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Get filing alertsZurn Elkay reports 10% Q2 sales growth, raises full-year outlook on margin expansion
Filed July 28, 2026 · Period ending July 28, 2026 · ~1 min read
Key Changes
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Q2 net sales rose 10% to $491M with adjusted EBITDA margin expanding 120 bps to 27.7%; adjusted EPS increased 19% to $0.50, reflecting pricing realization and productivity gains.
Exhibit 99.1 view on EDGAR → -
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Received $48M cash refund for previously paid IEEPA reciprocal tariffs, boosting GAAP operating income by $47.6M (excluded from adjusted EBITDA); one-time benefit elevated reported earnings.
Exhibit 99.1 view on EDGAR → -
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Exhibit 99.1 view on EDGAR →
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Completed acquisition of Intellihot, a pioneer in high-efficiency tankless water heaters; expects $16M in sales contribution for remainder of 2026 and long-term upside in adjacent category.
Exhibit 99.1 view on EDGAR → -
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Repurchased $50M of shares (1.0M shares) in Q2, bringing first-half 2026 buybacks to $100M; paid $37M in dividends with net debt leverage at 0.3x, maintaining capital allocation flexibility.
Exhibit 99.1 view on EDGAR →
Summary
Zurn Elkay delivered strong second-quarter results and raised its full-year outlook, signaling continued operational momentum. Net sales grew 10% year-over-year to $491 million, driven by core sales growth across all product categories. Adjusted EBITDA margin expanded 120 basis points to 27.7%, reflecting pricing realization and productivity initiatives, while adjusted EPS rose 19% to $0.50.
The company also received a $48 million cash refund for previously paid IEEPA reciprocal tariffs, a one-time benefit that boosted GAAP earnings but was excluded from adjusted metrics.
The company completed the acquisition of Intellihot, a high-efficiency tankless water heater manufacturer, which is expected to contribute $16 million in sales for the remainder of 2026 and expand the product portfolio into an adjacent category. Zurn Elkay also deployed $50 million to repurchase shares in the quarter, bringing first-half buybacks to $100 million, while maintaining a low net debt leverage ratio of 0.3x. The raised outlook and continued capital returns reflect confidence in sustained above-market growth and operational leverage.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
Zurn Elkay disclosed Q2 2026 financial results via earnings release.
Added in current filing · verify on EDGAR →
Zurn Elkay Water Solutions Corporation (the "Company") is filing this Current Report on Form 8-K to furnish its earnings release dated July 28, 2026, regarding its financial results for the quarter ended June 30, 2026
The company announced its financial results for the second quarter ended June 30, 2026. The earnings release is attached as Exhibit 99.1, but the 8-K body itself does not disclose specific financial metrics such as revenue, earnings per share, or guidance.
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
Net sales in the quarter were $491 million compared with $445 million in last year’s June quarter (+10% core sales(1)).
•Net income from continuing operations was $113 million (diluted EPS from continuing operations of $0.67) compared with net income from continuing operations of $50 million (diluted EPS from continuing operations of $0.29) in the year-ago quarter.
•Adjusted EBITDA(1) was $136 million (27.7% of net sales) compared with $118 million (26.5% of net sales) in last year's second quarter.
•Adjusted EPS(1) was $0.50 compared with $0.42 in the year-ago quarter.
Zurn Elkay delivered strong Q2 2026 results. Net sales rose 10% year-over-year to $491 million, driven by 10% core sales growth across all product categories. Adjusted EBITDA margin expanded 120 basis points to 27.7%, reflecting pricing realization and productivity initiatives. Adjusted EPS increased 19% to $0.50. GAAP diluted EPS from continuing operations more than doubled to $0.67, boosted by a $47.6 million tariff refund.
Added in current filing · view on EDGAR →
We’re pleased to have completed the acquisition of Intellihot, which has been a long-term proprietary cultivation of a strategic opportunity in an adjacency we had wanted to enter. Intellihot is a pioneer in high-efficiency water heating, offering tankless gas and electric water heaters into our core markets and verticals that provide category leading efficiency and reliability. ... We expect Intellihot sales to approximate $16 million for the remainder of 2026.
Zurn Elkay completed the acquisition of Intellihot, a pioneer in high-efficiency tankless water heaters. The deal expands the company's product portfolio into an adjacent category serving its core markets. Management expects Intellihot to contribute approximately $16 million in sales for the remainder of 2026 and sees significant long-term upside as integration proceeds.
Added in current filing · view on EDGAR →
For the third quarter, we expect core sales(1) growth of approximately 6% to 7% and adjusted EBITDA margins(1) to be around 28%. We currently expect mid-single digit core(1) growth in the fourth quarter and for the full year 2026, adjusted EBITDA(1) between $503 million to $513 million, which would represent year-over-year margin expansion of roughly 140 basis points compared to 2025 (excluding all tariff related refunds). ... Finally, we expect full year free cash flow(1) of at least $350 million, which also excludes the net impact of tariff related refunds we've already received.
Management raised full-year 2026 guidance. For Q3, the company expects 6-7% core sales growth and adjusted EBITDA margin around 28%. For the full year, adjusted EBITDA is projected at $503-513 million, representing roughly 140 basis points of margin expansion versus 2025 (excluding tariff refunds). Free cash flow is expected to be at least $350 million, also excluding tariff refunds. The outlook reflects continued above-market growth and operational leverage.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 29, 2026 · How we verify