HAWKINS INC
For the period ended Sep 27, 2026. Filed Oct 26, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 27, 2026 · Filed Oct 26, 2026
HWKN$150.95-0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-28; filed 2026-07-29.
0000046250-26-000034
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-27; filed 2026-10-26.
0000046250-26-000044
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 62 previous paragraphs and 87 current paragraphs.
37 unchanged; 23 reworded; 24 added; 2 removed; 0 previous and 3 current paragraphs rearranged.
Tables are not compared: 1 previous and 1 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (24)
Current report
•On September 1, 2026, we acquired substantially all the assets and assumed certain liabilities of Dave Symonds & Associates, Inc. ("Symonds") for approximately $1.6 million. Symonds distributes water treatment products, primarily blended phosphates for corrosion control and sequestration, to water treatment customers in Florida.
Current report
Subsequent to the end of the second quarter of fiscal 2027, on September 29, 2026, we acquired substantially all of the assets of Eagle Labs, Inc. (“Eagle Labs”) for approximately $14.0 million. Eagle Labs distributes water treatment products directly to customers in Texas from its operations in the Dallas–Fort Worth region and has in-house manufacturing capabilities.
Current report
Sales were $313.8 million for the three months ended September 27, 2026, an increase of $33.4 million, or 12%, from sales of $280.4 million in the same period a year ago. All of our segments grew by 5% or more as compared to the prior year. Sales increased as a result of 11% organic sales growth and approximately $3.7 million of sales from acquired businesses.
Current report
Industrial Solutions Segment. Industrial Solutions segment sales increased $5.6 million, or 10%, to $62.2 million for the three months ended September 27, 2026, from sales of $56.6 million in the same period a year ago. Sales of bulk commodity products in the Industrial Solutions segment were approximately 22% of sales dollars in the current quarter and 21% in the same period a year ago. Sales increased as a result of increased pricing and favorable product mix, which more than offset lower sales volumes.
Current report
Gross profit increased $9.0 million, or 13%, to $76.6 million, or 24% of sales, for the three months ended September 27, 2026, from $67.6 million, or 24% of sales, in the same period a year ago. During the current quarter, the LIFO reserve increased, and gross profit decreased, by $1.9 million primarily due to higher raw material costs. In the same period a year ago, the LIFO
Current report
reserve increased, and gross profit decreased, by $0.3 million. The $1.6 million year-over-year impact of the unfavorable LIFO reserve was partially offset by $1.3 million of refunds of previously paid tariffs, which were recorded as a reduction of cost of sales. The refunded tariffs related to products for which customer pricing had not been increased in response to tariffs.
Current report
Food & Health Sciences Segment. Gross profit for the Food & Health Sciences segment decreased $0.6 million, or 4%, to $14.9 million, or 19% of sales for the three months ended September 27, 2026, from $15.5 million, or 21% of sales, in the same period a year ago. During the current quarter, the LIFO reserve increased, and gross profit decreased, by $0.7 million. In the same period a year ago, the LIFO reserve increased, and gross profit decreased, by $0.2 million. Gross profit decreased as lower margins in our food and pharmaceutical products and the $0.5 million year-over-year impact of the unfavorable LIFO reserve more than offset the benefit of higher sales and improved margins in our nutrition and agriculture products.
Current report
Selling, general and administrative (“SG&A”) expenses increased $1.0 million, or 3%, to $34.7 million, or 11% of sales, for the three months ended September 27, 2026, from $33.7 million, or 12% of sales, in the same period a year ago. This included $0.4 million due to added costs from the acquired businesses in our Water Treatment segment. SG&A expenses also increased due to increases in other variable costs, including variable pay and other personnel costs. These increases were partially offset by a $0.5 million decrease in non-qualified deferred compensation plan expense, as appreciation in the market value of plan investments was lower than in the same period a year ago. Deferred compensation plan expense is offset by a corresponding gain on plan investments recorded in other income (expense).
Current report
Our effective income tax rate was approximately 30% for the three months ended September 27, 2026 and 27% for the same period a year ago. The effective income tax rate for each period exceeded the U.S. federal statutory rate of 21%, primarily due to state income taxes on non-deductible expenses, including executive compensation and other permanent items. The increase in the effective income tax rate compared with prior-periods was primarily due to higher state income taxes and an increase in non-deductible items. The effective tax rate is impacted by projected levels of annual taxable income, permanent items, state taxes and discrete items, including tax effects of stock-based compensation. Our effective tax rate for the full year is expected to be approximately 25% to 27%.
Current report
Six Months Ended September 27, 2026 Compared to Six Months Ended September 28, 2025
Current report
Sales
Current report
Water Treatment Segment. Water Treatment segment sales increased $32.8 million, or 11%, to $333.3 million for the six months ended September 27, 2026, from sales of $300.5 million in the same period a year ago. Sales of bulk commodity products in the Water Treatment segment were approximately 11% of sales dollars in the current period and 8% in the same period a year ago. Sales increased as a result of improved pricing and increased sales volumes on certain of our products and approximately $10.6 million of added sales from acquired businesses.
Current report
Gross Profit
Current report
Gross profit increased $10.6 million, or 8%, to $150.6 million, or 24% of sales, for the six months ended September 27, 2026, from $140.0 million, or 24% of sales, in the same period a year ago. During the current period, the LIFO reserve increased, and gross profit decreased, by $3.9 million due primarily to a projected increase in certain commodity volumes and costs at year end. In the same period a year ago, the LIFO reserve increased, and gross profit decreased, by $0.9 million. The $3.0 million year-over-year increase in the unfavorable LIFO impact on gross profit was partially offset by $1.3 million of refunds of previously paid tariffs, which were recorded as a reduction of cost of sales. The refunded tariffs related to products for which customer pricing had not been increased in response to tariffs.
Current report
Water Treatment Segment. Gross profit for the Water Treatment segment increased $10.2 million, or 12%, to $97.2 million, or 29% of sales, for the six months ended September 27, 2026, from $87.0 million, or 29% of sales, in the same period a year ago. During the current year, the LIFO reserve increased, and gross profit decreased, by $1.1 million. During the prior year the LIFO reserve increased, and gross profit decreased, by $0.2 million. The $0.9 million year-over-year impact of the unfavorable LIFO reserve was more than offset by $1.2 million of refunds of previously paid tariffs, which were recorded as a reduction of cost of sales. Gross profit increased primarily as a result of organic and inorganic sales growth.
Current report
Food & Health Sciences Segment. Gross profit for the Food & Health Sciences segment decreased $0.6 million, or 2%, to $34.2 million, or 20% of sales, for the six months ended September 27, 2026, from $34.8 million, or 21% of sales, in the same period a year ago. During the current year, the LIFO reserve increased, and gross profit decreased, by $1.5 million. During the prior year the LIFO reserve increased, and gross profit decreased, by $0.4 million. Gross profit decreased primarily as a result of the $1.1 million year-over-year impact of the unfavorable LIFO reserve increase, partially offset by the increase in sales.
Current report
Industrial Solutions Segment. Gross profit for our Industrial Solutions segment increased $1.0 million, or 6%, to $19.2 million, or 16% of sales, for the six months ended September 27, 2026, from $18.2 million, or 16% of sales, in the same period a year ago. During the current year, the LIFO reserve increased, and gross profit decreased, by $1.3 million. During the prior year the LIFO reserve increased, and gross profit decreased, by $0.3 million. Gross profit increased due to higher sales, partially offset by the $1.0 million year-over-year impact of the unfavorable LIFO reserve increase.
Current report
Selling, General and Administrative Expenses
Current report
Operating Income
Current report
Operating income increased $5.3 million, or 7%, to $80.6 million, or 13% of sales, for the six months ended September 27, 2026, from $75.3 million, or 13% of sales, in the same period a year ago due to the combined impact of the factors discussed above.
Current report
Interest Expense, Net
Current report
Interest expense decreased $1.7 million to $5.4 million for the six months ended September 27, 2026, from $7.1 million in the same period a year ago. Interest expense decreased due to a decrease in outstanding borrowings in the current year as compared to a year ago as well as slightly lower interest rates.
Current report
Other Income
Current report
Income Tax Provision
Removed paragraphs (2)
Previous report
Gross profit increased $1.6 million, or 2%, to $74.0 million, or 23% of sales, for the three months ended June 28, 2026, from $72.4 million, or 25% of sales, in the same period a year ago. During the current quarter, the LIFO reserve increased, and gross profit decreased, by $1.9 million. In the same period a year ago, the LIFO reserve increased, and gross profit decreased, by $0.6 million. In addition to the $1.3 million impact of the LIFO reserve, gross margin was pressured by higher freight costs that were not fully recovered through freight charges billed to customers.
Previous report
Food & Health Sciences Segment. Gross profit for the Food & Health Sciences segment was $19.3 million for the three months ended June 28, 2026, unchanged from the same period in the prior year. As a percentage of sales, gross profit decreased to 20% from 22% in the same period a year ago. During the current quarter, the LIFO reserve increased, and gross profit decreased, by $0.8 million. In the same period a year ago, the LIFO reserve increased, and gross profit decreased, by $0.2 million. The benefit of higher sales volumes was offset by higher LIFO and freight costs.
Reworded paragraphs (23)
Previous wording
The following is a discussion and analysis of our financial condition and results of operations for the three months ended June 28, 2026 as compared to the similar period ended June 29, 2025. This discussion should be read in conjunction with the condensed consolidated financial statements and notes to condensed consolidated financial statements included in this quarterly report on Form 10-Q and Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended March 29, 2026.
Current wording
The following is a discussion and analysis of our financial condition and results of operations for the three and six months ended September 27, 2026 as compared to the three and six months ended September 28, 2025. This discussion should be read in conjunction with the condensed consolidated financial statements and notes to condensed consolidated financial statements included in this quarterly report on Form 10-Q and Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended March 29, 2026.
Previous wording
We derive substantially all of our revenues from the sale of water treatment, specialty ingredients, and chemistry products to our customers in a wide variety of industries. We believe that we create value for our customers through superb service and support, quality products, personalized applications and trustworthy, and creative employees.
Current wording
We derive substantially all of our revenues from the sale of water treatment, specialty ingredients, and chemistry products, and equipment to our customers in a wide variety of industries. We believe that we create value for our customers through superb service and support, quality products, personalized applications and trustworthy and creative employees.
Previous wording
We completed the following acquisitions in the first quarter of fiscal 2027 and fiscal 2026. The results of operations since the date of each acquisition and the assets, including goodwill associated with these acquisitions, are included in our Water Treatment segment with the exception of the MakWood lactate business, which is included in our Food & Health Sciences segment. Certain acquisitions discussed below are not included in Note 2 to our Condensed Consolidated Financial Statements as they were not deemed to be material enough to warrant disclosure.
Current wording
We completed the following acquisitions in the first half of fiscal 2027 and fiscal 2026. The results of operations since the date of each acquisition and the assets, including goodwill associated with these acquisitions, are included in our Water Treatment segment with the exception of the MakWood lactate business, which is included in our Food & Health Sciences segment. Certain acquisitions discussed below are not included in Note 2 to our Condensed Consolidated Financial Statements as they were not deemed to be material enough to warrant disclosure.
Previous wording
The aggregate annual revenue of the seven businesses acquired during fiscal 2026 and the first quarter of fiscal 2027 totaled approximately $52.3 million, as determined using the applicable twelve-month period preceding each respective acquisition date.
Current wording
The aggregate annual revenue of the eight businesses acquired during fiscal 2026 and the first half of fiscal 2027 totaled approximately $53.6 million, as determined using the applicable twelve-month period preceding each respective acquisition date.
Previous wording
Water Treatment Segment. Water Treatment segment sales increased $8.7 million, or 6%, to $158.3 million for the three months ended June 28, 2026, from sales of $149.6 million in the same period a year ago. Sales of bulk commodity products in the Water Treatment segment were approximately 10% of sales dollars in the current quarter and 8% in the same period a year ago. Sales increased primarily due to improved pricing on certain of our products in our legacy business on higher volumes, along with approximately $6.9 million in additional sales from acquired businesses.
Current wording
Water Treatment Segment. Water Treatment segment sales increased $24.1 million, or 16%, to $175.0 million for the three months ended September 27, 2026, from sales of $150.9 million in the same period a year ago. Sales of bulk commodity products in the Water Treatment segment were approximately 11% of sales dollars in the current quarter and 8% in the same period a year ago. Organic sales grew 14%, driven primarily by increased volumes, along with improved pricing on certain of our products. Acquired businesses contributed approximately $3.7 million in additional sales.
Previous wording
Food & Health Sciences Segment. Food & Health Sciences segment sales increased $8.1 million, or 9%, to $97.3 million for the three months ended June 28, 2026, from sales of $89.2 million in the same period a year ago. Sales dollars increased as a result of increased volumes of our agricultural, nutrition, and pharmaceutical products, partially offset by decreased sales volumes of our food ingredients products.
Current wording
Food & Health Sciences Segment. Food & Health Sciences segment sales increased $3.8 million, or 5%, to $76.7 million for the three months ended September 27, 2026, from sales of $72.9 million in the same period a year ago. Sales dollars increased as a result of increased volumes of our nutrition, food ingredients, and pharmaceutical products, partially offset by decreased sales of our agricultural products.
Previous wording
Water Treatment Segment. Gross profit for the Water Treatment segment increased $1.7 million, or 4%, to $45.5 million, or 29% of sales, for the three months ended June 28, 2026, from $43.7 million, or 29% of sales, in the same period a year ago. During the current quarter, the LIFO reserve increased, and gross profit decreased, by $0.5 million. In the same period a year ago, the LIFO reserve increased, and gross profit decreased, by $0.2 million. The increase in gross profit was primarily driven by higher sales from our acquired and legacy businesses, partially offset by higher LIFO and freight costs.
Current wording
Water Treatment Segment. Gross profit for the Water Treatment segment increased $8.4 million, or 20%, to $51.7 million, or 30% of sales, for the three months ended September 27, 2026, from $43.3 million, or 29% of sales, in the same period a year ago. During the current quarter, the LIFO reserve increased, and gross profit decreased, by $0.5 million. In the same period a year ago, the LIFO reserve decreased, and gross profit increased minimally. The $0.5 million year-over-year impact of the unfavorable LIFO reserve increase was more than offset by $1.2 million of refunds of previously paid tariffs, which were recorded as a reduction of cost of sales. The increase in gross profit was primarily driven by higher sales.
Previous wording
Industrial Solutions Segment. Gross profit for the Industrial Solutions segment of $9.2 million, or 15% of sales, for the three months ended June 28, 2026, was relatively flat compared to $9.3 million, or 17% of sales, in the same period a year ago. During the current quarter, the LIFO reserve increased, and gross profit decreased, by $0.7 million. In the same period a year ago, the LIFO reserve increased, and gross profit decreased, by $0.2 million. The benefit of higher sales volumes was more than offset by higher LIFO and freight costs.
Current wording
Industrial Solutions Segment. Gross profit for the Industrial Solutions segment increased $1.1 million, or 12%, to $10.0 million, or 16% of sales for the three months ended September 27, 2026, from $8.9 million, or 16% of sales, in the same period a year ago. During the current quarter, the LIFO reserve increased, and gross profit decreased, by $0.7 million. In the same period a year ago, the LIFO reserve increased, and gross profit decreased, by $0.1 million. The benefit of higher sales and favorable product mix was partially offset by the $0.6 million year-over-year impact of the unfavorable LIFO reserve increase.
Previous wording
Operating income decreased $2.7 million, or 6%, to $38.7 million, or 12% of sales, for the three months ended June 28, 2026, from $41.3 million, or 14% of sales, in the same period a year ago due to the combined impact of the factors discussed above.
Current wording
Operating income increased $8.0 million, or 23%, to $41.9 million, or 13% of sales, for the three months ended September 27, 2026, from $33.9 million, or 12% of sales, in the same period a year ago due to the combined impact of the factors discussed above.
Previous wording
Interest expense decreased $0.5 million to $2.8 million for the three months ended June 28, 2026 compared to $3.3 million in the same period a year ago. Interest expense decreased as a result of $55.0 million in net debt repayments since the first quarter of fiscal 2026.
Current wording
Interest expense decreased $1.2 million to $2.6 million for the three months ended September 27, 2026 compared to $3.8 million in the same period a year ago. Interest expense decreased as a result of $50.0 million in net debt repayments since the second quarter of fiscal 2026.
Previous wording
Other income was $1.4 million for the three months ended June 28, 2026 compared to $0.9 million in the same period a year ago. The income represents gains recorded on investments held for our non-qualified deferred compensation plan. The amounts recorded as a gain were offset by similar amounts recorded as an increase to compensation expense within SG&A expenses.
Current wording
Other income was $0.3 million for the three months ended September 27, 2026 compared to $0.7 million in the same period a year ago. The income represents gains recorded on investments held for our non-qualified deferred compensation plan. The amounts recorded as a gain were offset by similar amounts recorded as an increase to compensation expense within SG&A expenses.
Previous wording
Sales were $315.7 million for the three months ended June 28, 2026, an increase of $22.4 million, or 8%, from sales of $293.3 million in the same period a year ago. All of our segments grew by more than 5% as compared to the prior year.
Current wording
Sales were $629.5 million for the six months ended September 27, 2026, an increase of $55.8 million, or 10%, from sales of $573.7 million in the same period a year ago. All of our segments grew by 7% or more as compared to the prior year.
Previous wording
Industrial Solutions Segment. Industrial Solutions segment sales increased $5.6 million, or 10%, to $60.1 million for the three months ended June 28, 2026, from sales of $54.5 million in the same period a year ago. Sales of bulk commodity products in the Industrial Solutions segment were approximately 21% of sales dollars in the current quarter and 22% in the same period a year ago. Sales increased primarily as a result of increased sales volumes of certain of our manufactured, blended and repackaged products.
Current wording
Industrial Solutions Segment. Industrial Solutions segment sales increased $11.2 million, or 10%, to $122.3 million for the six months ended September 27, 2026, from sales of $111.1 million in the same period a year ago. Sales of bulk commodity products in the Industrial Solutions segment were approximately 21% of sales dollars in both the current period and the same period a year ago. Sales increased primarily as a result of improved pricing of certain of our manufactured, blended and repackaged products.
Previous wording
Selling, general and administrative (“SG&A”) expenses increased $4.3 million, or 14%, to $35.3 million, or 11% of sales, for the three months ended June 28, 2026, from $31.0 million, or 11% of sales, in the same period a year ago. This included $2.1 million due to added costs from the acquired businesses in our Water Treatment segment. In addition, the prior-year period included a $1.9 million favorable fair value adjustment that reduced SG&A, reflecting a downward revision to the estimated Water Solutions earnout liability based on a change in projected estimates related to the earnout target. This benefit did not recur in the current period, resulting in a $1.9 million year-over-year increase in SG&A. SG&A also included a $0.5 million increase in non-qualified deferred compensation expense, which was offset by a corresponding gain within other income. These increases were partially offset by lower acquisition-related costs and other changes across our operating expenses.
Current wording
SG&A expenses increased $5.3 million, or 8%, to $70.0 million, or 11% of sales, for the six months ended September 27, 2026, from $64.7 million, or 11% of sales, in the same period a year ago. This included $2.2 million in added costs from the acquired businesses in our Water Treatment segment. In addition, the prior-year period included a $1.9 million favorable fair value adjustment that reduced SG&A, reflecting a downward revision to the estimated Water Solutions earnout liability based on a change in projected estimates related to the earnout target. This benefit did not recur in the current period, resulting in a $1.9 million year-over-year increase in SG&A. SG&A expenses also increased due to increases in other variable costs, including variable pay and personnel costs.
Previous wording
Our effective income tax rate was approximately 24% for the three months ended June 28, 2026 and 25% for the same period a year ago. The effective tax rate in both years was impacted by favorable tax provision adjustments recorded. The effective tax rate is impacted by projected levels of annual taxable income, permanent items, and state taxes. Our effective tax rate for the full year is expected to be approximately 25% to 27%.
Current wording
Our effective income tax rate was 27% for the six months ended September 27, 2026 and 26% for the same period a year ago. The effective tax rate is impacted by projected levels of annual taxable income, permanent items, state taxes and discrete items, including tax effects of stock-based compensation. Our effective tax rate for the full year is currently expected to be approximately 25% to 27%.
Previous wording
Cash was $8.0 million at June 28, 2026, an increase of $4.1 million as compared with the $3.9 million available as of March 29, 2026.
Current wording
Cash was $7.1 million at September 27, 2026, an increase of $3.2 million as compared with the $3.9 million available as of March 29, 2026.
Previous wording
Cash provided by operating activities was $35.2 million for the three months ended June 28, 2026, compared to cash provided by operating activities of $31.5 million in the same period a year ago. The year-over-year increase in cash provided by operating activities in the current period was primarily driven by favorable year-over-year changes in inventories and accounts payable compared to the same period a year ago, which was mostly offset by unfavorable changes in accounts receivable. Due to the nature of our operations, which includes purchases of large quantities of bulk chemicals, the timing of purchases can result in significant changes in working capital investment and the resulting operating cash flow.
Current wording
Cash provided by operating activities was $75.5 million for the six months ended September 27, 2026, compared to cash provided by operating activities of $71.0 million in the same period a year ago. The year-over-year increase in cash provided by operating activities in the current period was primarily driven by favorable year-over-year changes in net income and accounts payable compared to the same period a year ago, which was offset by unfavorable changes in accounts receivable and inventories. Due to the nature of our operations, which includes purchases of large quantities of bulk chemicals, the timing of purchases can result in significant changes in working capital investment and the resulting operating cash flow.
Previous wording
Cash used in investing activities was $14.9 million for the three months ended June 28, 2026, compared to $164.5 million in the same period a year ago. In the current period, we incurred acquisition spending of$3.6 million compared to $151.3 million in the same period a year ago, including the acquisition of WaterSurplus for approximately $149.9 million paid at closing. Capital expenditures were $11.6 million for the current period, compared to $13.5 million in the same period a year ago. In the current period, we expended less on real estate and building expansions, contributing to the overall decrease in capital expenditures compared to the prior year.
Current wording
Cash used in investing activities was $27.0 million for the six months ended September 27, 2026, compared to $185.8 million in the same period a year ago. In the current period, we incurred acquisition spending of$5.2 million compared to $162.5 million in the same period a year ago, including the acquisition of WaterSurplus for approximately $149.9 million paid at closing. Capital expenditures were $22.4 million for the current period, compared to $24.3 million in the same period a year ago. In the current period, we expended less on delivery vehicles and trailers, contributing to the overall decrease in capital expenditures compared to the prior year.
Previous wording
Cash used in financing activities was $16.1 million for the three months ended June 28, 2026, compared to $142.5 million of cash provided by financing activities in the same period a year ago. Included in financing activities in the current period were no net debt borrowings, compared to net debt borrowings of $150.0 million in the same period a year ago when we drew approximately $150 million of the proceeds from the Revolving Loan Facility for the acquisition of WaterSurplus. In addition, we repurchased $7.0 million of our common stock in the current period, compared to no repurchases in the same period of the prior year.
Current wording
Cash used in financing activities was $45.3 million for the six months ended September 27, 2026, compared to $120.1 million of cash provided by financing activities in the same period a year ago. Included in financing activities in the current period were $15.0 million net debt payments, compared to net debt borrowings of $130.0 million in the same period a year ago when we drew approximately $150 million of proceeds from the Revolving Loan Facility for the acquisition of WaterSurplus. In addition, we repurchased $18.6 million of our common stock in the current period, compared to no repurchases in the same period of the prior year.
Previous wording
Our Board has authorized the repurchase of up to 2.6 million shares of our outstanding common shares. The shares may be purchased on the open market or in privately negotiated transactions subject to applicable securities laws and regulations. The primary objective of the share repurchase program is to offset the impact of dilution from issuances relating to employee and director equity grants and our employee stock purchase program. During the three months ended June 28, 2026, we repurchased 45,196 shares of common stock at an aggregate purchase price of $7.0 million. During the three months ended June 29, 2025, we repurchased no shares of common stock. As of June 28, 2026, 686,348 shares remained available to be repurchased under the share repurchase program.
Current wording
Our Board has authorized the repurchase of up to 2.6 million shares of our outstanding common shares. The shares may be purchased on the open market or in privately negotiated transactions subject to applicable securities laws and regulations. The primary objective of the share repurchase program is to offset the impact of dilution from issuances relating to employee and director equity grants and our employee stock purchase program. During the six months ended September 27, 2026, we repurchased 132,577 shares of common stock at an aggregate purchase price of $18.6 million. During the six months ended September 28, 2025, we repurchased no shares of common stock. As of September 27, 2026, 598,967 shares remained available to be repurchased under the share repurchase program.
Previous wording
We are party to a second amended and restated credit agreement with U.S. Bank National Association (“U.S. Bank”) as administrative agent, sole lead arranger and sole book runner, and the other lenders from time to time party thereto (collectively, the “Lenders”), dated as of March 31, 2022 (as amended, restated or modified from time to time, the “Credit Agreement”). A Joinder, Consent and Second Amendment, dated April 25, 2025 increased the revolving commitment under the Credit Agreement to provide us with senior secured revolving credit facilities (the “Revolving Loan Facility”) totaling $400.0 million. A Third Amendment, dated October 15, 2025, modified terms related to qualified receivables transactions, as defined in the Credit Agreement. The Revolving Loan Facility includes a $10.0 million letter of credit subfacility and $25.0 million swingline subfacility. The Revolving Loan Facility has a five-year maturity date, maturing on April 25, 2030. The Revolving Loan Facility is secured by substantially all of our personal property assets and those of our subsidiaries. We may use the amount available under the Revolving Loan Facility for working capital, capital expenditures, share repurchases, restricted payments and acquisitions permitted under the Credit Agreement, and other general corporate purposes. At June 28, 2026, we had $244.0 million outstanding under the Revolving Loan Facility.
Current wording
We are party to a second amended and restated credit agreement with U.S. Bank National Association (“U.S. Bank”) as administrative agent, sole lead arranger and sole book runner, and the other lenders from time to time party thereto (collectively, the “Lenders”), dated as of March 31, 2022 (as amended, restated or modified from time to time, the “Credit Agreement”). A Joinder, Consent and Second Amendment, dated April 25, 2025 increased the revolving commitment under the Credit Agreement to provide us with senior secured revolving credit facilities (the “Revolving Loan Facility”) totaling $400.0 million. A Third Amendment, dated October 15, 2025, modified terms related to qualified receivables transactions, as defined in the Credit Agreement. The Revolving Loan Facility includes a $10.0 million letter of credit subfacility and $25.0 million swingline subfacility. The Revolving Loan Facility has a five-year maturity date, maturing on April 25, 2030. The Revolving Loan Facility is secured by substantially all of our personal property assets and those of our subsidiaries. We may use the amount available under the Revolving Loan Facility for working capital, capital expenditures, share repurchases, restricted payments and acquisitions permitted under the Credit Agreement, and other general corporate purposes. At September 27, 2026, we had $229.0 million outstanding under the Revolving Loan Facility.
Previous wording
Borrowings under the Revolving Loan Facility bear interest at a rate per annum equal to one of the following, plus, in both cases, an applicable margin based upon our leverage ratio: (a) Term SOFR, for an interest period of one, three or six months as selected by us, reset at the end of the selected interest period, or (b) a base rate determined by reference to the highest of (1) U. S. Bank’s prime rate, (2) the Federal Funds Effective Rate plus 0.5%, or (3) one-month Term SOFR for U.S. dollars plus 1.0%. The Term SOFR margin is between 1.0% and 1.85%, depending on our leverage ratio. The base rate margin is between 0.00% and 0.85%, depending on our leverage ratio. At June 28, 2026, the effective interest rate on our borrowings was 4.3%.
Current wording
Borrowings under the Revolving Loan Facility bear interest at a rate per annum equal to one of the following, plus, in both cases, an applicable margin based upon our leverage ratio: (a) Term SOFR, for an interest period of one, three or six months as selected by us, reset at the end of the selected interest period, or (b) a base rate determined by reference to the highest of (1) U. S. Bank’s prime rate, (2) the Federal Funds Effective Rate plus 0.5%, or (3) one-month Term SOFR for U.S. dollars plus 1.0%.
Previous wording
The information presented in this Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements have been made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. These statements are not historical facts, but rather are based on our current expectations, estimates and projections, and our beliefs and assumptions. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “will” and similar expressions to identify forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. These factors could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Additional information concerning potential factors that could affect future financial results is included in our Annual Report on Form 10-K for fiscal 2026. We caution you not to place undue reliance on these forward-looking statements, which reflect our management’s view only as of the date of this Quarterly Report on Form 10-Q. We are not obligated to update these statements or publicly release the result of any revisions to them to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect the occurrence of unanticipated events.
Current wording
The information presented in this Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements have been made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. These statements are not historical facts, but rather are based on our current expectations, estimates and projections, and our beliefs and assumptions. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “will” and similar expressions may identify forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. These factors could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Additional information concerning potential factors that could affect future financial results is included in our Annual Report on Form 10-K for fiscal 2026. We caution you not to place undue reliance on these forward-looking statements, which reflect our management’s view only as of the date of this Quarterly Report on Form 10-Q. We are not obligated to update these statements or publicly release the result of any revisions to them to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect the occurrence of unanticipated events.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Food & Health Sciences Segment. Food & Health Sciences segment sales increased $11.8 million or 7%, to $173.9 million for the six months ended September 27, 2026, from sales of $162.1 million in the same period a year ago. Sales dollars increased as a result of increased volumes of our agricultural, nutrition, and pharmaceutical products, partially offset by decreased sales volumes of our food ingredients products.
Current report — wording carried from elsewhere
Other income was $1.7 million for both the six months ended September 27, 2026 and the same period a year ago. The income represents gains recorded on investments held for our non-qualified deferred compensation plan. The amounts recorded as a gain were offset by similar amounts recorded as an increase to compensation expense within SG&A expenses.
Current report — wording carried from elsewhere
The Term SOFR margin is between 1.0% and 1.85%, depending on our leverage ratio. The base rate margin is between 0.00% and 0.85%, depending on our leverage ratio. At September 27, 2026, the effective interest rate on our borrowings was 4.3%.