Zurn Elkay Water Solutions Reports Third Quarter 2026 Financial Results

Todd A. Adams, Chairman and Chief Executive Officer of Zurn Elkay Water Solutions

“We delivered 7% core sales((1)) growth, 28.3% adjusted EBITDA margins((1)) and free cash flow((1)) of $110 million in the third quarter.”

Todd A. Adams, Chairman and Chief Executive Officer of Zurn Elkay Water Solutions

“We were able to leverage our exceptional free cash flow((1)) to invest $35 million in share repurchases in the quarter as well as fund the Intellihot acquisition, which closed during the third quarter.”

Todd A. Adams, Chairman and Chief Executive Officer of Zurn Elkay Water Solutions

“Finally, we are increasing our annual dividend by 18% to $0.52 per share, reflecting the confidence we have in the long-term fundamentals of our business and business model driven by the Zurn Elkay Business System.”

Todd A. Adams, Chairman and Chief Executive Officer of Zurn Elkay Water Solutions

“Last quarter we announced the acquisition of Intellihot, which along with our Wilkins backflow are key components of the hot water loop.”

Todd A. Adams, Chairman and Chief Executive Officer of Zurn Elkay Water Solutions

“Earlier this month, we continued to build out our presence in the hot water loop with the entrance into the digital master mixing valve market with internally developed new products that we believe will allow us to take meaningful, profitable share in the category over the next several years.”

Todd A. Adams, Chairman and Chief Executive Officer of Zurn Elkay Water Solutions

“These breakthrough initiatives are part of our continued focus to leverage our significant competitive advantages into adjacencies.”

Todd A. Adams, Chairman and Chief Executive Officer of Zurn Elkay Water Solutions

“In 2026 alone, we believe we’ve expanded our served markets by roughly $400 million.”

Todd A. Adams, Chairman and Chief Executive Officer of Zurn Elkay Water Solutions

“While we’re encouraged with our progress, we are also aware that we must continue to be nimble in finding pockets of growth to offset the general uncertainty that exists within our served markets and the broader economy.”

Todd A. Adams, Chairman and Chief Executive Officer of Zurn Elkay Water Solutions

“As we start the fourth quarter, it feels like a time to be conservative in our assumptions while remaining aggressive with our actions with everything that’s happening in the world right now.”