Zurn Elkay Water Options Corp (ZWS.N) on Tuesday reported fourth-quarter outcomes that exceeded its personal steerage, pushed by double-digit core gross sales growth and increasing revenue margins.
Fourth Quarter Highlights
The Milwaukee-based mostly water administration firm posted internet gross sales of $407 million for the quarter ended Dec. 31, 2025, a ten% improve in comparison with $371 million in the identical interval final yr. This growth was supported by positive factors throughout almost all product classes and value realization methods.
Adjusted earnings per share got here in at $0.36, topping the $0.32 reported within the yr-in the past quarter. Internet revenue from persevering with operations rose to $42 million, or $0.24 per diluted share, up from $36 million, or $0.21 per share, a yr earlier.
Within the fourth quarter, we delivered gross sales, adjusted EBITDA and free money circulate forward of our steerage from 90 days in the past. Relentless deployment of the Zurn Elkay Enterprise System, which helped develop adjusted EBITDA margins by 100 foundation factors to 25.6%.
For the total yr 2025, the corporate reported document internet gross sales of $1.696 billion, an 8% improve over 2024. Full-yr internet revenue reached $192 million, whereas free money circulate hit a document $317 million.
The corporate utilized its robust money place to reward shareholders, finishing $160 million in frequent inventory repurchases all through 2025 and rising its quarterly dividend by 22% yr-over-yr. Zurn Elkay ended the yr with a internet debt leverage of 0.4x.
2026 Outlook
Trying forward, Zurn Elkay offered an optimistic framework for 2026. The corporate expects full-yr core gross sales growth within the mid-single digits and initiatives free money circulate to rise additional to roughly $335 million.
For the primary quarter of 2026, the corporate anticipates core gross sales growth of seven% to eight%, with adjusted EBITDA margins anticipated between 25.5% and 26.0%.
Zurn Elkay, which focuses on water security, hygiene, and circulate management merchandise, additionally introduced it could launch its 2025 sustainability report within the coming weeks, highlighting progress towards cleaner and safer water administration.
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