Zurn Elkay Water Solutions shares are moving higher on April 21, 2026 after the company released first-quarter 2026 financial results. The quarter showed faster growth and stronger profitability than the prior year, alongside management commentary that it sees potential upside to its 2026 outlook.

For the March quarter, Zurn Elkay reported net sales of $433 million versus $389 million a year earlier, with core sales up 11%. Net income from continuing operations rose to $59 million (diluted EPS $0.35) from $41 million (diluted EPS $0.24), while adjusted EPS increased to $0.41 from $0.31. Profitability also improved, with adjusted EBITDA of $116 million and adjusted EBITDA margin expanding 160 basis points year over year to 26.8%. (stocktitan.net)

Management guided for second-quarter core sales growth of 8% to 9% and adjusted EBITDA margins of 27.0% to 27.5%, assuming the current tariff structure as of April 21, 2026 stays in place through 2026. The company said it sees potential for upside beyond Q1 results and Q2 guidance relative to its full-year 2026 outlook provided last quarter, and plans to revisit the second-half outlook when it reports Q2 results. Zurn Elkay also noted net debt leverage of 0.5x as of March 31, 2026, increased revolver capacity from $200 million to $550 million, and repurchased $50 million (about 1.0 million shares) in the quarter. (stocktitan.net)

Investors will focus on whether margin gains hold as the year progresses and whether the company formally lifts its full-year 2026 expectations when it updates the second-half view with Q2 results. The next near-term catalyst is the investor conference call scheduled for Wednesday, April 22, 2026 at 8:30 a.m. ET. (stocktitan.net)