Zurn Elkay Water reports Q3 EPS 43c, consensus 40c

Reports Q3 revenue $455M, consensus $442.7M. Todd A. Adams, Chairman and Chief Executive Officer, commented, “We delivered a solid quarter as our sales and adjusted EBITDA(1) both exceeded the guidance we provided 90 days ago and will again raise our expectations for the full year. Third quarter core sales(1) growth was 11% compared to the prior year and adjusted EBITDA margin(1) was 26.8%, an increase of 120 basis points over the prior year third quarter. Free cash flow(1) in the quarter was $94 million which reduced our leverage to a record low of 0.6x. Our exceptional cash generation and strong balance sheet have us well positioned and provides optionality to execute our balanced capital allocation approach including cultivating the right M&A opportunities and continued return of capital to shareholders. We have increased our annual dividend 22% to $0.44 per share and also increased the share repurchase authorization to $500 million.”