Hawkins (HWKN) investor relations material

Executive summary

• Achieved record first quarter revenue of $315.7 million, up 8% year-over-year, with all segments growing over 5%.

• Gross profit reached a record $74.0 million, increasing 2% from the prior year, despite a $1.9M LIFO expense.

• Net income was $28.3 million, down 3% year-over-year, with diluted EPS of $1.35, a 4% decrease.

• Adjusted EBITDA set a record at $56.9 million, up 1% year-over-year.

• Operating cash flow for the quarter was $35.2 million, up 12% year-over-year.

Financial highlights

• Revenue grew 8% to $315.7 million, with segment growth: Water Treatment +6%, Food & Health Sciences +9%, Industrial Solutions +10%.

• Gross margin declined to 23% from 25% due to higher LIFO reserve and freight costs.

• SG&A expenses increased 14% to $35.3 million, driven by acquisition costs and absence of prior-year earnout adjustment.

• Effective tax rate was 24% for the quarter; projected at 25% to 27% for the full year.

• Total debt outstanding at quarter-end was $244.0 million; cash and cash equivalents were $8.0 million.

Outlook and guidance

• Management expects to continue paying down debt, investing in higher-margin businesses, and maintaining sufficient liquidity.

• Organic revenue growth is expected to return to historical rates in fiscal 2027.