Zurn Elkay Water Solutions Posts Strong Q2 2026 Growth, Raises Full-Year Outlook — Zurn Elkay Water Solutions Corporation

Event summary

Q2 2026 net sales rose 10% year-over-year to $491 million, with core sales growth of the same percentage.
Net income from continuing operations more than doubled to $113 million (diluted EPS $0.67) compared to $50 million (diluted EPS $0.29) in Q2 2025.
Adjusted EBITDA margins expanded by 120 basis points to 27.7% of net sales, up from 26.5% in the prior year quarter.
The company repurchased $50 million worth of shares in Q2 2026 and received a $48 million cash refund related to previously paid IEEPA reciprocal tariffs.
Zurn Elkay completed the acquisition of Intellihot, a pioneer in high-efficiency water heating solutions.

The big picture

Zurn Elkay Water Solutions continues to leverage its operational efficiency initiatives, such as the Zurn Elkay Business System, to drive above-market growth. The acquisition of Intellihot positions the company for long-term expansion in high-efficiency water heating solutions, a strategic adjacency that aligns with broader industry trends toward sustainability and energy efficiency.

What we're watching

Integration Success: How Zurn Elkay will integrate Intellihot and realize long-term upside from the acquisition.
Margin Expansion: Whether the company can sustain its adjusted EBITDA margin expansion of 120 basis points.
Product Innovation: The pace at which Zurn Elkay launches new products into adjacent categories in late 2026 and 2027.