Hawkins soars 12% on strong second quarter earnings beat

Investing.com -- Hawkins Inc (NASDAQ: HWKN) reported second quarter fiscal 2027 results that exceeded analyst expectations, with adjusted earnings per share of $1.34 beating the consensus estimate of $1.19 by $0.15. Revenue reached $313.8 million, surpassing the $302.7 million analyst estimate and representing a 12% increase from $280.4 million in the same quarter last year.

Shares jumped 12% in after-hours trading Monday following the earnings release.

The company's Water Treatment segment led growth with revenue climbing 16% to $175.0 million, driven primarily by increased volumes and improved pricing. The Food & Health Sciences segment grew 5% to $76.7 million, while the Industrial Solutions segment increased 10% to $62.2 million. Gross profit rose 13% to $76.6 million, with the Water Treatment segment posting a 20% increase.

"Our record second-quarter results in revenue, gross profit, EPS, and adjusted EBITDA reflect the agility of our employees and the resilience of our business model," said Patrick Hawkins, President and Chief Executive Officer. "Revenue grew 12% in the quarter, including organic growth of 11%, with all three segments growing and Water Treatment revenue up 16%, primarily driven by increased volumes."

Net income for the quarter reached $27.8 million, up 23% from $22.6 million in the prior-year period. Adjusted EBITDA increased 16% to $59.1 million from $50.9 million a year ago.

The company generated operating cash flow of $75.5 million for the six months ended September 27, 2026, up 6% YoY. During the quarter, Hawkins repurchased $12 million of stock, paid down $15 million of debt, and completed the acquisition of Dave Symonds & Associates, a Florida-based water treatment distributor.

Total debt stood at $229.0 million at quarter-end, with a leverage ratio of 1.22x trailing twelve-month adjusted EBITDA, down from 1.37x at fiscal year-end 2026.

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