Zurn Elkay Lifts Full-Year Outlook as Q2 Sales Climb 10% to $491M
ZWS sits 35% above its 52-week low of $37.89.
Summary
Zurn Elkay reported Q2 2026 sales of $491M (+10% core) and adjusted EBITDA of $136M (27.7% margin), then raised its full-year adjusted EBITDA outlook to $503–$513M. The quarter also included a $47.6M tariff refund and $50M in share repurchases.
Updates
· Reuters — Adjusted EPS rose to $0.50 from $0.42 a year ago. Management guided Q3 core sales growth of 6-7%.
· SEC 10-Q — Q2 net income was $113.3 million, or $0.67 per diluted share, with six-month net income of $172.2 million. The 10-Q also details a $550 million revolving credit facility and $382.5 million remaining under the repurchase program.
Key Events · Earnings and Guidance · ZWS
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Q2 Sales +10% to $491M
Net sales rose 10% year-over-year to $491 million, with core sales growth of 10% across all product categories, exceeding the $483 million consensus estimate.
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Adjusted EBITDA Margin Expands to 27.7%
Adjusted EBITDA reached $136 million, a 27.7% margin, up 120 basis points from 26.5% a year ago, driven by volume growth and productivity initiatives.
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Full-Year Outlook Raised
Management raised 2026 adjusted EBITDA guidance to $503–$513 million, implying ~140 bps of margin expansion, and expects free cash flow of at least $350 million.
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$47.6M Tariff Refund Boosts Results
The company received a $47.6 million cash refund related to previously paid IEEPA reciprocal tariffs, recorded as a benefit in cost of sales and excluded from adjusted EBITDA.
Analysis · ZWS · Technology
A strong second quarter underscored Zurn Elkay's momentum, with sales climbing 10% to $491 million—comfortably ahead of the $483 million consensus. Adjusted EBITDA margins expanded 120 basis points to 27.7%, and adjusted EPS of $0.50 compared favorably to $0.42 a year ago. The quarter included a one-time $47.6 million tariff refund, but even excluding that benefit, operating income grew 35%. Reflecting this performance, management raised its full-year adjusted EBITDA guidance to $503–$513 million, implying roughly 140 basis points of margin expansion, and expects at least $350 million in free cash flow. The company also completed the Intellihot acquisition and repurchased $50 million in shares, bringing first-half buybacks to $100 million. Together, the results and raised outlook reinforce the company's ability to drive above-market growth and margin expansion while returning capital to shareholders.
How filings like this one have moved
In the 30 days to Oct 5, 2026, 36.9% of the 966 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.66%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, ZWS was trading at $51.00 on NYSE in the Technology sector, with a market capitalization of approximately $8.2B. The 52-week trading range was $37.89 to $53.76. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.