Zurn Elkay Water Solutions Q3 sales rise on product category growth
ZWS•Zurn Elkay Water Solutions’ third-quarter sales rose 9% year over year to $495.1 million, slightly beating estimates, while adjusted EPS increased to $0.52 from $0.43. The company expects fourth-quarter sales of $430 million to $437 million and adjusted EBITDA of $120 million to $123 million.
1. Quarterly results
Third-quarter sales rose 9% year over year to $495.1 million, compared with analysts’ $492.47 million estimate. Adjusted EPS increased to $0.52 from $0.43 a year earlier. Core sales grew 7% across nearly all product categories, while acquisitions added 2%.
2. Outlook and capital actions
Zurn Elkay expects fourth-quarter net sales of $430 million to $437 million and adjusted EBITDA of $120 million to $123 million. It forecast full-year free cash flow above $350 million, excluding tariff refunds. The company completed its Intellihot acquisition, repurchased $35 million of shares and raised its dividend 18%.
3. Productivity and launches
The company attributed margin improvement to product mix, productivity initiatives and supply chain repositioning. It said new digital master mixing valve products expanded its presence in the hot water loop market.
