Core Insights - Hawkins, Inc. reported strong growth across all three segments for the second consecutive quarter, with Water Treatment leading the way with over 21% revenue growth [3][7] - The company achieved record second quarter revenue of $280 million and adjusted EBITDA of $50.4 million, driven by a strategy focused on high-margin businesses [3][7] - Net income for the second quarter was $22.6 million, or $1.08 per diluted share, a decrease from $24.1 million, or $1.16 per diluted share, in the same period last year [5][7] Financial Performance - Revenue increased by 14% year-over-year, with sales reaching $280.4 million compared to $247.0 million in the prior year [8][7] - Gross profit rose by 12% to $67.6 million, maintaining a gross margin of 24% [12][7] - Adjusted EBITDA increased by 9% to $50.4 million, with trailing 12-month adjusted EBITDA exceeding $178 million [17][7] Segment Performance - Water Treatment segment sales grew by 21% to $150.9 million, attributed to $23 million from acquired businesses and increased organic sales [9][7] - Food & Health Sciences segment sales increased by 2% to $72.9 million, driven by higher sales volumes in agricultural and health products [10][7] - Industrial Solutions segment sales rose by 11% to $56.6 million, primarily due to increased sales volumes of manufactured products [11][7] Expenses and Income - Selling, general and administrative expenses increased by 27% to $33.7 million, largely due to costs associated with the WaterSurplus acquisition [16][7] - The effective income tax rate remained stable at 27% for the current quarter [18][7] - The company reduced its debt by $20 million during the quarter, with total debt outstanding at $279 million [20][7] Strategic Outlook - The company anticipates continued growth in Water Treatment and Industrial Solutions, while Food and Health Sciences may face flat to declining performance due to competitive pressures [3][7] - Hawkins, Inc. is focused on integrating the WaterSurplus acquisition, which is expected to be accretive in fiscal 2027 [3][7] - The company plans to maintain its strategy of investing in high-margin businesses and pursuing accretive acquisitions [3][7]