Zurn Elkay Water Solutions Corporation Q2 2026 Financial Report: Detailed Investor Analysis
Key Highlights from the Report
- Quarterly Report Filed: Zurn Elkay Water Solutions Corporation filed its Form 10-Q for the quarter ended June 30, 2026.
- Large Accelerated Filer Status: The company is classified as a “Large accelerated filer” and is listed on the New York Stock Exchange under the ticker “ZWS”.
- Shares Outstanding: As of the report date, there were 165,864,097 shares of common stock outstanding.
- Financial Position: The company reported total assets of \$2,781.1 million and total stockholders’ equity of \$1,659.1 million as of June 30, 2026.
- Current Liabilities: Reported current liabilities are \$312.2 million, showing an increase compared to the previous period.
Financial Performance
- Net Income: For the six months ended June 30, 2026, Zurn Elkay reported a net income of \$172.2 million, up from \$94.1 million for the same period in 2025.
- Gross Profit: The company achieved a gross profit of \$288.3 million for the quarter and \$494.1 million for the six months ended June 30, 2026.
- Earnings Per Share:
- Basic net income per share for the quarter: \$0.68
- Basic net income per share for the six months: \$1.03
- Diluted net income per share for the quarter: \$0.67
- Diluted net income per share for the six months: \$1.02
- Cash Flow:
- Net cash provided by operating activities for six months: \$172.2 million
- Cash used for investing activities: (\$6.7 million)
- Cash used for investing activities (prior year): (\$13.1 million)
- Share Repurchases & Dividends:
- Repurchase of common stock: (\$99.6 million) in the six months ended June 30, 2026
- Payment of common stock dividends: (\$36.8 million)
Price Sensitive Information for Shareholders
- Significant Growth in Net Income: The jump in net income from \$94.1 million in the prior year to \$172.2 million in the current reporting period signals robust performance and profitability, which could positively influence share prices.
- Aggressive Share Repurchase Program: The company repurchased \$99.6 million worth of shares in the six months, a move often seen as shareholder-friendly and likely to support share price by reducing outstanding shares and increasing EPS.
- Dividend Payments: Continued payment of dividends (\$36.8 million) reflects financial strength and commitment to returning value to shareholders.
- Restructuring Charges: The company incurred restructuring charges totaling \$2.7 million in the six months, compared to prior periods. While not substantial relative to net income, ongoing restructuring may signal further operational improvements or cost-cutting that could impact future results.
- Recent Accounting Pronouncements: The company disclosed adoption of new FASB standards (ASU 2024-03) related to expense disaggregation. While these changes are not immediately financial, they signal increased transparency, which could affect investor perception.
- Forward-Looking Statements: Management continues to emphasize growth and operational excellence under the Zurn Elkay Business System (ZEBS), targeting superior customer satisfaction and financial results. Investors may interpret this as a positive for future performance.
Additional Noteworthy Details
- Balance Sheet Strength: The company maintains a strong balance sheet, with assets exceeding liabilities by a significant margin, supporting future growth and potential acquisitions.
- Stockholder Equity: The increase in stockholder equity demonstrates value creation for shareholders, particularly through retained earnings and additional paid-in capital.
- Non-Accelerated Filer, Smaller Reporting Company, and Emerging Growth Company Status: Zurn Elkay does not fall under these categories, indicating its large size and maturity.
- Non-Shell Company: The company is not a shell company and continues to operate actively.
Potential Share Price Moving Factors
- Strong Earnings Growth: The significant increase in net income and EPS is likely to be viewed favorably by investors.
- Share Buybacks: The substantial share repurchase program will reduce the number of shares outstanding, potentially boosting the share price.
- Dividend Payments: Ongoing dividends provide direct shareholder returns and often support share price stability.
- Restructuring Initiatives: While charges are modest, any successful operational improvements could further enhance profitability.
- Adoption of New Accounting Standards: Increased transparency may improve investor confidence.
Disclaimer
The information provided herein is based on the unaudited condensed consolidated financial statements and related disclosures of Zurn Elkay Water Solutions Corporation for the quarter ended June 30, 2026. This article is intended for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with financial professionals before making any investment decisions. Past performance is not indicative of future results. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those anticipated.
