Zurn Elkay expects Q3 core sales growth of 6% to 7% and adjusted EBITDA margin near 28%
Company sees full-year 2026 adjusted EBITDA between $503 mln and $513 mln
Zurn Elkay expects full-year free cash flow of at least $350 mln, excluding tariff refunds
Overview
US water management firm's Q2 net sales rose 10%, beating analyst expectations
Adjusted EPS for Q2 increased to $0.50 from $0.42 a year ago
Company repurchased $50 mln in shares and completed Intellihot acquisition
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$491 mln
$483.09 mln (9 Analysts)
Q2 Net Income
$113.30 mln
Result Drivers
Core sales growth - 10% increase in core sales, with growth across all product categories, drove higher revenue
Price realization and productivity - Margin expansion attributed to price realization and productivity initiatives under the Zurn Elkay Business System
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction supplies & fixtures peer group is "buy"
Wall Street's median 12-month price target for Zurn Elkay Water Solutions Corp is $56.00, about 14.8% above its July 27 closing price of $48.77
The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 26 three months ago
