Zurn Elkay Water Solutions Q3 sales beat estimates, raises annual dividend by 22%

Zurn Elkay Water Solutions

28/10/2025 20:30

Overview

Zurn Elkay Q3 net sales rise 11% yr/yr, beating analyst expectations, per LSEG data

Adjusted EPS for Q3 grows 26% to $0.43, reflecting operational improvement

Company increases annual dividend 22% and share repurchase authorization to $500 mln

Outlook

Company expects Q4 core sales growth in high-single digits

Zurn Elkay raises full-year 2025 adjusted EBITDA outlook to $437 mln-$440 mln

Company anticipates full-year free cash flow to exceed $300 mln

Result Drivers

PRICE REALIZATION AND PRODUCTIVITY - Sales growth driven by price realization and productivity savings, offset by inventory adjustments

CASH GENERATION - Strong cash flow supports increased dividends and share repurchase authorization

ADJUSTED EBITDA IMPROVEMENT - Adjusted EBITDA margin increased by 120 basis points, reflecting operational efficiency

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Beat
$455.40 mln
$442.61 mln (7 Analysts)
Q3 Net Income
$61.80 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the construction supplies & fixtures peer group is "buy"

Wall Street's median 12-month price target for Zurn Elkay Water Solutions Corp is $48.00, about 2.9% above its October 27 closing price of $46.62

The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nBw9jbnrGa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)