Chemical distributor Hawkins misses Q2 revenue estimates

Reuters
Oct 30
Chemical distributor Hawkins misses <a href="https://laohu8.com/S/QTWO">Q2</a> revenue estimates

Overview

  • Hawkins Q2 fiscal 2026 revenue grows 14% yr/yr, missing analyst expectations

  • Adjusted EBITDA for Q2 fiscal 2026 rises 9% yr/yr, missing analyst estimates

  • Diluted EPS for Q2 fiscal 2026 decreases 7% due to acquisition-related costs

Outlook

  • Hawkins expects Water Treatment and Industrial Solutions to grow in the second half of fiscal 2026

  • Company anticipates Food and Health Sciences to be flat to down due to competitive pressures

  • WaterSurplus acquisition expected to be accretive in fiscal 2027

Result Drivers

  • WATER TREATMENT GROWTH - 21% increase in Water Treatment revenue driven by acquisitions and organic sales

  • ACQUISITION IMPACT - EPS decreased due to $5 mln increase in amortization and interest expense from WaterSurplus acquisition

  • HIGH-MARGIN STRATEGY - Record revenue and EBITDA attributed to investment in high-margin businesses

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Sales

Miss

$280.43 mln

$283.50 mln (4 Analysts)

Q2 EPS

$1.08

Q2 Net Income

$22.59 mln

Q2 Adjusted EBITDA

Miss

$50.36 mln

$52.80 mln (4 Analysts)

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the diversified chemicals peer group is "buy"

  • Wall Street's median 12-month price target for Hawkins Inc is $184.00, about 10.2% above its October 28 closing price of $165.23

  • The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 32 three months ago

Press Release: ID:nGNX17q5td

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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