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Sep 30, 2024

Zurn Elkay Q3 2024 Earnings Report

Delivered a solid quarter with sales and margins exceeding guidance, driven by pro forma core sales growth and adjusted EBITDA margin expansion.

Key Takeaways

Zurn Elkay Water Solutions reported a 3% increase in net sales to $410 million, with a 3% core sales growth. Net income from continuing operations rose to $44 million, with diluted EPS at $0.25. Adjusted EPS increased to $0.34, and adjusted EBITDA reached $105 million, representing 25.6% of net sales. The company also deployed $50 million to repurchase 1.6 million shares and increased the quarterly dividend by 13%.

Net sales increased to $410 million, a 3% year-over-year increase.

Net income from continuing operations was $44 million, or $0.25 diluted EPS.

Adjusted EPS was $0.34, compared to $0.29 in the prior year.

Adjusted EBITDA was $105 million, representing 25.6% of net sales.

Total Revenue
$410M
Previous year: $398M
+2.9%
EPS
$0.34
Previous year: $0.29
+17.2%
Adjusted EBITDA Margin
25.6%
Gross Profit
$189M
Previous year: $170M
+11.5%
Cash and Equivalents
$188M
Previous year: $173M
+8.5%
Free Cash Flow
$86.8M
Previous year: $98.7M
-12.1%
Total Assets
$2.7B
Previous year: $2.81B
-3.8%

Zurn Elkay

Zurn Elkay

Forward Guidance

For the fourth quarter, the company expects core net sales to be up low single digits and adjusted EBITDA to be between $88 million and $90 million. The full year adjusted EBITDA is expected to be approximately $387 million to $389 million, resulting in an adjusted EBITDA margin expansion of 250 to 270 basis points. The full year outlook for free cash flow is increased to approximately $260 million.