ZWS
Zurn Elkay Water Solutions Corporation47.16
-0.26-0.55%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Adjacencies detailed; M&A optimistic
Q&A sharpened focus on refreshed adjacencies—North American water plumbing verticals mirroring the fire protection buildout—promising organic growth and M&A optionality without specifics. Management affirmed mid-single-digit 2026 core sales and 35% incremental EBITDA margins as prudent baseline, with upside from mix and investments; they're positioned against metal inflation via supply chain gains. EPA rules sustain, don't accelerate, drinking water traction. Pro Filtration boosts filter attachments. Data centers grow steadily, not a wedge. Adjacencies echo core playbook. Watch commercialization and deals.
Key Stats
Market Cap
7.90BP/E (TTM)
43.27Basic EPS (TTM)
1.09Dividend Yield
0.01%Recent Filings
8-K
Revolver upsized to $550M
Zurn Elkay refinanced its revolving credit facility via Amendment No. 3, boosting capacity from $200M to $550M maturing February 19, 2031. JPMorgan Chase replaced UBS as administrative agent. Post-amendment, $540.1M borrowing capacity remains with $9.9M letters of credit outstanding. Lenders gain extended liquidity runway.
10-K
FY2025 results
Zurn Elkay posted FY2025 net sales of $1.7B, up 8.3% y/y with core sales growing 8% across all product categories, driving operating income to $279M (16.4% margin) from $245M (15.6%) as productivity gains offset LIFO costs. Q4 momentum accelerated this topline surge while margins expanded sequentially on price realization. Cash from operations hit $347M, funding $160M buybacks under a $500M program and $64M dividends (up to $0.11/share). Debt sits at $497M with $300M cash and $190M revolver capacity. Yet economic weakness could stall construction cycles.
8-K
Q4 sales up 10%, record FCF
Zurn Elkay Water Solutions posted Q4 net sales of $407M, up 10% on core growth, with adjusted EBITDA hitting $104M at 25.6% margins—100 basis points better than last year. Full-year sales reached $1.7B, adjusted EBITDA $442M, and record free cash flow $317M, fueling $160M share repurchases while net debt leverage fell to 0.4x. Strong balance sheet powers mid-single-digit 2026 core growth.
8-K
Q3 sales up 11%, EBITDA rises
Zurn Elkay Water Solutions posted Q3 net sales of $455 million, up 11% from $410 million last year, with core sales matching that growth across all categories. Adjusted EBITDA climbed 16% to $122 million, or 26.8% of sales, while free cash flow hit $94 million, trimming net debt leverage to 0.6x. The company boosted its dividend 22% to $0.44 per share, hiked share repurchases to $500 million, and terminated its US Pension Plan. Cash flows strong. Full-year adjusted EBITDA now eyes $437-440 million.
10-Q
Q3 FY2025 results
Zurn Elkay Water Solutions posted solid Q3 results, with net sales climbing 11.1% year over year to $455.4 million, fueled by core growth across all product categories and price realization. Operating income rose 10.4% to $77.5 million, holding steady at 17.0% of sales despite LIFO inventory adjustments, while diluted EPS from continuing operations improved to $0.35 from $0.25, reconciling cleanly with 170,273 thousand shares. Cash from operations hit $254.8 million year to date, funding $20.7 million in capex and yielding free cash flow of $234.1 million (derived), with $260.1 million in cash bolstering liquidity against $496.4 million in debt, including a $476.1 million term loan at 6.24% maturing 2028 and full $200 million revolver availability. Pension settlement delivered a $10.0 million gain, trimming restructuring costs to $1.8 million. Yet tariffs on imports pose ongoing cost pressures.
IPO
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