Hawkins Inc delivered record results for the second quarter of fiscal 2027, reporting revenue of $313.8 million and diluted EPS of $1.34, both significantly exceeding analyst expectations. The performance was characterized by an 11% organic sales increase and a 16% revenue surge in the high-margin Water Treatment segment.
Key Highlights
- Water Treatment revenue grew 16% to $175.0 million, driven by strong municipal demand and organic growth of 14%.
- Gross profit increased 13% to $76.6 million, though results included a $1.9 million LIFO reserve headwind partially offset by $1.3 million in tariff refunds.
- Diluted EPS rose 23% year-over-year to $1.34, successfully reversing a prior four-quarter streak of earnings misses.
- Net debt leverage improved to 1.22x adjusted EBITDA, down from 1.37x at fiscal 2026 year-end, following $15.0 million in debt repayments during the quarter.