GET DAILY SIGNALSHawkins (HWKN) Delivers Strong Fiscal Q2 Earnings
Key Takeaways
- Hawkins reported fiscal second-quarter revenue of $313.8 million, up 11.9% year over year and above the consensus estimate of roughly $302.7 million.
- Diluted earnings per share (EPS, or profit divided by shares outstanding) rose 24.1% to $1.34, topping analyst expectations of $1.19 to $1.22.
- Net income climbed 23% to $27.8 million, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) increased 16% to $59.1 million.
- The Water Treatment segment led growth, with revenue up 16% to $175.0 million on higher volumes and improved pricing.
- The balance sheet strengthened, with the leverage ratio improving to 1.22x trailing twelve-month adjusted EBITDA from 1.37x at fiscal year-end 2026.
Earnings Context and Why It Matters
Hawkins, Inc. is a specialty chemicals and water treatment company whose fiscal year ends in late March, meaning this report covers its fiscal 2027 second quarter, which ended September 27, 2026. The quarter matters because it tests whether Hawkins can keep growing after a heavy stretch of acquisitions, particularly in Water Treatment, without sacrificing profitability. In the prior quarter the company missed EPS estimates, so investors were watching closely for a return to execution. A record quarter in revenue, gross profit, EPS, and adjusted EBITDA suggests the company's higher-margin water treatment strategy is gaining traction and offsetting softer conditions in food-related end markets. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Reported Results
Hawkins delivered revenue of $313.8 million for its fiscal second quarter, an 11.9% increase from $280.4 million a year earlier and above the analyst consensus of about $302.7 million. Organic growth, which excludes acquired businesses, was roughly 11%.
Diluted EPS reached $1.34, up 24.1% from $1.08 in the prior-year quarter and ahead of the consensus range of $1.19 to $1.22. Net income rose 23% to $27.8 million, while gross profit climbed 13% to $76.6 million and operating income advanced 23% to $41.9 million. Adjusted EBITDA increased 16% to $59.1 million from $50.9 million.
By segment, Water Treatment revenue grew 16% to $175.0 million, driven by increased volumes and improved pricing. Food & Health Sciences rose 5% to $76.7 million, and Industrial Solutions increased 10% to $62.2 million. On the balance sheet, total debt stood at $229.0 million with a leverage ratio of 1.22x trailing twelve-month adjusted EBITDA, down from 1.37x at the end of fiscal 2026.
Market Reaction and Investor Sentiment
Shares of Hawkins moved sharply higher after the release, rising roughly 10% to 12% in after-hours trading as investors rewarded the broad-based beat. The positive reaction marked a contrast with the prior quarter, when a modest EPS miss contributed to a decline. Sentiment improved on the combination of stronger-than-expected revenue and EPS, double-digit Water Treatment growth, and better-than-anticipated leverage, which together signaled that recent acquisitions are being integrated without eroding profitability.
Forward Outlook and Key Factors to Monitor
Hawkins enters the second half of its fiscal year with momentum, but several factors will shape the path ahead. Investors are likely to watch whether Water Treatment can sustain double-digit growth as acquisition contributions lap and organic volumes remain the primary driver.
Margin trends will also be in focus. Food & Health Sciences posted lower gross profit in the quarter, and management has previously flagged pricing pressures in food end markets. A continued recovery in that segment would support consolidated profitability.
Balance sheet execution is another key variable. The company repurchased $12 million of stock, paid down $15 million of debt, and completed an acquisition during the quarter, and management has targeted a leverage ratio of approximately 1x adjusted EBITDA by the end of fiscal 2027. Further debt reduction and disciplined capital allocation will be watched closely.
Finally, broader dynamics such as raw material costs, tariff-related impacts, and demand in industrial and municipal water treatment markets could influence results in coming quarters. Investors will look for management's guidance and commentary on these themes in the earnings call and subsequent quarters. From what I see, this is important because it highlights the company's ability to integrate acquisitions effectively.
Exploring Tickeron’s AI Screener for Stock Analysis
I often turn to Tickeron’s AI Screener when reviewing earnings reports like this one. The tool lets me apply filters for fundamentals, technical patterns, and industry comparisons to quickly surface similar opportunities or confirm trends I’m already tracking. It has become a regular part of my process for digging deeper into names like HWKN without spending hours on manual checks.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
HWKN's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for HWKN turned positive on October 22, 2026. Looking at past instances where HWKN's MACD turned positive, the stock continued to rise in 35 of 44 cases over the following month. The odds of a continued upward trend are 80%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 22, 2026. You may want to consider a long position or call options on HWKN as a result. In 69 of 90 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 77%.
HWKN moved above its 50-day moving average on October 01, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for HWKN crossed bullishly above the 50-day moving average on October 05, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 10 of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 67%.
Following a +1.45% 3-day Advance, the price is estimated to grow further. Considering data from situations where HWKN advanced for three days, in 223 of 320 cases, the price rose further within the following month. The odds of a continued upward trend are 70%.
The Aroon Indicator entered an Uptrend today. In 191 of 297 cases where HWKN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 64%.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HWKN declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 59%.
HWKN broke above its upper Bollinger Band on October 02, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 29 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock better than average.
The Tickeron SMR rating for this company is 54 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 58 (best 1 - 100 worst), indicating fairly steady price growth. HWKN’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 61 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 84 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.157) is normal, around the industry mean (2.372). P/E Ratio (34.907) is within average values for comparable stocks, (-17.543). Projected Growth (PEG Ratio) (2.531) is also within normal values, averaging (1.548). Dividend Yield (0.006) settles around the average of (0.040) among similar stocks. P/S Ratio (2.320) is also within normal values, averaging (48.960).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a manufacturer of specialty chemicals
Industry ChemicalsSpecialty
Advertisement