Hawkins, Inc. Delivers Record Q3 Results, Driven by Water Treatment Segment Growth

Hawkins, Inc. (Nasdaq: HWKN) reported strong third quarter fiscal 2025 results, with record performance in key metrics driven by robust growth in its Water Treatment segment. The company's strategic acquisition approach and focus on organic growth have contributed to its consistent success.

Record Q3 Results

Hawkins, Inc. achieved record results for revenue, gross profit, operating income, and adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (adjusted EBITDA) in the third quarter of fiscal 2025. The company's overall revenue growth of 8% was once again driven by the Water Treatment segment, which grew by 22% over the same period of the prior year.

Water Treatment Segment Growth

The Water Treatment segment's strong revenue growth of 22% was driven by both revenue from recent acquisitions and strong organic volume growth of 9%. This growth was supported by the company's strategic acquisition approach, with seven acquisitions completed over the last 18 months. The recent acquisition of Water Guard, the company's first water treatment site in North Carolina, expanded the company's geographic footprint to 28 states.



Industrial and Health & Nutrition Segments

The Industrial segment saw a slight revenue decline of 1% due to lower selling prices on certain products, driven by lower raw material costs and product mix changes. However, overall volumes were up, which helped mitigate the impact on revenue. The Health & Nutrition segment saw an increase in revenue due to growth in manufactured product sales, with gross profit growth of 31% and margin improvement to 21%.

Strong Balance Sheet and Leverage Ratio

Hawkins, Inc. maintains a strong balance sheet with a conservative leverage ratio of 0.7x trailing 12-month proforma adjusted EBITDA. The company's net borrowings of $10 million helped fund its acquisition of Water Guard in the third quarter. As the company continues to grow, it is well-positioned to take advantage of new opportunities for acquisitions and organic growth.

Looking Ahead

Hawkins, Inc. expects continued growth within the Water Treatment and Health & Nutrition segments. The company anticipates that its Industrial segment will continue to perform similar to the first nine months of fiscal 2025. With a strong balance sheet and a proven track record of strategic acquisitions and organic growth, Hawkins, Inc. is well-positioned to continue its record performance and deliver value to shareholders.

In conclusion, Hawkins, Inc.'s strong third quarter fiscal 2025 results, driven by robust growth in its Water Treatment segment, demonstrate the company's ability to execute on its strategic acquisition approach and deliver consistent growth and profitability. As the company continues to expand its geographic footprint and explore new opportunities, it remains well-positioned to capitalize on market trends and deliver value to shareholders.