Zurn Elkay Water Solutions (ZWS) Q2 2025 earnings summary

Executive summary

• Net sales rose 8% year-over-year in Q2 2025 to $445 million, with core sales growth across all product categories and record adjusted EBITDA margin of 26.5%.

• Adjusted EBITDA grew 13% to $118 million, and free cash flow exceeded $100 million for the first time in a quarter.

• Net income for Q2 2025 was $50.5 million, with diluted EPS at $0.29 and adjusted EPS up 27% to $0.42.

• Launched Elkay Pro Filtration, featuring advanced contaminant reduction, improved filter life, and remote monitoring.

• Significant progress on sustainability, delivering 1.2 billion gallons of filtered water YTD and preventing 9.6 billion single-use bottles.

Financial highlights

• Q2 2025 net sales: $444.5M (up 8% year-over-year); H1 2025 net sales: $833.3M (up 6%).

• Adjusted EBITDA for Q2: $118M (26.5% margin), up 13% year-over-year; H1 adjusted EBITDA: $216M (25.9% margin), up 11%.

• Q2 2025 net income: $50.5M; six-month net income: $94.1M.

• Free cash flow for Q2: $102M; trailing twelve months FCF reached $272M.

• Q2 2025 diluted EPS: $0.29; adjusted EPS: $0.42.

Outlook and guidance

• Raised full-year 2025 guidance: core sales growth at least 5%, adjusted EBITDA $420–$430M, and free cash flow ~$300M.

• Q3 2025 core sales growth and adjusted EBITDA margin expected to be similar to Q2.

• Guidance includes assumptions for interest expense, stock compensation, D&A, tax rate, and share count.