Zurn Elkay raises dividend 18% after sales climb to $495 million

Zurn Elkay Water Solutions raised its quarterly dividend 18% to $0.52 per share after third-quarter sales grew to $495 million, according to its earnings release filed with an 8-K.

The water infrastructure products maker reported sales up from $455 million a year earlier, with core sales up 7%. Earnings per share were $0.45, up from $0.35, and adjusted earnings per share were $0.52, up from $0.43.

Margins and cash flow

Adjusted EBITDA was $140 million, a margin of 28.3%, and free cash flow was $110 million, the release said. Net leverage stood at 0.4 times adjusted EBITDA.

"We were able to leverage our exceptional free cash flow to invest $35 million in share repurchases in the quarter as well as fund the Intellihot acquisition, which closed during the third quarter," Chairman and Chief Executive Todd A. Adams said.

Outlook

For the fourth quarter, Zurn Elkay expects sales of $430 million to $437 million and adjusted EBITDA of $120 million to $123 million. It expects full-year free cash flow above $350 million.

Why it matters

Zurn Elkay sells drains, faucets, drinking fountains, water heaters and related products used in commercial and institutional buildings. Its very low leverage gives it room to fund acquisitions such as Intellihot, buy back stock and raise its dividend at the same time, and the double-digit dividend increase signals confidence in continued cash generation.

Sources

1. Zurn Elkay Water Solutions Corporation Form 8-K with third-quarter 2026 results, filed Oct. 27, 2026 (accession 0001628280-26-067574)

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