Hawkins (NASDAQ:HWKN) shares advanced 8.0% in after-hours trading after the specialty chemicals and water treatment company reported second-quarter fiscal 2027 financial results that exceeded analyst expectations, including double-digit revenue growth and increases in net income and adjusted EBITDA.
The stock traded at $146.25 after the regular session, compared with its closing price of $135.44, following the release of quarterly results that included record adjusted EBITDA and higher revenue across all three operating segments.
Hawkins reported adjusted diluted earnings of $1.34 per share, exceeding the Wall Street consensus estimate of $1.19 by $0.15. Quarterly revenue increased 12% year over year to $313.8 million, compared with analyst expectations of $302.7 million.
Net income rose 23% to $27.8 million, while adjusted EBITDA increased 16% to a record $59.1 million.
Hawkins reported revenue growth across its Water Treatment, Industrial Solutions and Food & Health Sciences businesses during the second quarter.
Water Treatment, the company’s largest operating segment, recorded a 16% increase in revenue compared with the corresponding period of the previous year.
Gross profit in the segment increased 20%, contributing to the company’s overall financial performance.
Industrial Solutions reported revenue growth of 10%, while Food & Health Sciences revenue increased 5%.
The results reflected higher revenue across each of Hawkins’ three operating divisions, alongside the reported increases in consolidated net income and adjusted EBITDA.
Hawkins reported adjusted EBITDA of $59.1 million for the quarter, representing a 16% increase from the prior-year period and a new company record.
Net income increased 23% to $27.8 million, while adjusted diluted earnings per share reached $1.34.
The company’s adjusted earnings exceeded analyst expectations by $0.15 per share, while reported revenue was $11.1 million above the consensus estimate.
The financial results included growth across all three business segments, with Water Treatment recording the largest reported percentage increase in revenue.
Alongside its earnings announcement, Hawkins’ board of directors declared a quarterly cash dividend of $0.20 per share, payable in late November.
The company has maintained uninterrupted dividend payments since 1985.
Hawkins also repurchased $12 million of its common stock during the second quarter as part of its capital allocation activities.
The dividend declaration and share repurchases were announced alongside the company’s quarterly financial results and acquisition activity.
Hawkins completed the acquisition of Dave Symonds & Associates, a Florida-based water treatment distributor, during the quarter.
The company subsequently completed the acquisition of Eagle Labs, a business operating in the Dallas-Fort Worth area.
The transactions form part of Hawkins’ acquisition activity within its water treatment operations.
The announcement did not provide financial terms for either transaction or specify their individual contributions to quarterly revenue.
Hawkins shares rose 8.0% in after-hours trading following the earnings announcement, reaching $146.25 compared with the regular-session closing price of $135.44.
The increase occurred during a trading session in which major U.S. equity indices recorded relatively limited movements.
The S&P 500 finished approximately unchanged, the Dow Jones Industrial Average showed little movement, and the Nasdaq Composite declined modestly.
The broader earnings reporting period also continued, with additional S&P 500 companies scheduled to release quarterly financial results in the following days.
Hawkins’ second-quarter fiscal 2027 results included 12% revenue growth, a 23% increase in net income and a 16% rise in adjusted EBITDA to $59.1 million.
The company also reported revenue increases across all three operating segments, with Water Treatment revenue advancing 16% and segment gross profit rising 20%.
In addition to its financial results, Hawkins declared a $0.20 quarterly dividend, repurchased $12 million in shares and completed acquisitions involving Dave Symonds & Associates and Eagle Labs.
The company’s shares advanced in after-hours trading following the release, with investors assessing the quarterly earnings figures, segment performance and capital allocation developments.
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