Hawkins (HWKN) Q4 2026 earnings summary

Executive summary

• Achieved record Q4 and full-year revenue, gross profit, and adjusted EBITDA for fiscal 2026, with all segments contributing to year-over-year growth.

• Water Treatment segment drove performance, representing 50% of revenue and 56% of operating income.

• Completed six acquisitions, including WaterSurplus, accelerating Water Treatment growth and enhancing offerings.

• Maintained a diversified business model with three main segments: Water Treatment, Food & Health Sciences, and Industrial Solutions.

• Marked 41st consecutive year of dividend payments, with a 7% increase over the prior year.

Financial highlights

• Q4 FY26 revenue reached $265.9M, up 8% year-over-year; full-year revenue was $1,083.7M, up 11%.

• Q4 gross profit was $54.2M, up 4%; full-year gross profit was $245.1M, up 9%.

• Q4 diluted EPS was $0.74; full-year diluted EPS was $3.91, a 3% decrease due to higher amortization and acquisition-related expenses.

• Q4 adjusted EBITDA was $37.2M, up 1%; full-year adjusted EBITDA was $179.0M, up 6%.

• Full-year operating cash flow was $144.3M, a 30% increase from the prior year.

Outlook and guidance

• Management expects revenue, operating income, and EPS growth across all segments in fiscal 2027.

• Growth strategy focuses on expanding water treatment facilities, specialty and value-added services, and investing in higher-margin production capabilities.

• Plans to maintain a strong balance sheet and achieve a leverage ratio of approximately 1x adjusted EBITDA by year-end 2027.

• Continued emphasis on accretive acquisitions and strengthening supplier relationships.

• Income tax rate expected between 25% and 27% for fiscal 2027.