Hawkins Expands Water Treatment Reach With PhillTech Acquisition

Hawkins, Inc. HWKN has completed the acquisition of PhillTech, LLC, an Alabama-based manufacturer and distributor of coagulants and corrosion control products for water treatment customers.

The company is continuing to execute on its objective to grow its water treatment business. It believes that this tuck-in purchase will help solidify and expand its production of coagulants and corrosion control products, as well as boost its market position. 

Hawkins is seeing strong growth in its Water Treatment segment, reflecting its strategic emphasis on the water treatment sector, including the successful integration of recent acquisitions. Its revenues went up 10% year over year to record $245.3 million in the fiscal fourth quarter of 2024, driven by Water Treatment segment sales growth of 21%.

The acquisition of Industrial Research Corporation in the fourth quarter of 2023 aligned with Hawkins’ growth strategy in central and northern Louisiana, eastern Texas and southern Arkansas, complementing its existing operations and enhancing its market presence. The Wofford Water Service buyout in the second quarter of 2024 also extended HWKN’s reach in Mississippi, supporting its expansion in the southern United States, where its Water Treatment business had been limited previously. 

The company also acquired the Amerochem assets and WaterSurplus to strengthen its Water Treatment footprint. HWKN’s judicious pricing strategy to counter cost inflation is also supporting its performance. Further, it remains committed to enhancing shareholders’ value.

Shares of Hawkins have rallied 58.9% in a year compared with the industry’s rise of 4.2%.

HWKN’s Rank & Key Picks

HWKN currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, Centrus Energy Corp. LEU and Avino Silver & Gold Mines Ltd. ASM.

Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 11.1%. The company's shares have soared 157.7% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Centrus Energy's current-year earnings is pegged at 71 cents. LEU, carrying a Zacks Rank #1, surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing once, with an average earnings surprise of 272.7%. The company's shares have rallied 333.9% in the past year.

Avino Silver, which currently carries a Zacks Rank #1, beat the consensus estimate in each of the trailing four quarters. In this time frame, it delivered an earnings surprise of roughly 104.1%, on average. ASM's shares have rallied 271.5% in the past year.

 

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This article originally published on Zacks Investment Research (zacks.com).

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