Hawkins Q2 revenue beats estimates on water treatment growth, acquisitions
HWKN•Hawkins fiscal second-quarter revenue rose 12% to $313.8 million, beating the $302.7 million estimate, while adjusted EBITDA increased 16% to $59.09 million. The company completed two acquisitions, repurchased $12 million of stock and expects second-half trends to be consistent with the first half.
1. Quarterly results
Hawkins reported fiscal second-quarter revenue of $313.8 million, up 12% and above the $302.7 million analyst estimate. Adjusted EBITDA rose 16% to $59.09 million, beating the $52.89 million estimate. Net income was $27.78 million and earnings per share were $1.34.
2. Growth and outlook
Water Treatment segment revenue grew 16%, primarily driven by higher volumes and improved pricing, especially in municipal end markets. Acquired businesses contributed $3.7 million in sales and expanded the segment’s customer reach in Florida. Hawkins repurchased $12 million of stock and expects second-half trends to be consistent with the first half; it said second-half SG&A will not benefit from the prior year’s $6.2 million reduction and expects a full-year effective tax rate of approximately 25% to 27%.
