Abstract

Hawkins will report fiscal results on January 28, 2026 Post Market, with the quarter’s setup shaped by mixed margin trends and a soft prior-quarter net profit baseline.

Market Forecast

Consensus and company-compiled estimates point to Hawkins generating revenue of $252.51 million this quarter, with adjusted EPS forecast at $0.74 and EBIT at $23.36 million; year-over-year projections imply revenue growth of 15.19%, an EPS decline of 3.84%, and a slight EBIT increase of 0.33%. The outlook suggests stable gross profit margin and net profitability near recent run-rate levels; explicit gross margin and net margin forecasts are not provided, but segment mix implies resilience in water treatment-led margins. The main business focus remains Water Treatment, which continues to anchor revenue and pricing stability amid municipal demand and pool chemical seasonality. The most promising segment is Health & Nutrition, with accelerating specialty ingredient traction and cross-selling benefits; revenue stood at $72.91 million last quarter, with indications of improving year-over-year momentum.

Last Quarter Review

Hawkins’ prior quarter delivered revenue of $280.43 million, gross profit margin of 24.12%, GAAP net profit attributable to the parent company of $22.60 million, a net profit margin of 8.06%, and adjusted EPS of $1.08, with year-over-year adjusted EPS down 6.90%. A notable financial development was the quarter-on-quarter contraction in net profit, with a change of -22.54%, reflecting cost dynamics and mix shifts against a strong preceding period. Main business highlights include Water Treatment revenue of $150.91 million, Health & Nutrition revenue of $72.91 million, and Industrial revenue of $56.61 million, together underscoring the diversified portfolio with Water Treatment contributing 53.81% of sales.

Current Quarter Outlook

Water Treatment

Water Treatment is Hawkins’ primary revenue engine, accounting for $150.91 million last quarter and 53.81% of total sales. The quarter-to-quarter net profit decline suggests near-term cost pressure or mix shifts, but the segment’s municipal and commercial demand typically provides steady volumes that underpin gross margin stability. Seasonal pool chemicals and municipal contracts can create periodic volatility; however, the broader pricing environment and supply discipline tend to balance cost inputs. For this quarter, volume normalization alongside steady chlorine and related chemicals demand may support revenue, while margin outcomes will depend on input commodity trends and logistics efficiencies. With consensus revenue for the company at $252.51 million, segment execution in Water Treatment is likely the biggest swing factor for consolidated gross margin and EBIT delivery, especially after last quarter’s 24.12% company-wide gross margin.

Health & Nutrition

Health & Nutrition delivered $72.91 million last quarter and remains the most promising growth vector. Specialty ingredients and formulation services often carry premium pricing and can lift consolidated margins when mix tilts toward higher-value products. The segment’s performance tends to track customer innovation cycles and inventory health across dietary supplements, food, and personal care manufacturers. If year-over-year demand continues to improve, Health & Nutrition could offset margin pressure elsewhere, supporting EBIT resilience even as adjusted EPS is forecast to dip 3.84% year-over-year to $0.74. The segment’s ability to deepen customer relationships and expand SKUs contributes to revenue durability; in the current quarter, incremental wins and disciplined channel management are expected to enhance revenue quality.

Stock Price Drivers

Near-term stock performance will hinge on how Hawkins navigates margin mix and expense control against the anticipated revenue of $252.51 million and EBIT of $23.36 million. A key driver is whether gross margin can hold near the prior quarter’s 24.12% as product and customer mix evolves; lower input volatility and efficient procurement would support a stable outcome. Another driver is adjusted EPS relative to the $0.74 forecast: an upside surprise could come from stronger Health & Nutrition mix or operating efficiency, while a downside risk would be persistent cost inflation or logistic challenges in Water Treatment. Investors will also parse segment disclosures for signals of sustainable demand and pricing power, particularly given the prior quarter’s net margin of 8.06% and the sequential net profit contraction of -22.54%.

Analyst Opinions

Available institutional perspectives within the current window lean positive on Hawkins’ near-term setup, reflecting confidence in Water Treatment’s defensive characteristics and improving Health & Nutrition mix. The prevailing view emphasizes that the company’s revenue guideposts—$252.51 million on the quarter—are achievable, with EBIT at $23.36 million indicating stable operating performance even as EPS faces modest year-over-year pressure. Analysts point to disciplined pricing and diversified end markets as supportive factors for steadier gross margin trends, while highlighting execution in specialty ingredients as a potential catalyst for EBIT stability. The majority opinion expects Hawkins to meet or slightly exceed revenue expectations, with margin commentary and segment traction serving as the main validation points for the stock’s direction post-earnings.