Chemical distributor Hawkins misses Q2 revenue estimates

Hawkins

29/10/2025 20:49

Overview

Hawkins Q2 fiscal 2026 revenue grows 14% yr/yr, missing analyst expectations

Adjusted EBITDA for Q2 fiscal 2026 rises 9% yr/yr, missing analyst estimates

Diluted EPS for Q2 fiscal 2026 decreases 7% due to acquisition-related costs

Outlook

Hawkins expects Water Treatment and Industrial Solutions to grow in the second half of fiscal 2026

Company anticipates Food and Health Sciences to be flat to down due to competitive pressures

WaterSurplus acquisition expected to be accretive in fiscal 2027

Result Drivers

WATER TREATMENT GROWTH - 21% increase in Water Treatment revenue driven by acquisitions and organic sales

ACQUISITION IMPACT - EPS decreased due to $5 mln increase in amortization and interest expense from WaterSurplus acquisition

HIGH-MARGIN STRATEGY - Record revenue and EBITDA attributed to investment in high-margin businesses

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$280.43 mln
$283.50 mln (4 Analysts)
Q2 EPS
$1.08
Q2 Net Income
$22.59 mln
Q2 Adjusted EBITDA
Miss
$50.36 mln
$52.80 mln (4 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the diversified chemicals peer group is "buy"

Wall Street's median 12-month price target for Hawkins Inc is $184.00, about 10.2% above its October 28 closing price of $165.23

The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 32 three months ago

Press Release: ID:nGNX17q5td

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)