, representing 23% of sales for the nine months ended December 28, 2025[92]. - Water Treatment segment gross profit rose by $19.6 million, or 20%, to $116.6 million, maintaining 28% of sales for the same period[93]. - Food & Health Sciences segment gross profit decreased by $3.6 million, or 7%, to $48.7 million, accounting for 21% of sales[94]. - Operating income for the three months ended December 28, 2025, increased by $1.5 million, or 7%, to $22.6 million, or 9% of sales[84]. - Operating income increased by $3.2 million, or 3%, to $97.8 million, which is 12% of sales[97]. Expenses and Interest - SG&A expenses increased by $14.3 million, or 18%, to $93.0 million, representing 11% of sales[96]. - Interest expense increased to $3.4 million for the three months ended December 28, 2025, compared to $1.2 million in the same period a year ago, due to increased borrowings[85]. - Interest expense rose by $6.6 million to $10.5 million due to increased borrowings for the acquisition of WaterSurplus[98]. Cash Flow - Cash provided by operating activities was $106.6 million, up from $80.3 million in the same period last year[102]. - Cash used in investing activities was $204.6 million, including $167.1 million for acquisitions, primarily WaterSurplus[103]. - Cash provided by financing activities was $101.1 million, with net debt borrowings of $115.0 million[104]. - The effective interest rate on borrowings was 4.8% as of December 28, 2025[109]. Segment Reporting - The company realigned its reporting segments to Water Treatment, Food & Health Sciences, and Industrial Solutions to better reflect its operations[69].