Zurn Elkay Posts Strong Q1 with 11% Core Sales Growth, 18% Adjusted EBITDA Jump, Boosts Outlook
summarizeSummary
Zurn Elkay Water Solutions reported robust first-quarter 2026 financial results, with core sales growing 11% year-over-year to $433 million and adjusted EBITDA increasing 18% to $116 million, expanding margins to 26.8%. Diluted EPS from continuing operations rose to $0.35 from $0.24, and adjusted EPS reached $0.41. This strong performance follows the company's robust full-year 2025 results and indicates continued positive momentum. The company also increased its revolver capacity to $550 million and deployed $50 million to repurchase 1.0 million shares, demonstrating confidence and capital efficiency. The significant top-line and bottom-line growth, coupled with margin expansion, suggests strong operational execution and demand for its water solutions. The positive Q2 guidance (8-9% core sales growth, 27.0-27.5% adjusted EBITDA margins) and hint at potential full-year upside are strong positive catalysts for the stock. Investors will monitor the company's ability to sustain this growth trajectory and achieve the hinted-at full-year upside, especially as new growth adjacencies are expected to launch later in 2026 and 2027.
At the time of this announcement, ZWS was trading at $50.00 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $8B. The 52-week trading range was $29.39 to $53.17. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.