NYSE:ZWS
Zurn Elkay Water Solutions Corp
A global leader in innovative plumbing fixtures and water treatment technologies driving sustainable infrastructure growth worldwide.
Key Metrics
Investment Thesis
Bull Case
Consistent revenue growth coupled with accelerating profitability demonstrates a resilient business model adapting to water scarcity challenges. Robust cash generation supports aggressive shareholder returns through buybacks and dividends while investing in R&D for next-generation water solutions.
Bear Case
Significant accumulated other comprehensive losses of $-76.7M and a retained earnings deficit of $-1.13B indicate historical financial stress that may require time to reverse. Heavy reliance on construction cycle exposes earnings to potential downturns in housing starts and commercial development spending.
About Zurn Elkay Water Solutions Corp
Zurn Elkay Water Solutions Corp designs, manufactures, and sells plumbing products, water quality treatment systems, and commercial water distribution solutions globally. The company serves diverse markets including residential construction, commercial building projects, industrial facilities, and municipal infrastructure with a focus on sustainability and innovation.
Analysis
Management Discussion
Revenue grew from $1.53B in 2023 to $1.70B in 2025 while net income expanded significantly from $112.7M to $198.0M, demonstrating improved operational efficiency and margin expansion. Strong operating cash flow of $346.5M funded substantial share repurchases of $159.9M and dividends of $63.9M, signaling confident capital allocation.
Industry Overview
The global plumbing and water treatment industry is experiencing structural growth driven by aging infrastructure replacement needs, increasing focus on water conservation, and stringent environmental regulations requiring advanced filtration technologies.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $1.28B | $1.53B | $1.57B | $1.70B |
| Cost of Revenue | $816.3M | $882.4M | $859.5M | $931.1M |
| Gross Profit | $465.5M | $648.1M | $707.0M | $764.8M |
| Operating Expenses | $358.4M | $456.7M | $462.4M | $485.9M |
| Operating Income | $107.1M | $191.4M | $244.6M | $278.9M |
| G&A | $309.0M | $371.3M | $389.8M | $417.6M |
| Stock-Based Comp | $25.0M | $40.0M | $37.9M | $40.6M |
| Depreciation | $20.5M | $29.2M | $29.2M | $30.0M |
| Amortization | $34.0M | $58.7M | $59.1M | $58.7M |
| Other OpEx | $49.4M | $85.4M | $72.6M | $68.3M |
| Non-Operating Income | $-23.3M | $-44.6M | $-37.6M | $-22.6M |
| Interest Expense | $26.9M | $38.5M | — | — |
| Interest Income | — | — | $7.8M | $7.6M |
| Pre-Tax Income | $83.8M | $146.8M | $207.0M | $256.3M |
| Income Tax | $26.8M | $42.6M | $48.1M | $63.9M |
| Continuing Ops | $57.0M | $104.2M | $158.9M | $192.4M |
| Discontinued Ops | $4.7M | $8.5M | $1.3M | $5.6M |
| Net Income | $61.7M | $112.7M | $160.2M | $198.0M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $61.7M | $112.7M | $160.2M | $198.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $757.5M | $667.8M | $722.1M | $811.7M |
| Cash & Equivalents | $124.8M | $136.7M | $198.0M | $300.5M |
| Accounts Receivable | $219.7M | $210.2M | $202.2M | $184.8M |
| Inventory | $366.7M | $277.6M | $272.6M | $274.4M |
| Other Current Assets | $46.3M | $43.3M | $49.3M | $52.0M |
| Long-Term Assets | $2.11B | $2.00B | $1.93B | $1.87B |
| Intangibles | $1.01B | $952.4M | $891.6M | $835.0M |
| Goodwill | $777.0M | $796.0M | $794.2M | $795.0M |
| Operating Leases | $42.6M | $46.4M | $51.2M | $52.4M |
| Other LT Assets | $277.2M | $204.4M | $189.4M | $185.3M |
| Total Assets | $2.86B | $2.67B | $2.65B | $2.68B |
| Current Liabilities | $289.3M | $220.9M | $247.8M | $259.4M |
| Accounts Payable | $116.9M | $56.4M | $71.7M | $65.2M |
| Current Debt | $5.7M | $900.0K | $800.0K | $900.0K |
| Current Leases | $9.4M | $10.6M | $12.7M | $14.7M |
| Taxes Payable | $2.3M | $3.5M | $2.3M | $3.1M |
| Other Current Liab | $155.0M | $149.5M | $160.3M | $175.5M |
| Long-Term Liabilities | $959.7M | $843.3M | $813.9M | $816.7M |
| Long-Term Debt | $530.2M | $494.4M | $494.8M | $495.6M |
| LT Operating Leases | $34.2M | $37.3M | $43.3M | $42.0M |
| Other LT Liab | $395.3M | $311.6M | $275.8M | $279.1M |
| Total Liabilities | $1.25B | $1.06B | $1.06B | $1.08B |
| Shareholders' Equity | $1.61B | $1.60B | $1.59B | $1.60B |
| Paid-In Capital | $2.85B | $2.85B | $2.83B | $2.81B |
| Retained Earnings | $-1.16B | $-1.18B | $-1.17B | $-1.13B |
| AOCI | $-75.0M | $-67.7M | $-74.4M | $-76.7M |
| Total L&E | $2.86B | $2.67B | $2.65B | $2.68B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $61.7M | $112.7M | $160.2M | $198.0M |
| Non-Cash Adjustments | $152.5M | $271.6M | $129.7M | $168.0M |
| Working Capital Changes | $-117.2M | $-130.4M | $3.6M | $-19.5M |
| Cash from Operations | $97.0M | $253.9M | $293.5M | $346.5M |
| Cash from Investing | $-6.6M | $-4.6M | $-20.2M | $-29.9M |
| Debt Repayments | $107.7M | $77.9M | $800.0K | $800.0K |
| Share Buybacks | $24.7M | $125.1M | $150.2M | $159.9M |
| Dividends Paid | $32.5M | $50.4M | $56.6M | $63.9M |
| Cash from Financing | $-61.1M | $-239.2M | $-207.5M | $-217.3M |
| FX Effect | $-1.1M | $1.8M | $-4.5M | $3.2M |
| Net Change in Cash | $28.2M | $11.9M | $61.3M | $102.5M |
| Beginning Cash | $96.6M | $124.8M | $136.7M | $198.0M |
| Ending Cash | $124.8M | $136.7M | $198.0M | $300.5M |
Frequently Asked Questions
How does Zurn Elkay Water Solutions Corp make money?
The company operates primarily through three core revenue streams: plumbing products covering faucets and fittings, water quality treatment solutions for residential and commercial filtration, and commercial water distribution systems serving the construction and industrial sectors.
What are the main risks for ZWS?
Cyclical dependence on housing construction and commercial real estate investment levels, exposure to raw material price volatility affecting cost margins, potential regulatory changes impacting water treatment standards, and currency exchange rate fluctuations impacting international operations.
What is ZWS's competitive advantage?
Strong brand recognition in the global plumbing market, extensive product portfolio offering cross-selling opportunities across residential and commercial segments, and a robust distribution network enabling rapid deployment of water safety technologies.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.