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Zurn Elkay Water Solutions (ZWS) investor relations material
Zurn Elkay Water Solutions Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q3 2025 net sales rose 11% year-over-year to $455.4 million, with core sales growth across all product categories and adjusted EBITDA up 16% to $122 million, expanding margin by 120 basis points to 26.8%.
Net income for Q3 2025 was $61.8 million, up from $43.5 million in Q3 2024; diluted EPS increased to $0.36 from $0.25, and adjusted EPS rose 26% to $0.43.
Free cash flow for Q3 was $94 million, supporting $25 million in share repurchases and a year-to-date total of $135 million.
Dividend was raised by 22% to $0.44 per share, and share buyback authorization increased to $500 million.
U.S. pension plan termination completed, eliminating $200 million in liabilities and resulting in a $10 million pre-tax gain.
Financial highlights
Q3 2025 net sales: $455.4 million, up 11% year-over-year; adjusted EBITDA: $122 million (26.8% margin), up 16%.
Year-to-date net sales reached $1.29 billion, up 8%, and adjusted EBITDA was $338 million.
Income from operations for Q3 2025 was $77.5 million (17.0% of net sales), up 10.4% year-over-year.
Free cash flow for Q3 was $94 million; year-to-date free cash flow reached $234 million.
Net debt leverage declined to 0.6x, the lowest as a public company.
Outlook and guidance
Full-year 2025 adjusted EBITDA outlook raised to $437–$440 million, with free cash flow expected to exceed $300 million.
Q4 2025 core sales growth expected in the high single digits; adjusted EBITDA guidance of $99–$102 million.
Tariff costs for 2025 expected to be ~$50 million, higher than previous guidance.
2026 market growth expected to mirror 2025, with low market growth but continued outperformance from internal initiatives.
Management expects to continue restructuring initiatives to optimize margin and manufacturing footprint.
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