Zurn Elkay Water Solutions Corp reported third-quarter sales of $495 million, up 9%, and adjusted EBITDA of $140 million, up 15%. It raised 2026 adjusted EBITDA guidance to $512 to $515 million and introduced the Wilkins RunPoint valve.
ZWS · Zurn Elkay Water Solutions Corp
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Zurn Elkay Water Solutions Corporation acquired Intellihot for $107.3 million on July 21, 2026. Nine-month 2026 net sales rose 10% to $1,419.1 million, while $49.1 million of IEEPA reciprocal tariff refunds boosted operating income to $342.6 million.
Zurn Elkay Water Solutions reported third-quarter net sales of $495 million and adjusted EBITDA of $140 million; it increased its annual dividend 18% to $0.52 per share and expects fourth-quarter net sales of $430 million to $437 million.
Metrics snapshot
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Quarterly results
* Q4 derived as the full year minus Q1 to Q3.
AI Brief
Q2 FY26 earnings call · Jul 29, 2026TL;DR. ZWS posted 10% Q2 core sales growth to $491M with adjusted EBITDA margins hitting a record 27.7% (up 120bps), raised full-year 2026 guidance, and closed the $109M IntelliHot acquisition expanding its served market by $1.1B.
- + Q2 net sales grew 10% core/reported to $491M, above the high end of guidance, with broad-based growth led by water safety & control and drinking water.
- + Q2 adjusted EBITDA margin expanded 120bps YoY to a record 27.7%, exceeding the high end of guidance and the highest quarterly margin since the Zurn-LK merger.
- + Full-year 2026 adjusted EBITDA guidance raised to $503M-$513M with ~140bps margin expansion and free cash flow of at least $350M (excluding tariff refunds).
- + Closed $109M IntelliHot acquisition, expanding served market by $1.1B into tankless water heating with a target of $100M in revenue at 30% EBITDA margins within 5-6 years.
- + Net debt leverage fell to 0.3x, the lowest as a public company, with $112M free cash flow generated in Q2.
- + Returned $100M to shareholders YTD via buybacks ($50M in Q2 at ~$48/share) plus $37M in dividends, while incremental EBITDA margins ran at 40% YTD.
- − Q2 GAAP results were inflated by a $48M IEEPA reciprocal tariff refund that was excluded from adjusted earnings and is non-recurring.
- − Outlook assumes full impact of the transition from expired Section 122 tariffs to new Section 301 tariffs, creating near-term tariff exposure.
AI-generated from the earnings call and 8-K · may contain errors · not investment advice
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Guidance & track record
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Guidance from company 8-Ks · delivered figures from as-reported statements · no analyst estimates involved.
Technicals
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Key metrics
the company's own KPIs, from written earnings releases and filings| Metric | Latest | Period | YoY |
|---|---|---|---|
| Core sales non-GAAP | 10% | the three months ended June 30, 2026 filing | — |
Figures exactly as the company stated them in writing · click a metric with a to chart its history · period links open the stating document · "filing" marks figures stated in the 10-K/10-Q · YoY needs an exactly comparable prior-year period
Versus peers
Pollution & Treatment Controls — same industry group| Company | Mkt cap | YTD | Rev growth Y/Y | P/E | Short % shares |
|---|---|---|---|---|---|
|
ZWS
this stock
Zurn Elkay Water Solutions Corp
|
$7.61B | -1.3% | +19.4% | 26.8 | 2.2% |
|
VLTO
Veralto Corp
|
$28.75B | +18.5% | +6.0% | 29.2 | 2.0% |
|
ORCRY
Organo Corporation
|
$3.33B | — | — | — | — |
|
CECO
Ceco Environmental Corp
|
$3.18B | -9.4% | +38.8% | — | 1.3% |
|
ERII
Energy Recovery, Inc.
|
$369.05M | -46.1% | -6.9% | 90.9 | 5.8% |
Peers by industry group · P/E from as-reported trailing EPS · short % is of shares outstanding
At a glance
key data from every section- Filed
- Oct 27, 2026
- This year
- 15
Zurn Elkay Water Solutions Corporation acquired Intellihot for $107.3 million on July 21, 2026. Nine-month 2026 net sales rose 10% to $1,419.1 million, while $49.1 million of IEEPA reciprocal tariff refunds boosted operating income to $342.6 million.
ViewPerformance
| 5D | 20D | 120D | MTD | YTD | |
|---|---|---|---|---|---|
| ZWS | +5.5% | -2.5% | -6.1% | +2.4% | -1.3% |
| SPY | +2.6% | -1.2% | +0.5% | -0.2% | +10.6% |
| vs SPY | +2.9% | -1.4% | -6.6% | +2.6% | -12.0% |
Capital returns
Dividends per share over the trailing 365 days by ex-date · buyback figures as last reported in SEC filings ("spent" derived as authorized − remaining; when several programs run concurrently, authorized is their combined total per the newest filing) · components shown separately — trailing-year buyback spend isn't tracked, so no combined shareholder yield is derived.