Q1 2026 Zurn Elkay Water Solutions Corp Earnings Call Transcript
Key Points
- Zurn Elkay Water Solutions Corp (ZWS) reported an 11% organic sales growth in the first quarter of 2026.
- EBITDA increased by 18% to $116 million, with margins expanding by 160 basis points to 26.8%.
- The company generated $43 million in free cash flow and repurchased $50 million worth of shares.
- Zurn Elkay Water Solutions Corp (ZWS) has a strong balance sheet with a net debt leverage of 0.5 times.
- The company successfully upsized and extended its revolver from $200 million to $550 million, enhancing liquidity.
- Residential end markets showed softness, partially offsetting growth in non-residential markets.
- The company faces potential challenges from changes in tariffs, including the implementation of new tariffs and changes to existing ones.
- There is uncertainty regarding the impact of tariffs on the company's outlook, with potential adverse changes anticipated.
- The company is taking a conservative approach to its full-year outlook due to global uncertainties and market conditions.
- Zurn Elkay Water Solutions Corp (ZWS) is pausing its full-year guidance update until after the second quarter, which may cause concern among investors.
Good morning and welcome to the Zurn Elkay Water Solutions Corporation first-quarter 2026 earnings results conference call with Todd Adams, Chairman and Chief Executive Officer; David Pauli, Chief Financial Officer; and Bobbi Belstner, Vice President and Corporate Controller 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 Bobbi Belstner.
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 our press release issued yesterday afternoon and in our 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
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