Zurn Elkay Reports Strong Q4 & FY25 Results, Issues Positive 2026 Outlook
Summary
Zurn Elkay Water Solutions reported strong fourth quarter and full-year 2025 financial results, exceeding prior year performance across key metrics and providing optimistic guidance for 2026.
Key Events
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Strong Q4 Performance
Net sales increased 10% (core sales) to $407 million, with Adjusted EPS of $0.36 and Adjusted EBITDA of $104 million (25.6% margin), all showing significant year-over-year growth.
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Record Full-Year 2025 Results
Achieved $1.7 billion in net sales (+8% core sales), $1.52 Adjusted EPS, and $442 million Adjusted EBITDA (26.1% margin), marking record annual performance.
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Robust Financial Health
Ended 2025 with a very low net debt leverage of 0.4x and generated record free cash flow of $317 million, highlighting strong balance sheet management.
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Positive 2026 Outlook
Forecasts mid-single digit core sales growth and approximately $335 million in free cash flow for the full year 2026, alongside strong Q1 guidance of 7-8% core sales growth.
Analysis
Zurn Elkay Water Solutions delivered a robust financial performance for both the fourth quarter and full fiscal year 2025, surpassing prior year results across key operational and profitability metrics. The company's ability to achieve significant core sales growth, expand Adjusted EBITDA margins, and generate record free cash flow underscores strong operational execution. The very low net debt leverage of 0.4x provides substantial financial flexibility for future capital deployment, including continued shareholder returns. The positive guidance for 2026, projecting mid-single digit core sales growth and increased free cash flow, suggests continued momentum and a favorable outlook for investors.
At the time of this filing, ZWS was trading at $47.06 on NYSE in the Technology sector, with a market capitalization of approximately $7.9B. The 52-week trading range was $27.74 to $50.03. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.