Hawkins, Inc. reported a significant increase in financial performance for the three months ended June 29, 2025, with sales reaching $293.3 million, a 15% rise from $255.9 million in the same period last year. The company's gross profit also increased by 12% to $72.4 million, maintaining a gross margin of 25%. Net income for the quarter was $29.2 million, up from $28.9 million a year earlier, resulting in basic earnings per share of $1.41, compared to $1.39 in the prior year. The increase in revenue and profitability was attributed to strong performance across all segments, particularly in the Water Treatment segment, which saw a 28% increase in sales.

The company experienced notable changes in its financial structure compared to the previous fiscal period. Total assets rose to $988.3 million from $769.9 million, driven by acquisitions and increased cash reserves. Hawkins completed several strategic acquisitions, including WaterSurplus for approximately $149.9 million, which contributed significantly to the Water Treatment segment's growth. The company also acquired Amerochem for $44 million and Waterguard for $18 million, further expanding its market presence in the water treatment sector.

Operationally, Hawkins reported an increase in customer engagement, with the Water Treatment segment generating $149.6 million in sales, bolstered by $29 million from acquired businesses. The Food & Health Sciences segment saw a 5% increase in sales to $89.2 million, while the Industrial Solutions segment grew by 2% to $54.5 million. The company’s employee headcount remained stable, with no significant changes reported. The strategic acquisitions are expected to enhance Hawkins' market share and operational capabilities in the water treatment industry.

The filing indicated that the increase in sales and profitability was partly offset by rising costs, particularly in selling, general, and administrative expenses, which increased by 24% to $31 million. This rise was primarily due to costs associated with the acquired businesses and increased compensation expenses. Interest expenses also rose significantly to $3.3 million, reflecting higher borrowings to finance acquisitions. Despite these challenges, Hawkins remains optimistic about its growth trajectory, supported by a strong cash position of $14.5 million and access to a $400 million revolving credit facility.

Looking ahead, Hawkins anticipates continued growth driven by its strategic acquisitions and the realignment of its reporting segments to better reflect its operations. The company is focused on expanding its specialty ingredients business and enhancing its customer offerings. Management expects that the cash generated from operations, combined with available credit, will be sufficient to meet its operational needs and support future growth initiatives.

About HAWKINS INC

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