Zurn Elkay Water reports Q2 adjusted EPS 42c, consensus 36c

Reports Q2 revenue $444.5M, consensus $424.58M. Todd A. Adams, Chairman and Chief Executive Officer, commented, “We continue to navigate the global tariff dynamic extraordinarily well as the diversity and flexibility of our supply chain, selective pricing actions and the Zurn Elkay Business System drove strong results in the quarter. Second quarter core sales growth was 8% year over year and includes some customer buy ahead as well as some early benefit from our pricing actions implemented in the quarter. Adjusted EBITDA margins were above the high end of our guidance range at a record 26.5% and up 120 basis points over the prior year second quarter. Free cash flow, inclusive of the $33 million we deployed to buy back shares, exceeded $100 million in the quarter for the first time ever while our leverage declined to 0.7x.”