# Zurn Elkay Water Solutions Corporation (ZWS)

> Source: Nexqual · https://nexqual.com/ZWS · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Zurn Elkay Water Solutions Corporation (ZWS), nexqual.com/ZWS" · informational, not investment advice.

**Price:** USD 48.66 (+0.58% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 48.38 · day 47.27–49.17 · 52w 43.06–55 · market cap $8.07B · NYQ

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $1.79B, net income $276M (15.5% margin) (SEC filings).
- Valuation: P/E 29.2x (avg 42.4x at the last 3 fiscal year-ends), EV/EBITDA 20.5x, net debt $134M.
- Insider open-market sales, last ~7 months: 1 Form 4 filings, $1.3M; 1 not under a Rule 10b5-1 plan ($1.3M); 0 by opportunistic insiders, 0 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Insider open-market purchases, last ~7 months: 1 Form 4 filing, $100K; 0 by opportunistic insiders, 0 by routine insiders.
- Analysts: Hold (mean 2.50 on a 1–5 scale) (10 analysts), mean target USD 56.89 (range 51–65).
- Total return with dividends: 1Y +7.1% vs S&P 500 +14.9%; 5Y +39.9% vs S&P 500 +80.3%.
- Next earnings: 2026-10-27, EPS estimate USD 0.5, revenue estimate $493M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $911M | $1.28B | $1.53B | $1.57B | $1.70B | $1.79B |
| Gross profit | $373M | $466M | $648M | $707M | $765M | — |
| Operating income | $107M | $107M | $191M | $245M | $279M | $372M |
| Net income | $121M | $61.7M | $113M | $160M | $198M | $276M |
| EPS (diluted) | $0.97 | $0.40 | $0.64 | $0.92 | $1.15 | — |
| Gross margin | 41.0% | 36.3% | 42.3% | 45.1% | 45.1% | — |
| Operating margin | 11.7% | 8.4% | 12.5% | 15.6% | 16.4% | 20.8% |
| Net margin | 13.3% | 4.8% | 7.4% | 10.2% | 11.7% | 15.5% |
| Revenue growth | +22.1% | +40.7% | +19.4% | +2.4% | +8.3% | — |
| Cash + short-term investments | $96.6M | $125M | $137M | $198M | $301M | — |
| Total debt | $540M | $536M | $495M | $496M | $497M | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 29.2x · P/S 4.5x · EV/EBITDA 20.5x · EV/Sales 4.6x · P/B 4.9x · Earnings yield 3.42% · Dividend yield (paid, TTM) 0.87% · Buyback yield (TTM) 1.85% · Net debt $134M · EV $8.21B
P/E at fiscal year-ends: Dec 2025 40.2x, Dec 2024 40.7x, Dec 2023 46.3x.

## Insider sales (SEC Form 4, open-market, last ~7 months)
0 of 1 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-08-04 | Peterson Mark W | Chief Administrative Officer | 25,000 | $1.3M | 7.4% | No | Too little history (no open-market trades in 2023) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Insider purchases (SEC Form 4, open-market, last ~7 months)
1 purchase, $100K. Private placements, offerings, dividend reinvestment and employee stock purchase plan buys are excluded.
| Trade date | Insider | Role | Shares | Value | Avg price | Insider type |
|---|---|---|---|---|---|---|
| 2026-08-19 | Butler Jacques Donavon | Director | 2,016 | $100K | 49.6 | Too little history (no open-market trades in 2023–2025) |

## Analysts
Consensus Hold (mean 2.50 on a 1–5 scale), 10 analysts; mean target USD 56.89 (low 51, high 65).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-14 | RBC Capital | Target lowered | Sector Perform | $58 → $54 |
| 2026-09-09 | Oppenheimer | Target raised | Outperform | $58 → $60 |
| 2026-07-31 | Barclays | Target raised | Overweight | $59 → $61 |
| 2026-07-30 | RBC Capital | Target raised | Sector Perform | $56 → $58 |
| 2026-07-30 | Stifel | Target raised | Buy | $56 → $62 |
| 2026-07-20 | Stifel | Target lowered | Buy | $59 → $56 |
| 2026-06-30 | Barclays | Initiated | Overweight | $59 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +7.1% | +39.9% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +7.2% | +6.9% |
| Volatility (annualized) | 27.4% | 30.3% |
| Max drawdown | -17.0% (Feb 2026→Mar 2026) | -47.1% (Nov 2021→Mar 2023) |

## Peers (Pollution & Treatment Controls)
VLTO (Veralto Corp) USD 104.9 +3.54% · PCT (PureCycle Technologies, Inc.) USD 2.78 +0.36% · ADUR (Aduro Clean Technologies Inc.) USD 10.07 -2.89% · CDZI (Cadiz, Inc.) USD 4.06 +2.27% · ERII (Energy Recovery, Inc.) USD 6.67 +0.30%

## More
Full page: https://nexqual.com/ZWS · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Revenue by region (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| United States | $452.1M | 92.1% | +10.2% |
| Canada | $26.9M | 5.5% | +6.3% |
| Rest of world | $12.0M | 2.4% | +36.4% |
| Total revenue | $491.0M | 100% | — |

## Customer concentration

Period ended 2025-12-31: 18% of revenue from unnamed direct customers (10-K, filed 2026-02-09).

## Company outlook (8-K filed 2026-07-28)

- "For the third quarter, we expect core sales (1) growth of approximately 6% to 7% and adjusted EBITDA margins (1) to be around 28%."
- "We currently expect mid-single digit core (1) growth in the fourth quarter and for the full year 2026, adjusted EBITDA (1) between $503 million to $513 million, which would represent year-over-year margin expansion of roughly 140 basis points compared to 2025 (excluding all tariff related refunds)."
- "We expect Intellihot sales to approximate $16 million for the remainder of 2026."
- "Finally, we expect full year free cash flow (1) of at least $350 million, which also excludes the net impact of tariff related refunds we've already received." Second Quarter 2026 Overview Net sales were $491.0 million and $444.5 million during the three months ended June 30, 2026 and June 30, 2025, respectively, an increase of 10% year over year."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $0.50 | $0.48 | +4.3% | $493.4M | 10 |
| Next quarter (ends 2026-12-31) | $0.42 | $0.39 | +7.4% | $438.1M | 9 |
| Current fiscal year (ends 2026-12-31) | $1.83 | $1.76 | +4.3% | $1.85B | 10 |
| Next fiscal year (ends 2027-12-31) | $2.03 | $1.93 | +5.5% | $1.97B | 10 |