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Mar 31, 2025
Zurn Elkay Q1 2025 Earnings Report
Zurn Elkay delivered a solid Q1 2025 with steady core sales growth and improved margins.
Key Takeaways
The company posted a strong start to 2025 with core sales growth of 5%, improved adjusted EBITDA margin, and significant shareholder returns. Operating and net income rose year-over-year.
Net sales reached $388,800,000, a 4% increase year-over-year.
Adjusted EPS improved to $0.31, up from $0.29 last year.
Adjusted EBITDA margin increased by 110 basis points to 25.2%.
Zurn Elkay repurchased $77,000,000 worth of shares during the quarter.
Forward Guidance
The company expects core sales growth in the low to mid-single digits for Q2 2025 and reaffirms its full-year outlook.
Positive Outlook
- Adjusted EBITDA margin expected between 25.5% and 26.0%
- Q2 forecast aligns with full-year guidance
- Stable tariff expectations factored into outlook
- Continued momentum from Q1 performance
- Focus on operational efficiencies to sustain margin improvements
Challenges Ahead
- Tariff and trade environment remains volatile
- Foreign currency exchange rates impacted Q1 sales by 1%
- Softness in macroeconomic conditions may affect future demand
- Discretionary cash use for share buybacks may reduce flexibility
- Sustainability initiatives may face timing and cost hurdles
Historical Earnings Impact
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Avg. Return Before/After Earnings
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