What Hawkins, Inc. told the SEC could break it.

Hawkins manufactures, blends, repackages and distributes chemicals, so its margins depend on the price and availability of its principal chemical raw materials — including bulk commodities such as caustic soda, whose markets are cyclical and swing with supply/demand and general economic activity. Bulk commodity products were roughly 9% of Water Treatment and ~21% of Industrial Solutions sales in fiscal 2026. The prices Hawkins pays for raw materials generally lag underlying market prices, and its ability to pass through cost increases can be limited or delayed, compressing margins. It is also dependent on raw-material availability: short supply can lead suppliers to extend lead times, delay or cut off shipments, impairing its ability to make or supply products to customers.

“The cyclicality of commodity markets, such as the market for caustic soda, primarily results from changes in the balance between supply and demand and the level of general economic activity.”

Hawkins imports key raw materials and is exposed to tariffs and trade-policy changes that could substantially impact the price or supply of those inputs. It warns that new or increased tariffs or trade barriers — including by the U.S. — could dramatically increase costs and delivery times within its supply chain, and that certain business lines, particularly its health and nutrition products, depend on imported key raw materials sourced from a wide range of countries. Tariff escalation would raise input costs (which may not be fully or timely passed through to customers) and lengthen lead times, pressuring margins.

“New or increased tariffs or other trade barriers imposed by governments, including the United States, could dramatically increase costs and delivery times within our supply chain.”