Overview

* Zurn Elkay Q3 net sales rise 11% yr/yr, beating analyst expectations, per LSEG data

* Adjusted EPS for Q3 grows 26% to $0.43, reflecting operational improvement

* Company increases annual dividend 22% and share repurchase authorization to $500 mln

Outlook

* Company expects Q4 core sales growth in high-single digits

* Zurn Elkay raises full-year 2025 adjusted EBITDA outlook to $437 mln-$440 mln

* Company anticipates full-year free cash flow to exceed $300 mln

Result Drivers

* PRICE REALIZATION AND PRODUCTIVITY - Sales growth driven by price realization and productivity savings, offset by inventory adjustments

* CASH GENERATION - Strong cash flow supports increased dividends and share repurchase authorization

* ADJUSTED EBITDA IMPROVEMENT - Adjusted EBITDA margin increased by 120 basis points, reflecting operational efficiency

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Beat $455.40 $442.61

mln mln (7

Analysts

)

Q3 Net $61.80

Income mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the construction supplies & fixtures peer group is "buy"

* Wall Street's median 12-month price target for Zurn Elkay Water Solutions Corp ( ZWS ) is $48.00, about 2.9% above its October 27 closing price of $46.62

* The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)