Hawkins (HWKN) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 FY26 revenue of $293.3M, up 15% year-over-year, with all segments contributing to growth and marking the 29th consecutive quarter of operating income growth.

• Diluted EPS reached a record $1.40, up from $1.38 prior year; net income was $29.2M, and pro forma EPS would have been 11% higher with WaterSurplus acquisition.

• Adjusted EBITDA for Q1 FY26 was $57.4M–$57.6M, a 13% increase year-over-year.

• Major acquisition of WaterSurplus for $149.9M plus up to $53.7M earnout, expanding Water Treatment capabilities.

• Reporting segments realigned to Water Treatment, Food & Health Sciences, and Industrial Solutions.

Financial highlights

• FY2025 revenue reached $974.4M, with a 13% CAGR since FY2020.

• FY2025 net income was $84.3M, a 24% CAGR over five years.

• Diluted EPS for FY2025 was $4.03, a 25% CAGR since FY2020.

• Adjusted EBITDA for FY2025 was $167.5M, a 21% CAGR since FY2020.

• Operating cash flow for Q1 FY26 was $31.5M, up from $17.6M year-over-year.

Outlook and guidance

• Growth strategy focuses on expanding specialty and value-added services, new Water Treatment facilities, and higher margin production.

• Full-year effective tax rate projected at 26–27%.

• Management expects cash balances, credit facility, and operating cash flow to be sufficient for ongoing needs.