Zurn Elkay jumps as Q1 2026 beat and strong Q2 outlook lift shares
Zurn Elkay Water Solutions shares are rising after the company reported first-quarter 2026 results that beat expectations, with net sales up 11% year over year to $433.0 million and adjusted EPS up to $0.41. Management also guided to 8%–9% core sales growth in Q2 2026 and expanded its revolver capacity to $550 million.
1. What’s moving the stock today
Zurn Elkay Water Solutions (ZWS) is trading higher as investors react to a stronger-than-expected Q1 2026 print and upbeat near-term operating outlook. The company posted double-digit sales growth, higher profitability, and reiterated robust cash generation, reinforcing the market’s view that nonresidential demand and execution are supporting above-trend results. (tradingview.com)
2. The numbers that changed the narrative
For Q1 2026, net sales rose to $433.0 million from $388.8 million a year earlier (+11%), while net income from continuing operations was $58.9 million (GAAP diluted EPS of $0.35). Adjusted diluted EPS increased to $0.41, and adjusted EBITDA rose to $116.0 million, with adjusted EBITDA margin at 26.8% of sales. (tradingview.com)
3. Guidance and catalysts investors are keying on
On its earnings call, the company projected Q2 2026 core sales growth of 8%–9% year over year and an adjusted EBITDA margin of 27%–27.5%. Management kept its full-year free cash flow outlook at about $335 million, signaling confidence that momentum can continue into the next quarter. (in.investing.com)
4. Capital returns and balance-sheet signals
Alongside the operating beat, Zurn Elkay highlighted shareholder returns and liquidity actions, including $50 million of share repurchases in the quarter and an increase in revolving credit facility capacity to $550 million. The combination of accelerating profits, continued buybacks, and added financial flexibility is amplifying the post-earnings move. (tradingview.com)