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Zurn Elkay Water Solutions Corporation (ZWS) Q3 2026 Earnings Call October 28, 2026 8:30 AM EDT

Company Participants

Bobbi Belstner - VP & Corporate Controller
Todd Adams - CEO & Chairman
Daniel Klun - Chief Financial Officer
Jeffrey Schoon - President
David Pauli - Chief Operating Officer

Conference Call Participants

Bryan Blair - Oppenheimer & Co. Inc., Research Division
Jae Hyun Ko - Jefferies LLC, Research Division
Adam Farley - Stifel, Nicolaus & Company, Incorporated, Research Division
Jeffrey Hammond - KeyBanc Capital Markets Inc., Research Division
Jeffrey Reive - RBC Capital Markets, Research Division

Presentation

Operator

Good morning, and welcome to the Zurn Elkay Water Solutions Corporation Third Quarter 2026 Earnings Results Conference Call with Todd Adams, Chairman and Chief Executive Officer; Dan Klun, Chief Financial Officer; Dave Pauli, Chief Operating Officer; Jeff Schoon, President; and Bobbi Belstner, Vice President and Corporate Controller for Zurn Elkay Water Solutions.

A replay of the conference call will be available as a webcast on the company's Investor Relations website. At this time, for opening remarks and introduction, I'll turn the call over to Bobbi Belstner.

Bobbi Belstner
VP & Corporate Controller

Good morning, everyone, and thanks for joining the call today.

Before we begin, I'd like to remind everyone that this call contains certain forward-looking statements, which are subject to safe harbor language outlined in our press release issued yesterday afternoon and in our filings with the SEC.

In addition, some comparisons will refer to non-GAAP measures. Our earnings release and SEC filings contain additional information about these non-GAAP measures, why we use them and why we believe they are helpful to investors, and contain reconciliations to the corresponding GAAP information.

Consistent with prior quarters, we will speak to certain non-GAAP metrics as we feel they provide a better understanding of our operating results.

These measures are not a

Investor call scheduled for Wednesday, October 28, 2026 at 8:30 a.m. Eastern Time

MILWAUKEE--(BUSINESS WIRE)--(USA) - Zurn Elkay Water Solutions Corporation (NYSE:ZWS)

Third Quarter Highlights

Net sales in the quarter were $495 million compared with $455 million in last year’s September quarter (+7% core sales(1), +2% acquisitions). Net income from continuing operations was $76 million (diluted EPS from continuing operations of $0.45) compared with net income from continuing operations of $60 million (diluted EPS from continuing operations of $0.35) in the year-ago quarter. Adjusted EBITDA(1) was $140 million (28.3% of net sales) compared with $122 million (26.8% of net sales) in last year's third quarter. Adjusted EPS(1) was $0.52 compared with $0.43 in the year-ago quarter. Free cash flow(1) of $110 million, excluding International Emergency Economic Powers Act ("IEEPA") reciprocal tariff refunds received, net of related taxes paid; Net debt leverage(1) of 0.4x as of September 30, 2026. Completed acquisition of Intellihot, Inc. ("Intellihot"). Deployed $35 million to repurchase 0.7 million shares of common stock in the quarter. Increased annual dividend 18% to $0.52 per share. Todd A. Adams, Chairman and Chief Executive Officer, commented, “We delivered 7% core sales(1) growth, 28.3% adjusted EBITDA margins(1) and free cash flow(1) of $110 million in the third quarter. We were able to leverage our exceptional free cash flow(1) to invest $35 million in share repurchases in the quarter as well as fund the Intellihot acquisition, which closed during the third quarter. Finally, we are increasing our annual dividend by 18% to $0.52 per share, reflecting the confidence we have in the long-term fundamentals of our business and business model driven by the Zurn Elkay Business System.”

Adams continued, “Last quarter we announced the acquisition of Intellihot, which along with our Wilkins backflow are key components of the hot water loop. Earlier this month, we continued to build out our presence in the hot water loop with the entrance into the digital master mixing valve market with internally developed new products that we believe will allow us to take meaningful, profitable share in the category over the next several years. These breakthrough initiatives are part of our continued focus to leverage our significant competitive advantages into adjacencies. In 2026 alone, we believe we’ve expanded our served markets by roughly $400 million. While we’re encouraged with our progress, we are also aware that we must continue to be nimble in finding pockets of growth to offset the general uncertainty that exists within our served markets and the broader economy.”

Fourth Quarter and Full Year Outlook

“As we start the fourth quarter, it feels like a time to be conservative in our assumptions while remaining aggressive with our actions with everything that’s happening in the world right now. For the fourth quarter, we expect net sales to be between $430 million to $437 million and adjusted EBITDA(1) between $120 million to $123 million and full year free cash flow(1) to be greater than $350 million, excluding the net impact of tariff related refunds received.”

Third Quarter 2026 Overview

Net sales were $495.1 million and $455.4 million during the three months ended September 30, 2026 and September 30, 2025, respectively, an increase of 9% year over year. Core sales improved 7% year over year, including growth in nearly all product categories, as well as an additional 2% increase resulting from our acquisition of Intellihot.

During the three months ended September 30, 2026, income from operations was $108.2 million compared to $77.5 million during the three months ended September 30, 2025. Income from operations as a percentage of net sales increased by 490 basis points year over year as a result of product mix, Zurn Elkay Business System led productivity initiatives and supply chain repositioning.

Adjusted EBITDA(1) was $140.1 million, or 28.3% of net sales, during the three months ended September 30, 2026 compared to $122.2 million, or 26.8% of net sales, during the three months ended September 30, 2025.

Non-GAAP Financial Measures

The following non-GAAP financial measures are utilized by management in comparing our operating performance on a consistent basis. We believe that these financial measures are appropriate to enhance an overall understanding of our underlying operating performance trends compared to historical and prospective periods and our peers. Management also believes that these measures are useful to investors in their analysis of our results of operations and provide improved comparability between fiscal periods as well as insight into the compliance with our debt covenants. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of non-GAAP financial measures presented above to our GAAP results has been provided in the financial tables included in this press release.

Core Sales

Core sales excludes the impact of mergers, acquisitions, divestitures and foreign currency translation. Management believes that core sales facilitates easier and more meaningful comparison of our net sales performance with prior and future periods and to our peers. We exclude the effect of mergers, acquisitions and divestitures because the nature, size and number of mergers, acquisitions and divestitures can vary dramatically from period to period and between us and our peers, and can also obscure underlying business trends and make comparisons of long-term performance difficult. We exclude the effect of foreign currency translation from this measure because the volatility of currency translation is not under management's control.

Adjusted Net Income and Adjusted Earnings Per Share

Adjusted net income and adjusted earnings per share (calculated on a diluted basis) exclude actuarial gains and losses on pension and postretirement benefit obligations, restructuring and other similar charges, gains or losses on divestitures, discontinued operations, gains or losses on extinguishment of debt, the impact of acquisition-related fair value adjustments in connection with purchase accounting, amortization of intangible assets, the adjustment to state inventories at last-in, first-out costs, and other non-operational, non-cash or non-recurring gains and losses, net of their income tax impact. The tax rates used to calculate adjusted net income and adjusted earnings per share are based on a transaction specific basis. We believe that adjusted net income and adjusted earnings per share are useful in assessing our financial performance by excluding items that are not indicative of our core operating performance or that may obscure trends useful in evaluating our continuing results of operations.

EBITDA

EBITDA represents earnings from continuing operations before interest and other debt related activities, taxes, depreciation and amortization. EBITDA is presented because it is an important supplemental measure of performance and it is frequently used by analysts, investors and other interested parties in the evaluation of companies in our industry. EBITDA is also presented and compared by analysts and investors in evaluating our ability to meet debt service obligations. Other companies in our industry may calculate EBITDA differently. EBITDA is not a measurement of financial performance under GAAP and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net income as indicators of operating performance or any other measures of performance derived in accordance with GAAP. Because EBITDA is calculated before recurring cash charges, including interest expense and taxes, and is not adjusted for capital expenditures or other recurring cash requirements of the business, it should not be considered as a measure of discretionary cash available to invest in the growth of the business.

Adjusted EBITDA

“Adjusted EBITDA” is the term we use to describe EBITDA as defined and adjusted in our credit agreement, which is net income, adjusted for the items summarized in the Reconciliation of GAAP to Non-GAAP Financial Measures table below. Adjusted EBITDA is intended to show our unleveraged, pre-tax operating results and therefore reflects our financial performance based on operational factors, excluding non-operational, non-cash or non-recurring gains or losses. It is also provided to aid investors in understanding our compliance with our debt covenants. Adjusted EBITDA is not a presentation made in accordance with GAAP, and our use of the term Adjusted EBITDA varies from others in our industry. Adjusted EBITDA should not be considered as an alternative to net income, income from operations or any other performance measures derived in accordance with GAAP. Adjusted EBITDA has important limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for, analysis of our results as reported under GAAP. For example, Adjusted EBITDA does not reflect: (a) our capital expenditures, future requirements for capital expenditures or contractual commitments; (b) changes in, or cash requirements for, our working capital needs; (c) the significant interest expenses, or the cash requirements necessary to service interest or principal payments, on our debt; (d) tax payments that represent a reduction in cash available to us; (e) any cash requirements for the assets being depreciated and amortized that may have to be replaced in the future; or (f) the impact of earnings or charges resulting from matters that we and the lenders under our credit agreement may not consider indicative of our ongoing operations. In particular, our definition of Adjusted EBITDA allows us to add back certain non-cash, non-operating or non-recurring charges that are deducted in calculating net income, even though these are expenses that may recur, vary greatly and are difficult to predict and can represent the effect of long-term strategies as opposed to short-term results. “Adjusted EBITDA Margin” is the term we use to describe Adjusted EBITDA divided by net sales.

In addition, certain of these expenses can represent the reduction of cash that could be used for other corporate purposes. Further, although not included in the calculation of Adjusted EBITDA below, the measure may at times allow us to add estimated cost savings and operating synergies related to operational changes ranging from acquisitions to dispositions to restructurings and/or exclude one-time transition expenditures that we anticipate we will need to incur to realize cost savings before such savings have occurred. Further, management and various investors use the ratio of total debt less cash to Adjusted EBITDA (which includes a full pro forma last-twelve-month impact of acquisitions), or "net debt leverage", as a measure of our financial strength and ability to incur incremental indebtedness when making key investment decisions and evaluating us against peers. Lastly, management and various investors use the ratio of the change in Adjusted EBITDA divided by the change in net sales (referred to as “incremental margin” in the case of an increase in net sales or “decremental margin” in the case of a decrease in net sales) as an additional measure of our financial performance and when making key investment decisions and evaluating us against peers.

Free Cash Flow

We define Free Cash Flow as cash flow from operations less capital expenditures and IEEPA reciprocal tariff refunds, net of related taxes paid, and we use this metric in analyzing our ability to service and repay our debt and to forecast future periods. However, this measure does not represent funds available for investment or other discretionary uses since it does not deduct cash used to service our debt. We define Free Cash Flow Conversion as Free Cash Flow divided by net income.

Return on Invested Capital (“ROIC”)

ROIC is used because we believe it is an important supplemental measure of financial performance and it is also currently a performance measure under our long-term incentive plan. ROIC is frequently used by analysts, investors and other interested parties in the evaluation of companies in our industry. ROIC is also used by investors and analysts to evaluate management’s deployment of capital to create shareholder value. We define ROIC as tax-effected net operating income for the last 12 months divided by average total invested capital over a rolling four-quarter period. Total invested capital is defined as shareholders equity plus debt, less cash and cash equivalents. Other companies may not define or calculate ROIC in the same way.

About Zurn Elkay Water Solutions

Named one of America’s Greatest Companies and America’s Most Responsible Companies by Newsweek and one of America’s Best Companies and the World’s Best Companies for Sustainable Growth by TIME, Zurn Elkay Water Solutions is headquartered in Milwaukee, Wisconsin, and is a growth-oriented, pure-play water management business that designs, procures, manufactures and markets what we believe to be the broadest sustainable product portfolio of specification-driven water management solutions to improve health, hydration, human safety and the environment. The Zurn Elkay 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. Learn more at www.zurnelkay.com.

Conference Call Details

Zurn Elkay Water Solutions will hold a conference call and webcast presentation on Wednesday, October 28, 2026, at 8:30 a.m. Eastern Time to discuss its third quarter 2026 results, provide a general business update and respond to investor questions. The conference call can be accessed via telephone as follows:

North America toll-free: 833-461-5787

International toll: 585-542-9983

Meeting ID: 323358105

A live webcast of the call will also be available on the Company's investor relations website. Please go to the website (investors.zurnelkay.com) at least 15 minutes prior to the start of the call to register, download and install any necessary audio software.

If you are unable to participate during the live teleconference, a replay of the conference call will be available as a webcast on the Company's investor relations website.

Cautionary Statement on Forward-Looking Statements

Information in this release may involve outlook, expectations, beliefs, plans, intentions, strategies or other statements regarding the future, which are forward-looking statements. These forward-looking statements involve risks and uncertainties. All forward-looking statements included in this release are based on information available to Zurn Elkay Water Solutions as of the date of this release, and Zurn Elkay Water Solutions assumes no obligation to update any such forward-looking statements. The statements in this release are not guarantees of future performance, and actual results could differ materially from current expectations. Numerous factors could cause or contribute to such differences. Please refer to “Risk Factors” and “Cautionary Notice Regarding Forward-Looking Statements” in our report on Form 10-K for the period ended December 31, 2025, as well as the Company’s subsequent annual, quarterly and current reports filed on Forms 10-K, 10-Q and 8-K from time to time with the Securities and Exchange Commission for a further discussion of the factors and risks associated with the business.

Zurn Elkay Water Solutions Corporation and Subsidiaries

Condensed Consolidated Statements of Operations

(in Millions, except share and per share amounts)

(Unaudited)

  Three Months Ended

Nine Months Ended

September 30, 2026

September 30, 2025

September 30, 2026

September 30, 2025

Net sales

$

495.1

$

455.4

$

1,419.1

$

1,288.7

Cost of sales

249.3

254.7

679.2

704.7

Gross profit

245.8

200.7

739.9

584.0

Selling, general and administrative expenses

121.0

106.7

348.7

316.1

Restructuring and other similar charges

1.4

1.8

4.1

5.4

Amortization of intangible assets

15.2

14.7

44.5

44.0

Income from operations

108.2

77.5

342.6

218.5

Non-operating expense:

Interest expense, net

(6.3

)

(7.1

)

(18.6

)

(22.1

)

Other income, net

0.7

8.7

5.6

6.7

Income before income taxes

102.6

79.1

329.6

203.1

Provision for income taxes

(26.5

)

(19.5

)

(82.1

)

(52.4

)

Net income from continuing operations

76.1

59.6

247.5

150.7

Income from discontinued operations, net of tax

0.2

2.2

1.0

5.2

Net income

$

76.3

$

61.8

$

248.5

$

155.9

Basic net income per share:

Continuing operations

$

0.46

$

0.35

$

1.49

$

0.89

Discontinued operations

$

—

$

0.01

$

—

$

0.03

Net income

$

0.46

$

0.36

$

1.49

$

0.92

Diluted net income per share:

Continuing operations

$

0.45

$

0.35

$

1.47

$

0.88

Discontinued operations

$

—

$

0.01

$

—

$

0.03

Net income

$

0.45

$

0.36

$

1.47

$

0.91

Weighted-average number of shares outstanding (in thousands):

Basic

166,259

168,125

167,002

168,977

Effect of dilutive equity awards

1,846

2,148

2,009

2,250

Diluted

168,105

170,273

169,011

171,227

Zurn Elkay Water Solutions Corporation and Subsidiaries

Reconciliation of GAAP to Non-GAAP Financial Measures

Three Months Ended September 30, 2026

(in Millions) (Unaudited)

  Three Months Ended September 30, 2026

Reported Results

Adjustments

Non-GAAP Results

Net Sales

$

495.1

$

—

$

495.1

Income from operations

108.2

10.4

(a)

118.6

Income before income taxes

102.6

14.3

(b)

116.9

Provision for income taxes and indicated rate

(26.5

)

25.8

%

(3.6

)

25.2

%

(30.1

)

25.7

%

Net income from continuing operations

76.1

10.7

86.8

Income from discontinued operations, net of tax

0.2

(0.2

)

—

Net income

$

76.3

$

10.5

$

86.8

Income from Operations Adjustments (a)

Income before Income Taxes Adjustments (b)

Restructuring and other similar charges

$

1.4

$

1.4

Acquisition-related fair value adjustment

0.7

0.7

Last-In, First-Out ("LIFO") adjustments

(0.8

)

(0.8

)

Tariff refunds

(1.5

)

(1.5

)

Stock-based compensation expense

10.6

—

Amortization of intangible assets

—

15.2

Other income, net (1)

—

(0.7

)

Total Adjustments

$

10.4

$

14.3

Zurn Elkay Water Solutions Corporation and Subsidiaries

Reconciliation of GAAP to Non-GAAP Financial Measures

Nine Months Ended September 30, 2026

(in Millions) (Unaudited)

  Nine Months Ended September 30, 2026

Reported Results

Adjustments

Non-GAAP Results

Net Sales

$

1,419.1

$

—

$

1,419.1

Income from operations

342.6

(14.3

)

(a)

328.3

Income before income taxes

329.6

(6.9

)

(b)

322.7

Provision for income taxes and indicated rate

(82.1

)

24.9

%

0.7

10.1

%

(81.4

)

25.2

%

Net income from continuing operations

247.5

(6.2

)

241.3

Income from discontinued operations, net of tax

1.0

(1.0

)

—

Net income

$

248.5

$

(7.2

)

$

241.3

Income from Operations Adjustments (a)

Income before Income Taxes Adjustments (b)

Restructuring and other similar charges

$

4.1

$

4.1

Acquisition-related fair value adjustment

0.7

0.7

Other, net (1)

0.7

0.7

Last-In, First-Out ("LIFO") adjustments

(2.2

)

(2.2

)

Tariff refunds

(49.1

)

(49.1

)

Stock-based compensation expense

31.5

—

Amortization of intangible assets

—

44.5

Other income, net (2)

—

(5.6

)

Total Adjustments

$

(14.3

)

$

(6.9

)

Zurn Elkay Water Solutions Corporation and Subsidiaries

Reconciliation of GAAP to Non-GAAP Financial Measures

Three Months Ended September 30, 2025

(in Millions) (Unaudited)

  Three Months Ended September 30, 2025

Reported Results

Adjustments

Non-GAAP Results

Net Sales

$

455.4

$

—

$

455.4

Income from operations

77.5

23.6

(a)

101.1

Income before income taxes

79.1

20.0

(b)

99.1

Provision for income taxes and indicated rate

(19.5

)

24.7

%

(4.8

)

24.0

%

(24.3

)

24.5

%

Net income from continuing operations

59.6

15.2

74.8

Income from discontinued operations, net of tax

2.2

(2.2

)

—

Net income

$

61.8

$

13.0

$

74.8

Income from Operations Adjustments (a)

Income before Income Taxes Adjustments (b)

Restructuring and other similar charges

$

1.8

$

1.8

Other, net (1)

0.3

0.3

Last-In, First-Out ("LIFO") adjustments

11.2

11.2

Stock-based compensation expense

9.6

—

Amortization of intangible assets

—

14.7

Supply chain optimization and footprint repositioning initiatives

0.7

0.7

Other income, net (2)

—

(8.7

)

Total Adjustments

$

23.6

$

20.0

Zurn Elkay Water Solutions Corporation and Subsidiaries

Reconciliation of GAAP to Non-GAAP Financial Measures

Nine Months Ended September 30, 2025

(in Millions) (Unaudited)

  Nine Months Ended September 30, 2025

Reported Results

Adjustments

Non-GAAP Results

Net Sales

$

1,288.7

$

—

$

1,288.7

Income from operations

218.5

55.5

(a)

274.0

Income before income taxes

203.1

63.7

(b)

266.8

Provision for income taxes and indicated rate

(52.4

)

25.8

%

(15.2

)

23.9

%

(67.6

)

25.3

%

Net income from continuing operations

150.7

48.5

199.2

Income from discontinued operations, net of tax

5.2

(5.2

)

—

Net income

$

155.9

$

43.3

$

199.2

Income from Operations Adjustments (a)

Income before Income Taxes Adjustments (b)

Restructuring and other similar charges

$

5.4

$

5.4

Other, net (1)

0.3

0.3

Last-In, First-Out ("LIFO") adjustments

18.2

18.2

Stock-based compensation expense

29.1

—

Amortization of intangible assets

—

44.0

Supply chain optimization and footprint repositioning initiatives

2.5

2.5

Other income, net (2)

—

(6.7

)

Total Adjustments

$

55.5

$

63.7

Zurn Elkay Water Solutions Corporation and Subsidiaries

Reconciliation of GAAP to Non-GAAP Financial Measures

Three and Nine Months Ended September 30, 2026 and September 30, 2025

(in Millions, except share and per share amounts) (Unaudited)

  Three Months Ended

Nine Months Ended

Adjusted EBITDA

September 30, 2026

September 30, 2025

September 30, 2026

September 30, 2025

Net income

$

76.3

$

61.8

$

248.5

$

155.9

Income from discontinued operations, net of tax

(0.2

)

(2.2

)

(1.0

)

(5.2

)

Provision for income taxes

26.5

19.5

82.1

52.4

Other income, net (1)

(0.7

)

(8.7

)

(5.6

)

(6.7

)

Interest expense, net

6.3

7.1

18.6

22.1

Depreciation and amortization

21.5

21.8

63.8

66.6

EBITDA

$

129.7

$

99.3

$

406.4

$

285.1

Adjustments

Restructuring and other similar charges

$

1.4

$

1.8

4.1

5.4

Stock-based compensation expense

10.6

9.6

31.5

29.1

Last-In, First-Out ("LIFO") adjustments

(0.8

)

11.2

(2.2

)

18.2

Tariff refunds

(1.5

)

—

(49.1

)

—

Acquisition-related fair value adjustment

0.7

—

0.7

—

Other, net (2)

—

0.3

0.7

0.3

Subtotal of adjustments

10.4

22.9

(14.3

)

53.0

Adjusted EBITDA

$

140.1

$

122.2

$

392.1

$

338.1

Three Months Ended

Nine Months Ended

Adjusted Net Income and Earnings Per Share

September 30, 2026

September 30, 2025

September 30, 2026

September 30, 2025

Net income

$

76.3

$

61.8

$

248.5

$

155.9

Income from discontinued operations, net of tax

(0.2

)

(2.2

)

(1.0

)

(5.2

)

Amortization of intangible assets

15.2

14.7

44.5

44.0

Restructuring and other similar charges

1.4

1.8

4.1

5.4

Supply chain optimization and footprint repositioning initiatives

—

0.7

—

2.5

Acquisition-related fair value adjustment

0.7

—

0.7

—

Last-In, First-Out ("LIFO") adjustments

(0.8

)

11.2

(2.2

)

18.2

Tariff refunds

(1.5

)

—

(49.1

)

—

Other income, net (1)

(0.7

)

(8.7

)

(5.6

)

(6.7

)

Other, net (2)

—

0.3

0.7

0.3

Tax effect on above items

(3.6

)

(4.8

)

0.7

(15.2

)

Adjusted net income

$

86.8

$

74.8

$

241.3

$

199.2

GAAP diluted net income per share from continuing operations

$

0.45

$

0.35

$

1.47

$

0.88

Adjusted earnings per share - diluted

$

0.52

$

0.43

$

1.43

$

1.16

Weighted-average number of shares outstanding (in thousands):

GAAP basic weighted-average shares

166,259

168,125

167,002

168,977

Effect of dilutive equity awards

1,846

2,148

2,009

2,250

Adjusted diluted weighted-average shares

168,105

170,273

169,011

171,227

Three Months Ended

Nine Months Ended

September 30, 2026

September 30, 2025

September 30, 2026

September 30, 2025

Cash provided by operating activities

$

112.2

$

101.3

$

320.6

$

254.8

Expenditures for property, plant and equipment

(9.8

)

(7.4

)

(16.1

)

(20.7

)

Tariff refunds (1)

7.2

—

(40.4

)

—

Free cash flow

$

109.6

$

93.9

$

264.1

$

234.1

Zurn Elkay Water Solutions Corporation and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income

(in Millions)

(Unaudited)

  Three Months Ended

Nine Months Ended

September 30, 2026

September 30, 2025

September 30, 2026

September 30, 2025

Net income

$

76.3

$

61.8

$

248.5

$

155.9

Other comprehensive income (loss):

Foreign currency translation adjustments

0.5

(2.5

)

(3.6

)

2.2

Change in pension and other postretirement benefit obligations, net of tax

—

(6.2

)

—

(6.2

)

Other comprehensive income (loss), net of tax

0.5

(8.7

)

(3.6

)

(4.0

)

Total comprehensive income

$

76.8

$

53.1

$

244.9

$

151.9

Zurn Elkay Water Solutions Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(in Millions, except share amounts)

  (Unaudited)

September 30, 2026

December 31, 2025

Assets

Current assets:

Cash and cash equivalents

$

307.1

$

300.5

Receivables, net

264.9

184.8

Inventories, net

280.8

274.4

Income taxes receivable

0.9

13.3

Other current assets

30.4

38.7

Total current assets

884.1

811.7

Property, plant and equipment, net

160.3

157.6

Intangible assets, net

835.0

835.0

Goodwill

848.6

795.0

Other assets

78.8

80.1

Total assets

$

2,806.8

$

2,679.4

Liabilities and stockholders' equity

Current liabilities:

Current maturities of debt

$

1.7

$

0.9

Trade payables

90.4

65.2

Compensation and benefits

41.7

40.9

Current portion of pension and other postretirement benefit obligations

1.1

1.1

Other current liabilities

175.2

151.3

Total current liabilities

310.1

259.4

Long-term debt

498.6

495.6

Pension and other postretirement benefit obligations

9.3

9.6

Deferred income taxes

166.9

189.7

Operating lease liability

32.2

42.0

Other liabilities

96.2

79.8

Total liabilities

1,113.3

1,076.1

Stockholders' equity:

Common stock, $0.01 par value; 200,000,000 shares authorized; shares issued and outstanding: 165,383,297 at September 30, 2026 and 166,981,602 at December 31, 2025

1.7

1.7

Additional paid-in capital

2,790.8

2,810.0

Retained deficit

(1,018.7

)

(1,131.7

)

Accumulated other comprehensive loss

(80.3

)

(76.7

)

Total stockholders' equity

1,693.5

1,603.3

Total liabilities and stockholders' equity

$

2,806.8

$

2,679.4

Zurn Elkay Water Solutions Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in Millions)

(Unaudited)

  Nine Months Ended

September 30, 2026

September 30, 2025

Operating activities

Net income

$

248.5

$

155.9

Adjustments to reconcile net income to cash provided by operating activities:

Depreciation

19.3

22.6

Amortization of intangible assets

44.5

44.0

Non-cash restructuring charges

—

0.5

Loss on dispositions of long-lived assets

0.7

0.3

Deferred income taxes

(14.2

)

(11.7

)

Other non-cash expenses

2.0

1.7

Pension curtailment and settlement

—

(10.7

)

Stock-based compensation expense

31.5

29.1

Changes in operating assets and liabilities:

Receivables, net

(76.6

)

(29.4

)

Inventories, net

2.2

0.5

Other assets

27.6

22.9

Accounts payable

22.8

10.3

Accruals and other

12.3

18.8

Cash provided by operating activities

320.6

254.8

Investing activities

Expenditures for property, plant and equipment

(16.1

)

(20.7

)

Acquisitions, net of cash acquired

(107.3

)

—

Cash used for investing activities

(123.4

)

(20.7

)

Financing activities

Repayments of debt

(1.0

)

(0.6

)

Payment of debt issuance costs

(3.0

)

—

Proceeds from exercise of stock options and ESPP contributions

4.4

7.4

Taxes withheld and paid on employees' share-based payment awards

—

(0.6

)

Repurchase of common stock

(134.7

)

(134.9

)

Payment of common stock dividends

(55.0

)

(45.4

)

Cash used for financing activities

(189.3

)

(174.1

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(1.3

)

2.1

Increase in cash, cash equivalents and restricted cash

6.6

62.1

Cash, cash equivalents and restricted cash at beginning of period

300.5

198.0

Cash, cash equivalents and restricted cash at end of period

$

307.1

$

260.1

More News From Zurn Elkay Water Solutions Corporation

MILWAUKEE--(BUSINESS WIRE)--Zurn Elkay Water Solutions Raises Quarterly Dividend by 18%.

State of Alaska Department of Revenue lowered its stake in shares of Zurn Elkay Water Solutions Cor (NYSE: ZWS) by 34.2% during the undefined quarter, according to its most recent filing with the SEC. The firm owned 32,194 shares of the company's stock after selling 16,715 shares during the period. State of Alaska

MILWAUKEE--(BUSINESS WIRE)--Zurn Elkay Water Solutions Schedules Third Quarter 2026 Earnings Release and Investor Conference Call.

Investors looking for stocks in the Waste Removal Services sector might want to consider either Xylem (XYL - Free Report) or Zurn Water (ZWS - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, both Xylem and Zurn Water are sporting a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

XYL currently has a forward P/E ratio of 17.97, while ZWS has a forward P/E of 26.24. We also note that XYL has a PEG ratio of 1.63. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ZWS currently has a PEG ratio of 1.75.

Another notable valuation metric for XYL is its P/B ratio of 2.28. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ZWS has a P/B of 4.77.

These metrics, and several others, help XYL earn a Value grade of B, while ZWS has been given a Value grade of C.

Both XYL and ZWS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that XYL is the superior value option right now.

Engineers Gate Manager LP raised its stake in shares of Zurn Elkay Water Solutions Cor (NYSE:ZWS – Free Report) by 114.0% in the second quarter, according to the company in its most recent disclosure with the SEC. The firm owned 56,915 shares of the company’s stock after acquiring an additional 30,320 shares during the quarter. Engineers Gate Manager LP’s holdings in Zurn Elkay Water Solutions Cor were worth $2,876,000 as of its most recent filing with the SEC.

Several other large investors have also made changes to their positions in the company. Andina Capital Management LLC increased its position in shares of Zurn Elkay Water Solutions Cor by 1.6% during the 4th quarter. Andina Capital Management LLC now owns 12,618 shares of the company’s stock worth $587,000 after purchasing an additional 200 shares in the last quarter. Arizona State Retirement System grew its stake in Zurn Elkay Water Solutions Cor by 0.5% during the second quarter. Arizona State Retirement System now owns 41,607 shares of the company’s stock worth $2,102,000 after buying an additional 220 shares during the last quarter. UMB Bank n.a. increased its holdings in shares of Zurn Elkay Water Solutions Cor by 24.2% during the fourth quarter. UMB Bank n.a. now owns 1,233 shares of the company’s stock worth $57,000 after buying an additional 240 shares in the last quarter. Assetmark Inc. increased its holdings in shares of Zurn Elkay Water Solutions Cor by 53.0% during the first quarter. Assetmark Inc. now owns 843 shares of the company’s stock worth $38,000 after buying an additional 292 shares in the last quarter. Finally, GAMMA Investing LLC raised its stake in shares of Zurn Elkay Water Solutions Cor by 9.8% in the second quarter. GAMMA Investing LLC now owns 3,708 shares of the company’s stock valued at $187,000 after acquiring an additional 331 shares during the last quarter. Institutional investors own 83.33% of the company’s stock.

Zurn Elkay Water Solutions Cor Stock Performance ZWS stock opened at $46.22 on Monday. The company has a 50 day moving average price of $48.84 and a 200 day moving average price of $48.47. Zurn Elkay Water Solutions Cor has a fifty-two week low of $43.06 and a fifty-two week high of $55.00. The company has a debt-to-equity ratio of 0.30, a current ratio of 3.05 and a quick ratio of 2.13. The stock has a market capitalization of $7.67 billion, a PE ratio of 28.53, a price-to-earnings-growth ratio of 1.69 and a beta of 1.02.

Zurn Elkay Water Solutions Cor (NYSE:ZWS – Get Free Report) last announced its quarterly earnings data on Tuesday, July 28th. The company reported $0.50 EPS for the quarter, beating analysts’ consensus estimates of $0.47 by $0.03. The firm had revenue of $491.00 million for the quarter, compared to analyst estimates of $483.04 million. Zurn Elkay Water Solutions Cor had a return on equity of 18.01% and a net margin of 15.45%.The business’s quarterly revenue was up 10.5% compared to the same quarter last year. During the same period last year, the company earned $0.42 EPS. Analysts forecast that Zurn Elkay Water Solutions Cor will post 1.82 EPS for the current year. Zurn Elkay Water Solutions Cor Announces Dividend The company also recently declared a quarterly dividend, which was paid on Friday, September 4th. Stockholders of record on Thursday, August 20th were paid a dividend of $0.11 per share. This represents a $0.44 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend was Thursday, August 20th. Zurn Elkay Water Solutions Cor’s dividend payout ratio is 27.16%.

Insider Transactions at Zurn Elkay Water Solutions Cor In other news, Director Jacques Butler purchased 2,016 shares of the firm’s stock in a transaction that occurred on Wednesday, August 19th. The shares were acquired at an average price of $49.60 per share, for a total transaction of $99,993.60. Following the completion of the acquisition, the director directly owned 37,487 shares in the company, valued at approximately $1,859,355.20. The trade was a 5.68% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 2.40% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes A number of equities research analysts recently commented on ZWS shares. Barclays increased their price target on Zurn Elkay Water Solutions Cor from $59.00 to $61.00 and gave the stock an “overweight” rating in a research report on Friday, July 31st. Robert W. Baird set a $58.00 price objective on Zurn Elkay Water Solutions Cor in a research note on Thursday, July 30th. Weiss Ratings restated a “buy (b)” rating on shares of Zurn Elkay Water Solutions Cor in a report on Friday, July 24th. The Goldman Sachs Group restated a “neutral” rating and issued a $55.00 target price on shares of Zurn Elkay Water Solutions Cor in a research note on Wednesday, July 29th. Finally, Stifel Nicolaus lifted their price target on Zurn Elkay Water Solutions Cor from $56.00 to $62.00 and gave the company a “buy” rating in a report on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $57.44.

Get Our Latest Stock Report on Zurn Elkay Water Solutions Cor

(Free Report)

Zurn Elkay Water Solutions Corporation (NYSE: ZWS) is a water solutions company that designs, manufactures and supplies products used to manage, conserve, control and promote the safe use of water. Its offerings serve commercial, institutional, industrial and residential applications across plumbing, drainage and water-management systems.

The company’s product portfolio includes plumbing fixtures and fittings, commercial faucets, flush valves, showers, drains, roof and floor drainage products, backflow-prevention devices, water-quality and filtration systems, drinking-water products, and related accessories.

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Receive News & Ratings for Zurn Elkay Water Solutions Cor Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Zurn Elkay Water Solutions Cor and related companies with MarketBeat.com's FREE daily email newsletter.

Algert Global LLC grew its stake in Zurn Elkay Water Solutions Cor (NYSE:ZWS – Free Report) by 51.5% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 169,860 shares of the company’s stock after acquiring an additional 57,720 shares during the quarter. Algert Global LLC owned 0.10% of Zurn Elkay Water Solutions Cor worth $8,583,000 at the end of the most recent quarter.

Several other large investors have also recently modified their holdings of ZWS. Kilter Group LLC purchased a new stake in shares of Zurn Elkay Water Solutions Cor during the second quarter valued at approximately $25,000. Advisory Services Network LLC bought a new position in shares of Zurn Elkay Water Solutions Cor during the 3rd quarter valued at $25,000. Northwestern Mutual Wealth Management Co. bought a new position in shares of Zurn Elkay Water Solutions Cor during the 2nd quarter valued at $27,000. Kemnay Advisory Services Inc. purchased a new position in shares of Zurn Elkay Water Solutions Cor in the 4th quarter worth $35,000. Finally, Hantz Financial Services Inc. grew its holdings in shares of Zurn Elkay Water Solutions Cor by 138.9% in the fourth quarter. Hantz Financial Services Inc. now owns 805 shares of the company’s stock worth $37,000 after acquiring an additional 468 shares during the period. Hedge funds and other institutional investors own 83.33% of the company’s stock.

Wall Street Analyst Weigh In A number of analysts have commented on ZWS shares. Robert W. Baird set a $58.00 target price on shares of Zurn Elkay Water Solutions Cor in a report on Thursday, July 30th. Zacks Research raised shares of Zurn Elkay Water Solutions Cor from a “hold” rating to a “strong-buy” rating in a research report on Friday, July 31st. Weiss Ratings restated a “buy (b)” rating on shares of Zurn Elkay Water Solutions Cor in a research note on Friday, July 24th. The Goldman Sachs Group reaffirmed a “neutral” rating and issued a $55.00 target price on shares of Zurn Elkay Water Solutions Cor in a report on Wednesday, July 29th. Finally, Stifel Nicolaus boosted their price target on Zurn Elkay Water Solutions Cor from $56.00 to $62.00 and gave the company a “buy” rating in a report on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $57.22.

Check Out Our Latest Analysis on ZWS Insider Buying and Selling In other news, Director Jacques Donavon Butler acquired 2,016 shares of the firm’s stock in a transaction on Wednesday, August 19th. The stock was acquired at an average price of $49.60 per share, for a total transaction of $99,993.60. Following the completion of the transaction, the director owned 37,487 shares in the company, valued at approximately $1,859,355.20. The trade was a 5.68% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 2.40% of the company’s stock.

NYSE ZWS opened at $49.13 on Thursday. The business’s 50 day moving average price is $49.47 and its 200-day moving average price is $48.82. Zurn Elkay Water Solutions Cor has a fifty-two week low of $43.06 and a fifty-two week high of $55.00. The company has a market cap of $8.15 billion, a P/E ratio of 30.33, a P/E/G ratio of 1.79 and a beta of 1.04. The company has a debt-to-equity ratio of 0.30, a quick ratio of 2.13 and a current ratio of 3.05.

Zurn Elkay Water Solutions Cor (NYSE:ZWS – Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The company reported $0.50 EPS for the quarter, topping analysts’ consensus estimates of $0.47 by $0.03. The firm had revenue of $491.00 million for the quarter, compared to analysts’ expectations of $483.04 million. Zurn Elkay Water Solutions Cor had a net margin of 15.45% and a return on equity of 18.01%. The business’s revenue for the quarter was up 10.5% on a year-over-year basis. During the same period in the prior year, the business posted $0.42 earnings per share. Sell-side analysts predict that Zurn Elkay Water Solutions Cor will post 1.82 earnings per share for the current year.

Zurn Elkay Water Solutions Cor Announces Dividend The firm also recently announced a quarterly dividend, which will be paid on Friday, September 4th. Investors of record on Thursday, August 20th will be issued a dividend of $0.11 per share. This represents a $0.44 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend is Thursday, August 20th. Zurn Elkay Water Solutions Cor’s dividend payout ratio (DPR) is 27.16%.

About Zurn Elkay Water Solutions Cor (Free Report)

Zurn Elkay Water Solutions Corp, trading on the NYSE under the ticker ZWS, is a global provider of water delivery and plumbing products. The company was established in October 2022 through a spin-off from Rexnord Corp, creating a standalone business focused on designing, manufacturing and marketing water system components for residential, commercial and industrial customers.

Through its Zurn segment, the company offers solutions for water delivery, drainage and waste evacuation. Product lines include valves, hydrants, backflow prevention devices, piping systems, fittings and commercial waste stations.

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Receive News & Ratings for Zurn Elkay Water Solutions Cor Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Zurn Elkay Water Solutions Cor and related companies with MarketBeat.com's FREE daily email newsletter.

Great Lakes Advisors LLC bought a new stake in Zurn Elkay Water Solutions Cor (NYSE:ZWS – Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm bought 11,342 shares of the company’s stock, valued at approximately $573,000.

A number of other institutional investors and hedge funds have also modified their holdings of the stock. Advisory Services Network LLC purchased a new position in Zurn Elkay Water Solutions Cor in the 3rd quarter valued at about $25,000. Kemnay Advisory Services Inc. acquired a new stake in Zurn Elkay Water Solutions Cor in the 4th quarter worth about $35,000. Hantz Financial Services Inc. boosted its holdings in Zurn Elkay Water Solutions Cor by 138.9% in the 4th quarter. Hantz Financial Services Inc. now owns 805 shares of the company’s stock worth $37,000 after buying an additional 468 shares during the last quarter. Assetmark Inc. increased its stake in Zurn Elkay Water Solutions Cor by 53.0% during the 1st quarter. Assetmark Inc. now owns 843 shares of the company’s stock worth $38,000 after buying an additional 292 shares in the last quarter. Finally, Allworth Financial LP increased its stake in Zurn Elkay Water Solutions Cor by 507.5% during the 3rd quarter. Allworth Financial LP now owns 978 shares of the company’s stock worth $46,000 after buying an additional 817 shares in the last quarter. Hedge funds and other institutional investors own 83.33% of the company’s stock.

Analyst Upgrades and Downgrades A number of equities analysts have commented on the company. Zacks Research raised Zurn Elkay Water Solutions Cor from a “hold” rating to a “strong-buy” rating in a report on Friday, July 31st. Stifel Nicolaus lifted their price target on Zurn Elkay Water Solutions Cor from $56.00 to $62.00 and gave the stock a “buy” rating in a research note on Thursday, July 30th. Royal Bank Of Canada boosted their price target on Zurn Elkay Water Solutions Cor from $56.00 to $58.00 and gave the stock a “sector perform” rating in a research report on Thursday, July 30th. Barclays increased their price objective on Zurn Elkay Water Solutions Cor from $59.00 to $61.00 and gave the company an “overweight” rating in a research note on Friday, July 31st. Finally, Robert W. Baird set a $58.00 price objective on Zurn Elkay Water Solutions Cor in a report on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $57.22.

Check Out Our Latest Report on Zurn Elkay Water Solutions Cor Insider Transactions at Zurn Elkay Water Solutions Cor In other news, Director Jacques Donavon Butler bought 2,016 shares of Zurn Elkay Water Solutions Cor stock in a transaction on Wednesday, August 19th. The shares were bought at an average cost of $49.60 per share, with a total value of $99,993.60. Following the completion of the purchase, the director directly owned 37,487 shares of the company’s stock, valued at approximately $1,859,355.20. This trade represents a 5.68% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders own 2.40% of the company’s stock.

Zurn Elkay Water Solutions Cor Stock Performance NYSE ZWS opened at $49.10 on Monday. The company has a debt-to-equity ratio of 0.30, a quick ratio of 2.13 and a current ratio of 3.05. The stock’s fifty day moving average is $49.46 and its two-hundred day moving average is $48.84. The firm has a market capitalization of $8.14 billion, a P/E ratio of 30.31, a price-to-earnings-growth ratio of 1.85 and a beta of 1.04. Zurn Elkay Water Solutions Cor has a fifty-two week low of $43.06 and a fifty-two week high of $55.00.

Zurn Elkay Water Solutions Cor (NYSE:ZWS – Get Free Report) last issued its earnings results on Tuesday, July 28th. The company reported $0.50 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.47 by $0.03. Zurn Elkay Water Solutions Cor had a return on equity of 18.01% and a net margin of 15.45%.The business had revenue of $491.00 million during the quarter, compared to the consensus estimate of $483.04 million. During the same period last year, the company earned $0.42 EPS. The company’s revenue for the quarter was up 10.5% on a year-over-year basis. On average, research analysts anticipate that Zurn Elkay Water Solutions Cor will post 1.82 earnings per share for the current year.

Zurn Elkay Water Solutions Cor Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 4th. Investors of record on Thursday, August 20th will be given a dividend of $0.11 per share. This represents a $0.44 annualized dividend and a yield of 0.9%. The ex-dividend date is Thursday, August 20th. Zurn Elkay Water Solutions Cor’s dividend payout ratio (DPR) is presently 27.16%.

(Free Report)

Zurn Elkay Water Solutions Corp, trading on the NYSE under the ticker ZWS, is a global provider of water delivery and plumbing products. The company was established in October 2022 through a spin-off from Rexnord Corp, creating a standalone business focused on designing, manufacturing and marketing water system components for residential, commercial and industrial customers.

Through its Zurn segment, the company offers solutions for water delivery, drainage and waste evacuation. Product lines include valves, hydrants, backflow prevention devices, piping systems, fittings and commercial waste stations.

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Receive News & Ratings for Zurn Elkay Water Solutions Cor Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Zurn Elkay Water Solutions Cor and related companies with MarketBeat.com's FREE daily email newsletter.

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.

In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.

However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

Our proprietary system currently recommends Zurn Water (ZWS - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

While there are numerous reasons why the stock of this motion control and water management company is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Zurn Water is 2%, investors should actually focus on the projected growth. The company's EPS is expected to grow 20.1% this year, crushing the industry average, which calls for EPS growth of 11.6%.

Impressive Asset Utilization RatioAsset utilization ratio -- also known as sales-to-total-assets (S/TA) ratio -- is often overlooked by investors, but it is an important indicator in growth investing. This metric exhibits how efficiently a firm is utilizing its assets to generate sales.

Right now, Zurn Water has an S/TA ratio of 0.66, which means that the company gets $0.66 in sales for each dollar in assets. Comparing this to the industry average of 0.56, it can be said that the company is more efficient.

In addition to efficiency in generating sales, sales growth plays an important role. And Zurn Water looks attractive from a sales growth perspective as well. The company's sales are expected to grow 9.5% this year versus the industry average of 4.7%.

Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for Zurn Water. The Zacks Consensus Estimate for the current year has surged 4.5% over the past month.

Bottom LineWhile the overall earnings estimate revisions have made Zurn Water a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination positions Zurn Water well for outperformance, so growth investors may want to bet on it.

Zurn Water (ZWS - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.

The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.

As such, the Zacks rating upgrade for Zurn Water is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Zurn Water imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Zurn WaterFor the fiscal year ending December 2026, this motion control and water management company is expected to earn $1.82 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Zurn Water. Over the past three months, the Zacks Consensus Estimate for the company has increased 4.5%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Zurn Water to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

MILWAUKEE--(BUSINESS WIRE)-- #sustainablyinspired--Zurn Elkay Water Solutions Corporation (NYSE: ZWS) has been named one of America's Best Companies 2026 by TIME magazine, ranking No. 170 overall, No. 3 in the Utilities industry and No. 1 in Wisconsin. The ranking recognizes top-performing U.S. companies based on employee satisfaction, financial performance and sustainability transparency. “Recognition like this is especially meaningful because it considers the full picture of company performance,” said Todd A. Adams.

Posted by Defense World Staff on Jul 30th, 2026

Zurn Elkay Water Solutions Cor (NYSE:ZWS – Get Free Report) shares reached a new 52-week high on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $55.00 and last traded at $53.5150, with a volume of 150550 shares traded. The stock had previously closed at $49.31.

The company reported $0.50 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.47 by $0.03. Zurn Elkay Water Solutions Cor had a return on equity of 18.17% and a net margin of 15.45%.The firm had revenue of $491.00 million during the quarter, compared to analyst estimates of $483.04 million. During the same period last year, the company posted $0.42 EPS. The firm’s quarterly revenue was up 10.5% on a year-over-year basis.

Zurn Elkay Water Solutions Cor Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 4th. Stockholders of record on Thursday, August 20th will be issued a $0.11 dividend. The ex-dividend date is Thursday, August 20th. This represents a $0.44 annualized dividend and a dividend yield of 0.9%. Zurn Elkay Water Solutions Cor’s dividend payout ratio is 35.48%.

Wall Street Analysts Forecast Growth A number of research analysts recently issued reports on ZWS shares. Barclays started coverage on Zurn Elkay Water Solutions Cor in a report on Tuesday, June 30th. They set an “overweight” rating and a $59.00 target price on the stock. UBS Group set a $56.00 price objective on Zurn Elkay Water Solutions Cor in a research report on Thursday, April 23rd. Robert W. Baird decreased their target price on Zurn Elkay Water Solutions Cor from $56.00 to $53.00 and set a “neutral” rating on the stock in a report on Thursday, April 23rd. The Goldman Sachs Group reaffirmed a “neutral” rating and set a $55.00 target price on shares of Zurn Elkay Water Solutions Cor in a research report on Wednesday. Finally, Stifel Nicolaus reduced their target price on Zurn Elkay Water Solutions Cor from $59.00 to $56.00 and set a “buy” rating for the company in a report on Monday, July 20th. Five investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $55.56.

View Our Latest Analysis on ZWS

Institutional Investors Weigh In On Zurn Elkay Water Solutions Cor Several hedge funds have recently made changes to their positions in the company. Thrive Wealth Management LLC boosted its stake in Zurn Elkay Water Solutions Cor by 5.9% in the 2nd quarter. Thrive Wealth Management LLC now owns 8,702 shares of the company’s stock worth $440,000 after purchasing an additional 483 shares during the period. GAMMA Investing LLC raised its stake in Zurn Elkay Water Solutions Cor by 9.8% during the 2nd quarter. GAMMA Investing LLC now owns 3,708 shares of the company’s stock valued at $187,000 after purchasing an additional 331 shares during the period. Central Pacific Bank Trust Division lifted its holdings in shares of Zurn Elkay Water Solutions Cor by 17.3% in the second quarter. Central Pacific Bank Trust Division now owns 3,861 shares of the company’s stock valued at $195,000 after purchasing an additional 570 shares in the last quarter. Pacific Excel Wealth Advisors Inc. purchased a new stake in shares of Zurn Elkay Water Solutions Cor in the second quarter valued at $270,000. Finally, Cim Investment Management Inc. boosted its position in shares of Zurn Elkay Water Solutions Cor by 29.7% in the first quarter. Cim Investment Management Inc. now owns 6,041 shares of the company’s stock worth $271,000 after buying an additional 1,384 shares during the period. Hedge funds and other institutional investors own 83.33% of the company’s stock.

Zurn Elkay Water Solutions Cor Trading Up 4.9% The company has a quick ratio of 2.11, a current ratio of 3.24 and a debt-to-equity ratio of 0.31. The firm has a market cap of $8.63 billion, a price-to-earnings ratio of 31.94, a PEG ratio of 1.95 and a beta of 1.04. The company has a 50-day moving average price of $48.42 and a 200 day moving average price of $48.35.

About Zurn Elkay Water Solutions Cor (Get Free Report)

Zurn Elkay Water Solutions Corp, trading on the NYSE under the ticker ZWS, is a global provider of water delivery and plumbing products. The company was established in October 2022 through a spin-off from Rexnord Corp, creating a standalone business focused on designing, manufacturing and marketing water system components for residential, commercial and industrial customers.

Through its Zurn segment, the company offers solutions for water delivery, drainage and waste evacuation. Product lines include valves, hydrants, backflow prevention devices, piping systems, fittings and commercial waste stations.

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Zurn Water (ZWS - Free Report) came out with quarterly earnings of $0.5 per share, beating the Zacks Consensus Estimate of $0.47 per share. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +6.38%. A quarter ago, it was expected that this motion control and water management company would post earnings of $0.37 per share when it actually produced earnings of $0.41, delivering a surprise of +10.81%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Zurn Water, which belongs to the Zacks Waste Removal Services industry, posted revenues of $491 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.78%. This compares to year-ago revenues of $444.5 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Zurn Water shares have added about 4.9% since the beginning of the year versus the S&P 500's gain of 8.3%.

What's Next for Zurn Water?While Zurn Water has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Zurn Water was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.47 on $482.3 million in revenues for the coming quarter and $1.75 on $1.83 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Waste Removal Services is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, LanzaTech Global, Inc. (LNZA - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 14.

This company is expected to post quarterly loss of $0.76 per share in its upcoming report, which represents a year-over-year change of +94.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

LanzaTech Global, Inc.'s revenues are expected to be $13.1 million, up 44.3% from the year-ago quarter.

MILWAUKEE--(BUSINESS WIRE)--Zurn Elkay Water Solutions Declares Quarterly Cash Dividend.

MILWAUKEE--(BUSINESS WIRE)--Zurn Elkay Water Solutions Schedules Second Quarter 2026 Earnings Release and Investor Conference Call.

Zurn Elkay Water Solutions Corporation remains a Hold as strong fundamentals are offset by a stretched valuation. ZWS delivered 11.4% revenue growth and significant profitability gains, driven by demand and higher-margin product focus. Despite robust performance, ZWS trades at higher multiples than most peers on key valuation metrics, limiting near-term upside.

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MILWAUKEE--(BUSINESS WIRE)--Zurn Elkay Water Solutions Corporation (NYSE: ZWS) has been named one of America’s High-Growth Companies 2026 for the first time by Business Insider and Plant-A Insights Group. Among the 500 companies on the list, Zurn Elkay is one of only 50 manufacturers and one of only six Wisconsin-based companies.

“With clean, safe water at the heart of our business, our growth strategy and our sustainability strategy are increasingly the same,” said Todd A. Adams, Chairman and CEO of Zurn Elkay Water Solutions.

Share “With clean, safe water at the heart of our business, our growth strategy and our sustainability strategy are increasingly the same,” said Todd A. Adams, Chairman and CEO of Zurn Elkay Water Solutions. “The world is facing escalating water conservation and contamination issues, and we’ve built a core business uniquely positioned to meet those challenges with solutions that make water safe and more sustainable. Whether it’s drinking water filtration that reduces forever chemicals and other emerging contaminants or backflow preventers that stop contaminated water from entering the potable water system, each new innovation reflects our unwavering commitment to protecting the world’s most vital resource while creating lasting value for our customers and shareholders.”

Business Insider's America's High-Growth Companies 2026 is based on an extensive assessment of financial records against 11 financial growth metrics for over 3,000 US publicly listed companies on the New York Stock Exchange (NYSE) and Nasdaq. Companies were evaluated on their ability to maintain high-quality growth, and eligibility was restricted to companies that have been public since 2020 and achieved both a minimum revenue of $100 million and profitability in fiscal year 2025.

Zurn Elkay’s financial performance has also been recognized by TIME in its lists of America’s Growth Leaders (2025-2026) and World’s Best Companies for Sustainable Growth (2025-2026). The company has earned recognition from Newsweek in its list of America’s Most Responsible Companies (2021-2026), the World’s Greenest Companies (2026) and America’s Greenest Companies (2025-2026), as well as Barron’s 100 Most Sustainable Companies (2026).

To learn more about Zurn Elkay Water Solutions and its sustainability efforts, including the company’s most recent sustainability report, visit zurnelkay.com/sustainability.

About Zurn Elkay Water Solutions

Named one of the World’s Greenest Companies and one of America’s Most Responsible Companies by Newsweek and one of the World’s Best Companies for Sustainable Growth by TIME, Zurn Elkay Water Solutions is headquartered in Milwaukee, Wisconsin, and is a growth-oriented, pure-play water management business that designs, procures, manufactures and markets what we believe to be the broadest sustainable product portfolio of specification-driven water management solutions to improve health, hydration, human safety and the environment. The Zurn Elkay 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. Learn more at zurnelkay.com.

Cautionary Statement on Forward-Looking Statements

Information in this release may involve outlook, expectations, beliefs, plans, intentions, strategies or other statements regarding the future, which are forward-looking statements. These forward-looking statements involve risks and uncertainties. All forward-looking statements included in this release are based on information available to Zurn Elkay Water Solutions as of the date of this release, and Zurn Elkay Water Solutions assumes no obligation to update any such forward-looking statements. The statements in this release are not guarantees of future performance, and actual results could differ materially from current expectations. Numerous factors could cause or contribute to such differences. Please refer to “Risk Factors” and “Cautionary Notice Regarding Forward-Looking Statements” in our report on Form 10-K for the period ended December 31, 2025, as well as the Company’s subsequent annual, quarterly and current reports filed on Forms 10-K, 10-Q and 8-K from time to time with the Securities and Exchange Commission for a further discussion of the factors and risks associated with the business.

More News From Zurn Elkay Water Solutions Corporation

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Dimensional Fund Advisors LP raised its holdings in Zurn Elkay Water Solutions Cor (NYSE: ZWS) by 1.3% in the third quarter, according to the company in its most recent disclosure with the SEC. The fund owned 2,562,543 shares of the company's stock after buying an additional 32,381 shares during the quarter. Dimensional Fund

Posted by Defense World Staff on Apr 7th, 2026

GD Culture Group (NASDAQ:GDC – Get Free Report) and Zurn Elkay Water Solutions Cor (NYSE:ZWS – Get Free Report) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitability.

Volatility and Risk GD Culture Group has a beta of 1.81, indicating that its share price is 81% more volatile than the S&P 500. Comparatively, Zurn Elkay Water Solutions Cor has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Insider & Institutional Ownership 0.6% of GD Culture Group shares are held by institutional investors. Comparatively, 83.3% of Zurn Elkay Water Solutions Cor shares are held by institutional investors. 1.5% of GD Culture Group shares are held by insiders. Comparatively, 2.4% of Zurn Elkay Water Solutions Cor shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings This is a breakdown of current recommendations for GD Culture Group and Zurn Elkay Water Solutions Cor, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score GD Culture Group 1 0 0 0 1.00 Zurn Elkay Water Solutions Cor 0 5 4 0 2.44 Zurn Elkay Water Solutions Cor has a consensus target price of $51.63, indicating a potential upside of 14.31%. Given Zurn Elkay Water Solutions Cor’s stronger consensus rating and higher probable upside, analysts plainly believe Zurn Elkay Water Solutions Cor is more favorable than GD Culture Group.

Profitability This table compares GD Culture Group and Zurn Elkay Water Solutions Cor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets GD Culture Group N/A -7.81% -7.76% Zurn Elkay Water Solutions Cor 11.68% 16.54% 9.82% Valuation and Earnings This table compares GD Culture Group and Zurn Elkay Water Solutions Cor”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio GD Culture Group N/A N/A -$186.88 million ($5.35) -0.56 Zurn Elkay Water Solutions Cor $1.70 billion 4.46 $198.00 million $1.15 39.27 Zurn Elkay Water Solutions Cor has higher revenue and earnings than GD Culture Group. GD Culture Group is trading at a lower price-to-earnings ratio than Zurn Elkay Water Solutions Cor, indicating that it is currently the more affordable of the two stocks.

Summary Zurn Elkay Water Solutions Cor beats GD Culture Group on 12 of the 13 factors compared between the two stocks.

About GD Culture Group (Get Free Report)

GD Culture Group Limited operates as an integrated marketing service agency. The company focuses on enterprise brand management, crisis public relations, intelligent public opinion monitoring, media PR, financial and economic we-media operation, digital face application, exhibition services, and other businesses. It also publishes books in corporate history, finance, and economics, as well as plans and organizes online and offline activities, such as new book launches and book sharing sessions to promote new books and build influence and reputation for the corporate clients. The company was formerly known as Code Chain New Continent Limited and changed its name to GD Culture Group Limited in January 2023. GD Culture Group Limited is based in Wan Chai, Hong Kong.

About Zurn Elkay Water Solutions Cor (Get Free Report)

Zurn Elkay Water Solutions Corporation engages in design, procurement, manufacture, and marketing of water management solutions in the United States, Canada, and internationally. It offers water safety and control products, such as backflow preventers, fire system valves, pressure reducing valves, thermostatic mixing valves, PEX pipings, fittings, and installation tools under the Zurn and Wilkins brand names. The company also provides flow systems products comprising point drains, hydrants, fixture carrier systems, chemical drainage systems; and interceptors and separators, acid neutralization systems, and remote monitoring systems under the Zurn and Green Turtle brands. In addition, it develops, manufactures, and markets remote tank monitoring devices, alarms, software, and services. Further, the company offers sensor-operated flush valves under the AquaSense, Aquaflush, and AquaVantage brands; heavy-duty commercial faucets under the AquaSpec brand; water conserving fixtures under the EcoVantage and Zurn One brands; stainless steel products under the Just Manufacturing brand name, which include stainless steel sinks and plumbing fixtures, and various types of sinks, as well as drinking water dispensing and filtration products under the Elkay and Halsey Taylor brands. It distributes to institutional, commercial, waterworks, and residential end markets through independent sales representatives, plumbing wholesalers, and industry-specific distributors in the waterworks, foodservice, industrial, janitorial, sanitation, and sitework industries. The company was formerly known as Zurn Water Solutions Corporation and changed its name to Zurn Elkay Water Solutions Corporation in July 2022. Zurn Elkay Water Solutions Corporation was incorporated in 1892 and is headquartered in Milwaukee, Wisconsin.

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Azzad Asset Management Inc. ADV bought a new position in shares of Zurn Elkay Water Solutions Cor (NYSE:ZWS – Free Report) in the fourth quarter, according to the company in its most recent filing with the SEC. The institutional investor bought 25,913 shares of the company’s stock, valued at approximately $1,205,000.

Other large investors have also recently added to or reduced their stakes in the company. Alliancebernstein L.P. lifted its position in Zurn Elkay Water Solutions Cor by 1,714.8% during the 3rd quarter. Alliancebernstein L.P. now owns 3,369,731 shares of the company’s stock worth $158,478,000 after buying an additional 3,184,048 shares in the last quarter. MAI Capital Management lifted its position in Zurn Elkay Water Solutions Cor by 120,771.6% during the 3rd quarter. MAI Capital Management now owns 293,718 shares of the company’s stock worth $13,814,000 after buying an additional 293,475 shares in the last quarter. UBS Group AG lifted its position in Zurn Elkay Water Solutions Cor by 157.0% during the 3rd quarter. UBS Group AG now owns 479,166 shares of the company’s stock worth $22,535,000 after buying an additional 292,747 shares in the last quarter. Oberweis Asset Management Inc. bought a new stake in Zurn Elkay Water Solutions Cor during the 3rd quarter worth about $12,510,000. Finally, Fisher Asset Management LLC increased its position in shares of Zurn Elkay Water Solutions Cor by 27.9% during the 3rd quarter. Fisher Asset Management LLC now owns 1,021,874 shares of the company’s stock worth $48,059,000 after purchasing an additional 223,168 shares during the last quarter. Institutional investors own 83.33% of the company’s stock.

Zurn Elkay Water Solutions Cor Stock Up 0.3% Shares of ZWS stock opened at $45.32 on Wednesday. The company has a debt-to-equity ratio of 0.31, a quick ratio of 2.07 and a current ratio of 3.13. The firm’s 50-day moving average is $47.96 and its 200-day moving average is $47.27. The stock has a market cap of $7.59 billion, a price-to-earnings ratio of 39.41, a PEG ratio of 1.88 and a beta of 1.07. Zurn Elkay Water Solutions Cor has a 52-week low of $27.74 and a 52-week high of $53.17.

Zurn Elkay Water Solutions Cor (NYSE:ZWS – Get Free Report) last issued its earnings results on Tuesday, February 3rd. The company reported $0.36 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.34 by $0.02. Zurn Elkay Water Solutions Cor had a net margin of 11.68% and a return on equity of 16.54%. The company had revenue of $407.20 million for the quarter, compared to analysts’ expectations of $400.75 million. During the same period in the prior year, the firm earned $0.32 EPS. Zurn Elkay Water Solutions Cor’s quarterly revenue was up 9.8% compared to the same quarter last year. Sell-side analysts predict that Zurn Elkay Water Solutions Cor will post 1.36 EPS for the current year.

Zurn Elkay Water Solutions Cor Dividend Announcement The business also recently disclosed a quarterly dividend, which was paid on Friday, March 6th. Shareholders of record on Friday, February 20th were given a dividend of $0.11 per share. This represents a $0.44 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend was Friday, February 20th. Zurn Elkay Water Solutions Cor’s payout ratio is 38.26%.

Wall Street Analysts Forecast Growth A number of equities research analysts have recently issued reports on the company. Robert W. Baird set a $56.00 price objective on Zurn Elkay Water Solutions Cor in a research note on Thursday, February 5th. The Goldman Sachs Group reissued a “neutral” rating and issued a $50.00 price objective on shares of Zurn Elkay Water Solutions Cor in a report on Thursday, February 5th. Oppenheimer increased their price objective on Zurn Elkay Water Solutions Cor from $53.00 to $57.00 and gave the company an “outperform” rating in a report on Friday, February 6th. Royal Bank Of Canada increased their price objective on Zurn Elkay Water Solutions Cor from $49.00 to $55.00 and gave the company a “sector perform” rating in a report on Thursday, February 5th. Finally, Zacks Research downgraded Zurn Elkay Water Solutions Cor from a “strong-buy” rating to a “hold” rating in a report on Monday, December 29th. Four investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $51.63.

View Our Latest Report on ZWS

Insider Activity In other Zurn Elkay Water Solutions Cor news, Director Timothy J. Jahnke sold 25,000 shares of Zurn Elkay Water Solutions Cor stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $51.18, for a total transaction of $1,279,500.00. Following the completion of the transaction, the director directly owned 266,864 shares of the company’s stock, valued at $13,658,099.52. The trade was a 8.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP Jeffrey J. Lavalle sold 6,097 shares of Zurn Elkay Water Solutions Cor stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $51.80, for a total transaction of $315,824.60. Following the transaction, the vice president directly owned 49,803 shares of the company’s stock, valued at approximately $2,579,795.40. This trade represents a 10.91% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 599,259 shares of company stock valued at $31,225,361. 2.40% of the stock is owned by company insiders.

About Zurn Elkay Water Solutions Cor (Free Report)

Zurn Elkay Water Solutions Corp, trading on the NYSE under the ticker ZWS, is a global provider of water delivery and plumbing products. The company was established in October 2022 through a spin-off from Rexnord Corp, creating a standalone business focused on designing, manufacturing and marketing water system components for residential, commercial and industrial customers.

Through its Zurn segment, the company offers solutions for water delivery, drainage and waste evacuation. Product lines include valves, hydrants, backflow prevention devices, piping systems, fittings and commercial waste stations.

Read More Five stocks we like better than Zurn Elkay Water Solutions Cor Want to see what other hedge funds are holding ZWS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Zurn Elkay Water Solutions Cor (NYSE:ZWS – Free Report).

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MILWAUKEE--(BUSINESS WIRE)--Zurn Elkay Water Solutions Schedules First Quarter 2026 Earnings Release and Investor Conference Call.

On April 15, 2026, Zurn Elkay Water Solutions Corp ZWS shares fell 4.0% to a current price of $47.39. The stock has experienced a 52-week range between $29.27 and $53.17, highlighting significant volatility over the past year.

GF Value™ verdict: Current price is $47.39, which is 27.1% overvalued compared to a GF Value™ estimate of $37.28.GF Score™ of 89/100 indicates a strong overall performance in key metrics.Notable signal: Insiders have sold $35.6 million in stock over the last three months, with no purchases reported. Is ZWS Overvalued or Undervalued? According to the GF Value™, Zurn Elkay Water Solutions Corp ZWS is currently overvalued, trading at a price of $47.39 compared to an estimated fair value of $37.28. This represents a 27.1% margin of overvaluation. The GF Valuation label indicates a modestly overvalued status, suggesting that investors may face risks if they enter the stock at current price levels. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

The stock’s current valuation implies that it may not provide an attractive entry point for new investors. The risk associated with purchasing overvalued stocks is that they could decline in price, especially if market sentiment shifts or if the company's performance does not meet expectations. This assessment necessitates a cautious approach for potential investors.

How Does ZWS's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 41.2x 42.1x Forward P/E 28.6x N/A As shown in the table, ZWS's current trailing P/E ratio of 41.2x is slightly below its 5-year median P/E of 42.1x. This indicates that the stock is trading close to its historical valuation, suggesting a mixed view when compared with the GF Value™ verdict of being overvalued. The forward P/E of 28.6x indicates a potentially more attractive valuation in the future if earnings expectations are met.

What Does ZWS's GF Score™ Tell Us? Metric Rating GF Score™ 89 Financial Strength 7/10 Profitability 8/10 Growth 8/10 Valuation 5/10 Momentum 10/10 The GF Score™ of 89/100 reflects a strong position in terms of profitability and growth, both rated at 8/10, indicating robust operational performance and potential for future expansion. However, the valuation rank of 5/10 suggests that the current price may not reflect the intrinsic value of the company. The momentum rank of 10/10 highlights a strong recent performance, but the financial strength rating of 7/10 indicates that while the company is stable, there may be areas for improvement.

What Are Insiders Doing with ZWS Stock? Insider activity for Zurn Elkay Water Solutions Corp has been notably bearish, with insiders selling a total of $35.6 million worth of shares in the last three months and no recorded purchases. This pattern may suggest a lack of confidence among insiders regarding the stock's future performance, which could be interpreted as a cautionary signal for external investors.

Typically, insider selling can indicate that those closest to the company believe the stock is overvalued or that they are seeking liquidity for personal reasons. With no recent buying activity, potential investors might consider this aspect carefully when evaluating their investment decisions.

What This Means for Investors Based on the assessment of GF Value™, Zurn Elkay Water Solutions Corp ZWS is currently overvalued. This suggests that prospective investors may want to consider waiting for a more favorable price point before entering the stock.

For the complete analysis, visit the Zurn Elkay Water Solutions Corp ZWS stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is ZWS's GF Score™?

ZWS's GF Score™ is 89/100, indicating a strong performance across several key metrics that historically correlate with higher long-term returns.

Is ZWS overvalued or undervalued?

According to the GF Value™, ZWS is overvalued, with a current price of $47.39 compared to a fair value estimate of $37.28.

What is ZWS's P/E ratio?

ZWS has a trailing P/E ratio of 41.2x, which is slightly below its 5-year median P/E of 42.1x, suggesting it is trading close to its historical valuation.

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Zurn Water (ZWS - Free Report) came out with quarterly earnings of $0.41 per share, beating the Zacks Consensus Estimate of $0.37 per share. This compares to earnings of $0.31 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +11.87%. A quarter ago, it was expected that this motion control and water management company would post earnings of $0.34 per share when it actually produced earnings of $0.36, delivering a surprise of +5.88%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Zurn Water, which belongs to the Zacks Waste Removal Services industry, posted revenues of $433 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.99%. This compares to year-ago revenues of $388.8 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Zurn Water shares have added about 2.8% since the beginning of the year versus the S&P 500's gain of 3.9%.

What's Next for Zurn Water?While Zurn Water has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Zurn Water was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.45 on $472.68 million in revenues for the coming quarter and $1.66 on $1.8 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Waste Removal Services is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Montrose Environmental , another stock in the same industry, has yet to report results for the quarter ended March 2026.

This company is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of +100%. The consensus EPS estimate for the quarter has been revised 17.7% lower over the last 30 days to the current level.

Montrose Environmental's revenues are expected to be $183.72 million, up 3.3% from the year-ago quarter.

MILWAUKEE--(BUSINESS WIRE)-- #EmployeeEngagement--Zurn Elkay Water Solutions (NYSE: ZWS) earned recognition as one of the Top Workplaces USA 2026 and Top Workplaces Southeast Wisconsin 2026. The lists are issued by HR research and technology company Energage and partners USA Today and Milwaukee Journal Sentinel and honor organizations that have created exceptional, people-first cultures. “Recognition like this is meaningful because it comes directly from our associates,” said Todd A. Adams, Chairman and CEO. “It ref.