Hawkins Q4 sales beat on strength in water treatment segment

Hawkins

13/05/2026 21:19

Overview

U.S. water treatment supplier's fiscal Q4 sales rose 8%, beating analyst expectations

Adjusted EBITDA for Q4 missed analyst expectations

Q4 diluted EPS fell 5% due to higher costs from recent acquisitions

Outlook

Hawkins expects to grow revenue and operating income across all business segments in fiscal 2027

Company expects to achieve a leverage ratio of about 1x adjusted EBITDA by end of fiscal 2027

Hawkins projects fiscal 2027 effective tax rate between 25% and 27%

Result Drivers

WATER TREATMENT GROWTH - Q4 sales growth was led by a 16% increase in Water Treatment segment revenue, driven by acquisitions and higher sales volumes

ACQUISITION-RELATED COSTS - Q4 EPS declined 5% primarily due to increased amortization, interest expense, and fair value accretion related to earnout liabilities from six acquisitions

FLAT FOOD & HEALTH SCIENCES - Sales in the Food and Health Sciences segment were relatively flat, mainly due to softness in the food and nutrition end markets

Company press release: ID:nGNXVPhlx

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Beat
$265.9 mln
$255.28 mln (4 Analysts)
Q4 EPS
$0.74
Q4 Net Income
$15.5 mln


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 9.1% above its May 12 closing price of $168.59

The stock recently traded at 39 times the next 12-month earnings vs. a P/E of 30 three months ago

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