Company Expects 2026 EBITDA Margin of 27.0%-27.5%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 hours ago
0mins
Should l Buy ZWS?
Consensus $471.4M. The company states: "Our outlook for the second quarter and full year is based on the assumption that the current tariff structure in place as of today remains in place throughout 2026. We expect second quarter core sales to grow by 8% to 9% compared to last year's second quarter and adjusted EBITDA margins to be between 27.0% to 27.5%. At present, we see the potential for upside beyond our Q1 actuals and Q2 guidance to the full year 2026 outlook we provided last quarter, and our plan is to revisit the second half of 2026 outlook as we announce Q2 results."
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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: 47.780
Low
50.00
Averages
55.83
High
59.00
Current: 47.780
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 Water Solutions Q1 Earnings Exceed Expectations
- Earnings Beat: Zurn Elkay Water Solutions reported a Q1 Non-GAAP EPS of $0.41, exceeding expectations by $0.05, which highlights the company's strong profitability and boosts investor confidence.
- Significant Revenue Growth: The company achieved Q1 revenue of $433 million, reflecting an 11.3% year-over-year increase and surpassing market expectations by $14.07 million, indicating sustained demand in the water solutions sector.
- Optimistic Outlook: Zurn Elkay anticipates core sales growth of 8% to 9% in Q2, which not only reflects positive market demand expectations but also positions the company to strengthen its market position in a competitive industry.
- Stable Profitability: The adjusted EBITDA margin is projected to be between 27.0% and 27.5%, demonstrating ongoing improvements in cost control and operational efficiency, which contribute to the overall financial health of the company.
See More
Zurn Elkay Earnings Preview: 9.8% Revenue Growth
- Revenue Beat: Zurn Elkay reported last quarter's revenues of $407.2 million, reflecting a 9.8% year-over-year increase, which not only surpassed analyst expectations but also demonstrated the company's strong performance in water management solutions, boosting market confidence.
- Optimistic Market Expectations: This quarter, the market anticipates Zurn Elkay's revenue to grow by 7.9% year-over-year, an improvement from the 4% increase recorded in the same quarter last year, indicating the company's ongoing growth potential in the industry.
- Analyst Sentiment Turns Positive: Over the past 30 days, analysts have generally revised their revenue estimates upward for Zurn Elkay, reflecting confidence in the company's future performance, as it has a history of exceeding Wall Street expectations.
- Peer Comparison: In the building products sector, Zurn Elkay's peer Insteel reported only 7.5% revenue growth and saw its stock drop by 28.2%, while Zurn Elkay's stock rose by 5.8% during the same period, showcasing its relatively strong market performance.
See More
Zurn Elkay Releases 2025 Sustainability Report Highlighting Environmental Progress
- Plastic Bottle Recycling Achievement: In 2025, Zurn Elkay successfully prevented 20 billion plastic bottles from entering waterways and landfills, significantly reducing environmental pollution and enhancing the company's leadership position in sustainability.
- Contribution to Clean Drinking Water: The company provided 2.4 billion gallons of cleaner, safer drinking water through its commercial-grade filters in schools, hospitals, and public spaces, addressing growing public health needs while enhancing brand image and market competitiveness.
- Filtration Technology Innovation: Zurn Elkay launched a new water filter capable of effectively reducing contaminants like PFAS, further solidifying its technological advantage in water safety, and improved facility water treatment efficiency with the Elkay Pro Filtration line.
- Strengthened Environmental Responsibility: The company set a new goal to reduce water withdrawal intensity by 3% by 2030 and partnered with TerraCycle to introduce a filter recycling program, demonstrating its long-term commitment to environmental management and sustainability.
See More
ZURN ELKAY WATER SOLUTIONS CORP ANNOUNCES NEW CREDIT FACILITY MATURITY DATE OF FEBRUARY 19, 2031 - SEC FILING
- Maturity Date Announcement: The maturity date for the new credit facility from Zurn Elkay Water Solutions Corp is set for February 19, 2031.
- SEC Filing: This information has been disclosed in a filing with the Securities and Exchange Commission (SEC).
See More
RBC Raises Zurn Elkay Price Target to $55 Amid Strong Q4 Performance
- Price Target Increase: RBC Capital raised Zurn Elkay Water's price target from $49 to $55 while maintaining a Sector Perform rating, reflecting confidence in the company's future performance.
- Earnings Beat: The company reported a solid Q4 with adjusted EBITDA approximately 2% above consensus and robust organic sales growth of 10%, indicating strong market demand and operational efficiency.
- Conservative Guidance: Zurn Elkay's guidance for 2026 suggests mid-single-digit sales growth, indicating a cautious approach to future market conditions.
- Positive Sales Outlook: The company anticipates core sales growth of 7%-8% in Q1, demonstrating ongoing market demand and growth potential, which bolsters investor confidence in its long-term development.
See More
Goldman Sachs Raises Zurn Elkay Price Target to $50
- Price Target Increase: Goldman Sachs analyst Joe Ritchie raised the price target for Zurn Elkay Water from $45 to $50 while maintaining a Neutral rating, reflecting a cautiously optimistic outlook on the company's future performance.
- Strong Financial Performance: Zurn Elkay Water reported adjusted EBITDA of $104 million, a 3% increase year-over-year, exceeding market expectations, with a core growth rate of 10%, indicating robust market performance.
- Positive Future Guidance: The company anticipates core sales growth of 7%-8% for Q1, with EBITDA margins projected between 25.5%-26.0%, demonstrating confidence in effective margin management and market share gains.
- Long-Term Growth Potential: Analysts noted that Zurn Elkay Water's FY26 core growth expectation is in the mid-single digits, reflecting the company's potential in diversified market performance and strong share gains, suggesting that its guidance may be conservative.
See More
Zurn Elkay Water Solutions Q1 Earnings Exceed Expectations
- Earnings Beat: Zurn Elkay Water Solutions reported a Q1 Non-GAAP EPS of $0.41, exceeding expectations by $0.05, which highlights the company's strong profitability and boosts investor confidence.
- Significant Revenue Growth: The company achieved Q1 revenue of $433 million, reflecting an 11.3% year-over-year increase and surpassing market expectations by $14.07 million, indicating sustained demand in the water solutions sector.
- Optimistic Outlook: Zurn Elkay anticipates core sales growth of 8% to 9% in Q2, which not only reflects positive market demand expectations but also positions the company to strengthen its market position in a competitive industry.
- Stable Profitability: The adjusted EBITDA margin is projected to be between 27.0% and 27.5%, demonstrating ongoing improvements in cost control and operational efficiency, which contribute to the overall financial health of the company.
See More
Zurn Elkay Earnings Preview: 9.8% Revenue Growth
- Revenue Beat: Zurn Elkay reported last quarter's revenues of $407.2 million, reflecting a 9.8% year-over-year increase, which not only surpassed analyst expectations but also demonstrated the company's strong performance in water management solutions, boosting market confidence.
- Optimistic Market Expectations: This quarter, the market anticipates Zurn Elkay's revenue to grow by 7.9% year-over-year, an improvement from the 4% increase recorded in the same quarter last year, indicating the company's ongoing growth potential in the industry.
- Analyst Sentiment Turns Positive: Over the past 30 days, analysts have generally revised their revenue estimates upward for Zurn Elkay, reflecting confidence in the company's future performance, as it has a history of exceeding Wall Street expectations.
- Peer Comparison: In the building products sector, Zurn Elkay's peer Insteel reported only 7.5% revenue growth and saw its stock drop by 28.2%, while Zurn Elkay's stock rose by 5.8% during the same period, showcasing its relatively strong market performance.
See More
Zurn Elkay Releases 2025 Sustainability Report Highlighting Environmental Progress
- Plastic Bottle Recycling Achievement: In 2025, Zurn Elkay successfully prevented 20 billion plastic bottles from entering waterways and landfills, significantly reducing environmental pollution and enhancing the company's leadership position in sustainability.
- Contribution to Clean Drinking Water: The company provided 2.4 billion gallons of cleaner, safer drinking water through its commercial-grade filters in schools, hospitals, and public spaces, addressing growing public health needs while enhancing brand image and market competitiveness.
- Filtration Technology Innovation: Zurn Elkay launched a new water filter capable of effectively reducing contaminants like PFAS, further solidifying its technological advantage in water safety, and improved facility water treatment efficiency with the Elkay Pro Filtration line.
- Strengthened Environmental Responsibility: The company set a new goal to reduce water withdrawal intensity by 3% by 2030 and partnered with TerraCycle to introduce a filter recycling program, demonstrating its long-term commitment to environmental management and sustainability.
See More
ZURN ELKAY WATER SOLUTIONS CORP ANNOUNCES NEW CREDIT FACILITY MATURITY DATE OF FEBRUARY 19, 2031 - SEC FILING
- Maturity Date Announcement: The maturity date for the new credit facility from Zurn Elkay Water Solutions Corp is set for February 19, 2031.
- SEC Filing: This information has been disclosed in a filing with the Securities and Exchange Commission (SEC).
See More
RBC Raises Zurn Elkay Price Target to $55 Amid Strong Q4 Performance
- Price Target Increase: RBC Capital raised Zurn Elkay Water's price target from $49 to $55 while maintaining a Sector Perform rating, reflecting confidence in the company's future performance.
- Earnings Beat: The company reported a solid Q4 with adjusted EBITDA approximately 2% above consensus and robust organic sales growth of 10%, indicating strong market demand and operational efficiency.
- Conservative Guidance: Zurn Elkay's guidance for 2026 suggests mid-single-digit sales growth, indicating a cautious approach to future market conditions.
- Positive Sales Outlook: The company anticipates core sales growth of 7%-8% in Q1, demonstrating ongoing market demand and growth potential, which bolsters investor confidence in its long-term development.
See More
Goldman Sachs Raises Zurn Elkay Price Target to $50
- Price Target Increase: Goldman Sachs analyst Joe Ritchie raised the price target for Zurn Elkay Water from $45 to $50 while maintaining a Neutral rating, reflecting a cautiously optimistic outlook on the company's future performance.
- Strong Financial Performance: Zurn Elkay Water reported adjusted EBITDA of $104 million, a 3% increase year-over-year, exceeding market expectations, with a core growth rate of 10%, indicating robust market performance.
- Positive Future Guidance: The company anticipates core sales growth of 7%-8% for Q1, with EBITDA margins projected between 25.5%-26.0%, demonstrating confidence in effective margin management and market share gains.
- Long-Term Growth Potential: Analysts noted that Zurn Elkay Water's FY26 core growth expectation is in the mid-single digits, reflecting the company's potential in diversified market performance and strong share gains, suggesting that its guidance may be conservative.
See More
