Company Achieves Over $1 Billion Revenue for Fiscal 2026
Reports Q4 revenue $265.9M, consensus $255.28M. Patrick H. Hawkins, CEO: "Fiscal 2026 was another milestone year for our company, as we crossed $1 billion in revenue, for the first time in our history. My thanks to every person connected to our great company for helping us accomplish this goal. This achievement resulted in a number of records for the year; including sales, gross margin, operating income, and adjusted EBITDA. Our focus has long been to deliver sustained growth over time, and we have continued to execute on that with pro forma EPS growth for the eighth consecutive year. Our disciplined M&A strategy remained a core competency for us and has again contributed to growth of Water Treatment, our largest reporting segment, which now represents 50% of our total company revenue and 56% of the total company operating income. We have completed 17 acquisitions over the last five years, most of which have helped to drive accelerated growth in our Water Treatment segment and we expect future acquisitions to continue to be focused on Water Treatment. With our latest deals, we now have a full product portfolio for our Water Treatment customers, including chemicals, media and filtration products, and equipment. Our Water Treatment segment achieved sales growth of 22% for the year, through sales from our acquired companies as well as organic growth. Sales in our Food and Health Sciences segment were relatively flat, mainly due to softness in the food and nutrition end markets, and our Industrial Solutions segment was up 6% for the year."
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- Quarterly Dividend Announcement: Hawkins has declared a quarterly dividend of $0.19 per share, consistent with previous distributions, indicating the company's ongoing ability to maintain stable cash flows, although the current yield stands at 0.47%.
- Earnings Report Performance: Hawkins reported a GAAP EPS of $0.74, missing expectations by $0.01, which reflects some pressure on the company's profitability and could impact investor confidence.
- Revenue Beats Expectations: The company reported revenue of $265.9 million, exceeding market expectations by $10.62 million, indicating strong sales growth that may lay the groundwork for future profit increases.
- Shareholder Return Plan: The dividend will be payable on June 12, with a record date of May 29 and an ex-dividend date also on May 29, ensuring shareholders receive timely returns and enhancing investor trust in the company.
- Revenue Performance: Hawkins reported Q1 revenue of $265.9 million, a 9.3% year-over-year decline, yet it exceeded market expectations by $106,200, demonstrating the company's resilience in challenging conditions.
- Cash Flow Growth: The operating cash flow for the fourth quarter reached $37.7 million, an increase of $6.9 million or 22% year-over-year, indicating improved cash management that supports future investments and operations.
- Annual Performance Highlights: For fiscal year 2026, sales approximated $1.1 billion, reflecting an increase of $109.3 million or 11% from fiscal 2025, while gross profit rose to $245.1 million, up $19.5 million, showcasing the company's sustained growth potential in the market.
- Earnings Per Share Changes: Although the diluted EPS for fiscal 2026 was $3.91, down $0.12 year-over-year primarily due to increased acquisition-related costs, pro forma EPS would have risen by $0.32 if the WaterSurplus acquisition had occurred at the start of the prior fiscal year, highlighting the acquisition's potential value.
- Earnings Release Schedule: Hawkins, Inc. plans to release its financial results for the fourth quarter and fiscal year ending March 29, 2026, after market close on May 13, 2026, at approximately 4:10 p.m. Eastern Time, demonstrating the company's commitment to transparency and timely information disclosure.
- Company Background: Founded in 1938, Hawkins, Inc. is a leading water treatment and specialty ingredients company that formulates, manufactures, distributes, and blends products for its Water Treatment, Food & Health Sciences, and Industrial Solutions customers, highlighting its significant role in the industry.
- Financial Performance Overview: In fiscal 2025, Hawkins, Inc. generated $974 million in revenue, indicating strong market competitiveness and robust customer demand, further solidifying its leadership position in the water treatment sector.
- Employee Size and Service Commitment: Headquartered in Roseville, Minnesota, the company employs approximately 1,100 individuals and is dedicated to creating value for customers through superb customer service and support, quality products, and personalized applications, reflecting its high priority on customer satisfaction.
- Strategic Acquisition: Hawkins Capital's acquisition of Knock Out Energy marks a significant expansion into the Permian Basin and Barnett Shale, enhancing its service capabilities across the oil and gas and midstream sectors.
- Business Integration: This acquisition combines Hawkins' 45-year legacy in oilfield and pipeline maintenance with Knock Out's specialized production and technical expertise, creating a more robust service platform.
- Team Strength: Knock Out Energy employs over 80 personnel and operates a fleet of 80 vehicles, led by a management team including Boadie Beaman, Jeff Garner, and Bart Bartman, ensuring efficient operations and an excellent safety record.
- Market Impact: By integrating resources, Hawkins can now offer comprehensive solutions from daily operations to large-scale construction projects, further solidifying its market position in the oil and gas industry.
- Successful Technology Application: Hawkins Inc. has successfully completed a multi-year pilot test of NanoStack™ membranes at the Orange County Water District's groundwater replenishment system, marking a significant technological breakthrough in water treatment efficiency.
- Large-Scale Installation Plan: Following the pilot's success, OCWD plans to install 1,050 NanoStack™ membranes at GWRS, making it the world's largest advanced water purification system with a capacity of 5 million gallons per day for indirect potable reuse.
- Significant Cost Benefits: Pilot data demonstrated that NanoStack™ technology significantly improved fouling resistance, cutting cleaning requirements by over 50% and reducing RO energy consumption by more than 15%, with an estimated payback period of less than two years.
- Far-Reaching Industry Impact: The application of NanoStack™ membranes not only enhances membrane durability and performance but also helps customers across industries lower lifecycle costs, thereby promoting sustainability in the water treatment sector.
- Price Range Analysis: HWKN's 52-week low is $98.30 per share, while the high is $186.15, with the last trade at $136.21, indicating significant price volatility over the past year and reflecting varying market expectations for its future performance.
- Technical Indicator Alert: The stock has fallen below its 200-day moving average, which is often seen as a technical sell signal, potentially undermining investor confidence and leading to further price adjustments.
- Dividend Stock Dynamics: HWKN has recently joined nine other dividend stocks that have also crossed below their 200-day moving average, indicating a market reassessment of high-dividend stocks that could affect their attractiveness and investors' holding decisions.
- Market Sentiment Analysis: Although the current stock price is positioned in the middle of its 52-week range, investors should monitor overall market sentiment and its potential impact on HWKN's future stock price, especially amid increasing economic uncertainty.










