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Sep 30, 2025
Zurn Elkay Q3 2025 Earnings Report
Zurn Elkay Water Solutions reported strong third quarter 2025 financial results, exceeding guidance with significant growth in net sales, net income, and adjusted EPS.
Key Takeaways
Zurn Elkay Water Solutions delivered a solid third quarter, with net sales increasing by 11% to $455.4 million and net income from continuing operations rising to $59.6 million. Adjusted EPS grew by 26% to $0.43, and Adjusted EBITDA increased by 16% to $122.2 million, representing a 26.8% margin. The company also generated strong free cash flow of $93.9 million, reducing net debt leverage to a record low of 0.6x.
Net sales increased by 11% year-over-year to $455.4 million, driven by 11% core sales growth across all product categories.
Net income from continuing operations rose to $59.6 million, with diluted EPS from continuing operations at $0.35.
Adjusted EPS grew by 26% to $0.43, exceeding prior year's $0.34.
Adjusted EBITDA increased by 16% to $122.2 million, achieving a 26.8% margin, a 120 basis point improvement over the prior year.
Forward Guidance
Zurn Elkay Water Solutions is raising its full-year 2025 outlook, anticipating higher adjusted EBITDA and free cash flow, while expecting high-single digit core sales growth for the fourth quarter.
Positive Outlook
- Raising full year 2025 adjusted EBITDA outlook to $437 million to $440 million (previously $420 million to $430 million).
- Expect full year free cash flow to be greater than $300 million.
- Anticipate high-single digit core sales growth for the fourth quarter.
- Increased annual dividend by 22% to $0.44 per share.
- Increased share repurchase authorization up to $500 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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