HWKN

Hawkins (HWKN) came out with quarterly earnings of $1.35 per share, missing the Zacks Consensus Estimate of $1.41 per share. This compares to earnings of $1.4 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -4.26%. A quarter ago, it was expected that this chemical maker would post earnings of $0.76 per share when it actually produced earnings of $0.74, delivering a surprise of -2.63%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. Hawkins, which belongs to the Zacks Chemical - Specialty industry, posted revenues of $315.68 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.72%. This compares to year-ago revenues of $293.27 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Hawkins shares have added about 0.7% since the beginning of the year versus the S&P 500's gain of 8.5%. While Hawkins has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Hawkins was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.26 on $300.8 million in revenues for the coming quarter and $4.27 on $1.17 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical - Specialty is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Quaker Chemical (KWR), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 30. This specialty chemical company is expected to post quarterly earnings of $1.68 per share in its upcoming report, which represents a year-over-year change of -1.8%. The consensus EPS estimate for the quarter has been revised 1.5% lower over the last 30 days to the current level. Quaker Chemical's revenues are expected to be $511.83 million, up 5.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hawkins, Inc. (HWKN) : Free Stock Analysis Report Quaker Houghton (KWR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

ROSEVILLE, Minn., July 29, 2026 (GLOBE NEWSWIRE) -- Hawkins, Inc. (Nasdaq: HWKN) today announced results for the three months ended June 28, 2026, its first quarter of fiscal 2027. First Quarter Fiscal Year 2027 Highlights: (All comparisons are to the first quarter of fiscal 2026 unless otherwise noted.) Record first quarter revenue of $315.7 million, with growth of 8%, driven by increased sales across all segments, including Water Treatment segment growth of 6%, Food & Health Sciences segment growth of 9%, and Industrial Solutions segment growth of 10%. Record first quarter gross profit of $74.0 million, an increase of 2%. Diluted earnings per share ("EPS") of $1.35 decreased $0.05, or 4%. Net income of $28.3 million decreased 3%, with trailing twelve-month net income of $80.6 million. Record Earnings Before Interest, Taxes, Depreciation and Amortization (“adjusted EBITDA”), a non-GAAP measure, of $56.9 million, a 1% increase. Trailing twelve-month adjusted EBITDA of $179.8 million. Generated operating cash flow of $35.2 million, an increase of 12%. Free cash flow, defined as net cash provided by operating activities less capital expenditures, increased over 30%, to $23.5 million, which we allocated to repurchasing $7.0 million of stock, paying $4.0 million in dividends, and acquiring Aqua-Chem, Inc. for $3.6 million. We continued to execute on our Water Treatment growth strategy with the purchase of Aqua-Chem, Inc., a distributor of water treatment products mainly in Nebraska and Iowa. Executive Commentary – Patrick H. Hawkins, Chief Executive Officer and President: “Our first quarter was a solid start to the year, highlighted by another quarter of record results in revenue, gross profit, and adjusted EBITDA” said Patrick Hawkins, Chief Executive Officer and President. “Our record revenue of $315.7 million was the result of all three reporting segments growing year over year, and included organic revenue growth of approximately 5%, consistent with our expectation of returning to historical organic revenue growth rates in fiscal 2027.” Mr. Hawkins continued, “The first quarter brought raw material volatility. Our great team members stayed close to our suppliers and our customers, managing input costs while continuing to deliver the products and level of service expected from Hawkins. As we exited the quarter, raw material costs had largely stabilized.” Mr. Hawkins concluded, “Our balance sheet remains strong, and our leverage ratio at the end of the first quarter was 1.36x adjusted EBITDA. We continue to generate strong free cash flow and we expect to continue to pay down debt during fiscal 2027. We will also continue to deliver on our strategy of investing in our higher-margin businesses, acquiring companies that are accretive to Hawkins, and servicing the needs of our customers to the highest level possible.” First Quarter Financial Highlights: NET INCOME For the first quarter of fiscal 2027, we reported net income of $28.3 million, or $1.35 per diluted share, compared to net income for the first quarter of fiscal 2026 of $29.2 million, or $1.40 per diluted share. REVENUE Sales were $315.7 million for the first quarter of fiscal 2027, an increase of $22.4 million, or 8%, from sales of $293.3 million in the same period a year ago. All of our segments grew by more than 5% from the same period a year ago. Water Treatment segment sales increased $8.7 million, or 6%, to $158.3 million for the current quarter, from $149.6 million in the same period a year ago. Water Treatment sales increased as a result of $6.9 million of added sales from acquired businesses, as well as increased organic sales volumes and improved pricing on certain products in our legacy business, including continued growth in our proprietary product lines. Food & Health Sciences segment sales increased $8.1 million, or 9%, to $97.3 million for the current quarter, from $89.2 million in the same period a year ago. Sales of our agricultural, nutrition, and pharmaceutical products all increased over the same period a year ago, partially offset by decreased sales volumes of our food ingredient products. Agricultural products remained a source of strength, with sales growth of 30% driven by higher volumes. Industrial Solutions segment sales increased $5.6 million, or 10%, to $60.1 million for the current quarter, from $54.5 million in the same period a year ago. Industrial Solutions segment sales increased primarily as a result of increased sales volumes of certain of our manufactured, blended and repackaged products. GROSS PROFIT Gross profit increased $1.6 million, or 2%, to $74.0 million, or 23% of sales, for the current quarter, from $72.4 million, or 25% of sales, in the same period a year ago. During the current quarter, the LIFO reserve increased, and gross profit decreased, by $1.9 million, a $1.3 million greater headwind than in the same period a year ago. In addition to the impact of the LIFO reserve, gross margin was pressured by higher freight costs of approximately $1.3 million that were not fully recovered through freight charges billed to customers. Gross profit for the Water Treatment segment increased $1.7 million, or 4%, to $45.5 million, or 29% of sales, for the current quarter, from $43.7 million, or 29% of sales, in the same period a year ago. During the current quarter, the LIFO reserve increased, and gross profit decreased by $0.5 million, a $0.3 million greater headwind than in the same period a year ago. The increase in gross profit was primarily driven by higher sales partially offset by higher LIFO and freight costs. Gross profit for the Food & Health Sciences segment was $19.3 million for the current quarter, unchanged from the same period in the prior year. During the current quarter, the LIFO reserve increased, and gross profit decreased, by $0.8 million, a $0.6 million greater headwind than in the same period a year ago. The benefit of higher sales volumes was offset by higher LIFO and freight costs. Gross profit for the Industrial Solutions segment of $9.2 million, or 15% of sales, for the current quarter, was relatively flat compared to $9.3 million, or 17% of sales, in the same period a year ago. During the current quarter, the LIFO reserve increased, and gross profit decreased, by $0.7 million, a $0.5 million greater headwind than in the same period a year ago. The benefit of higher sales volumes was more than offset by higher LIFO and freight costs. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Selling, general and administrative (“SG&A”) expenses increased $4.3 million, or 14%, to $35.3 million, or 11% of sales, for the current quarter, from $31.0 million, or 11% of sales, in the same period a year ago. This included $2.1 million due to added costs from the acquired businesses in our Water Treatment segment. In addition, the prior-year period included a $1.9 million favorable fair value adjustment that reduced SG&A, reflecting a downward revision to the estimated Water Solutions earnout liability based on a change in projected estimates related to the earnout target. This benefit did not recur in the current period, resulting in a $1.9 million year-over-year increase in SG&A. SG&A also included a $0.5 million incremental increase in non-qualified deferred compensation expense, which was offset by a corresponding gain within other income. These increases were partially offset by lower acquisition-related costs and other changes across our operating expenses. ADJUSTED EBITDA Adjusted EBITDA, a non-GAAP financial measure, is an important performance indicator and a key compliance measure under the terms of our credit agreement. An explanation of the computation of adjusted EBITDA is presented below. Adjusted EBITDA for the three months ended June 28, 2026 was $56.9 million, an increase of $0.8 million, or 1%, from $56.1 million in the same period a year ago. In the third quarter of fiscal 2026, we revised our definition of adjusted EBITDA to exclude non-cash earnout related expense and income, in order to better reflect results from operations. Prior-year adjusted EBITDA has been recast in accordance with the current definition. As originally reported, adjusted EBITDA for the three months ended June 29, 2025 was $57.6 million, which included non-cash earnout related income that is excluded under the current definition. INCOME TAXES Our effective income tax rate was 24% for the current quarter and 25% for the same period a year ago. The effective tax rate in both years was impacted by favorable tax provision adjustments recorded. The effective tax rate is impacted by projected levels of annual taxable income, permanent items, and state taxes. Our effective tax rate for the full year is expected to be approximately 25% to 27%. BALANCE SHEET As of June 28, 2026, our working capital was $13 million higher than the end of fiscal 2026 due primarily to increased trade receivables. Our total debt outstanding at the end of the first quarter was $244.0 million, and our leverage ratio was 1.36x our trailing twelve-month adjusted EBITDA, as compared to 1.37x our trailing twelve-month adjusted EBITDA at the end of fiscal 2026. About Hawkins, Inc. Hawkins, Inc. was founded in 1938 and is a leading water treatment and specialty ingredients company that formulates, manufactures, distributes, and blends products for its Water Treatment, Food & Health Sciences, and Industrial Solutions customers. Headquartered in Roseville, Minnesota, the Company has 66 facilities in 28 states and creates value for its customers through superb customer service and support, quality products and personalized applications. Hawkins, Inc. generated approximately $1.1 billion of revenue in fiscal 2026 and has approximately 1,200 employees. For more information, including registering to receive email alerts, please visit www.hawkinsinc.com/investors. Reconciliation of Non-GAAP Financial Measures We report our consolidated financial results in accordance with U.S. generally accepted accounting principles (GAAP). To assist investors in understanding our financial performance between periods, we have provided certain financial measures not computed according to GAAP, including adjusted EBITDA and free cash flow. These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures. The method we use to produce non-GAAP results is not computed according to GAAP and may differ from the methods used by other companies. Management uses these non-GAAP financial measures internally to understand, manage and evaluate our business and to make operating decisions. Management believes that these non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of the factors and trends affecting our financial condition and results of operations. We define adjusted EBITDA as GAAP net income adjusted for the impact of the following: net interest expense resulting from our net borrowing position; income tax expense; non-cash expenses including amortization of intangibles, depreciation, charges for the employee stock purchase plan and restricted stock grants, non-recurring items of income or expense, and earnout-related expense or income. The non-cash earnout related expense or income adjustment was added to our definition in the third quarter of fiscal 2026 to better reflect results from operations. Prior period amounts have been recast to conform to the current definition. We define free cash flow as net cash provided by operating activities less purchases of property, plant, and equipment. Management believes free cash flow is a useful measure of the cash generated by our business that is available for, among other things, debt repayment, acquisitions, dividends, and share repurchases. Forward-Looking Statements. Various remarks in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include those relating to consumer demand for products containing our ingredients and the impacts of those demands, expectations for results in our business segments and the timing of our filings with the Securities and Exchange Commission. These statements are not historical facts, but rather are based on our current expectations, estimates and projections, and our beliefs and assumptions. Forward-looking statements may be identified by terms, including “anticipate,” “believe,” “can,” “could,” “expect,” “intend,” “may,” “predict,” “should,” or “will” or the negative of these terms or other comparable terms. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Actual results may vary materially from those contained in forward looking statements based on a number of factors, including, but not limited to, changes in competition and price pressures, changes in demand and customer requirements or processes for our products, availability of product and disruptions to supplies, interruptions in production resulting from hazards, transportation limitations or other extraordinary events outside our control that may negatively impact our business or the supply chains in which we participate, changes in imported products and tariff levels, the availability of products and the prices at which they are available, the acceptance of new products by our customers and the timing of any such acceptance, changes in product supplies, the availability of target acquisitions, and changes in interest rates. Additional information concerning potential factors that could affect future financial results is included in our Annual Report on Form 10-K for the fiscal year ended March 29, 2026, as updated from time to time in amendments and subsequent reports filed with the SEC. Investors should take such risks into account when making investment decisions. Shareholders and other readers are cautioned not to place undue reliance on forward-looking statements, which reflect our management’s view only as of the date hereof. We do not undertake any obligation to update any forward-looking statements.

ROSEVILLE, Minn., May 13, 2026 (GLOBE NEWSWIRE) -- Hawkins, Inc. (Nasdaq: HWKN) today announced fourth quarter and full-year results for its fiscal year ended March 29, 2026. Fourth Quarter Fiscal Year 2026 Highlights: Record fourth quarter sales of $265.9 million, an 8% increase over the same quarter of the prior year, led by Water Treatment segment sales growth of 16% over the same quarter in the prior year. All segments grew revenue in the fourth quarter 2026. Record fourth quarter gross profit of $54.2 million, a 4% increase over the same quarter of the prior year. Fourth quarter diluted earnings per share (EPS) of $0.74, a decrease of $0.04, or 5%, due primarily to an approximately $4.4 million increase in amortization, interest expense, and fair value accretion related to the earnout liability from the six acquisitions completed in fiscal 2026, including the largest, WaterSurplus, which closed in the first quarter of fiscal 2026. Assuming the acquisition of WaterSurplus had occurred at the beginning of the prior fiscal year, pro forma EPS would have been 9% higher than the comparable prior year. Fourth quarter operating cash flow of $37.7 million, an increase of $6.9 million, or 22% over the same quarter in the prior year. Full-Year Fiscal Year 2026 Highlights: Sales of approximately $1.1 billion, an increase of $109.3 million, or 11% from fiscal 2025. Gross profit of $245.1 million, an increase of $19.5 million, or 9% from fiscal 2025. Operating cash flow of $144.3 million, an increase of $33.2 million, or 30% from fiscal 2025. Diluted earnings per share (EPS) of $3.91, a decrease of $0.12, or 3%, from fiscal 2025, due primarily to an approximately $16.5 million increase in amortization, interest expense, and fair value accretion related to the earnout liability from the six acquisitions completed in fiscal 2026, including WaterSurplus. Assuming the acquisition of WaterSurplus had occurred at the beginning of the prior fiscal year, pro forma EPS would have increased by $0.32, or 9%, over the prior fiscal year. Net income was $81.5 million, while Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (Adjusted EBITDA), a non-GAAP measure, was $179.0 million, an increase of 6% over the prior fiscal year. Continued our acquisitions strategy and closed on six transactions during the fiscal year, mainly focused on accelerating growth in the Water Treatment segment. Paid cash dividends of $0.75 per share for the year, an increase of 7% over the prior year, marking our 41st consecutive year of paying a dividend. Executive Commentary – Patrick H. Hawkins, Chief Executive Officer and President: “Fiscal 2026 was another milestone year for our company, as we crossed $1 billion in revenue, for the first time in our history. My thanks to every person connected to our great company for helping us accomplish this goal. This achievement resulted in a number of records for the year; including sales, gross margin, operating income, and adjusted EBITDA. Our focus has long been to deliver sustained growth over time, and we have continued to execute on that with pro forma EPS growth for the eighth consecutive year.” Mr. Hawkins continued, “Our disciplined M&A strategy remained a core competency for us and has again contributed to growth of Water Treatment, our largest reporting segment, which now represents 50% of our total company revenue and 56% of the total company operating income. We have completed 17 acquisitions over the last five years, most of which have helped to drive accelerated growth in our Water Treatment segment and we expect future acquisitions to continue to be focused on Water Treatment. With our latest deals, we now have a full product portfolio for our Water Treatment customers, including chemicals, media and filtration products, and equipment.” Mr. Hawkins continued, “Our Water Treatment segment achieved sales growth of 22% for the year, through sales from our acquired companies as well as organic growth. Sales in our Food and Health Sciences segment were relatively flat, mainly due to softness in the food and nutrition end markets, and our Industrial Solutions segment was up 6% for the year.” Mr. Hawkins concluded, “Looking ahead to fiscal 2027, we are well positioned to grow revenue and operating income in each of our business segments and expect EPS to grow as well. We expect our balance sheet to remain strong, and with the diversity of our businesses and the overall strength of our company, we believe we will continue to generate strong operating cash flow. This will allow us to fund future growth investments and continue to pay down our debt during fiscal year 2027 as we expect to achieve a leverage ratio of approximately 1x adjusted EBITDA by the end of fiscal year 2027.” Fourth Quarter and Fiscal Year Financial Highlights: NET INCOME For the fourth quarter of fiscal 2026, the company reported net income of $15.5 million, or $0.74 per diluted share, compared to net income for the fourth quarter of fiscal 2025 of $16.3 million, or $0.78 per diluted share. For the full year, the Company reported record net income of $81.5 million, or $3.91 per diluted share, compared to net income for fiscal 2025 of $84.3 million, or $4.03 per diluted share. REVENUE For the fourth quarter of fiscal 2026, sales were $265.9 million, an increase of $20.6 million, or 8%, from sales of $245.3 million a year ago. Each of our segments contributed to the year-over-year growth, with our Water Treatment segment leading the way with 16% growth. Water Treatment segment sales increased $17.3 million, or 16%, to $122.3 million for the fourth quarter, as compared to $105.0 million for the same period a year ago. Sales increased primarily as a result of $13.1 million of added sales from acquired businesses as well as increased sales volumes in our legacy business. Food and Health Sciences segment sales increased $0.3 million, or less than 1%, to $88.6 million for the fourth quarter, as compared to $88.3 million for the same period a year ago. Sales increased slightly with increased volumes of our Agricultural products, mostly offset by lower selling prices. Industrial Solutions segment sales increased $3.0 million, or 6%, to $55.0 million for the fourth quarter, as compared to $52.0 million for the same period a year ago. Sales increased primarily as a result of increased sales of certain of our manufactured, blended and repackaged products. For fiscal 2026, sales were $1,083.7 million, an increase of $109.3 million, or 11%, from sales of $974.4 million a year ago. Water Treatment segment sales were $543.3 million for the year, an increase of 22% over last year’s sales of $446.5 million; of the $96.8 million increase, $83.3 million was from our acquired businesses in fiscal 2026. Sales for our Food and Health Sciences segment were $320.7 million in fiscal 2026, a decrease of 1%, from fiscal 2025 sales of $322.6 million. Industrial Solutions segment sales were $219.7 million, an increase of 7% from fiscal 2025 sales of $205.4 million. GROSS PROFIT Gross profit for fiscal 2026 increased $19.5 million, or 9%, to $245.1 million, or 23% of sales, from $225.5 million, or 23% of sales, for fiscal 2025. During fiscal 2026, the LIFO reserve increased, and gross profits decreased, by $1.5 million, of which $0.8 million occurred in the fourth quarter, primarily due to rising material costs. During fiscal 2025, the LIFO reserve decreased, and gross profit increased, by $1.6 million, most of which occurred in the fourth quarter. Gross profit increased due to increased sales, partially offset by the unfavorable year-over-year impact of the increased LIFO reserve. Gross profit for the Water Treatment segment increased $23.2 million, or 19%, to $145.0 million, or 27% of sales, for fiscal 2026, from $121.8 million, or 27% of sales, for fiscal 2025. Gross profit increased as a result of the increased sales. Gross profit for our Food and Health Sciences segment decreased $4.6 million, or 6%, to $67.3 million, or 21% of sales, for fiscal 2026, from $71.9 million, or 22% of sales, for fiscal 2025. Gross profit decreased as a result of lower selling prices as a result of competitive pricing pressures. Gross profit for the Industrial Solutions segment increased $1.0 million, or 3%, to $32.8 million, or 15% of sales, for fiscal 2026, from $31.8 million, or 15% of sales, for fiscal 2025. Gross profit increased as a result of the increase in sales. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES SG&A expenses increased $17.4 million, or 16%, to $123.8 million, or 11% of sales, for fiscal 2026, from $106.4 million, or 11% of sales, for fiscal 2025. Expenses increased largely due to $19.3 million in added costs from the acquired business in our Water Treatment segment, including amortization of intangibles of $8.9 million, fair value accretion on the WaterSurplus earnout liability of $1.9 million, as well as increased variable costs. This was partially offset by a reduction of $8.1 million to the Water Solutions earnout. ADJUSTED EBITDA Adjusted EBITDA, a non-GAAP financial measure, is an important performance indicator and a key compliance measure under the terms of our credit agreement. An explanation of the computation of adjusted EBITDA is presented below. Adjusted EBITDA for the three months ended March 29, 2026, was $37.2 million, an increase of $0.2 million, or 1%, from adjusted EBITDA of $37.0 million for the same period in the prior year. Full-year adjusted EBITDA was $179.0 million, an increase of $10.2 million, or 6%, from adjusted EBITDA of $168.9 million for fiscal 2025. The increase was due to the impact of improved gross profits discussed above. INCOME TAXES Our effective tax rate was approximately 25% for fiscal 2026 and 26% for fiscal 2025. The current year decrease in the effective tax rate was primarily driven by favorable tax provision adjustments recorded. The effective tax rate is impacted by projected levels of annual taxable income, permanent items, and state taxes. For fiscal 2027, we expect the income tax rate to be between 25% to 27%. BALANCE SHEET Our operating cash flow of $144.3 million and net debt borrowings during the fiscal year of $95.0 million were primarily used to grow the company, fund acquisitions, and provide shareholder return. This included funding $167.1 million in acquisition spending for acquisitions of WaterSurplus, Inc. and five additional smaller tuck-in acquisitions, capital spending of $58.2 million, and dividend payments of $15.7 million. Our total debt outstanding at the end of fiscal 2026 was $244.0 million and our leverage ratio was 1.37x our trailing twelve-month pro forma adjusted EBITDA, as compared to 0.86x at the end of fiscal 2025. About Hawkins, Inc. Hawkins, Inc. was founded in 1938 and is a leading water treatment and specialty ingredients company that formulates, manufactures, distributes and blends products for its Water Treatment, Food & Health Sciences and Industrial Solutions customers. Headquartered in Roseville, Minnesota, the Company has 66 facilities in 28 states and creates value for its customers through superb customer service and support, quality products and personalized applications. Hawkins, Inc. generated approximately $1.1 billion of revenue in fiscal 2026 and has approximately 1,200 employees. For more information, including registering to receive email alerts, please visit www.hawkinsinc.com/investors. Reconciliation of Non-GAAP Financial Measures We report our consolidated financial results in accordance with U.S. generally accepted accounting principles (GAAP). To assist investors in understanding our financial performance between periods, we have provided certain financial measures not computed according to GAAP, including adjusted EBITDA and return on equity. These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures. The method we use to produce non-GAAP results is not computed according to GAAP and may differ from the methods used by other companies. Management uses these non-GAAP financial measures internally to understand, manage and evaluate our business and to make operating decisions. Management believes that these non-GAAP financial measures reflects an additional way of viewing aspects of our operations that, when viewed with our GAAP results, provides a more complete understanding of the factors and trends affecting our financial condition and results of operations. We define adjusted EBITDA as GAAP net income adjusted for the impact of the following: net interest expense resulting from our net borrowing position; income tax expense; non-cash expenses including amortization of intangibles, depreciation, and charges for the employee stock purchase plan and restricted stock grants, non-recurring items of income or expense, and non-cash earnout related expense. The non-cash earnout related expense adjustment is a new adjustment which was made to better reflect results from operations. Beginning with the Q4 and fiscal 2026 earnings release, we are including a return on equity. We define return on equity as net income divided by average shareholders' equity. Forward-Looking Statements. Various remarks in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include those relating to consumer demand for products containing our ingredients and the impacts of those demands, expectations for results in our business segments and the timing of our filings with the Securities and Exchange Commission. These statements are not historical facts, but rather are based on our current expectations, estimates and projections, and our beliefs and assumptions. Forward-looking statements may be identified by terms, including “anticipate,” “believe,” “estimate,” “can,” “could,” “expect,” “intend,” "plan," “may,” “predict,” “should,” "would," or “will” or the negative of these terms or other comparable terms. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Actual results may vary materially from those contained in forward looking statements based on a number of factors, including, but not limited to, changes in competition and price pressures, changes in demand and customer requirements or processes for our products, availability of product and disruptions to supplies, interruptions in production resulting from hazards, transportation limitations or other extraordinary events outside our control that may negatively impact our business or the supply chains in which we participate, changes in imported products and tariff levels, the availability of products and the prices at which they are available, the acceptance of new products by our customers and the timing of any such acceptance, changes in product supplies, the availability of target acquisitions, and changes in interest rates. Additional information concerning potential factors that could affect future financial results is included in our Annual Report on Form 10-K for the fiscal year ended March 30, 2025, as updated from time to time in amendments and subsequent reports filed with the SEC. Investors should take such risks into account when making investment decisions. Shareholders and other readers are cautioned not to place undue reliance on forward-looking statements, which reflect our management’s view only as of the date hereof. We do not undertake any obligation to update any forward-looking statements.

Hawkins (HWKN) came out with quarterly earnings of $0.74 per share, missing the Zacks Consensus Estimate of $0.76 per share. This compares to earnings of $0.78 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -1.99%. A quarter ago, it was expected that this chemical maker would post earnings of $0.75 per share when it actually produced earnings of $0.72, delivering a surprise of -4%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Hawkins, which belongs to the Zacks Chemical - Specialty industry, posted revenues of $265.91 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 4.16%. This compares to year-ago revenues of $245.32 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Hawkins shares have added about 18.7% since the beginning of the year versus the S&P 500's gain of 8.1%. While Hawkins has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Hawkins was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.36 on $305.37 million in revenues for the coming quarter and $4.35 on $1.14 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical - Specialty is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Flexible Solutions International Inc. (FSI), has yet to report results for the quarter ended March 2026. This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of -150%. The consensus EPS estimate for the quarter has been revised 75% lower over the last 30 days to the current level. Flexible Solutions International Inc.'s revenues are expected to be $9.85 million, up 31.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hawkins, Inc. (HWKN) : Free Stock Analysis Report Flexible Solutions International Inc. (FSI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research