Zurn Elkay Water Solutions Reports Q3 2026 Growth and Raises Full-Year EBITDA Guidance
Zurn Elkay Water Solutions (ZWS) delivered strong third-quarter results for fiscal year 2026, characterized by a 9% increase in net sales to $495.1 million and a significant expansion in adjusted EBITDA margins to 28.3%. The company's performance was bolstered by the acquisition of Intellihot, which contributed $6 million in sales, and strategic pricing impacts. Management also highlighted successful SKU simplification efforts and entry into the commercial hot water market, expanding their served market by approximately $400 million. Despite the robust quarterly performance, management issued a cautious outlook for 2027, citing potential headwinds from broader economic uncertainty and softness in certain end markets. However, ZWS raised its full-year 2026 adjusted EBITDA guidance to between $512 million and $515 million. The company continues to prioritize shareholder returns, evidenced by an 18% increase in the annual dividend and $35 million in share repurchases during the quarter.
Topics: Adjusted EBITDA Dividends EPS Free Cash Flow Net Sales Share Repurchases