In the fourth quarter of fiscal 2025, Zurn Elkay Water Solutions reported net sales of $407.2 million, up 10% from $370.7 million in the same period last year. Core sales growth was also 10%, driven by broad-based strength across nearly all product categories. Adjusted EBITDA rose 14% to $104.1 million, representing 25.6% of net sales versus 24.6% in the prior year, as productivity initiatives under the Zurn Elkay Business System delivered a 150-basis-point expansion in operating margins. Net income from continuing operations reached $42 million, with diluted GAAP earnings per share of $0.24 and adjusted EPS of $0.36, compared to $0.21 and $0.32, respectively, in the year-ago quarter. The company deployed $25 million to repurchase 0.5 million shares of common stock, maintaining a disciplined capital allocation strategy.

For the full year 2025, Zurn Elkay achieved record performance across multiple financial metrics. Net sales increased 8% to $1.696 billion from $1.567 billion in 2024, reflecting 8% core growth. Adjusted EBITDA climbed to $442 million, or 26.1% of net sales, up from $390 million and 24.9% of sales in the prior year. Adjusted EPS jumped to $1.52 from $1.28, while GAAP diluted EPS from continuing operations rose to $1.12 from $0.91. The company generated a record $317 million in free cash flow, leading to net debt leverage of just 0.4x at year-end. Zurn Elkay returned capital to shareholders through $160 million in share repurchases and $64 million in cash dividends, and increased its quarterly dividend by 22% year over year.

Looking ahead to 2026, management reiterated its framework for mid-single-digit core sales growth and approximately 35% incremental adjusted EBITDA margins, targeting full-year free cash flow of around $335 million. For the first quarter, the company expects core sales to grow 7%–8% and adjusted EBITDA margins to be in the range of 25.5% to 26.0%. The outlook reflects confidence in Zurn Elkay’s diversified end-market exposure, disciplined cost structure, and continued deployment of its business system to drive margin expansion and cash generation under various macroeconomic scenarios.