Zurn Elkay Water Solutions beats Q4 sales estimates

Overview

• Water product maker's Q4 net sales rose 10%, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company repurchased $25 mln worth of shares in Q4

Outlook

• Company expects full-year 2026 free cash flow of approximately $335 mln

• Zurn Elkay anticipates Q1 core sales growth of 7% to 8%

• Company projects full-year mid-single digit core sales growth

Result Drivers

• CORE SALES GROWTH - Q4 net sales increased 10% due to growth in nearly all product categories

• PRODUCTIVITY INITIATIVES - Income from operations rose due to sales growth and productivity initiatives

• ADJUSTED EBITDA GROWTH - Adjusted EBITDA grew 14% with margin expansion due to sales growth and productivity

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 6 "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 $52.50, about 11.9% above its February 2 closing price of $46.93

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 29 three months ago

Press Release: ID:nBw9Cl6VJa

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