Q3 2025 Zurn Elkay Water Solutions Corp Earnings Call Transcript
Key Points
- Zurn Elkay Water Solutions Corp (ZWS) reported an 11% organic sales growth year over year in the third quarter.
- EBITDA grew 16% to $122 million, with margins expanding by 120 basis points to 26.8%.
- The company repurchased about 600,000 shares, totaling $135 million year-to-date, while leverage declined to 0.6 times.
- ZWS raised its dividend by 22% and refreshed its share buyback program to $500 million.
- The company completed the termination of its US pension plan, eliminating a $200 million liability.
- The residential market continues to experience softness, impacting overall growth.
- Tariff costs for 2025 are expected to be approximately $50 million, higher than initially projected.
- The market outlook for 2026 is expected to be similar to 2025, indicating a low growth environment.
- There is uncertainty around tariffs and interest rate reductions, affecting market acceleration projections.
- The company's entry into residential drinking water with the Live Easy product is not expected to be a major growth driver.
Good morning and welcome to the Zurn Elkay Water Solutions Corporation. Third quarter 2025 earnings results conference call with Todd Adams, Chairman and Chief Executive Officer Dave Pauli, Chief Financial Officer, and Bryan Wendlandt, director of FPNA for Zurn Elkay Water Solutions.
A replay of the conference call will be available as a webcast on the company's investor relations website. At this time, for opening remarks and introduction, I'll turn the call over to Bryan Wendlandt.
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Good morning, everyone, and thanks for joining the call today. Before we begin, I'd like to remind everyone that this call contains certain forward-looking statements which are subject to the Safe Harbor language outlined in her press release issued yesterday afternoon and in her filings with the SEC.
In addition, some comparisons will refer to non-GAAP measures. Our earnings release and SEC filings contain additional information about these non-GAAP measures, why we use
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