Hawkins Q1 FY2026 presentation reveals 15% revenue growth, continued momentum

Introduction & Market Context

Hawkins Inc. (NASDAQ:HWKN), a specialty chemical company founded in 1938, released its Q1 FY2026 investor presentation in July 2025, highlighting continued growth momentum across its three business segments. The company’s stock closed at $160.63 on July 30, 2025, trading near its 52-week high of $165.87, reflecting investor confidence in its business model and growth trajectory.

The presentation showcased Hawkins’ diversified portfolio spanning water treatment, food and health sciences, and industrial solutions, with the company reporting its 29th consecutive quarter of year-over-year operating income growth. This consistent performance has positioned Hawkins as a resilient player in the specialty chemicals market.

Quarterly Performance Highlights

Hawkins reported impressive Q1 FY2026 results, with revenue reaching $293.3 million, representing 15% growth year-over-year. While diluted earnings per share (EPS) grew more modestly at 1% to $1.40, adjusted EBITDA increased by 13% to $57.4 million. The company also generated strong quarterly operating cash flow of $31.5 million.

As shown in the following quarterly financial performance chart:

This performance continues Hawkins’ streak of consecutive quarterly growth, demonstrating the company’s ability to execute its business strategy effectively despite varying market conditions. The stronger revenue growth compared to EPS growth suggests some margin pressure during the quarter, though adjusted EBITDA growth remained robust.

Business Segment Analysis

Hawkins operates through three distinct business segments, each serving different markets with specialized products and services. The revenue breakdown by segment reveals a well-diversified business model:

The Water Treatment segment represents the largest portion of Hawkins’ business at 46% of revenue ($446.5 million in FY2025). This segment specializes in chemicals and solutions for municipal drinking water, wastewater treatment, pools, and agricultural water applications. With 52 locations across 26 states, Hawkins has established a strong geographic footprint in this segment.

The Food & Health Sciences segment contributes 33% of revenue ($322.5 million) and serves nutrition, pharmaceutical, food ingredients, and agricultural markets. This segment has been strategically important as Hawkins expands into higher-margin specialty products.

The Industrial Solutions segment accounts for 21% of revenue ($205.4 million) and focuses on manufacturing, surface finishing, oil & gas, and mining industries. This segment not only contributes directly to revenue but also creates favorable cost positions for the other segments through enhanced purchasing power.

Long-term Financial Trends

Hawkins’ presentation highlighted impressive long-term financial performance, with substantial growth across all key metrics over the past five years:

From fiscal 2020 to 2025, Hawkins achieved:

• Sales growth from $540.2 million to $974.4 million (13% CAGR)
• Gross profit increase from $100.9 million to $225.5 million (17% CAGR)
• Net income expansion from $28.4 million to $84.3 million (24% CAGR)
• Diluted EPS improvement from $1.33 to $4.03 (25% CAGR)
• Operating cash flow growth from $43.8 million to $111.1 million (13% CAGR)
• Adjusted EBITDA increase from $65.3 million to $167.5 million (21% CAGR)

These consistent growth rates across multiple financial metrics demonstrate Hawkins’ ability to not only expand revenue but also improve profitability and cash generation over time.

Strategic Initiatives

Acquisitions have been a key growth driver for Hawkins, with the company completing 20 acquisitions in the last 14 years, including 14 in just the past five years. This aggressive but disciplined acquisition strategy has allowed Hawkins to expand its geographic footprint, enter new markets, and enhance its product portfolio.

The company’s acquisition timeline illustrates this strategic approach:

Hawkins has also maintained a strong commitment to shareholder returns, with 40 consecutive years of cash dividends. The dividend per share has grown from $0.46 in FY2021 to $0.70 in FY2025, representing a 10.5% CAGR. This balanced approach to capital allocation reflects management’s focus on both growth investments and shareholder returns.

The company’s geographic expansion strategy is supported by its extensive infrastructure network:

With 64 locations, including 52 branch locations, 10 manufacturing sites, and 2 main office locations, Hawkins has built a robust distribution network that enables it to serve customers efficiently across the United States. This infrastructure includes over 2 million square feet of manufacturing and warehouse space, approximately 25 million gallons of tank capacity, and a dedicated fleet of over 400 trucks and trailers.

Forward-Looking Statements

Hawkins outlined several strategic priorities to drive future growth:

1. Expanding specialty and value-added services

2. Adding new Water Treatment facilities annually

3. Bolstering and improving its extensive supplier base

4. Investing in higher margin/growth production capabilities

5. Fostering a strong people culture

6. Growing earnings

The company’s capital allocation strategy prioritizes investing in the business, paying dividends, repurchasing shares to offset dilution, pursuing opportunistic acquisitions, and paying down debt. This approach is supported by Hawkins’ strong cash flow generation, as illustrated in the following chart:

Operating cash flow has grown substantially from $43.8 million in FY2021 to $111.1 million in FY2025, providing the financial flexibility to pursue these strategic initiatives while maintaining a conservative balance sheet with a debt-to-EBITDA ratio of 1.6x.

Conclusion

Hawkins’ Q1 FY2026 presentation portrays a company with strong momentum across its diversified business segments. The 15% year-over-year revenue growth and 13% increase in adjusted EBITDA continue a pattern of consistent performance, with 29 consecutive quarters of year-over-year operating income growth.

The company’s long-term financial trends demonstrate its ability to grow profitably, with impressive 5-year CAGRs across key metrics. Hawkins’ strategic focus on acquisitions, geographic expansion, and specialty products positions it well for continued growth, while its commitment to shareholder returns through consistent and growing dividends provides an additional appeal to investors.

As Hawkins continues to execute its growth strategy, investors will likely focus on the company’s ability to maintain margin performance amid its rapid expansion and its success in integrating recent acquisitions to drive further value creation.

Full presentation:

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