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Sep 29, 2024

Hawkins Q2 2025 Earnings Report

Hawkins reported record second quarter results driven by Water Treatment segment growth and overall revenue increase.

Key Takeaways

Hawkins, Inc. reported record second quarter results with revenue growth of 4%, driven by the Water Treatment segment's 23% increase. Gross profit increased by 12%, and diluted EPS rose to $1.16. The company paid down $30 million of debt, resulting in a leverage ratio of 0.65x trailing 12-month proforma adjusted EBITDA.

Achieved record second quarter results for revenue, gross profit, operating income, net income, and diluted EPS.

Experienced overall revenue growth of 4%, driven by a 23% increase in the Water Treatment segment.

Increased gross profit by 12% compared to the same period last year, with Water Treatment segment gross profit growing by 22%.

Reported second quarter operating income of $33.7 million, marking the 26th consecutive quarter of year-over-year growth.

Total Revenue
$247M
Previous year: $237M
+4.4%
EPS
$1.16
Previous year: $1.1
+5.5%
Gross Profit
$60.2M
Previous year: $53.9M
+11.7%
Cash and Equivalents
$7.53M
Previous year: $11M
-31.4%
Free Cash Flow
$31M
Previous year: $48.7M
-36.4%
Total Assets
$690M
Previous year: $575M
+19.9%

Hawkins

Hawkins

Hawkins Revenue by Segment

Forward Guidance

Looking to the third quarter, we expect continued growth within our Water Treatment segment and for our Health and Nutrition segment to resume growth. We expect to see our Industrial segment continue to perform similar to the first half of fiscal 2025.

Positive Outlook

  • Continued growth within our Water Treatment segment
  • Health and Nutrition segment to resume growth

Challenges Ahead

  • Industrial segment continue to perform similar to the first half of fiscal 2025

Revenue & Expenses

Visualization of income flow from segment revenue to net income