Zurn Elkay Water Solutions delivers robust operational growth, but valuation remains stretched, justifying a continued "Hold" rating. Revenue rose 10.5% to $491 million, and adjusted EBITDA is projected to grow 14.9% year-over-year, excluding tariff refunds. Recent acquisition of Intellihot expands ZWS's addressable market by $1.1 billion, targeting regulatory-driven demand in tankless water heaters.
Zurn Water (ZWS) possesses solid growth attributes, which could help it handily outperform the market.
Zurn Water (ZWS) could produce exceptional returns because of its solid growth attributes.
Zurn Water (ZWS) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).
Zurn Elkay Water Solutions Cor NYSE: ZWS reported second-quarter organic sales growth of 10% and adjusted EBITDA growth of 15%, supported by demand in its Water Safety and Control and Drinking Water product lines, higher pricing, and margin expansion.
Zurn Water (ZWS) came out with quarterly earnings of $0.5 per share, beating the Zacks Consensus Estimate of $0.47 per share. This compares to earnings of $0.42 per share a year ago.
Zurn Elkay is rated a Buy, driven by a leap in institutional projects planned in July of 2025, which the revenue lag structure carries into 2026-2027 results. Margins have expanded 630 bps since mid-2023, with management guiding for 35% normalized incremental margins and consistently beating EPS consensus. Zurn Elkay trades at a 46% forward P/E premium, justified by pre-committed revenue, disciplined management, robust balance sheet, and substantial share buybacks.
Zurn Elkay Water Solutions Corporation remains a Hold as strong fundamentals are offset by a stretched valuation. ZWS delivered 11.4% revenue growth and significant profitability gains, driven by demand and higher-margin product focus. Despite robust performance, ZWS trades at higher multiples than most peers on key valuation metrics, limiting near-term upside.
Does Zurn Water (ZWS) have what it takes to be a top stock pick for momentum investors? Let's find out.
Zurn Elkay Water Solutions Corporation (ZWS) Q1 2026 Earnings Call Transcript
Zurn Water (ZWS) came out with quarterly earnings of $0.41 per share, beating the Zacks Consensus Estimate of $0.37 per share. This compares to earnings of $0.31 per share a year ago.
Zurn Elkay Water Solutions Corporation (ZWS) Q4 2025 Earnings Call Transcript