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what it is
Hawkins sells and blends chemicals that keep water systems, factories, and food production running.
how it gets paid
Last year Hawkins made $974M in revenue. water treatment chemicals was the main engine at $331M, or 34% of sales.
why it's growing
Revenue grew 6.0% last year. The big story was growth. Latest-quarter revenue rose 235% vs. prior year.
what just happened
Latest results were loud: revenue jumped to $818M and EPS hit $3.17.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
80/100 earnings predictability — you can trust these numbers
37.0x trailing p/e — you're paying up for this one
0.5% dividend yield — cash in your pocket every quarter
14.5% return on capital — nothing to write home about
xvary composite: 61/100 — average
What they do
Hawkins sells and blends chemicals that keep water systems, factories, and food production running.
Hawkins wins by being the supplier you do not rip out. It serves essential chemical needs across water, food, pharma, and industrial markets, and it has done it since 1938 with 1,035 employees. That scale is not huge, but it is sticky because your treatment plant or production line needs reliable delivery, formulation, and service every time.
How they make money
$974M
annual revenue · their business grew +6.0% last year
water treatment chemicals
$331M
+14.0%
industrial chemicals
$282M
+6.0%
food and pharma ingredients
$185M
+6.0%
blending and formulation services
$117M
+6.0%
equipment and service
$59M
+6.0%
The products that matter
municipal and industrial water chemistry
Water Treatment
$584M · 60% of revenue
This $584M segment grew 14% last year. It is the defensive part of the story because cities still have to treat water even when the economy gets moody.
60% of revenue
blending and chemical distribution
Industrial & Specialty Chemicals
$390M · 40% of revenue
This $390M segment fell 4% last year. It still matters because it is 40% of the business, which means softness here can cancel out a lot of good news elsewhere.
demand-sensitive
pilot water filtration system
NanoStack pilot system
5M gallons per day
The pilot announced for Feb 2, 2026 can treat 5 million gallons per day. Interesting technology, but next to a $974M revenue base it is still a side plot, not the thesis.
early-stage
Key numbers
37.0x
trailing p/e
P/E → price-to-earnings → how many dollars you pay for one dollar of profit. So what: you are paying a premium price for a company growing sales 6.0%.
16.3%
operating margin
Operating margin → profit after running the business → how much is left from each sales dollar before interest and taxes. So what: Hawkins keeps about $16 on every $100 sold.
14.5%
return on capital
Return on capital → profit generated from the money tied up in the business → efficiency. So what: this is solid, but not high enough to make any price sensible.
$283M
long-term debt
Long-term debt → money owed over years → fixed claims on the business. So what: debt is 9% of capital, so leverage exists, but valuation is the bigger issue.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 50 / 100
- long-term debt $283M (9% of capital)
B++ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for HWKN right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Latest results were loud: revenue jumped to $818M and EPS hit $3.17.
The big story was growth. Latest-quarter revenue rose 235% vs. prior year, while EPS rose 359%, showing strong operating leverage on a much bigger sales base.
$818M
revenue
$3.17
eps
23.3%
gross margin
the number that mattered
EPS at $3.17 mattered most because it was nearly 79% of the full-year $4.03 figure, which tells you just how outsized the quarter was.
source: company earnings report, 2026
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What could go wrong
The #1 risk is a disruption in chemical supply or blending operations. This business sells reliability, so a broken supply chain is not a small inconvenience.
med
Supply chain and plant disruption
Management already flags product availability, transportation issues, and production interruptions as key risks. In a distribution model, you do not get paid for chemistry you cannot deliver.
Water Treatment is $584M of the $974M revenue base. A disruption in that network would hit the largest segment first.
med
Margin pressure in a fragmented market
Basic chemical distribution does not always enjoy glamorous barriers to entry. If competitors get aggressive on price, Hawkins feels it in spread, not just volume.
The page shows a 16.3% operating margin. That is good. It also gives the market something to punish if it slips.
med
Too much of the growth rests on one segment
Water Treatment grew 14%, while Industrial & Specialty declined 4%. That is a healthy segment mix only as long as the healthy segment stays healthy.
If Water Treatment drops into single-digit growth and the industrial side stays negative, a 6% company growth rate does not support 37.0x earnings for long.
Water Treatment represents about 60% of revenue. If that engine cools while the rest of the portfolio remains soft, the premium multiple is the part of the story with the furthest to fall.
source: institutional data · regulatory filings · risk analysis
Pay attention to
segment metric
Water Treatment growth rate
+14% is doing the heavy lifting right now. If that cools materially, the valuation math gets harder fast.
trend
Industrial & Specialty demand
This segment fell 4% last year. A return to positive growth would make the story broader and more believable.
operational risk
Product availability and facility uptime
Management already points to supply and transport disruption. In this business, the missed delivery is the bad quarter.
calendar
next earnings report
The company typically reports in late April for Q4 FY2026. You want to see whether Water Treatment still carries the headline number.
Analyst rankings
earnings predictability
80 / 100
in human-speak, analysts think the numbers usually behave.
risk rank
3
Risk rank is a safety score. A 3 means this is not a bunker stock and not a cliff-edge situation either.
price stability
50 / 100
The stock is only average on calmness. You are buying a steady business, not necessarily a steady chart.
source: institutional data
Institutional activity
institutional ownership data for HWKN is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$147
current price
n/a
target midpoint · n/a from current
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