Zurn Elkay Water Options Corp (ZWS.N) on Tuesday reported fourth-quarter outcomes that exceeded its personal steering, pushed by double-digit core gross sales development and increasing revenue margins.
Fourth Quarter Highlights
The Milwaukee-based water administration firm posted web 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 12 months. This development was supported by positive factors throughout practically all product classes and value realization methods.
Adjusted earnings per share got here in at $0.36, topping the $0.32 reported within the year-ago quarter. Internet earnings from persevering with operations rose to $42 million, or $0.24 per diluted share, up from $36 million, or $0.21 per share, a 12 months earlier.
Within the fourth quarter, we delivered gross sales, adjusted EBITDA and free money circulation forward of our steering from 90 days in the past. Relentless deployment of the Zurn Elkay Enterprise System, which helped broaden adjusted EBITDA margins by 100 foundation factors to 25.6%.
For the complete 12 months 2025, the corporate reported report web gross sales of $1.696 billion, an 8% improve over 2024. Full-year web earnings reached $192 million, whereas free money circulation hit a report $317 million.
The corporate utilized its sturdy money place to reward shareholders, finishing $160 million in frequent inventory repurchases all through 2025 and rising its quarterly dividend by 22% year-over-year. Zurn Elkay ended the 12 months with a web debt leverage of 0.4x.
2026 Outlook
Wanting forward, Zurn Elkay offered an optimistic framework for 2026. The corporate expects full-year core gross sales development within the mid-single digits and initiatives free money circulation to rise additional to roughly $335 million.
For the primary quarter of 2026, the corporate anticipates core gross sales development of seven% to eight%, with adjusted EBITDA margins anticipated between 25.5% and 26.0%.
Zurn Elkay, which makes a speciality of water security, hygiene, and circulation management merchandise, additionally introduced it might launch its 2025 sustainability report within the coming weeks, highlighting progress towards cleaner and safer water administration.
