Hawkins Reaches Key Milestone with Water Treatment Technology

Hawkins US4202611095

The specialty chemicals company Hawkins has announced a significant breakthrough, marking the successful conclusion of a multi-year pilot for its proprietary NanoStack membrane technology. This development paves the way for widespread commercial deployment in water purification systems, following positive test outcomes at the Orange County Water District (OCWD).

This technological advancement comes on the heels of the firm's third-quarter fiscal 2026 results, released in late January. Hawkins reported revenue of $244.1 million, an 8% year-over-year increase. Adjusted EBITDA for the period stood at $34.8 million.

While sales grew, diluted earnings per share saw a decline to $0.69. Management attributed this primarily to approximately $5 million in higher amortization and interest expenses related to recent acquisitions. A standout performer was the industrial segment, which posted its third consecutive quarter of growth, climbing 10.8% to $56.6 million.

Pilot Project Demonstrates Tangible Efficiency Gains

The pilot phase, conducted within the Groundwater Replenishment System (GWRS), yielded compelling evidence of the coated membranes' capabilities. Based on this data, the OCWD has decided to proceed with a full-scale installation of 1,050 NanoStack membrane units. This facility is projected to process approximately 19 million liters (5 million gallons) of water daily for indirect potable reuse.

The operational benefits are quantifiable and substantial. A marked improvement in fouling resistance slashed the need for chemical cleanings by more than half. Furthermore, energy consumption for the reverse osmosis process was reduced by over 15%. According to WaterSurplus's Chief Technology Officer, these savings enable a payback period for the investment of under two years.

Key Data Summary:
* Technology Validation: Pilot testing for NanoStack™ membranes successfully completed.
* Commercial Rollout: OCWD commissions installation of 1,050 units.
* Operational Efficiency: Achieves >15% energy reduction and 50% less cleaning.
* Q3 Revenue: $244.1 million (up 8% year-over-year).
* Industrial Business: Robust 10.8% growth to $56.6 million.

The successful pilot and subsequent large-scale order validate the potential of the acquired WaterSurplus technologies. Although costs from strategic acquisitions have impacted short-term earnings, the NanoStack innovation solidifies Hawkins's competitive edge in its core water treatment market. The projected sub-two-year return on investment for this specific project establishes a clear performance benchmark for the quarters ahead.