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Mar 31, 2024
Zurn Elkay Q1 2024 Earnings Report
Zurn Elkay Water Solutions reported a solid start to the year with growth, profitability, and free cash flow exceeding expectations. Adjusted EBITDA grew 24% year over year and margin improved by 460 basis points.
Key Takeaways
Zurn Elkay Water Solutions reported first quarter 2024 financial results with net sales of $374 million, net income from continuing operations of $34 million, and adjusted EPS of $0.29. The company saw growth in profitability and free cash flow, exceeding expectations for the quarter.
Net sales were $374 million, a 0.5% increase year over year.
Net income from continuing operations was $34 million, with diluted EPS of $0.19.
Adjusted EPS was $0.29, compared to $0.18 in the prior year.
Adjusted EBITDA was $90 million, representing 24.1% of net sales, compared to $72 million in the prior year.
Forward Guidance
For the second quarter, net sales are expected to be up low single digits on a pro forma core basis, with adjusted EBITDA margin between 24.5% and 25.0%. The full year adjusted EBITDA margin expectation is now approximately 150 bps to 200 bps of year over year adjusted EBITDA margin expansion. The company continues to expect to deliver $250 million of free cash flow for the full year.
Positive Outlook
- Net sales for the second quarter will be up low single digits on a pro forma core basis.
- Adjusted EBITDA margin for the second quarter will be between 24.5% and 25.0%.
- Confidence in ability to drive growth in 2024.
- Full year free cash flow of $250 million.
- Increasing full year adjusted EBITDA margin expectation to deliver approximately 150 bps to 200 bps of year over year adjusted EBITDA margin expansion.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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