Zurn Elkay Water Solutions Corporation reported a significant increase in financial performance for the first quarter of 2026, with net sales reaching $433.0 million, up 11.4% from $388.8 million in the same period last year. The company's income from operations also saw a notable rise, increasing by 29.5% to $82.1 million, compared to $63.4 million in the prior year. This growth was attributed to improved sales across nearly all product categories and the implementation of productivity initiatives under the Zurn Elkay Business System (ZEBS), which enhanced operational efficiency.
In terms of profitability, Zurn Elkay's net income from continuing operations was $58.9 million, a substantial increase from $43.6 million in the previous year. The diluted net income per share rose to $0.35 from $0.26, reflecting the company's strong operational performance. The effective income tax rate decreased to 23.4% from 26.9%, contributing to the improved net income figures. The company also reported a reduction in interest expense, which fell to $6.2 million from $7.3 million, primarily due to lower interest rates and increased cash balances.
Operationally, Zurn Elkay continued to execute restructuring initiatives aimed at optimizing its manufacturing footprint and reducing costs. The company incurred restructuring charges of $0.9 million during the quarter, down from $1.7 million in the same period last year. These actions are part of a broader strategy to enhance operational margins and adapt to market changes. The company reported a total of 166,871,913 shares outstanding as of April 16, 2026, and continued its stock repurchase program, buying back 1,047,291 shares for $50.0 million during the quarter.
Geographically, Zurn Elkay's sales were primarily driven by the U.S. market, which accounted for $398.6 million of total sales, up from $357.5 million in the previous year. The company also saw growth in Canada and other international markets, indicating a positive trend in geographic expansion. The company’s cash and cash equivalents stood at $273.5 million as of March 31, 2026, providing a solid liquidity position to support ongoing operations and strategic initiatives.
Looking ahead, Zurn Elkay remains optimistic about its growth trajectory, supported by a strong product portfolio and ongoing operational improvements. The company is focused on leveraging its market position to drive further sales growth and enhance profitability. Management expects to continue executing its restructuring plans and optimizing its operations to adapt to evolving market conditions, while also monitoring the impact of external factors such as tariffs and trade policies on its business.
About Zurn Elkay Water Solutions Corp
Zurn Elkay Water Solutions Corporation designs, manufactures, and markets sustainable water management products, including water safety, flow systems, hygienic fixtures, and filtered drinking water solutions. Serving institutional, commercial, waterworks, and residential markets, it emphasizes innovation, specification-driven solutions, and long-term customer relationships. The company leverages a disciplined operating system, strategic acquisitions, and a broad distribution network to maintain industry leadership in water efficiency, safety, and hygiene.
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