Zurn Elkay Water Solutions Corporation Common Stock Q3 2026 Earnings Recap

Zurn Elkay shares fell 11.5% after earnings, with investors likely focused on management’s warning that broader economic conditions and parts of its end markets may not provide a tailwind in 2027. The quarter showed growth and margin expansion, but the cautious forward outlook appears to have outweighed those positives.

Key Takeaways

• Q3 sales were $1.095 billion, up 9% reported and 7% organically; growth landed at the high end of the company’s quarterly guide.
• Adjusted EBITDA rose 15% to $140 million, and adjusted EBITDA margin expanded 150 basis points to 28.3%.
• Intellihot contributed 2 percentage points, or $6 million, of sales growth; price added another 2 points, with the remainder from unit volume.
• Year-to-date free cash flow was approximately $264 million, and the company said it remained on track for full-year free cash flow above $350 million.
• CEO Todd Adams said broader economic conditions and parts of the company’s end markets did not look likely to be tailwinds in 2027.