Wed, May 14, 8:12 PM (33 days ago)
**Hawkins, Inc. (HWKN) 2025 Annual Report Summary** **Financial Performance:** - **Revenue:** $974.4 million, up 6% from 2024. - **Net Income:** $84.3 million, up 12% from 2024. - **Earnings per Share (EPS):** $4.03, up 12% from 2024. - **Operating Income:** $119.2 million, up 15% from 2024. - **Cash Provided by Operations:** $111.1 million, down from $159.5 million in 2024. **Segment Performance:** - **Water Treatment:** Sales up 23% to $446.5 million, driven by acquisitions and volume growth. - **Industrial:** Sales down 7% to $382.5 million due to lower selling prices and product mix changes. - **Health and Nutrition:** Sales down 1% to $145.5 million, with increased distributed products offset by decreased manufactured products. **Strategic Overview:** - **Acquisitions:** Completed several acquisitions in the Water Treatment segment, adding $67 million in annual revenue. - **Future Outlook:** Plans to continue investing in existing and new branches to expand geographic coverage. - **Market Position:** Maintains a strong position in the water treatment, industrial, and health and nutrition markets. **Risk Factors:** - **Competitive Pressures:** Faces significant competition and price pressure. - **Supply Chain Disruptions:** Vulnerable to disruptions in the supply chain and transportation network. - **Regulatory Risks:** Subject to numerous environmental, health, safety, and land use laws and regulations. - **Economic Conditions:** Demand affected by general economic conditions and cyclical nature of industries served. **Financial Condition:** - **Debt:** $149 million outstanding under the Revolving Loan Facility, with a five-year maturity date. - **Liquidity:** Cash balance of $5.1 million at March 30, 2025, with sufficient cash and cash equivalents to meet working capital expenditure requirements. - **Capital Expenditures:** $41.1 million in 2025, with anticipated total capital expenditures of approximately $60 million for 2026. **Market Position Changes:** - **Share Repurchases:** Repurchased 205,943 shares in 2025, with 731,544 shares remaining available under the share repurchase program. - **Shareholder Return:** Authorized the repurchase of up to 2.6 million shares of outstanding common stock. **Future Outlook:** - **Growth Strategy:** Focus on acquisitions and strategic relationships to complement or expand existing businesses. - **Operational Efficiency:** Continued investment in infrastructure to reduce freight costs and improve production efficiency. - **Innovation:** Emphasis on research and development to improve existing products and introduce new ones. **Ticker:** HWKN **Exchange:** The Nasdaq Stock Market LLC