Zurn Elkay Water Solutions Corp — Form 8-K
Filed July 28, 2026 · analyzed by the 8-K Agent
8-K
▲ Likely positive
significance 58/100
What the filing says
Zurn Elkay reported Q2 2026 net sales of $491M (+10% core growth YoY) with net income from continuing operations of $113M ($0.67 diluted EPS) vs. $50M ($0.29) in Q2 2025. Adjusted EBITDA was $136M (27.7% margin, +120 bps YoY). The company completed acquisition of Intellihot (high-efficiency water heating) and raised full-year 2026 adjusted EBITDA guidance to $503–$513M (vs. prior implied lower range). H1 2026 included $48M IEEPA tariff refund. Share repurchases: $100M in first half (1.0M shares in Q2 alone at ~$50/share). Net debt leverage: 0.3x.
Why this rating
Strong Q2 operational performance (+10% core growth, 120 bps margin expansion), successful Intellihot acquisition into adjacency, raised FY guidance, and fortress balance sheet (0.3x leverage, $365M cash). However, Intellihot contributes only ~$16M FY2026 sales (~0.3% of company size); tariff refund is one-time non-recurring. Core organic growth and margin expansion are meaningful but at a $6B company, not transformational.
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