Zurn Elkay Water Solutions concluded 2025 with record annual sales, adjusted EBITDA, and free cash flow, driven by 8% year-over-year core sales growth and expanding adjusted EBITDA margins. The company also repurchased $160 million of common stock and increased its quarterly dividend by 22%.
Net sales for the fourth quarter increased by 10% to $407 million, compared to $371 million in the prior year's December quarter.
Net income from continuing operations for the fourth quarter was $42 million, with diluted EPS of $0.24, up from $36 million and $0.21 respectively in the year-ago quarter.
Adjusted EBITDA for the fourth quarter reached $104 million, representing 25.6% of net sales, an increase from $91 million (24.6% of net sales) in the prior year.
The company deployed $25 million to repurchase 0.5 million shares of common stock during the quarter, and achieved a net debt leverage of 0.4x as of December 31, 2025.
For the full year 2026, Zurn Elkay Water Solutions anticipates mid-single digit core sales growth, approximately 35% incremental adjusted EBITDA margins, and around $335 million in free cash flow. For the first quarter of 2026, the company expects 7% to 8% positive core sales growth and approximately 35% incremental adjusted EBITDA margins, equating to 25.5% to 26.0% adjusted EBITDA margins.
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