Hawkins Q4 2025 slides: EPS jumps 18% as Water Treatment segment drives growth

Hawkins Inc. (NASDAQ:HWKN) shares surged 8.63% in after-hours trading following the company’s Q4 and full-year fiscal 2025 earnings presentation on May 14, 2025. The chemical manufacturer and distributor reported its 28th consecutive quarter of year-over-year operating income growth, with quarterly diluted earnings per share rising 18% to $0.78.

Quarterly Performance Highlights

Hawkins delivered solid fourth-quarter results across all key metrics. Revenue increased 10% year-over-year to $245.3 million, while operating income jumped 22.4% to $24.6 million compared to the same period last year. The company’s operating cash flow for the quarter was $30.8 million, down 26% from $41.9 million in Q4 FY2024, which management attributed to working capital management.

As shown in the following chart detailing the company’s quarterly performance:

Full-Year Financial Results

For the full fiscal year 2025, Hawkins reported revenue of $974.4 million, a 6% increase from $919.2 million in fiscal 2024. Operating income rose 14.6% to $119.2 million, while net income grew 11.8% to $84.3 million. Diluted EPS for the year reached $4.03, up 12.3% from $3.59 in the previous year.

The company’s full-year financial performance is illustrated in the following chart:

Hawkins has maintained impressive growth rates over the past five years, with sales growing at a 13% CAGR, gross profit at 17%, net income at 24%, and diluted EPS at 25%. The company’s adjusted EBITDA has also shown strong growth, with a 21% CAGR over the five-year period, reaching $167.5 million in fiscal 2025.

The following chart demonstrates the company’s consistent financial growth from fiscal 2020 through 2025:

Particularly notable is the company’s consistent quarter-over-quarter EPS growth, which has shown an unbroken upward trajectory over the past five years:

Segment Performance Analysis

Hawkins operates through three business segments, with Water Treatment representing 46% of revenue ($446.5 million), Industrial accounting for 39% ($382.5 million), and Health & Nutrition comprising 15% ($145.5 million).

The company’s revenue distribution across segments is illustrated in the following chart:

The Water Treatment segment has been the company’s strongest performer, with a 23% five-year CAGR in sales and 24% in gross profit. In fiscal 2025, the segment generated $446.5 million in revenue, up 22.9% from $363.3 million in fiscal 2024. Operating income for the segment increased to $59.6 million, representing a 12% year-over-year growth.

The Industrial segment reported $382.5 million in revenue for fiscal 2025, a slight decrease from $409.5 million in fiscal 2024. However, operating income improved to $45.1 million, up 15.1% from $39.2 million in the previous year, indicating improved profitability despite lower sales.

The Health & Nutrition segment generated $145.5 million in revenue, relatively flat compared to $146.4 million in fiscal 2024. Operating income for this segment increased to $14.5 million, up 25% from $11.6 million, showing significant margin improvement.

Growth Strategy and Capital Allocation

Hawkins has maintained a consistent approach to capital allocation, prioritizing investments in the business, paying dividends, managing debt, repurchasing shares, and pursuing strategic acquisitions. The company has generated strong operating cash flow, with $111.1 million in fiscal 2025, though this represents a decrease from the exceptional $159.5 million generated in fiscal 2024.

The following chart illustrates the company’s operating cash flow and capital expenditures over the past six years:

Hawkins has consistently returned capital to shareholders through dividends and share repurchases. The company has paid consecutive cash dividends for 40 years, with a dividend CAGR of 10.5%. The current dividend yield stands at 0.7%, with the annual dividend per share increasing from $0.46 in fiscal 2021 to $0.70 in fiscal 2025.

As shown in the following chart detailing the company’s capital return to shareholders:

Strategic acquisitions remain a key component of Hawkins’ growth strategy, particularly in expanding its Water Treatment segment. The company has completed numerous acquisitions since 2011, adding new facilities and expanding its geographic footprint to 63 locations across 28 states.

Forward Outlook

Hawkins continues to focus on its growth strategy across all three segments. For Water Treatment, the company aims to grow all 51 facilities and expand through acquisitions or new greenfield developments. The Industrial division will focus on growing its pharmaceutical business, while the Health & Nutrition segment will emphasize specialty branded products.

The company’s strong balance sheet and consistent cash flow generation position it well for continued organic growth and strategic acquisitions. With 28 consecutive quarters of year-over-year operating income growth and a five-year diluted EPS CAGR of 25%, Hawkins has demonstrated its ability to deliver sustainable growth and shareholder value.

The significant after-hours stock price increase of 8.63% following the earnings presentation suggests that investors are responding positively to the company’s consistent performance and growth outlook. Hawkins shares closed at $120.29 before jumping to $130 in after-hours trading.

Full presentation:

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