Q2 2026 Zurn Elkay Water Solutions Corp Earnings Call Transcript

Jul 29, 2026 / 12:30 PM GMT

Release Date Price: $51.55 (+4.54%)

Transcript 10-Q8-K

Key Points

Positve

Zurn Elkay Water Solutions Corp (ZWS) reported a 10% organic sales growth in Q2 2026, with EBITDA increasing by 15% and margin expanding by 120 basis points to a record 27.7%.
The company generated $112 million in free cash flow and repurchased $50 million of its shares, demonstrating strong financial health and shareholder value return.
The acquisition of Intellihot is expected to significantly enhance ZWS's market position, with a clear path to double-digit return on invested capital in three years.
ZWS raised its full-year outlook for sales, EBITDA, and free cash flow, indicating confidence in continued strong performance.
The company's strategic focus on high-margin products and continuous improvement initiatives has led to substantial margin expansion and operational efficiency gains.

Negative

There is ongoing work required for the integration of Intellihot, which may present challenges and require significant resources.
The residential and pockets of commercial markets showed some softness, partially offsetting the positive momentum in institutional markets.
The company's growth strategy involves significant investment in new products and adjacencies, which may not yield immediate returns.
ZWS's reliance on non-GAAP measures for reporting may obscure the full financial picture for some investors.
The transition from Section 122 tariffs to Section 301 tariffs introduces some uncertainty in cost structures and pricing strategies.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

ZWS.N - Zurn Elkay Water Solutions Corp
Q2 2026 Zurn Elkay Water Solutions Corp Earnings Call
Jul 29, 2026 / 12:30PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning and welcome to the Zoom.

I, LK Water Solutions Corporation second quarter 2026 earnings results conference call with Todd Adams, Chairman and Chief Executive Officer Dan Klun, Chief Financial Officer Dave Foley, Chief Operating Officer Jeff Koon, President, and Bobby Bussner.

Vice President and corporate controller for LK Water Solutions, a replay of this 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 Bobby Bouncer.

Good morning everyone, and thanks for joining the call today.

Before we begin, I'd like to remind everyone that this

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