Description
Zurn Elkay Water Solutions Is Targeting Underserved Markets—But How Big Is the Opportunity?
Zurn Elkay Water Solutions Corporation reported a fourth quarter of 2025 characterized by 10% organic sales growth year-over-year and a 14% increase in adjusted EBITDA to $104 million, with a 100-basis-point expansion in EBITDA margin to 25.6%. For the full year, the company achieved free cash flow of $317 million, representing a 17% improvement over 2024, while reducing leverage to 0.4x, the lowest since becoming a public entity. Share repurchases totaled $160 million alongside dividend payments of $64 million. The company highlighted the operational benefits derived from its Zurn Elkay Business System, emphasizing continuous improvement efforts evidenced by increased employee-submitted suggestions and supply chain optimization initiatives, which were noted as effectively implemented in 2025. Total fourth-quarter sales reached $407 million, with growth outperforming earlier outlooks due primarily to price/cost benefits stemming from tariff-related pricing actions, contributing roughly five percentage points to the quarter.
