Zurn Elkay Water Solutions Corp (ZWS) Form 10-Q — Oct 27, 2026
Zurn Elkay Water Solutions reported Q3 2026 net sales of $495.1 million, up 8.7% year over year (7% core growth plus 2% from the Intellihot acquisition), with income from operations of $108.2 million, up 39.6%, expanding operating margin 490 basis points to 21.9%. Nine-month net sales reached $1,419.1 million, up 10.1%, and nine-month net income was $248.5 million ($1.47 diluted EPS) versus $155.9 million ($0.91) a year ago. A key earnings driver was $49.1 million of IEEPA reciprocal tariff refunds recognized as a reduction to cost of sales following the February 2026 Supreme Court ruling, with the company still evaluating additional refund eligibility.
Key figures
- Eps
- 0.45
- Revenue
- 495100000
- Net Income
- 76300000
- Total Debt
- 500300000
- Revenue Yoy
- 8.7%
- Cash Position
- 307100000
- Shares Outstanding
- 165092978
- Q3 buybacks
- $35.0 million at avg $47.74/share
- Revolver capacity
- $550.0 million (extended to Feb 19, 2031)
- Q3 operating margin
- 21.9%
- Core sales growth q3
- 7%
- Nine month net income
- 248500000
- Nine month diluted eps
- 1.47
- Operating margin change
- +490 bps YoY
- Total net leverage ratio
- 0.47
- Q3 income from operations
- 108200000
- Quarterly dividend declared
- $0.13 per share
- Remaining buyback authority
- 347500000
- Intellihot acquisition price
- 107300000
- Operating cash flow nine months
- 320600000
- Ieepa tariff refunds nine months
- 49100000
- Adjusted ebitda trailing twelve months
- 496200000
AI analysis
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