Zurn Elkay Water Solutions (ZWS) Posts Q3 Sales Up 9% With 28.3% Adj. EBITDA Margin

What happened

Zurn Elkay Water Solutions reported Q3 2026 net sales of $495.1 million, up 9% from a year earlier, with core sales up 7%. Adjusted EBITDA was $140.1 million, a 28.3% margin. It raised its annual dividend 18% to $0.52.

Confirmed

Global impact / market context

Higher sales and a wider profit margin mean Zurn keeps more profit from each sale. The dividend increase returns more cash to shareholders, while strong free cash flow funds both payouts and acquisitions of other companies.

Analyst inference

The Q4 sales guide of $430–$437 million is below Q3, which the article frames as conservatism amid macro uncertainty. Core sales growth shows demand holding up, with acquisitions adding to overall sales growth.

Analyst inference

What to watch

1. Q4 net sales guidance of $430–$437 million and adjusted EBITDA guidance of $120–$123 million will show whether the sequential step-down in sales and profit plays out as guided. Confirmed
2. Watch for a beat or raise in Q4 results or clearer visibility on demand and margin durability, which the article says would strengthen the multi-quarter catalyst. Proposed
3. Strong free cash flow supports capital returns and acquisitions, but it excludes the net impact of tariff refunds, so cash generation quality depends on that detail. Analyst inference

Evidence

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