Hawkins (HWKN) risk factors, FY2026 10-K

Other

1. 01We operate in a highly competitive environment and face significant competition and price pressure
2. 02Our businesses expose us to potential product liability claims and recalls, which could adversely affect our financial condition and performance
3. 03Changes in our customers’ needs or failure of our products to meet customers’ requirements could adversely affect our sales and profitability28% rewritten
4. 04Adverse publicity or negative public perception regarding particular ingredients or products could adversely affect the financial performance of those portions of our business
5. 05Failure to adequately protect critical data and technology systems could materially affect our operations

RISKS RELATED TO OUR INDUSTRY

1. 06Fluctuations in the prices and availability of our raw materials, which may be cyclical in nature, could have a material adverse effect on our operations and the margins we receive on sales of our products
2. 07Demand for our products is affected by general economic conditions and by the cyclical nature of many of the industries we serve, which could cause significant fluctuations in our sales volumes and results
3. 08Our business is subject to hazards common to chemical businesses, any of which could interrupt our production and adversely affect our results of operations
4. 09Environmental problems at any of our facilities could result in significant unexpected costs
5. 10Our Water Treatment Group and our agricultural product sales within our Food and Health Sciences Group are subject to seasonality and weather conditions, which could adversely affect our results of operations39% rewritten

OPERATIONAL RISKS

1. 11Disruptions within our supply chain have negatively impacted, and could continue to negatively impact, our production, financial condition and results of operations
2. 12We are highly dependent upon transportation infrastructure to ship and receive our products and delays in these shipments could adversely affect our results of operations29% rewritten
3. 13If we are unable to retain key personnel or attract new skilled personnel, it could have an adverse impact on our businesses
4. 14We may not be able to successfully consummate future acquisitions or dispositions or integrate acquisitions into our business, which could result in unanticipated expenses and losses
5. 15Our businesses are subject to risks stemming from natural disasters or other extraordinary events outside of our control, which could interrupt our production and adversely affect our results of operations
6. 16Our businesses could experience substantial effects from tariffs or changes in international trade policies that could adversely affect our results of operations
7. 17We may not be able to renew our leases of land where four of our operations facilities reside

LEGAL AND REGULATORY RISKS

1. 18Environmental, health and safety, transportation and storage laws and regulations cause us to incur substantial costs and may subject us to future liabilities and risks
2. 19Many of our products, particularly our food, pharmaceutical and health and nutrition products are subject to government regulation, both in the United States and abroad, which could increase our costs significantly and limit or prevent the sale of such products

FINANCIAL RISKS

1. 20The insurance that we maintain may not fully cover all potential exposures
2. 21Failure to comply with the covenants under our credit facility may have a material adverse effect
3. 22Impairment to the carrying value of our goodwill or other intangible assets could adversely affect our financial condition and consolidated results of operations