Hawkins Inc. Overview
Hawkins, Inc. is an 88-year-old Minnesota company. It began as a bulk chemical distributor and has become what management calls a "water treatment and specialty ingredients company." It formulates, manufactures, blends, repackages and distributes chemistry and ingredients across three segments: Water Treatment, Food & Health Sciences, and Industrial Solutions.
FY2026 revenue was $1,083.7m, the first year above $1bn. Water Treatment contributed 50% of revenue and 56% of operating income. The segment has been built through 17 acquisitions in five years, mostly regional municipal and commercial water-chemical distributors. The April 2025 purchase of WaterSurplus added membrane, filtration, equipment and PFAS-removal capability.
The model rests on route-based service: about 400 company power units, with drivers acting as delivery agent, salesperson and technician. This creates sticky municipal relationships. Hawkins has paid dividends since 1985, holds no material foreign operations, and finances growth through a $400m secured revolver.
Company's own description (FY2026 Form 10-K, Item 1, paraphrased)
Hawkins describes itself as a leading water treatment and specialty ingredients company. It formulates, manufactures, distributes and blends products for Water Treatment, Food and Health Sciences and Industrial Solutions customers. It says it creates value through service and support, quality products, personalized applications and trustworthy, creative employees.
The 10-K stresses three points. First, the three groups share raw materials, which gives buying-power synergies. Second, they share some manufacturing facilities, which spreads fixed costs. Third, the company prices to current raw-material markets and uses LIFO inventory accounting, so the most recent costs flow through cost of sales.
Independent characterization
Hawkins is best understood as three businesses on one regional logistics and blending backbone. Its core assets are bulk terminals on the Mississippi River in St. Paul, plus rail- and barge-served plants in Minneapolis, Camanche (IA), Memphis (TN) and Dupo (IL).
Water Treatment (50% of FY2026 sales) is a route-density business with recurring, consumption-driven demand.
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Customers are municipal drinking-water and wastewater utilities, industrial process water users, non-residential pools and agricultural water users.
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Bulk commodity products are only about 9% of segment sales. Most volume is value-added: manufactured sodium hypochlorite (bleach), repackaged chlorine, blended products, filtration media, equipment and service.
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Margins are the group's highest: 26.7% gross and 12.5% operating in FY2026.
Food & Health Sciences (30%) combines two things.
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Legacy Hawkins food-ingredient and pharmaceutical chemistry, such as acid-based reactions and food- and pharma-grade salts.
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Stauber Performance Ingredients (acquired 2015), a dry-blending and specialty-distribution platform for nutrition, supplements, food, pharma and agriculture.
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This segment is more competitive on price. Gross profit fell 6% in FY2026 because of pricing pressure.
Industrial Solutions (20%) is the legacy acids-and-alkalis business.
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Products include caustic soda, sulfuric, hydrochloric and phosphoric acid, aqua ammonia, potassium hydroxide and urea.
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These are sold in bulk or repackaged and blended to customer specifications. End markets are manufacturing, chemical processing, electronics, energy (including ethanol), plating and surface finishing.
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Bulk commodity products were 21% of segment sales in FY2026, down from 23% in FY2025. This is the lowest-margin segment: 14.9% gross and 8.6% operating.
Revenue model mix
| Revenue type | Characterization | Disclosure status |
|---|---|---|
| Product sales: manufactured, blended or repackaged chemicals and ingredients | Dominant revenue stream across all segments | Not split numerically in filings |
| Product sales: distributed bulk commodity chemicals | About 9% of Water Treatment and 21% of Industrial Solutions sales in FY2026 | 10-K MD&A |
| Equipment sales and engineered systems (tanks, pumps, valves, full-scale filtration systems) | Grew with WaterSurplus (FY2026) | Not separately quantified |
| Rental: filtration units, including PFAS rapid-response rental fleet | WaterSurplus offering | Not separately quantified |
| Services: technical service, formulation, engineering and design | Bundled with product sales | Not separately quantified |
| Subscription / licensing | None material | — |
Value-chain position and customer base
Hawkins sits between primary chemical producers and end users. Its suppliers include many of the major US chemical producers, plus domestic and international vendors for nutrition ingredients. Its customers are municipalities and businesses; it does not sell to individuals.
No customer accounted for 10% or more of sales in FY2024, FY2025 or FY2026 (10-K). The company does not hedge commodity purchases with derivatives. Its only derivative is a $60m-notional interest-rate swap that runs to 1 May 2027.
Strategy
Stated strategic themes (FY2025/FY2026 releases, FY2026 10-K, Q1 FY2027 release; paraphrased)
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Grow the higher-margin businesses and become a specialty ingredients company. This was the explicit rationale for the FY2026 segment realignment.
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A disciplined, Water-Treatment-focused M&A engine. The company has made 17 acquisitions in five years and expects future deals to remain focused on Water Treatment. Management says it now has a full Water Treatment portfolio: chemicals, media and filtration products, and equipment.
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Route-based service model. Employees act as driver, salesperson and technician, positioning Hawkins as the "trusted water treatment expert" for municipalities. The company will keep investing in existing and new branches.
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Return to historical organic growth. Q1 FY2027 organic growth was about 5%, which management described as consistent with this goal.
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Deleverage while still funding growth. The target is leverage of about 1x adjusted EBITDA by the end of FY2027.
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Shareholder returns. The company has paid dividends for 41 consecutive years and raised them for about 20 years running. Buybacks resumed in Q1 FY2027.
Initiatives announced in the last 24 months
| Date | Initiative | Detail / target | Status |
|---|---|---|---|
| Apr 2025 | WaterSurplus platform | Adds membranes, filtration, PFAS rental and engineered systems. Management expected EPS accretion in FY2027 and a better margin profile. | Integrating. Excluded from FY2026 internal-control assessment (2.9% of non-goodwill assets, 3.2% of sales). |
| Apr 2025 | $400m revolver upsizing | Second Amendment; maturity 25 Apr 2030 | In place |
| May 2025 | Segment realignment | Water Treatment / FHS / IS | Effective Q1 FY2026 |
| May 2025 | Auditor transition | Deloitte replaced Grant Thornton | Completed |
| Jun–Dec 2025 | Five tuck-in acquisitions | About $48m aggregate pre-deal revenue across all six FY2026 deals | Completed |
| FY2026 | Facility investment | Capex of $58.2m including real estate and expansions; about $55m planned for FY2027 | Ongoing |
| Oct 2025 | Credit agreement Third Amendment | Permitted qualified receivables transactions raised to $10m | Completed |
| Q3 FY2026 | Adjusted EBITDA redefinition | Excludes non-cash earnout expense and income | Applied, prior periods recast |
| Apr 2026 | Aqua-Chem acquisition | Expands commercial pool opportunity in NE/IA | Completed |
| Jul 2026 | Dividend increase | +5% to $0.20 per quarter | Completed |
| Q1 FY2027 | Buyback resumption | $7.0m repurchased; about 0.73m shares remained authorized at FY2026 end | Ongoing |
Management guidance and medium-term targets
| Item | Guidance | Source |
|---|---|---|
| FY2027 revenue and operating income | Expected to grow in each segment | FY2026 Q4 release |
| FY2027 EPS | Expected to grow | FY2026 Q4 release |
| FY2027 organic growth | Return to historical rates (about 5% in Q1) | Q1 FY2027 release |
| FY2027 effective tax rate | 25–27% | Q1 FY2027 release |
| FY2027 capex | About $55m | FY2026 10-K |
| Leverage | About 1.0x adjusted EBITDA by the end of FY2027 | FY2026 Q4 release |
| Formal numeric medium-term targets | Not publicly disclosed (no investor day targets found) | — |
Sustainability commitments
No quantified emissions or water targets were found in the filings reviewed. Sustainability oversight sits with the Governance & Nominating Committee.
Products & Services
Hawkins does not publish a SKU-level catalog with pricing in its filings. The catalog below is built from the FY2026 10-K, acquisition releases and company web pages. Pricing models are not publicly disclosed unless stated. Launch years are given only where disclosed.
Water Treatment
| Product / service line | Description and capabilities | Target customer | Notes |
|---|---|---|---|
| Sodium hypochlorite (liquid bleach) | Manufactured at bleach plants in St. Paul MN, Camanche IA, Memphis TN, Fairborn OH and Dupo IL. Miami Products (2023) added Ohio bleach capacity; Water Solutions (2023) added bleach capability. | Municipal drinking water and wastewater; pools | Core disinfectant. Delivered by company routes in bulk and totes. |
| Chlorine (repackaged) | Bulk chlorine received only by rail, repackaged for customers, and used as feedstock for bleach | Municipal plants; industrial | Rail toxic-inhalation-hazard limits are a disclosed risk (10-K) |
| Coagulants and corrosion-control chemistries | Manufactured and blended; PhillTech (2025) added coagulant and corrosion-control manufacturing in Courtland, AL | Municipal treatment | PhillTech acquired for $5.0m |
| Commodity water chemicals (caustic, acids, fluoride and others) | Distributed and blended; bulk commodity products are about 9% of segment sales | Municipal and industrial | Fluoride is named in the 10-K as subject to adverse public perception and regulatory risk |
| Pool and aquatic chemicals | Chemistry and service for mainly non-residential pools; Aqua-Chem (2026) aimed at commercial pools | Commercial and municipal pools, YMCAs | Seasonal (April–September peak) |
| Agricultural water treatment | Chemistry for agricultural water | Agricultural operators | — |
| Filtration media | Wide range of media, including NSF/ANSI 61-certified media filtration (WaterSurplus) | Municipal and industrial | — |
| Equipment sales and service | Tanks, valves, pumps and feed equipment, sold and serviced by route technicians | All Water Treatment customers | — |
| WaterSurplus engineered systems | Membrane separation, engineering and design, custom turnkey and full-scale filtration systems, new-equipment manufacturing | Municipal water; food and beverage; Fortune 500 industrial | Acquired April 2025 |
| ImpactRO™ | Brackish-water reverse-osmosis system designed to reduce membrane fouling and operating cost | Municipal and industrial RO users | Patented; launch year not disclosed |
| NanoStack™ / NanoScope™ | Patented WaterSurplus filtration technologies said to reduce membrane-cleaning frequency, energy use and downtime | Membrane plant operators | Per WaterSurplus deal coverage |
| PFAS Rapid Response rental | Rental treatment units that deliver PFAS-compliant water quickly, plus permanent custom-engineered PFAS facilities, testing, and disposal or destruction support | Municipalities of all sizes | Model: rental or permanent sale |
| Rental fleet and surplus equipment | Short-term rental filtration units; surplus equipment sales | Municipal and industrial | WaterSurplus legacy business |
Food & Health Sciences
| Product / service line | Description | Target customer | Notes |
|---|---|---|---|
| Stauber Performance Ingredients — specialty ingredient distribution | Minerals, vitamins, amino acids, excipients, botanicals and herbs, sweeteners, enzymes | Supplement, nutrition, food, pharma, cosmetic and pet-care makers | Acquired 2015 for about $157m; Fullerton, CA and Florida, NY |
| Stauber dry blending and processing | Custom dry blends, premixes, formulation, sourcing | Branded nutrition and food companies | Complements Hawkins' liquid blending |
| Functional beverage ingredient (antioxidant-rich) | Launched by Stauber and Hawkins (company news, about 2021) | Beverage formulators | Product name not captured |
| Food ingredients (acid-based reactions, food-grade salts, lactates) | Manufactured and processed ingredients, including the Mak Lak lactate line acquired from MakWood in July 2025 ($1.9m) | Meat, dairy and processed-food makers | Food ingredient volumes declined in Q1 FY2027 |
| Pharmaceutical salts and ingredients | Pharma-grade salts and base chemistry made under FDA cGMP | Pharmaceutical manufacturers | — |
| Agricultural products / fertilizers | Fertilizers and agricultural chemistry; seasonal with planting | Agricultural distributors and growers | +$6.8m in FY2026; +30% in Q1 FY2027 |
Industrial Solutions
| Product / service line | Description | Target customer | Notes |
|---|---|---|---|
| Caustic soda (liquid sodium hydroxide) | Bulk receipt, storage and distribution; principal alkali | Manufacturing, chemical processing, energy | Cyclical commodity; 10-K names it as a price-volatility example |
| Sulfuric acid | Bulk and repackaged | Manufacturing, plating, processing | — |
| Hydrochloric acid | Bulk and repackaged | Steel and metal finishing, processing | — |
| Phosphoric acid | Bulk and repackaged | Surface finishing, food-adjacent uses | — |
| Aqua ammonia | Bulk | Industrial, emissions control | — |
| Potassium hydroxide | Bulk | Industrial | — |
| Urea | Bulk | Industrial, energy | — |
| Custom blending | Blending to customer formulas and specifications | Electronics, plating, surface finishing | Higher-margin than bulk |
| Repackaging | Breaking bulk into smaller quantities (drums, totes) | Small and mid-size industrial users | — |
Financial Narrative
Sources: FY2023, FY2024, FY2025 and FY2026 Q4 releases (audited consolidated statements as furnished) and the FY2026 10-K. The ratios are analyst calculations from reported figures.
Income statement
Notes:
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FY2022 DPS is derived. The FY2023 release says the $0.57 was 9% above the prior year, which implies about $0.52.
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FY2025 adjusted EBITDA was recast to $168.9m after the Q3 FY2026 definition change, which excludes non-cash earnout items.
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FY2022 included a 53rd week, estimated at about $17.5m of sales and $3.6m of gross profit (FY2023 Q4 release).
Margins and growth
Revenue CAGR: 8.8% for FY2022–FY2026 (4 years). It is 12.7% for FY2021–FY2026 (5 years), using FY2021 revenue of about $596.9m from the December 2021 NAPCO release.
Diluted EPS CAGR: 12.5% for FY2022–FY2026.
Commentary.
FY2022–FY2023: the inflation phase: Revenue rose 30% and then 21%, mostly from price pass-through on caustic and acids. LIFO charges of $15.8m and $18.5m held gross margin below 19%.
FY2024: the inflection: Raw-material deflation reversed LIFO into a $15.4m credit. Gross margin jumped 340bp to 21.1% even though revenue fell 2%. Industrial revenue fell 13%, partly because the consumer bleach packaging business had been sold.
FY2025: structural gains: Gross margin of 23.1% was achieved with almost no LIFO help ($1.6m). This suggests the mix shift toward Water Treatment is structural, not just a cost-cycle effect.
FY2026: higher sales, lower EPS: EPS fell 3% because of about $16.5m of incremental acquisition amortization, interest and earnout accretion. Management's pro forma diluted EPS (as if WaterSurplus had been owned all year) was $3.95, up 9%.
Quarterly detail, FY2025–FY2026: notes and sources
Source: FY2026 10-K selected quarterly data; Q1 FY2027 release. Seasonality is pronounced. Q1 and Q2 (April–September) carry most of the pool and municipal demand, while Q3 is the trough.
Balance sheet
Notes:
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FY2025 total assets were $769.9m as originally reported and $770.0m as re-presented in the FY2026 release, a minor reclassification.
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The FY2026 10-K cover box indicating error corrections in prior financial statements is checked. Readers should check the 10-K notes.
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Total debt is presented net of debt issuance costs as reported.
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At Q1 FY2027 (28 June 2026): debt $244.0m, cash $8.0m, equity $548.2m, total assets $1,006.2m.
Cash flow
Commentary. Operating cash flow swings with the working-capital cycle of bulk chemical purchasing.
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In FY2022, receivables and inventory absorbed about $60m.
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In FY2024, $41m of working-capital release drove record operating cash flow of $159.5m.
Across FY2022–FY2026, cumulative free cash flow was about $339m. Over the same period the company spent about $360m on acquisitions and returned about $114m in dividends and buybacks. The gap was funded with revolver debt.
FY2027 capex guidance is about $55m (FY2026 10-K). Q1 FY2027 free cash flow was $23.5m, up more than 30%. It funded $7.0m of buybacks, $4.0m of dividends and the $3.6m Aqua-Chem acquisition.
Returns, liquidity, leverage and efficiency ratios
Notes:
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ROE uses average equity for FY2023–FY2026. FY2025 (19.5%) and FY2026 (16.4%) match the company's disclosures.
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FY2022 asset turnover uses ending assets.
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Treat it as not disclosed.
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ROIC excludes earnout liabilities from invested capital. Including the FY2026 earnout liabilities of $49.4m would lower FY2026 ROIC to about 11.0%.
Commentary.
Returns peaked in FY2024: (ROIC about 15.6%, ROE about 20%) and fell in FY2026 as $455.9m of goodwill and intangibles entered the capital base. Management argues this is a temporary dilution and that WaterSurplus will become accretive in FY2027.
Working capital has become more efficient: The cash conversion cycle shortened by about 19 days from FY2022 to FY2026, mainly through lower inventory days.
Interest coverage fell to 9.0x: but remains comfortable against covenants: fixed-charge coverage of at least 1.15x and cash-flow leverage of at most 3.5x (4.0x after permitted acquisitions).
- Leverage was 1.36x at Q1 FY2027. The target is about 1.0x by the end of FY2027.
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Segment Overview
| Segment | Contents | Key products and services | Go-to-market |
|---|---|---|---|
Water Treatment | Chemicals, filtration media and systems, equipment, services for potable water, municipal and industrial wastewater, process water, mainly non-residential pools, and agricultural water | Sodium hypochlorite, chlorine, coagulants, corrosion control, filtration media, tanks, pumps, valves, rental filtration, engineered systems, PFAS removal | Company-operated delivery routes; drivers double as salespeople and technicians; 53 warehouses in 28 states |
Food & Health Sciences (FHS) | Processing, formulation and ingredient distribution for nutrition, food, pharmaceutical and agricultural manufacturers | Base chemistry, acid-based reactions, minerals, vitamins, amino acids, excipients, botanicals, sweeteners, enzymes, fertilizers, food- and pharma-grade salts | Specialist sales force; facilities in CA, NY, MN, IL; national and some international sales |
Industrial Solutions (IS) | Industrial chemicals for manufacturing, chemical processing, electronics, energy, plating and surface finishing | Caustic soda, sulfuric acid, hydrochloric acid, urea, phosphoric acid, aqua ammonia, potassium hydroxide; custom blending; repackaging | Specialist sales force; manufacturing plants and terminals |
Segment revenue (USD Mn)
| Segment revenue (USD Mn) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Water Treatment | 363.3 | 446.5 | 543.3 |
Food & Health Sciences | 334.6 | 322.6 | 320.7 |
Industrial Solutions | 221.3 | 205.4 | 219.7 |
Total | 919.2 | 974.4 | 1,083.7 |
Segment YoY growth (%)
| Segment YoY growth (%) | FY2025 | FY2026 |
|---|---|---|
Water Treatment | 22.9 | 21.7 |
Food & Health Sciences | -3.6 | -0.6 |
Industrial Solutions | -7.2 | 7.0 |
Total | 6.0 | 11.2 |
Segment share of revenue (%)
| Segment share of revenue (%) | FY2024 | FY2025 |
|---|---|---|
Water Treatment | 39.5 | 45.8 |
Food & Health Sciences | 36.4 | 33.1 |
Industrial Solutions | 24.1 | 21.1 |
Segment gross profit (USD Mn)
| Segment gross profit (USD Mn) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Water Treatment | 99.1 | 121.8 | 145.0 |
Food & Health Sciences | 67.9 | 71.9 | 67.3 |
Industrial Solutions | 26.7 | 31.8 | 32.8 |
Segment operating income (USD Mn)
| Segment operating income (USD Mn) | FY2025 | FY2026 |
|---|---|---|
Water Treatment | 59.5 | 68.1 |
Food & Health Sciences | 41.2 | 34.4 |
Industrial Solutions | 18.4 | 18.9 |
Total | 119.2 | 121.3 |
Segment margins (%)
| Segment margins (%) | FY2025 | FY2026 |
|---|---|---|
Water Treatment gross margin | 27.3 | 26.7 |
Water Treatment operating margin | 13.3 | 12.5 |
FHS gross margin | 22.3 | 21.0 |
FHS operating margin | 12.8 | 10.7 |
IS gross margin | 15.5 | 14.9 |
IS operating margin | 9.0 | 8.6 |
Legacy segment revenue (USD Mn)
| Legacy segment revenue (USD Mn) | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Industrial | 386.9 | 470.8 | 409.5 | 382.5 |
Water Treatment | 228.1 | 304.9 | 363.3 | 446.5 |
Health and Nutrition | 159.5 | 159.4 | 146.4 | 145.5 |
Legacy segment operating income (USD Mn)
| Legacy segment operating income (USD Mn) | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Industrial | 31.5 | 42.4 | 39.2 | 45.1 |
Water Treatment | 23.2 | 31.5 | 53.2 | 59.6 |
Health and Nutrition | 16.5 | 14.3 | 11.6 | 14.5 |
Revenue by Segment
| Segment (USD Mn) | Q1 FY2026 sales | Q1 FY2027 sales | Growth % | Q1 FY2026 op. income | Q1 FY2027 op. income |
|---|---|---|---|---|---|
Water Treatment | 149.6 | 158.3 | 5.8 | 24.7 | 21.8 |
Food & Health Sciences | 89.2 | 97.3 | 9.1 | 11.0 | 11.2 |
Industrial Solutions | 54.5 | 60.1 | 10.3 | 5.7 | 5.6 |
Total | 293.3 | 315.7 | 7.6 | 41.3 | 38.7 |
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View Subscription PlansIncome Statement and Per-Share Data
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Revenue (USD Mn) | 774.5 | 935.1 | 919.2 | 974.4 | 1,083.7 |
Gross profit (USD Mn) | 146.5 | 165.1 | 193.6 | 225.5 | 245.1 |
SG&A (USD Mn) | 75.3 | 77.0 | 89.6 | 106.4 | 123.8 |
Operating income (USD Mn) | 71.2 | 88.2 | 104.0 | 119.2 | 121.3 |
Depreciation & amortization (USD Mn) | 24.1 | 27.4 | 31.8 | 39.9 | 52.5 |
EBITDA, OI + D&A (USD Mn) | 95.3 | 115.6 | 135.8 | 159.1 | 173.8 |
Adjusted EBITDA, company as reported (USD Mn) | 99.7 | 119.1 | 143.0 | 167.5 | 179.0 |
Interest expense, net (USD Mn) | 1.4 | 5.2 | 4.3 | 5.4 | 13.5 |
Pre-tax income (USD Mn) | 70.0 | 82.6 | 101.1 | 114.4 | 109.3 |
Income tax (USD Mn) | 18.4 | 22.5 | 25.8 | 30.0 | 27.8 |
Net income (USD Mn) | 51.5 | 60.0 | 75.4 | 84.3 | 81.5 |
EPS basic (USD) | 2.46 | 2.88 | 3.61 | 4.05 | 3.93 |
EPS diluted (USD) | 2.44 | 2.86 | 3.59 | 4.03 | 3.91 |
Dividends per share paid (USD) | 0.52 | 0.57 | 0.63 | 0.70 | 0.75 |
Diluted shares (M) | 21.14 | 21.01 | 21.01 | 20.94 | 20.86 |
LIFO impact on gross profit (USD Mn; negative = charge) | -15.8 | -18.5 | 15.4 | 1.6 | -1.5 |
Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Gross margin (%) | 18.9 | 17.7 | 21.1 | 23.1 | 22.6 |
Operating margin (%) | 9.2 | 9.4 | 11.3 | 12.2 | 11.2 |
EBITDA margin, OI + D&A (%) | 12.3 | 12.4 | 14.8 | 16.3 | 16.0 |
Adjusted EBITDA margin (%) | 12.9 | 12.7 | 15.6 | 17.2 | 16.5 |
Net margin (%) | 6.7 | 6.4 | 8.2 | 8.7 | 7.5 |
Effective tax rate (%) | 26.3 | 27.3 | 25.5 | 26.3 | 25.4 |
Revenue growth YoY (%) | 29.8 | 20.7 | -1.7 | 6.0 | 11.2 |
Diluted EPS growth YoY (%) | 23.2 | 17.2 | 25.5 | 12.3 | -3.0 |
Financial Analysis
| Quarterly metric | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|---|---|---|---|---|---|
Sales | 255.9 | 247.0 | 226.2 | 245.3 | 293.3 | 280.4 | 244.1 | 265.9 | 315.7 |
Gross profit | 64.7 | 60.2 | 48.4 | 52.2 | 72.4 | 67.6 | 50.8 | 54.2 | 74.0 |
Operating income | 39.8 | 33.7 | 21.1 | 24.6 | 41.3 | 33.9 | 22.6 | 23.5 | 38.7 |
Net income | 28.9 | 24.1 | 15.0 | 16.3 | 29.2 | 22.6 | 14.3 | 15.5 | 28.3 |
Diluted EPS | 1.38 | 1.16 | 0.72 | 0.78 | 1.40 | 1.08 | 0.69 | 0.74 | 1.35 |
Balance Sheet
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Total assets (USD Mn) | 567.3 | 590.5 | 657.9 | 769.9 | 986.3 |
Cash & equivalents (USD Mn) | 3.5 | 7.6 | 7.2 | 5.1 | 3.9 |
Short-term debt / current portion (USD Mn) | 9.9 | 9.9 | 9.9 | 9.9 | 0.0 |
Long-term debt (USD Mn) | 115.6 | 101.7 | 88.8 | 138.9 | 244.0 |
Total debt (USD Mn) | 125.6 | 111.6 | 98.7 | 148.8 | 244.0 |
Net debt (USD Mn) | 122.1 | 104.0 | 91.6 | 143.7 | 240.1 |
Shareholders' equity (USD Mn) | 302.6 | 350.0 | 406.0 | 460.3 | 534.0 |
Goodwill (USD Mn) | 77.4 | 77.4 | 103.4 | 135.4 | 223.0 |
Intangible assets, net (USD Mn) | 80.2 | 73.1 | 116.6 | 150.1 | 232.9 |
Goodwill + intangibles (USD Mn) | 157.6 | 150.5 | 220.0 | 285.5 | 455.9 |
Working capital, CA – CL (USD Mn) | 126.3 | 141.2 | 99.5 | 123.6 | 126.6 |
Earnout liabilities (USD Mn) | 0.0 | 0.0 | 11.2 | 12.6 | 49.4 |
Cash Flow and Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Operating cash flow (USD Mn) | 42.8 | 77.4 | 159.5 | 111.1 | 144.3 |
Capex (USD Mn) | 28.5 | 48.3 | 40.2 | 41.1 | 58.2 |
Free cash flow (USD Mn) | 14.3 | 29.1 | 119.3 | 70.0 | 86.1 |
Acquisitions, cash (USD Mn) | 21.5 | 0.0 | 83.5 | 87.4 | 167.1 |
Dividends paid (USD Mn) | 11.1 | 12.0 | 13.2 | 14.6 | 15.7 |
Share buybacks (USD Mn) | 8.5 | 6.6 | 11.3 | 20.7 | 0.0 |
Net revolver borrowing / (repayment) (USD Mn) | 27.0 | -14.0 | -13.0 | 50.0 | 95.0 |
FCF conversion of net income (%) | 27.8 | 48.5 | 158.2 | 83.0 | 105.6 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
ROE (%) | 17.0 | 18.4 | 19.9 | 19.5 | 16.4 |
ROA, NI / ending assets (%) | 9.1 | 10.2 | 11.5 | 11.0 | 8.3 |
ROIC, NOPAT / (equity + debt – cash) (%) | 12.4 | 14.1 | 15.6 | 14.5 | 11.7 |
Current ratio (x) | 2.24 | 2.55 | 1.96 | 2.15 | 2.21 |
Debt / equity (x) | 0.42 | 0.32 | 0.24 | 0.32 | 0.46 |
Net debt / adjusted EBITDA (x) | 1.22 | 0.87 | 0.64 | 0.86 | 1.34 |
Company-reported leverage ratio (x) | 0.00 | 0.96 | 0.66 | 0.86 | 1.37 |
Interest coverage, OI / net interest (x) | 50.7 | 16.8 | 24.3 | 21.9 | 9.0 |
Asset turnover (x) | 1.37 | 1.62 | 1.47 | 1.36 | 1.23 |
DSO (days) | 57.9 | 50.5 | 45.5 | 49.4 | 47.1 |
DIO (days) | 55.2 | 42.1 | 37.5 | 40.7 | 34.0 |
DPO (days) | 38.8 | 25.5 | 28.4 | 29.8 | 26.0 |
Cash conversion cycle (days) | 74.3 | 67.1 | 54.6 | 60.3 | 55.1 |
Geographic revenue (USD Mn)
| Geographic revenue (USD Mn) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
United States, all revenue as reported | 919.2 | 974.4 | 1,083.7 |
Us Region Details
| US region (Water Treatment expansion) | Acquisitions FY2021–FY2027 YTD | Direction |
|---|---|---|
Upper Midwest (MN, IA, WI, ND, SD, NE) | Aqua-Chem (NE/IA, 2026) | Legacy core; mature |
Central Midwest (IN, IL, MI, OH) | Water Solutions Unlimited (2023), Miami Products (2023), WaterSurplus (IL, 2025) | Fast-growing via M&A |
South Central (TX, LA, AR, MS) | C&L Aqua (2021), NAPCO (2021), EcoTech (2023), Industrial Research (2024), Wofford (2024), Redbird (2025) | Fastest-growing branch count |
Southeast (AL, TN, GA, KY, NC, FL) | ADC (2020/21), Water and Waste Specialties (2021), PhillTech (2025), StillWaters (2025), Water Guard (2024), Amerochem (2025) | Fast-growing via M&A |
Mid-Atlantic (MD, DE, VA) | Intercoastal Trading (2024) | New entry, close to large East Coast population centers |
Share Price & Returns
| Reference point | Price (USD) | Source |
|---|---|---|
Close, 8 Sep 2026 (latest retrieved) | 127.00 | Google Finance |
52-week high | 186.15 | Google Finance / Robinhood |
52-week low | 116.04 | Google Finance (Sep 2026) |
FY2026 year-end close (27 Mar 2026) | 152.12 | 2026 proxy |
Close on 31 Mar 2025 | 105.92 | 2026 proxy (vesting value) |
Month-end Sep 2025 | 182.72 | Digrin |
Month-end Oct 2023 | 57.43 | Digrin |
Month-end Oct 2021 | 36.67 | Digrin |
Approximate price return | Value (%) | Basis |
1-year | -30.5 | Sep 2025 month-end to 8 Sep 2026 |
3-year | +121 | Oct 2023 month-end to 8 Sep 2026 |
5-year | +246 | Oct 2021 month-end to 8 Sep 2026 |
Alternative 1Y / 3Y / 5Y as of 24 Jul 2026 | -10.3 / +184.7 / +336.7 | aktien.guide |
Valuation Multiples
| Multiple | Hawkins | Basis |
|---|---|---|
Market cap | about $2.65bn | $127.00 × 20.88m |
Enterprise value | about $2.89bn | Plus debt $244.0m, less cash $8.0m (Q1 FY2027); excludes $45m earnouts |
P/E (TTM) | about 32.9x | TTM diluted EPS $3.86 (FY2026 $3.91 + Q1 FY2027 $1.35 – Q1 FY2026 $1.40) |
EV / adjusted EBITDA (TTM) | about 16.1x | TTM adjusted EBITDA $179.8m |
EV / sales (TTM) | about 2.6x | TTM sales about $1,106.1m |
P / B | about 4.8x | Equity $548.2m (28 Jun 2026) |
Dividend yield | about 0.63% | $0.80 annualized |
Forward P/E | about 26x | On the $4.84 next-year EPS estimate (MarketBeat) |
Analyst Ratings & Targets
| Broker | Analyst | Rating | Target (USD) | Date |
|---|---|---|---|---|
BWS Financial | Hamed Khorsand | Buy | 200 | Maintained 23 Mar 2026 (reiterated about Aug 2026) |
Barclays | William Grippin | Equal-Weight / Hold | 170, cut to 142 | Initiated 30 Jun 2026; cut 31 Jul 2026 |
Consensus (aggregators) | — | Mixed (1 Buy, 1 Hold) | Average about 171–174 | Google Finance; Investing.com (Aug–Sep 2026) |
Shareholder returns
| Shareholder returns | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Dividends per share (USD) | 0.52 | 0.57 | 0.63 | 0.70 | 0.75 |
Dividends paid (USD Mn) | 11.1 | 12.0 | 13.2 | 14.6 | 15.7 |
Buybacks (USD Mn) | 8.5 | 6.6 | 11.3 | 20.7 | 0.0 |
Payout ratio, DPS / diluted EPS (%) | 21.3 | 19.9 | 17.5 | 17.4 | 19.2 |
Debt maturity (USD Mn)
| Debt maturity (USD Mn) | FY2027 | FY2028 | FY2029 | FY2030 | FY2031 |
|---|---|---|---|---|---|
Senior secured revolver principal | 0 | 0 | 0 | 0 | 244 |
Earnout payments (fair value) | 4.5 | 0 | 0 | 0 | 53.7 |
Interest and fees (estimated) | 10.9 | 11.9 | 12.0 | 12.0 | 1.0 |
Analyst Conclusions
Guidance and consensus
Management expects revenue and operating income to grow in every segment in FY2027, with EPS growth, a 25–27% tax rate, about $55m of capex and leverage of about 1x by March 2027.
The single aggregator estimate available puts next-year EPS at about $4.84 (MarketBeat). That would be about 24% above FY2026, which looks demanding after Q1 FY2027 EPS of $1.35 (-4%). Simply Wall St (April 2026) cites longer-run consensus of about 5.6% annual revenue growth and about 9.3% annual earnings growth.
Bull case
-
Deleveraging turns into EPS growth. Paying down $50–60m of debt per year cuts interest from $13.5m (FY2026) toward about $10m, while WaterSurplus becomes accretive in FY2027 as guided. Q1 FY2027 adjusted EBITDA was already a record $56.9m.
-
Water Treatment compounding. The segment grew from 39.5% of sales in FY2024 to 50.1% in FY2026, earns the highest margins (26.7% gross), and has a repeatable tuck-in pipeline. That supports mix-driven margin expansion and a premium multiple.
-
PFAS and equipment optionality. Cross-selling WaterSurplus systems and PFAS rentals into a large municipal customer base could lift organic growth above the roughly 5% Q1 FY2027 rate.
Bear case
-
Growth is mostly acquired. In FY2026, $83.3m of the $96.8m Water Treatment increase came from acquisitions. Organic growth of about 3–5% does not justify about 33x trailing earnings.
-
Returns are diluting. ROIC fell from about 15.6% to about 11.7%. Goodwill and intangibles now equal 85% of equity, and the $8.1m Water Solutions earnout reversal hints that some deals are underperforming their targets.
-
Margin fragility. LIFO, freight and FHS price competition compressed Q1 FY2027 gross margin by about 200bp. Fluoride and tariff policy add tail risk to segments that management cannot control.
Catalysts and monitorables (next 12 months)
| Catalyst / monitorable | Expected timing | What to watch |
|---|---|---|
| Q2 FY2027 results | Late Oct / early Nov 2026 (4 Nov per Investing.com, unconfirmed) | Peak-season Water Treatment organic growth; LIFO and freight; leverage path |
| Q3 FY2027 results | About late Jan 2027 | Seasonal trough margins; FHS pricing |
| FY2027 results and FY2028 outlook | About mid-May 2027 | Delivery of about 1x leverage; EPS growth |
| Earnout payment (Water Solutions, about $4.5m) | FY2027 | Confirms earnout settlement |
| Interest-rate swap expiry ($60m notional) | 1 May 2027 | Interest-cost sensitivity |
| Further acquisitions | Ongoing | Deal size, valuation, funding mix |
| Federal and state fluoride and PFAS actions | Ongoing | Demand impact on Water Treatment |
| Analyst coverage changes | Ongoing | Barclays target $142; BWS $200 |
| Buyback pace | Quarterly | Use of remaining roughly 0.69–0.73m-share authorization |
Analyst verdict
Hawkins has changed shape over five years. It has moved from a Minnesota bulk-chemical distributor, earning 9% operating margins in FY2022, into a water-treatment-led specialty company. Revenue has passed $1bn, gross margins are about 23%, and half of revenue and 56% of operating income now come from essential municipal water chemistry delivered through a hard-to-replicate route network.
The company's record on cash generation, dividends and deal integration is strong. Governance is sound, with an independent chair, a formula-driven pay plan and consistent shareholder approval.
FY2026 was a transition year. The WaterSurplus deal brought scale, technology and PFAS exposure, but it lifted leverage to about 1.4x, added about $16.5m of acquisition-related costs and produced the first EPS decline in roughly eight years. Q1 FY2027 confirmed the top-line momentum (+8% sales, about 5% organic) but also showed how quickly LIFO, freight and FHS pricing can absorb gross-profit gains.
The equity has de-rated from about $186 to about $127, removing much of the excess optimism. At about 33x trailing earnings and about 16x EV/EBITDA, however, it still prices in a successful pivot rather than a distributor's economics.
The investment case now depends on three testable delivery points over the next three quarters:
-
Leverage reaching about 1x by March 2027.
-
WaterSurplus becoming EPS-accretive as promised.
-
Water Treatment organic growth holding at mid-single digits or better.
If all three are met, normalized EPS of $4.50–5.00 is achievable and supports the current valuation. A miss on organic growth would leave the stock exposed to further compression toward specialty-distribution multiples.
Balanced view: this is a high-quality, defensively positioned compounder at a full valuation. A Neutral, quality-tilted stance is warranted, with accumulation favored on evidence of organic acceleration and margin stabilization rather than on price alone.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | Age | In role since | Prior roles | Education |
|---|---|---|---|---|---|
Patrick H. Hawkins | CEO and President; director | 55 | CEO 2011; President 2010 | Joined 1992; Business Director Food & Pharma (2009–10); Business Manager Food & Co-Extrusion (2007–09); food ingredients sales (2002–07); earlier Plant Manager, Quality Director, Technical Director | BS Chemistry, University of St. Thomas |
Jeffrey P. Oldenkamp | EVP, CFO and Treasurer | 53 | EVP Oct 2021; CFO Jun 2017 | CFO of MTS Systems (2015–17); VP Finance, MTS Test (2014–15); Americas Operations CFO, Nilfisk-Advance (2012–14) | — |
Drew M. Grahek | VP — Operations | 56 | Sep 2018 | Ulta Beauty; Field & Stream (Dick's); 23 years at Target | — |
Douglas A. Lange | VP — Water Treatment | 56 | Jun 2020 | Joined Jan 2019 as GM / Product Development Manager, Water Treatment; H.B. Fuller (2011–19); 21 years in specialty adhesives | — |
Greg A. Jones | VP — Food & Health Sciences | 45 | Apr 2025 | VP Business, Hawkins (from Apr 2024); Kerry Taste & Nutrition (2019–24); Winpak (2010–19) | — |
David J. Mangine | VP — Industrial Solutions | 68 | 2021 | Industrial Sales Manager (2011–21); joined 2000 | — |
Daniel A. Louismet | VP, General Counsel and Secretary (Interim GC from Dec 2025) | 40 | Dec 2025 | Associate GC (from Sep 2024); founder of Minnesota Dealer Law; GC of Minnesota Automobile Dealers Association | Minnesota Bar |
Shirley A. Rozeboom | VP — Stauber | 64 | 2025 | VP Health & Nutrition (2019–25); Stauber sales leadership since 2000 | — |
“—” = not publicly disclosed.
Directors' Remuneration
| NEO | Salary | Stock awards | Non-equity incentive | All other | Total FY2026 | Total FY2025 |
|---|---|---|---|---|---|---|
Patrick H. Hawkins (CEO) | 743,269 | 2,062,393 | 736,984 | 65,248 | 3,607,894 | 3,151,261 |
Jeffrey P. Oldenkamp (CFO) | 584,712 | 1,027,247 | 432,610 | 39,365 | 2,083,934 | 2,213,782 |
Drew M. Grahek | 436,250 | 328,494 | 215,199 | 44,693 | 1,024,636 | 1,082,458 |
Douglas A. Lange | 400,962 | 242,930 | 220,145 | 38,844 | 902,881 | not an NEO |
David J. Mangine | 385,385 | 232,160 | 167,866 | 67,194 | 852,605 | not an NEO |
Richard G. Erstad (former GC) | 385,385 | 290,200 | 190,142 | 52,581 | 918,308 | 967,606 |
Directors' Remuneration (FY2022–FY2026)
| CEO total compensation (USD) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Summary Compensation Table total | 2,119,465 | 2,223,409 | 2,616,013 | 3,151,261 | 3,607,894 |
Compensation actually paid | 3,698,401 | 2,242,510 | 5,167,694 | 5,293,699 | 6,187,473 |
Board of Directors
| Director | Age | Since | Independent | Audit | Comp | Gov & Nom | Principal occupation |
|---|---|---|---|---|---|---|---|
James T. Thompson (Chair) | 75 | 2009 | Yes | — | M | M | Retired; former EVP Commercial, Mosaic; President, Cargill Steel |
Patrick H. Hawkins | 55 | 2011 | No | — | — | — | CEO and President, Hawkins |
James A. Faulconbridge | 58 | 2006 | Yes | M | — | Chair | President, Karges-Faulconbridge (engineering) |
Mary J. Schumacher | 69 | 2012 | Yes | M | Chair | M | Retired; former SVP/GM Andersen Corp.; Ecolab; Pillsbury |
Jeffrey E. Spethmann | 61 | 2021 | Yes | M | — | — | CEO, Phillips & Temro Industries; former Donaldson SVP |
Daniel J. Stauber | 64 | 2016 | No | — | — | — | Chief Brand Officer, Stauber (subsidiary) |
Yi "Faith" Tang | 50 | 2020 | Yes | — | M | — | CIO, Mortenson Construction; former CIO, MiTek and H.B. Fuller |
Jeffrey L. Wright | 63 | 2009 | Yes | Chair | M | M | Retired; former CFO, G&K Services |
Major Shareholders
| Holder | Shares (approx.) | % outstanding (approx.) | Source / date | Note |
|---|---|---|---|---|
BlackRock, Inc. | 3,108,501 – 3,212,367 | 14.9 – 15.4 | 13F filed 13 May 2026 (Equibles); Simply Wall St | Sources differ in date |
The Vanguard Group | 1,525,789 | 7.3 | Simply Wall St (aggregated across entities) | Equibles lists the entities separately |
Kayne Anderson Rudnick Investment Mgmt | 1,146,640 – about 1.5m | 5.5 – 7.2 | Simply Wall St; HoldingsIntel (Q1 2026 13F, $234.4m) | Sources conflict |
State Street Global Advisors | 1,067,451 | 5.1 | Simply Wall St; 13G (May 2026) | — |
Hawkins, Inc. ESOP | 886,897 | 4.2 | Simply Wall St | Employee plan |
Wasatch Advisors | 552,419 | 2.6 | Simply Wall St | — |
Dimensional Fund Advisors | 525,947 | 2.5 | Simply Wall St | — |
Morgan Stanley | 212,956 | 1.0 | 13F filed 15 May 2026 (Equibles) | — |
FMR LLC (Fidelity) | 116,613 | 0.6 | 13F filed 15 May 2026 (Equibles) | — |
Nuveen | 61,911 | 0.3 | 13F filed 30 Apr 2026 (Equibles) | — |
Insiders (officers and directors) | about 870,000 | about 4.1 – 4.2 | Simply Wall St; MarketBeat | — |
Competitive Landscape
Competitors by Segment
| Segment | Competitor | Type | Scale indicator | Positioning vs Hawkins |
|---|---|---|---|---|
WT / IS | Univar Solutions (Apollo-owned, private) | Global chemical distributor | Not publicly disclosed since going private | Broader national reach; less route-based municipal service |
WT / IS / FHS | Brenntag SE | Global distributor | — | Scale and breadth; competes in industrial and food distribution |
WT | Kemira Oyj | Water chemicals producer (coagulants, polymers) | 2025 revenue EUR 2,753.5m; operative EBITDA EUR 524.6m (19.1%) | Producer-level economics; expanding into North American industrial water services (Water Engineering, 2025) |
WT / IS | Chemtrade Logistics | Producer (water solutions, sulfuric acid, chlor-alkali) | 2025 adjusted EBITDA C$507.4m (record) | Supplier and competitor in coagulants and acids |
WT / IS | Olin Corporation | Chlor-alkali producer | — | Upstream chlorine, caustic and bleach |
WT | Veolia Water Technologies & Solutions | Global water technology | — | Engineered systems and membranes; competes with WaterSurplus |
WT | Solenis / Ecolab (Nalco Water) | Specialty water treatment | — | Industrial water programs; higher-tech, service-heavy |
WT | Regional independent distributors (dozens across the eastern US) | Local water-chemical distributors | Private | Hawkins' acquisition pipeline as well as its competitors |
FHS | Balchem Corp. | Nutrition and health ingredients | 2025 net sales $1,037.2m; adjusted EBITDA $274.9m | Higher-margin, more proprietary (encapsulates, choline, minerals) |
FHS | Glanbia Nutritionals; Jost Chemical; IMCD; Azelis | Ingredient makers and distributors | — | Compete with Stauber in minerals, premixes and distribution |
IS | Brenntag, Univar, regional acid/alkali distributors; Westlake and OxyChem (caustic producers) | Distribution and production | — | Price-driven bulk competition |
Peer Comparison FY2026
| Metric | Hawkins (FY2026, Mar-26) | Balchem (FY2025, Dec-25) | Kemira (FY2025, Dec-25) | Chemtrade (FY2025, Dec-25) |
|---|---|---|---|---|
Revenue | $1,083.7m | $1,037.2m | EUR 2,753.5m | — |
Revenue growth | +11.2% | +8.8% | -6.6% (computed from EUR 2,948.1m) | — |
Adjusted / operative EBITDA | $179.0m | $274.9m | EUR 524.6m | C$507.4m |
EBITDA margin | 16.5% | 26.5% | 19.1% | Not computed |
Primary overlap | — | FHS | Water Treatment | WT / IS |
