Zurn Elkay Water Solutions Q3 2026: Dividend Up 18% With More Growth Ahead
As seen on the 24/7 Wall St. homepage on October 27, 2026.
The dividend just went up 18% while management called its own fourth quarter outlook conservative, a rare combination of confidence and caution from a water infrastructure name. Both EPS and revenue beat expectations, with free cash flow still guided above $350 million.
Continue ReadingShow less
Growth is still compounding here: revenue of $495.1 million rose 8.7% from a year ago, with adjusted EPS of $0.52 and revenue both exceeding expectations on core sales strength and the recently completed Intellihot acquisition.
Favorable product mix, supply chain repositioning, and productivity initiatives under the Zurn Elkay Business System lifted adjusted EBITDA margins 150 basis points to 28.3%, and the resulting cash funded both buybacks and the Intellihot deal.
The company raised its annual dividend 18% to $0.52 per share, a move CEO Todd A. Adams tied directly to confidence in the long-term fundamentals of the business and the Zurn Elkay Business System. Adams described the Q4 setup plainly: 'It feels like a time to be conservative in our assumptions while remaining aggressive with our actions.'
Sponsored
Twelve Tabs, One Thesis
Your Research Resets Every Morning
The quote page in one tab. Filings in another. A chart you rebuilt from scratch, a transcript you never went back and found, a screener whose settings you will redo next week. Nothing you built yesterday is still there.
AlphaSpace replaces all of it with one screen you arrange yourself. Earnings calendar, estimate versus actual, the call transcript, live news, your own charts, every panel wired to whatever ticker you click. Close the browser and it is all still sitting there tomorrow.
See What a Built View Looks Like →
(Sponsor)
The addressable market is widening: the Intellihot acquisition and the Wilkins backflow product line anchor a hot water loop strategy, and Zurn Elkay separately entered the digital master mixing valve market during Q4 with internally developed products. Management said these moves expanded the company's served markets by roughly $400 million in 2026 alone.
Full-year 2026 free cash flow is expected to exceed $350 million, excluding the net impact of tariff-related refunds. That target, combined with the dividend increase and active share buybacks, signals that management views the cautious guidance as a response to macro uncertainty rather than weakness in the business.
Mentioned: ZWS