Zurn Elkay Water Solutions Corporation reported third-quarter 2026 net sales of $495.1 million, up 8.7% from $455.4 million, and net income of $76.3 million versus $61.8 million. Diluted net income per share was $0.45 versus $0.36. Income from operations was $108.2 million compared with $77.5 million, while operating margin was 21.9%, up from 17.0%. The company attributed the margin improvement to product mix, productivity initiatives and supply-chain repositioning.
For the nine months ended September 30, 2026, net sales were $1,419.1 million versus $1,288.7 million, and net income was $248.5 million versus $155.9 million. Operating cash flow was $320.6 million compared with $254.8 million. Operating income included $49.1 million of IEEPA tariff refunds; excluding those refunds, it increased $75.0 million year over year. Zurn Elkay acquired 100% of Intellihot’s stock on July 21, 2026, for total consideration transferred of $107.3 million, excluding transaction costs and net of $2.1 million cash acquired. It repurchased 2,808,618 shares for $134.6 million and declared a quarterly dividend of $0.13 per share, payable December 7, 2026, to holders of record November 20, 2026.
Zurn Elkay Water Solutions Corporation (ZWS) reported third-quarter 2026 net sales of $495.1 million, up 9% from $455.4 million a year earlier; core sales grew 7%, with acquisitions adding 2%. Net income from continuing operations was $76.1 million versus $59.6 million, and diluted EPS from continuing operations was $0.45 versus $0.35. Adjusted EBITDA was $140.1 million, or 28.3% of sales, compared with $122.2 million, or 26.8%; adjusted diluted EPS was $0.52 versus $0.43.
Operating income was $108.2 million versus $77.5 million, and operating margin increased 490 basis points. The company completed its Intellihot acquisition and repurchased 0.7 million shares for $35 million during the quarter. It increased its annual dividend 18% to $0.52 per share. Free cash flow was $110 million, excluding IEEPA reciprocal tariff refunds received, net of related taxes paid; net debt leverage was 0.4x as of September 30, 2026.
For the fourth quarter, the company expects net sales of $430 million to $437 million and adjusted EBITDA of $120 million to $123 million. Full-year free cash flow is expected to exceed $350 million, excluding the net impact of tariff-related refunds received. Management cited uncertainty in served markets and the broader economy.
Zurn Elkay Water Solutions Corp director Thomas Christopoul acquired 641 shares on October 15, 2026, through director fees paid in restricted stock units. The units vested immediately, but payment is deferred until six months after his service as a director ends. The transaction lists a price of $46.83 per share; his reported direct holdings afterward were 119,076 shares.
Zurn Elkay Water Solutions Corp director Rosemary Schooler reported an acquisition of 534 shares of common stock on October 15, 2026. The transaction was for director fees paid in restricted stock units, which vested immediately; payment is deferred until six months after her service as a director ends. The transaction reported a price of $46.83 per share, and her resulting direct holdings were 62,831 shares.
Zurn Elkay Water Solutions Corp director Peggy Troy acquired 614 restricted stock units as director fees on October 15, 2026, at a reported price of $46.83 per share. The units vested immediately, but payment is deferred until six months after the reporting person's service as a director ends. Peggy Troy's reported direct holdings following the transaction were 66,342 shares; no Rule 10b5-1 plan is reported.
Zurn Elkay Water Solutions Corp director George C. Moore acquired 668 shares of Common Stock on October 15, 2026, as payment of director fees in restricted stock units. The reported transaction price was $46.83 per share. The units vested immediately, but payment is deferred until six months after his cessation of service as a director. His direct holdings after the transaction were 121,617 shares.
Zurn Elkay Water Solutions Corp (ZWS) director David C. Longren acquired 614 restricted stock units on October 15, 2026, as payment of director fees. The units vested immediately, with payout deferred until six months after his service as a director ends. The transaction lists a per-share price of $46.83; Longren’s reported direct position following the transaction was 99,435 shares.
Zurn Elkay Water Solutions Corp (ZWS) director Jacques Donavon Butler reported a purchase of 2,016 shares of Common Stock on 2026-08-19 in an open market or private transaction at $49.60 per share. Following this transaction, he directly holds 37,487 shares of ZWS Common Stock.
Kayne Anderson Rudnick Investment Management, LLC reported beneficial ownership of 8,892,394 shares of Zurn Elkay Water Solutions Corp common stock, representing 5.3% of the class as of June 30, 2026. The firm has sole voting power over 7,545,312 shares and shared voting power over 1,235,795 shares.
It holds sole dispositive power over 7,656,599 shares and shared dispositive power over 1,235,795 shares. The report is signed by Michael Shoemaker as Chief Compliance Officer of Kayne Anderson Rudnick Investment Management, LLC.
Mark W. Peterson, Chief Administrative Officer of Zurn Elkay Water Solutions Corp, sold 25,000 shares of Common Stock on 2026-08-04 at a weighted average price of $53.02 per share, in multiple trades between $52.93 and $53.14. After this sale he holds 308,814 shares directly, 5,603 shares through a 401(k) Plan, and fully vested stock options for 33,481 shares at $33.05 expiring 2031-10-05.