Zurn Elkay beats fourth quarter estimates, forecasts progress for 2026 – AlphaStreet Information – Imperial Wire

Zurn Elkay Water Options Corp (ZWS.N) on Tuesday reported fourth-quarter outcomes that exceeded its personal steering, pushed by double-digit core gross sales progress and increasing revenue margins.

Fourth Quarter Highlights

The Milwaukee-based water administration firm posted internet gross sales of $407 million for the quarter ended Dec. 31, 2025, a ten% enhance in comparison with $371 million in the identical interval final 12 months. This progress was supported by good points throughout almost all product classes and worth realization methods.

Adjusted earnings per share got here in at $0.36, topping the $0.32 reported within the year-ago quarter. Web earnings from persevering with operations rose to $42 million, or $0.24 per diluted share, up from $36 million, or $0.21 per share, a 12 months earlier.

Within the fourth quarter, we delivered gross sales, adjusted EBITDA and free money stream forward of our steering from 90 days in the past. Relentless deployment of the Zurn Elkay Enterprise System, which helped increase adjusted EBITDA margins by 100 foundation factors to 25.6%.

For the complete 12 months 2025, the corporate reported document internet gross sales of $1.696 billion, an 8% enhance over 2024. Full-year internet earnings reached $192 million, whereas free money stream hit a document $317 million.

The corporate utilized its sturdy money place to reward shareholders, finishing $160 million in frequent inventory repurchases all through 2025 and rising its quarterly dividend by 22% year-over-year. Zurn Elkay ended the 12 months with a internet debt leverage of 0.4x.

2026 Outlook

Trying forward, Zurn Elkay offered an optimistic framework for 2026. The corporate expects full-year core gross sales progress within the mid-single digits and tasks free money stream to rise additional to roughly $335 million.

For the primary quarter of 2026, the corporate anticipates core gross sales progress of seven% to eight%, with adjusted EBITDA margins anticipated between 25.5% and 26.0%.

Zurn Elkay, which focuses on water security, hygiene, and stream management merchandise, additionally introduced it will launch its 2025 sustainability report within the coming weeks, highlighting progress towards cleaner and safer water administration.