Zurn Elkay Water Solutions posted solid Q1 results with 11% organic sales growth, strong margin expansion, and robust free cash flow, affirming confidence in full-year targets despite macro uncertainties.
- Q1 sales reached $433 million, up 11% organically, driven by growth in nonresidential markets and strategic execution.
- Adjusted EBITDA grew 18% to $116 million, with margins expanding 160 basis points to 26.8% amid productivity improvements and mix benefits.
- Leverage remains low at 0.5x net debt/EBITDA, supported by a $550 million revolving credit extension, enhancing liquidity for M&A.
- The company is managing tariffs effectively, maintaining a price/cost positive outlook for 2026 without further price increases.
- EBITDA margin expansion reflects disciplined operational execution and strategic mix shifts toward higher-margin retrofit and water safety segments.
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