Hawkins, Inc. Reports Third Quarter Fiscal 2025 Results

Core Insights - Hawkins, Inc. reported record year-over-year performance for several key metrics in the third quarter of fiscal 2025, driven primarily by the Water Treatment business and recent acquisitions [3][6][29] - The company achieved an overall revenue growth of 8%, with gross profit increasing by 15% and operating income rising by 14% compared to the same period last year [6][7][29] Financial Highlights - Net income for the third quarter was $15.0 million, or $0.72 per diluted share, compared to $14.9 million, or $0.71 per diluted share in the same quarter of fiscal 2024 [4][23] - Total sales reached $226.2 million, an increase of $17.7 million, or 8%, from $208.5 million in the prior year [5][21] - The Water Treatment segment saw sales increase by $17.8 million, or 22%, to $99.8 million, while the Industrial segment sales decreased by $1.0 million, or 1%, to $92.0 million [5][29] Segment Performance - Water Treatment segment gross profit increased by $5.8 million, or 29%, to $26.0 million, while the Industrial segment gross profit decreased by $1.3 million, or 8%, to $15.2 million [8][9][10] - Health and Nutrition segment sales increased by $1.0 million, or 3%, to $34.5 million, with gross profit rising by $1.7 million, or 31%, to $7.2 million [10][29] Operational Metrics - Selling, general and administrative expenses rose by $3.6 million, or 15%, to $27.4 million, primarily due to costs from acquired businesses [11][29] - Adjusted EBITDA for the quarter was $33.6 million, a 13% increase from $29.7 million in the same period last year [12][20] Balance Sheet and Cash Flow - At the end of the third quarter, total debt outstanding was $114.0 million, with a leverage ratio of 0.70x trailing 12-month proforma adjusted EBITDA [14][24] - The company paid down $10 million on its line of credit during the quarter, contributing to a strong balance sheet [3][14]