Zurn Elkay reported second-quarter 2026 net sales of $491.0 million and net income of $113.3 million (diluted EPS $0.67). Adjusted EBITDA was $136.0 million (27.7% of net sales) and adjusted diluted EPS was $0.50. The company recorded $47.6 million of IEEPA tariff refunds and repurchased $50 million of common stock in the quarter.

Financial Highlights

  • Revenue: Net sales of $491.0 million for the three months ended June 30, 2026 (compared with $444.5 million in Q2 2025).
  • Gross profit: $288.3 million for Q2 2026 (gross profit reported in condensed consolidated statements of operations).
  • Operating income: Income from operations of $152.3 million for Q2 2026.
  • Net income and EPS: Net income of $113.3 million; diluted net income per share $0.67 for the quarter.
  • Adjusted results: Adjusted EBITDA of $136.0 million (27.7% of net sales) and adjusted diluted EPS of $0.50 for Q2 2026.

Business Highlights

  • Core sales growth: Core sales increased 10% year-over-year in Q2 2026, with growth across all product categories.
  • Operational productivity: Management cited Zurn Elkay Business System initiatives — including 80/20 focus and supply chain improvements — as drivers of margin expansion and productivity gains.
  • Strategic acquisition: Completed acquisition of Intellihot (high-efficiency tankless gas and electric water heaters) and expects Intellihot sales of approximately $16 million for the remainder of 2026.
  • Capital allocation and liquidity: Deployed $50 million to repurchase 1.0 million shares in Q2 (total $100 million repurchased in H1 2026), paid $37 million in dividends in H1, and reported net cash position supporting low leverage (net debt leverage 0.3x as of June 30, 2026).

Original SEC Filing:

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