Zurn Elkay Water Solutions
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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.
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Q4 2025 earnings summary4 Feb, 2026

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.

Future capital allocation priorities
Key drivers of 2026 incremental EBITDA margin
New sustainability goals and their impact
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Q1 202622 Apr, 2026
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Frequently asked questions

Zurn Elkay Water Solutions Corporation designs, manufactures, and markets water management products and solutions for commercial, institutional, and industrial applications. The company’s portfolio includes plumbing fixtures, drainage products, water control systems, and drinking water solutions such as bottle-filling stations and water coolers. Zurn Elkay’s products are designed to promote water conservation, efficiency, and hygiene in buildings and infrastructure projects. The company serves customers in various sectors, including healthcare, education, foodservice, and manufacturing. Zurn Elkay Water Solutions Corporation is headquartered in Milwaukee, Wisconsin, and its shares are listed on the NYSE.

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