Zurn Elkay Reports Strong Full-Year 2025 Results with Significant Sales & EPS Growth, Boosts Share Buyback
Summary
Zurn Elkay Water Solutions reported robust financial performance for fiscal year 2025, driven by strong sales and earnings growth, and increased its share repurchase authority, signaling continued confidence and shareholder value creation.
Key Events
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Strong Full-Year 2025 Financial Performance
Net sales increased 8.3% to $1.69 billion, income from operations rose 14.0% to $278.9 million, and diluted EPS from continuing operations grew 23.1% to $1.12.
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Increased Share Repurchase Authority
The Board approved increasing the remaining share repurchase authority to $500.0 million on October 28, 2025, following $159.9 million in repurchases during 2025.
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Pension Plan Termination Gain
The company realized a pre-tax settlement gain of $10.0 million from the termination of its U.S. defined benefit pension plan in Q3 2025.
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Solid Financial Position
Zurn Elkay maintained a strong balance sheet with a Net First Lien Leverage Ratio of 0.53 to 1.0 as of December 31, 2025, indicating low debt relative to earnings.
Analysis
Zurn Elkay Water Solutions delivered impressive full-year 2025 results, showcasing significant growth across key financial metrics including sales, operating income, and diluted EPS. This strong performance, coupled with the Board's decision to increase the share repurchase authorization and the substantial repurchases already executed, reflects robust operational execution and a commitment to returning capital to shareholders. The company's healthy balance sheet, evidenced by a low leverage ratio, provides financial flexibility. Investors should view this filing positively, as it highlights sustained growth and effective capital management, especially with the stock trading near its 52-week high.
At the time of this filing, ZWS was trading at $52.53 on NYSE in the Technology sector, with a market capitalization of approximately $8.8B. The 52-week trading range was $27.74 to $53.15. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.