Hawkins, Inc. Reports 8% Sales Growth to $244.1 Million in Third Quarter

Hawkins, Inc. reported its financial results for the three and nine months ended December 28, 2025, revealing a notable increase in sales and strategic growth through acquisitions. The company achieved sales of $244.1 million for the third quarter, an increase of 8% from $226.2 million in the same period last year. For the nine-month period, sales reached $817.8 million, up 12% from $729.1 million. The increase in revenue was primarily driven by strong performance in the Water Treatment and Industrial Solutions segments, which saw sales growth of 21% and 10%, respectively, while the Food & Health Sciences segment experienced a decline of 10%.

In terms of profitability, Hawkins reported a net income of $14.3 million for the third quarter, down from $15.0 million a year earlier, and $66.1 million for the nine months, compared to $68.0 million in the prior year. The decrease in net income was attributed to higher interest expenses, which rose significantly due to increased borrowings related to acquisitions. Operating income for the third quarter was $22.6 million, a 7% increase from $21.1 million in the previous year, reflecting the company's ability to manage costs effectively despite rising expenses.

Hawkins has been active in expanding its market presence through acquisitions, completing several significant transactions in fiscal 2025 and the first nine months of fiscal 2026. Notably, the company acquired WaterSurplus for approximately $149.9 million, which is expected to enhance its Water Treatment segment. The total cash consideration for acquisitions in the nine months ended December 28, 2025, amounted to $167.1 million, which included five additional immaterial acquisitions. These strategic moves are aimed at strengthening Hawkins' position in existing markets and expanding its product offerings.

Operationally, Hawkins reported a decrease in customer counts in the Food & Health Sciences segment, which contributed to the decline in sales for that division. However, the Water Treatment segment benefited from approximately $19 million in added sales from acquired businesses, alongside improved pricing strategies. The company also reported an increase in gross profit to $50.8 million for the third quarter, representing 21% of sales, compared to 21% in the same period last year. The gross profit margin was supported by a decrease in the LIFO reserve, which positively impacted earnings.

Looking ahead, Hawkins anticipates continued growth driven by its strategic acquisitions and operational efficiencies. The company expects its cash balances and available funds under its credit facility to be sufficient to meet ongoing operational needs. Hawkins remains committed to leveraging its acquisitions to enhance market share and product offerings while navigating the challenges posed by fluctuating commodity prices and competitive pressures in the industry.