Hawkins, Inc. HWKN logged earnings of 72 cents per share in the third quarter of fiscal 2025 (ended Dec. 29, 2024), up from 71 cents in the year-ago quarter. Earnings in the reported quarter missed the Zacks Consensus Estimate of 78 cents.

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The company registered revenues of $226.2 million for the quarter, up around 8% year over year. It beat the Zacks Consensus Estimate of $219.2 million. Higher sales in the Water Treatment unit more than offset the decline in the Industrial segment.

Hawkins, Inc. Price, Consensus and EPS Surprise

Hawkins, Inc. price-consensus-eps-surprise-chart | Hawkins, Inc. Quote

Hawkins’ Segment Highlights

Sales from the Water Treatment segment climbed 22% year over year to $99.8 million. Sales were driven by added sales from acquired businesses and higher sales volumes in the legacy business. The segment benefited from the seven acquisitions that HWKN completed over the past 18 months.

Industrial segment sales fell 1% year over year to $92 million in the reported quarter. Sales in the segment were affected by reduced selling prices on certain products due to lower raw material costs and product mix changes.

Health and Nutrition segment sales increased 3% year over year to $34.5 million. The upside was driven by higher sales of manufactured products.

HWKN’s Financials

The company ended the quarter with cash and cash equivalents of roughly $8.3 million, up around 10% sequentially. Long-term debt was roughly $103.9 million at the end of the quarter, up around 11% from the prior quarter.

HWKN generated an operating cash flow of around $80.3 million for the nine months ended Dec. 29, 2024.

Hawkins’ Outlook

Moving ahead, HWKN expects sustained growth in the Water Treatment and Health and Nutrition segments. It expects the Industrial segment to perform similar to the first nine months of fiscal 2025.

HWKN’s Price Performance

Shares of Hawkins have rallied 89.9% in a year compared with the Zacks Chemicals Specialty industry’s decline of 14.5%.

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HWKN’s Zacks Rank & Other Key Picks

HWKN currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the Basic Materials space are Ingevity Corporation NGVT, ICL Group Ltd ICL and Nutrien Ltd. NTR. While NGVT carries a Zacks Rank #1 (Strong Buy), ICL and NTR have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ingevity is scheduled to release fourth-quarter results on Feb.18. The Zacks Consensus Estimate for NGVT’s fourth-quarter earnings is pegged at 12 cents. NGVT surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing once. It has a trailing four-quarter earnings surprise of 95.4%, on average.  

ICL Group is slated to release fourth-quarter results on Feb.26. The consensus estimate for ICL’s fourth-quarter earnings is pegged at 6 cents. It surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters at an average of 18.1%.

Nutrien is scheduled to release fourth-quarter results on Feb.19. The Zacks Consensus Estimate for NTR’s fourth-quarter earnings is pegged at 33 cents. NTR has gained around 2% in the past year.

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