Zurn Elkay Q2 2022 Earnings Report
Key Takeaways
Zurn Elkay Water Solutions reported a strong second quarter with a 17% increase in net sales to $284 million and adjusted EPS of $0.32. Core sales grew by 15%, and the company successfully completed its combination with Elkay Manufacturing Company on July 1, 2022.
Completed the combination with Elkay Manufacturing Company on July 1, 2022.
Net sales increased 17% to $284 million compared to the previous year.
Net income from continuing operations was $36 million, with diluted EPS of $0.28.
Adjusted EPS was $0.32 compared to $0.22 in the year-ago quarter.
Zurn Elkay
Zurn Elkay
Forward Guidance
For the third quarter of 2022, Zurn sales are expected to increase by a high-teens percentage over the prior year, with Elkay sales between $145 and $155 million. The consolidated Adjusted EBITDA margin, excluding corporate costs, is anticipated to range between 21.0% and 22.0%, and corporate expenses are expected to approximate $7 million.
Positive Outlook
- Zurn sales expected to increase by a high-teens percentage
- Elkay sales to be between $145 and $155 million
- Consolidated Adjusted EBITDA margin, excluding corporate costs, to range between 21.0% and 22.0%
- Anticipate at least 100 bps of margin expansion from the Zurn Elkay proforma combined Adjusted EBITDA margin in the prior year third quarter.