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Zurn Elkay Water Solutions (ZWS) investor relations material
Zurn Elkay Water Solutions Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved 10% core sales growth in Q4 2025 and 8% for the full year, with adjusted EBITDA up 14% in Q4 and margin expansion to 25.6%.
Generated $83 million in Q4 free cash flow and $317 million for the year, up 17% year-over-year.
Repurchased $160 million in shares, reducing outstanding shares by 3%, and paid $64 million in dividends in 2025.
Net debt leverage declined to 0.4x, the lowest as a public company.
Achieved record annual sales, adjusted EBITDA, and free cash flow, with a 22% increase in quarterly dividend year-over-year.
Financial highlights
Q4 2025 net sales were $407 million, up 10% year-over-year; full-year net sales reached $1,696 million, up 8%.
Q4 adjusted EBITDA was $104 million (25.6% margin), up 14% year-over-year; full-year adjusted EBITDA was $442 million (26.1% margin), up 13%.
Q4 net income from continuing operations was $42 million, with diluted EPS of $0.24; full-year net income was $192 million, with diluted EPS of $1.12.
Q4 adjusted EPS was $0.36, up from $0.32; full-year adjusted EPS was $1.52, up from $1.28.
Free cash flow for 2025 was $317 million, a 17% increase over 2024.
Outlook and guidance
2026 guidance targets mid-single-digit core sales growth, incremental adjusted EBITDA margins of ~35%, and free cash flow of ~$335 million.
Q1 2026 core sales growth projected at 7–8% year-over-year, with adjusted EBITDA margin of 25.5–26%.
Institutional and waterworks markets expected to grow low single digits, commercial to be flat, and residential to remain challenging.
Price impact higher in H1 2026, moderating in H2 as tariff-related pricing laps.
Income from operations as a percentage of net sales increased by 150 basis points year-over-year in Q4.
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Net income reached TRY 29.5 billion, with strong dividends and a robust net cash position.
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