Zurn Elkay Reports Q4 Earnings Beat with Positive 2026 Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 03 2026
0mins
Source: seekingalpha
Zurn Elkay Water Solutions Corp's stock surged by 9.26% as it crossed above the 5-day SMA, reflecting strong investor interest.
The company reported a Q4 non-GAAP EPS of $0.36, beating expectations by $0.02, and achieved revenues of $407 million, a 9.7% year-over-year increase. This performance, along with an optimistic guidance for 2026, projecting mid-single-digit core sales growth and adjusted EBITDA margins of approximately 35%, has bolstered investor confidence.
Zurn Elkay's strong earnings and positive outlook indicate a solid market position, suggesting that the company is well-prepared for future growth despite broader market weakness.
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Analyst Views on ZWS
Wall Street analysts forecast ZWS stock price to rise
7 Analyst Rating
3 Buy
4 Hold
0 Sell
Moderate Buy
Current: 47.000
Low
50.00
Averages
55.83
High
59.00
Current: 47.000
Low
50.00
Averages
55.83
High
59.00
About ZWS
Zurn Elkay Water Solutions Corporation specializes in water solutions for health, hydration, human safety and the environment. Its product portfolio includes professional grade water safety and control products, flow systems products, hygienic and environmental products and filtered drinking water products for public and private spaces. Its drinking water product line includes a collection of filtered drinking water delivery products. Its water safety and control products encompass a range of valve and water distribution control products. Its flow systems products are commonly installed within a building or on a site to manage storm water and wastewater. Its hygienic and environmental products include primarily sensor-operated flush valves, heavy-duty commercial faucets, and flush valves and faucets. Its products are marketed and sold under various brand names, including Zurn, Elkay, Wilkins, Green Turtle, World Dryer, StainlessDrains.com, JUST, Hadrian, Wade, and Halsey Taylor.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Zurn Elkay Appoints New COO and CFO
- Executive Appointments: Zurn Elkay Water Solutions has promoted Dave Pauli to Chief Operating Officer and Dan Klun to Chief Financial Officer, with Klun having served as Vice President of Finance since 2017, indicating the company's commitment to leadership stability and continuity.
- Financial Outlook: The company forecasts $335 million in free cash flow for 2026 while guiding for an 8%-9% increase in core sales for Q2, demonstrating strong market performance and future growth potential.
- Dividend Declaration: Zurn Elkay has declared a dividend of $0.11 per share, reflecting its robust financial health and commitment to shareholder returns, which is likely to enhance investor confidence.
- Performance Highlights: While Zurn Elkay's fundamentals are strong, the stock is currently running hot, which may prompt the market to reassess its valuation, potentially impacting investor decisions.
See More
Zurn Elkay Donates $370,000 Water Filtration Units to UCISD
- Donation Overview: Zurn Elkay has donated $370,000 worth of 36 Elkay Pro FiltrationTM filtered bottle filling stations and 73 filtration conversion kits to UCISD, aimed at providing safer drinking water for 4,000 students and staff.
- Certification Standards: The donated Elkay filters are certified to NSF/ANSI 42, 53, and 401 standards, effectively reducing lead, microplastics, and other harmful contaminants, ensuring safe drinking water for students and meeting health standards.
- Community Impact: This donation will replace unfiltered drinking fountains in UCISD schools, with an expected installation of one filtered bottle filling station for every 100 students, significantly enhancing the quality of drinking water and health levels among students.
- Long-term Strategic Significance: Zurn Elkay's Fountains for Youth initiative not only addresses drinking water safety but also demonstrates the company's commitment to community responsibility by providing sustainable water management solutions, supporting the healthy development of the Uvalde area.
See More
Zurn Elkay Declares $0.11 Quarterly Dividend in Line with Previous
- Quarterly Dividend Declaration: Zurn Elkay Water Solutions has declared a quarterly dividend of $0.11 per share, consistent with previous distributions, reflecting the company's stable cash flow and shareholder return strategy.
- Optimistic Earnings Outlook: The company forecasts $335 million in free cash flow for 2026 while guiding for an 8%-9% increase in core sales for Q2, indicating strong performance and growth potential in the market.
- Financial Performance Beats Expectations: Zurn Elkay reported a non-GAAP EPS of $0.41, beating estimates by $0.05, with revenue of $433 million exceeding expectations by $14.07 million, showcasing the company's operational efficiency and demand strength.
- Dividend Payment Schedule: The dividend is payable on June 5, with a record date of May 20 and an ex-dividend date also on May 20, ensuring timely returns for shareholders and bolstering investor confidence.
See More
Zurn Elkay Declares Quarterly Dividend of $0.11
- Quarterly Dividend Announcement: Zurn Elkay Water Solutions Corporation has declared a quarterly common stock dividend of $0.11 per share, payable on June 5, 2026, to stockholders of record as of May 20, 2026, demonstrating the company's commitment to shareholder returns.
- Sustainability Recognition: Zurn Elkay has been recognized as one of America's Most Responsible Companies by Newsweek and one of the World's Best Companies for Sustainable Growth by TIME, highlighting its leadership and commitment to social responsibility in the water management sector.
- Diverse Product Portfolio: The company offers a broad range of water management solutions, including professional-grade water safety and control products, flow systems, hygienic and environmental products, and filtered drinking water solutions for both public and private spaces, catering to diverse market needs.
- Cautious Future Outlook: While the company shows strong growth potential, the forward-looking statements in the release involve risks and uncertainties, indicating that actual results may differ materially from current expectations, prompting investors to be aware of associated risk factors.
See More
Zurn Elkay Reports Strong Q1 Results Exceeding Expectations
- Significant Revenue Growth: Zurn Elkay reported Q1 2026 revenue of $433 million, an 11.4% year-over-year increase that surpassed analyst expectations of $419.5 million, indicating robust performance in the water management solutions sector.
- Improved Profitability: The adjusted EPS of $0.41 exceeded analysts' forecast of $0.36 by 13%, while adjusted EBITDA reached $116 million with a 26.8% margin, reflecting the company's successful shift towards higher-margin products.
- Optimized Product Mix: The company's product mix has shifted to an even split between new construction and retrofit/replacement, enhancing resilience and margin potential, as retrofit products typically yield higher returns and recurring demand, supporting future steady growth.
- Positive Outlook: Management expresses confidence in future prospects, planning new product launches in the second half of the year, with expectations that ongoing growth in retrofit segments will support revenue and margin expansion, while remaining cautious of external market volatility.
See More
Zurn Elkay Water Solutions Reports Strong Q1 Performance with 11% Organic Growth
- Organic Sales Growth: Zurn Elkay Water Solutions Corp achieved an 11% organic sales growth in Q1 2026, totaling $433 million in sales, reflecting strong market performance despite softness in residential markets.
- Significant EBITDA Growth: The company reported an 18% increase in EBITDA to $116 million, with EBITDA margins expanding to 26.8%, which not only enhances profitability but also boosts investor confidence in the company's future growth prospects.
- Free Cash Flow and Share Buybacks: In the first quarter, Zurn Elkay generated $43 million in free cash flow and repurchased $50 million worth of shares at approximately $47 per share, indicating a robust capital management strategy that enhances shareholder value.
- Enhanced Liquidity: Zurn Elkay successfully upsized its revolver from $200 million to $550 million, extending it for five years, which strengthens the company's liquidity and ensures flexibility to navigate potential challenges in an uncertain market environment.
See More
Zurn Elkay Appoints New COO and CFO
- Executive Appointments: Zurn Elkay Water Solutions has promoted Dave Pauli to Chief Operating Officer and Dan Klun to Chief Financial Officer, with Klun having served as Vice President of Finance since 2017, indicating the company's commitment to leadership stability and continuity.
- Financial Outlook: The company forecasts $335 million in free cash flow for 2026 while guiding for an 8%-9% increase in core sales for Q2, demonstrating strong market performance and future growth potential.
- Dividend Declaration: Zurn Elkay has declared a dividend of $0.11 per share, reflecting its robust financial health and commitment to shareholder returns, which is likely to enhance investor confidence.
- Performance Highlights: While Zurn Elkay's fundamentals are strong, the stock is currently running hot, which may prompt the market to reassess its valuation, potentially impacting investor decisions.
See More
Zurn Elkay Donates $370,000 Water Filtration Units to UCISD
- Donation Overview: Zurn Elkay has donated $370,000 worth of 36 Elkay Pro FiltrationTM filtered bottle filling stations and 73 filtration conversion kits to UCISD, aimed at providing safer drinking water for 4,000 students and staff.
- Certification Standards: The donated Elkay filters are certified to NSF/ANSI 42, 53, and 401 standards, effectively reducing lead, microplastics, and other harmful contaminants, ensuring safe drinking water for students and meeting health standards.
- Community Impact: This donation will replace unfiltered drinking fountains in UCISD schools, with an expected installation of one filtered bottle filling station for every 100 students, significantly enhancing the quality of drinking water and health levels among students.
- Long-term Strategic Significance: Zurn Elkay's Fountains for Youth initiative not only addresses drinking water safety but also demonstrates the company's commitment to community responsibility by providing sustainable water management solutions, supporting the healthy development of the Uvalde area.
See More
Zurn Elkay Declares $0.11 Quarterly Dividend in Line with Previous
- Quarterly Dividend Declaration: Zurn Elkay Water Solutions has declared a quarterly dividend of $0.11 per share, consistent with previous distributions, reflecting the company's stable cash flow and shareholder return strategy.
- Optimistic Earnings Outlook: The company forecasts $335 million in free cash flow for 2026 while guiding for an 8%-9% increase in core sales for Q2, indicating strong performance and growth potential in the market.
- Financial Performance Beats Expectations: Zurn Elkay reported a non-GAAP EPS of $0.41, beating estimates by $0.05, with revenue of $433 million exceeding expectations by $14.07 million, showcasing the company's operational efficiency and demand strength.
- Dividend Payment Schedule: The dividend is payable on June 5, with a record date of May 20 and an ex-dividend date also on May 20, ensuring timely returns for shareholders and bolstering investor confidence.
See More
Zurn Elkay Declares Quarterly Dividend of $0.11
- Quarterly Dividend Announcement: Zurn Elkay Water Solutions Corporation has declared a quarterly common stock dividend of $0.11 per share, payable on June 5, 2026, to stockholders of record as of May 20, 2026, demonstrating the company's commitment to shareholder returns.
- Sustainability Recognition: Zurn Elkay has been recognized as one of America's Most Responsible Companies by Newsweek and one of the World's Best Companies for Sustainable Growth by TIME, highlighting its leadership and commitment to social responsibility in the water management sector.
- Diverse Product Portfolio: The company offers a broad range of water management solutions, including professional-grade water safety and control products, flow systems, hygienic and environmental products, and filtered drinking water solutions for both public and private spaces, catering to diverse market needs.
- Cautious Future Outlook: While the company shows strong growth potential, the forward-looking statements in the release involve risks and uncertainties, indicating that actual results may differ materially from current expectations, prompting investors to be aware of associated risk factors.
See More
Zurn Elkay Reports Strong Q1 Results Exceeding Expectations
- Significant Revenue Growth: Zurn Elkay reported Q1 2026 revenue of $433 million, an 11.4% year-over-year increase that surpassed analyst expectations of $419.5 million, indicating robust performance in the water management solutions sector.
- Improved Profitability: The adjusted EPS of $0.41 exceeded analysts' forecast of $0.36 by 13%, while adjusted EBITDA reached $116 million with a 26.8% margin, reflecting the company's successful shift towards higher-margin products.
- Optimized Product Mix: The company's product mix has shifted to an even split between new construction and retrofit/replacement, enhancing resilience and margin potential, as retrofit products typically yield higher returns and recurring demand, supporting future steady growth.
- Positive Outlook: Management expresses confidence in future prospects, planning new product launches in the second half of the year, with expectations that ongoing growth in retrofit segments will support revenue and margin expansion, while remaining cautious of external market volatility.
See More
Zurn Elkay Water Solutions Reports Strong Q1 Performance with 11% Organic Growth
- Organic Sales Growth: Zurn Elkay Water Solutions Corp achieved an 11% organic sales growth in Q1 2026, totaling $433 million in sales, reflecting strong market performance despite softness in residential markets.
- Significant EBITDA Growth: The company reported an 18% increase in EBITDA to $116 million, with EBITDA margins expanding to 26.8%, which not only enhances profitability but also boosts investor confidence in the company's future growth prospects.
- Free Cash Flow and Share Buybacks: In the first quarter, Zurn Elkay generated $43 million in free cash flow and repurchased $50 million worth of shares at approximately $47 per share, indicating a robust capital management strategy that enhances shareholder value.
- Enhanced Liquidity: Zurn Elkay successfully upsized its revolver from $200 million to $550 million, extending it for five years, which strengthens the company's liquidity and ensures flexibility to navigate potential challenges in an uncertain market environment.
See More
