olivLaw · US equity research
Zurn Elkay Water Solutions Corporation ZWS
General Industrial Machinery & Equipment · SIC 3560 · Vertical: General Industrial Machinery & Equipment (SIC 3560)
Zurn Elkay Water Solutions is a specialist supplier of water management products for institutional and commercial buildings, with products specified into projects and brands well known in the United States. In 2026 the company grew sales and raised its outlook while completing the Intellihot acquisition, valued at about 108.5 million USD.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Zurn Elkay Water Solutions Corporation (ZWS) stock was 45.15 USD (+2.33% on the day), with market capitalisation 7.5 bn USD, P/E 26.3 on diluted EPS of 1.72 USD over the last 12 months, dividend yield 0.97%, beta 0.90, 52-week range 43.50–53.18 USD. Latest reported quarter (Q3 2026): revenue of 495.1 m USD (+8.7% YoY), net income of 76.3 m USD (+23.5% YoY), diluted EPS 0.45 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 42.4
- weak (30–45)
- Bollinger (20, 2)
- 43.34 – 50.03
- in the lower half of the band · %B 0.27 · band width 14.3%
- SMA 50 / 200
- 46.84 / 48.27
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.64 / -0.29
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −5.9% | −1.1% | −4.8 pp | — |
| 3 months | −14.4% | −0.5% | −14.0 pp | — |
| 6 months | −11.7% | +4.4% | −16.1 pp | — |
| Year to date | −2.9% | +12.3% | −15.2 pp | — |
| 1 year | −3.7% | +13.5% | −17.2 pp | +19.3% |
| 3 years | +57.6% | +76.4% | −18.8 pp | +63.3% |
| 5 years | +26.4% | +63.7% | −37.3 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 370.7 m | 388.8 m | 444.5 m | 455.4 m | 407.2 m | 433.0 m | 491.0 m | 495.1 m |
| Cost of revenue | 209.5 m | 207.8 m | 242.2 m | 254.7 m | 226.4 m | 227.2 m | 202.7 m | 249.3 m |
| Gross profit | 161.2 m | 181.0 m | 202.3 m | 200.7 m | 180.8 m | 205.8 m | 288.3 m | 245.8 m |
| SG&A | 93.3 m | 101.2 m | 108.2 m | 106.7 m | 101.5 m | 108.2 m | 119.5 m | 121.0 m |
| Operating income | 49.3 m | 63.4 m | 77.6 m | 77.5 m | 60.4 m | 82.1 m | 152.3 m | 108.2 m |
| Interest expense | 7.5 m | 7.3 m | 7.7 m | 7.1 m | 6.5 m | 6.2 m | 6.1 m | 6.3 m |
| Pre-tax income | 41.8 m | 56.1 m | 67.9 m | 79.1 m | 53.2 m | 76.9 m | 150.1 m | 102.6 m |
| Income tax | 5.7 m | 15.1 m | 17.8 m | 19.5 m | 11.5 m | 18.0 m | 37.6 m | 26.5 m |
| Net income | 36.4 m | 43.6 m | 50.5 m | 61.8 m | 42.1 m | 58.9 m | 113.3 m | 76.3 m |
| Diluted EPS | 0.21 ≈ | 0.26 | 0.29 | 0.36 | 0.25 ≈ | 0.35 | 0.67 | 0.45 |
| Operating cash flow | 63.6 m | 42.9 m | 110.6 m ≈ | 101.3 m ≈ | 91.7 m | 46.1 m | 162.3 m ≈ | 112.2 m ≈ |
| Dividends paid | 15.3 m | 15.2 m | 15.1 m ≈ | 15.1 m ≈ | 18.5 m | 18.4 m | 18.4 m ≈ | 18.2 m ≈ |
| Share repurchases | 20.3 m | 77.4 m | 32.5 m ≈ | 25.0 m ≈ | 25.0 m | 50.0 m | 49.6 m ≈ | 35.1 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 31 percentile of its own 32-quarter history (min 9.6, median 36.7, max 89.6; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | ⚠ 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.9 bn | 710.1 m | 562.7 m | 910.9 m | 1.3 bn | 1.5 bn | 1.6 bn | 1.7 bn |
| Revenue YoY | +8.1% | — | −20.8% | +61.9% | +40.7% | +19.4% | +2.4% | +8.3% |
| Net income | 75.9 m | 34.3 m | 146.7 m | 120.9 m | 61.7 m | 112.7 m | 160.2 m | 198.0 m |
| Net income YoY | +2.4% | — | +327.7% | −17.6% | −49.0% | +82.7% | +42.1% | +23.6% |
| Diluted EPS | 0.62 | 0.28 | 1.19 | 0.97 | 0.40 | 0.64 | 0.92 | 1.15 |
| Diluted EPS YoY | −3.1% | — | +325.0% | −18.5% | −58.8% | +60.0% | +43.8% | +25.0% |
| net % | 4.1% | 4.8% | 26.1% | 13.3% | 4.8% | 7.4% | 10.2% | 11.7% |
| Free cash flow | 190.5 m | 215.6 m | 278.8 m | unavailable | unavailable | unavailable | unavailable | unavailable |
The series breaks before 2019: earlier years come from the original reports of the issuer of that time, later years from a subsequent filing that restated the perimeter (a separation, discontinued operations). The year-on-year change across the break is not shown.
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 300.5 m USD
- Financial debt
- 496.5 m USD
- Net debt
- 196.0 m USD
- Equity
- 1.6 bn USD
- Total assets
- 2.7 bn USD
- Debt / equity
- 0.31x
- Current ratio
- 3.13x
- ROE
- 12.4%
- ROA
- 7.4%
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 562.7 m | 910.9 m | 1.3 bn | 1.5 bn | 1.6 bn | 1.7 bn | SEC (XBRL)· 09 Feb 2026verified |
| Cost of revenue | 407.9 m | 537.7 m | 816.3 m | 882.4 m | 859.5 m | 931.1 m | SEC (XBRL)· 09 Feb 2026verified |
| Gross profit | 338.2 m | 373.2 m | 465.5 m | 648.1 m | 707.0 m | 764.8 m | SEC (XBRL)· 09 Feb 2026verified |
| Research & development | 16.2 m | — | — | — | — | — | SEC (XBRL)· 12 May 2020verified |
| SG&A | 206.1 m | 239.0 m | 309.0 m | 371.3 m | 389.8 m | 417.6 m | SEC (XBRL)· 09 Feb 2026verified |
| Operating income | 107.7 m | 107.0 m | 107.1 m | 191.4 m | 244.6 m | 278.9 m | SEC (XBRL)· 09 Feb 2026verified |
| Depreciation & amortisation | 86.6 m | — | — | — | — | — | SEC (XBRL)· 12 May 2020verified |
| EBITDA | 194.3 m ≈ | — | — | — | — | — | SEC (XBRL)· 09 Feb 2022derived |
| Interest expense | 45.9 m | 34.7 m | 26.9 m | 38.5 m | 33.1 m | 28.6 m | SEC (XBRL)· 09 Feb 2026verified |
| Pre-tax income | 38.1 m | 52.4 m | 83.8 m | 146.8 m | 207.0 m | 256.3 m | SEC (XBRL)· 09 Feb 2026verified |
| Income tax | 9.5 m | 2.7 m | 26.8 m | 42.6 m | 48.1 m | 63.9 m | SEC (XBRL)· 09 Feb 2026verified |
| Net income | 146.7 m | 120.9 m | 61.7 m | 112.7 m | 160.2 m | 198.0 m | SEC (XBRL)· 09 Feb 2026verified |
| Diluted EPS | 1.19 | 0.97 | 0.40 | 0.64 | 0.92 | 1.15 | SEC (XBRL)· 09 Feb 2026verified |
| Weighted average diluted shares | 123.5 m | 125.1 m | 153.8 m | 177.3 m | 174.7 m | 171.3 m | SEC (XBRL)· 09 Feb 2026verified |
| Dividend per share | 0.08 | 0.30 | 0.20 | 0.29 | 0.33 | 0.38 | SEC (XBRL)· 09 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 62.3 m | 96.6 m | 124.8 m | 136.7 m | 198.0 m | 300.5 m | SEC (XBRL)· 09 Feb 2026verified |
| Receivables | 103.6 m | 144.1 m | 219.7 m | 210.2 m | 202.2 m | 184.8 m | SEC (XBRL)· 09 Feb 2026verified |
| Inventories | 136.1 m | 184.5 m | 366.7 m | 277.6 m | 272.6 m | 274.4 m | SEC (XBRL)· 09 Feb 2026verified |
| Current assets | 907.7 m | 474.8 m | 757.5 m | 667.8 m | 722.1 m | 811.7 m | SEC (XBRL)· 09 Feb 2026verified |
| Property, plant & equipment, net | 434.8 m | 64.4 m | — | — | — | — | SEC (XBRL)· 27 Apr 2022verified |
| Goodwill | 244.8 m | 254.1 m | 777.0 m | 796.0 m | 794.2 m | 795.0 m | SEC (XBRL)· 09 Feb 2026verified |
| Intangibles (excl. goodwill) | 200.3 m | 179.1 m | 1.0 bn | 952.4 m | 891.6 m | 835.0 m | SEC (XBRL)· 09 Feb 2026verified |
| Total assets | 3.4 bn | 1.1 bn | 2.9 bn | 2.7 bn | 2.6 bn | 2.7 bn | SEC (XBRL)· 09 Feb 2026verified |
| Accounts payable | 41.3 m | 105.1 m | 116.9 m | 56.4 m | 71.7 m | 65.2 m | SEC (XBRL)· 09 Feb 2026verified |
| Short-term debt | 300.0 k | 5.6 m | 5.7 m | 900.0 k | 800.0 k | 900.0 k | SEC (XBRL)· 09 Feb 2026verified |
| Long-term debt | 1.1 bn | 533.9 m | 530.2 m | 494.4 m | 494.8 m | 495.6 m | SEC (XBRL)· 09 Feb 2026verified |
| Current liabilities | 317.5 m | 240.4 m | 289.3 m | 220.9 m | 247.8 m | 259.4 m | SEC (XBRL)· 09 Feb 2026verified |
| Total liabilities | 2.0 bn | 951.3 m | 1.2 bn | 1.1 bn | 1.1 bn | 1.1 bn | SEC (XBRL)· 09 Feb 2026verified |
| Equity | 1.4 bn | 126.4 m | 1.6 bn † | 1.6 bn † | 1.6 bn † | 1.6 bn † | SEC (XBRL)· 09 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 320.2 m | 223.6 m | 97.0 m | 253.9 m | 293.5 m | 346.5 m | SEC (XBRL)· 09 Feb 2026verified |
| Capex | 41.4 m | — | — | — | — | — | SEC (XBRL)· 12 May 2020verified |
| Free cash flow | 278.8 m ≈ | — | — | — | — | — | SEC (XBRL)· 09 Feb 2022derived |
| Investing cash flow | -196.6 m | -21.9 m | -6.6 m | -4.6 m | -20.2 m | -29.9 m | SEC (XBRL)· 09 Feb 2026verified |
| Financing cash flow | -156.2 m | -356.2 m | -61.1 m | -239.2 m | -207.5 m | -217.3 m | SEC (XBRL)· 09 Feb 2026verified |
| Dividends paid | 38.6 m | 36.4 m | 32.5 m | 50.4 m | 56.6 m | 63.9 m | SEC (XBRL)· 09 Feb 2026verified |
| Share repurchases | 140.0 m | 900.0 k | 24.7 m | 125.1 m | 150.2 m | 159.9 m | SEC (XBRL)· 09 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 73 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 7.5 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet100
- Valuation38
- Quality70
- Growth91
- Returns45
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 4.99 – 45.46 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the input exists, but its latest figure is far older than the latest reported period: not used
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/E24.77 – 45.46 (Mid 40.65)7 companies used · median multiple 23.7x · quartiles 14.4x – 26.5xEFXT, GTEC, GTES, IR, ITW, TWIN, ZBRA
- Dividend discount (DDM)4.99 – 6.72 (Mid 5.73)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 73/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 16.4% | 67 (vs peers) | 17% |
| Net margin · Quality | 15.9% | 75 (vs peers) | 10% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | 9.8% | 82 (on a fixed band) | 14% |
| EPS CAGR 3Y · Growth | 42.2% | 100 (on a fixed band) | 14% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 16.1x | 100 (on a fixed band) | 10% |
| Current ratio · Balance sheet | 2.9x | 100 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 26.3x | 38 (vs peers) | 17% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | 3.1% | 45 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet100/100 · 2/3 factors with a value
- Growth91/100 · 2/2 factors with a value
- Quality70/100 · 2/3 factors with a value
- Returns· partial45/100 · 1/2 factors with a value
- Valuation· partial38/100 · 1/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
ZURN ELKAY WATER SOLUTIONS CORPORATION (ZWS). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 1.7 bn USD in 2025; YoY growth 8.3%; net margin 15.9%; ROE 17.7%.
The estimated value range is 14.88–26.09 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 23.19 USD, the price of 45.15 USD leaves a potential of -48.6% (value / price − 1) and a margin of safety of -94.7% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 73/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns, valuation. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 15.9%
- Revenue CAGR 3Y: 9.8%
- EPS CAGR 3Y: 42.2%
- Interest coverage: 16.1x
- Current ratio: 2.9x
What contradicts it
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): FCF conversion, Net debt / EBITDA, EV/EBITDA, FCF yield, Payout ratio (FCF).
Versus the vertical median
General Industrial Machinery & Equipment (SIC 3560) · same industry (4-digit SIC) · compared with 8 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| ITWIllinois Tool Works Inc | 83.4 bn | 26.1 | 101.7% | 19.4% | +0.9% | +18% / +21% |
| IRIngersoll Rand Inc. | 32.3 bn | 23.7 | 13.4% | 17.2% | +5.7% | +5% / +18% |
| ZBRAZebra Technologies Corporation | 15.7 bn | 26.8 | 16.5% | 9.8% | +8.3% | +32% / +40% |
| ZWSZurn Elkay Water Solutions Corporation | 7.5 bn | 26.3 | 17.7% | 15.9% | +8.3% | −4% / +58% |
| GTESGates Industrial Corporation Ltd. | 6.1 bn | 17.0 | 10.6% | 10.4% | +1.0% | +7% / +100% |
| EFXTEnerflex Ltd | 2.5 bn | 39.3 | 6.0% | 2.5% | +6.5% | +46% / +377% |
| GHMGraham Corporation | 816.0 m | 67.1 | 7.5% | 4.5% | +16.9% | +21% / +275% |
| TWINTwin Disc, Incorporated | 370.7 m | 11.9 | 16.3% | 8.0% | +11.9% | +64% / +86% |
| GTECGreenland Technologies Holding Corporation | 10.7 m | 0.9 | 16.0% | 12.3% | +8.0% | −51% / −79% |
1- and 3-year price returns: for ZWS from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 28.83 Total return -35% · Per year -35% | 50.85 Total return 14% · Per year 14% | 76.43 Total return 71% · Per year 71% |
| 3 years | 31.03 Total return -29% · Per year -11% | 61.29 Total return 39% · Per year 12% | 100.69 Total return 128% · Per year 32% |
| 5 years | 33.40 Total return -22% · Per year -5% | 73.86 Total return 70% · Per year 11% | 132.66 Total return 203% · Per year 25% |
- Exit P/E± 15.32
- Net margin± 10.73
- Annual revenue growth± 8.38
- Annual dilution± 0.90
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 28 Jul 2026; since then the company filed 8-K (27 Oct 2026 · results), 10-Q (27 Oct 2026).
In brief
Zurn Elkay Water Solutions is a specialist supplier of water management products for institutional and commercial buildings, with products specified into projects and brands well known in the United States. In 2026 the company grew sales and raised its outlook while completing the Intellihot acquisition, valued at about 108.5 million USD 23.
SWOT
Strengths
- A broad range of specified products, well-known brands and high customer loyalty once products are included in projects 1.
- A local distribution network with inventory close to customers, which allows faster deliveries than many rivals 1.
- Operating discipline through the Zurn Elkay Business System, which supported rising margins in the second quarter of 2026 23.
Weaknesses
- Dependence on a few large customers and distributors, whose problems could quickly affect financial results 1.
- Raw material costs and tariff exposure can affect margins, and the company does not always control these costs 12.
- Repeated restructuring carries costs and can divert management attention from operating goals 12.
Opportunities
- Integrating Intellihot could open new product categories in existing markets if the integration plan succeeds 2.
- Product launches into adjacent categories, planned for the second half of 2026 and 2027, could expand the addressable market 3.
- Demand for clean water, water conservation and the removal of plastic bottles could support long-term growth 1.
Threats
- Strong competition from larger rivals could compress margins if they pursue aggressive pricing 1.
- A slowdown in institutional or commercial construction could reduce demand for the company's products 1.
- Changes in tariff policy or uncertainty over recovering tariffs already paid could affect costs and results 2.
Risks
- Dependence on large customershigh
A significant share of sales comes from a few customers and distributors, and losing one of them could seriously affect results 1.
- Cyclicality of constructionmedium
Demand depends on construction activity and economic conditions, and a drop in investment could reduce sales 1.
- Price pressure from competitorsmedium
Larger and regional competitors could force price cuts, which would hurt margins unless offset by productivity gains 1.
- Integration of acquisitionsmedium
Integrating Intellihot and other businesses carries operational and financial risks, and expected benefits could be delayed or not fully realized 12.
- Tariff policy and refund uncertaintylow
Further IEEPA tariff recoveries remain uncertain, and legislative changes could alter import costs 2.
Investment thesis
What would need to be true (bull case)
- If growth in core sales and margin expansion continue, the company could meet its raised 2026 outlook and generate solid cash flow 23.
- The Intellihot acquisition and new products could open higher-growth categories and widen the company's addressable market 23.
- Its specification position and distribution network could sustain high market shares and long-term customer loyalty 1.
What would break the thesis
- If institutional and commercial construction slows, demand for the company's products could fall faster than management expects 1.
- Part of the recent earnings growth reflects one-off tariff refunds, and without them underlying operating momentum could look weaker than the quarter's figures suggest 23.
- Competition and dependence on large customers could limit pricing power, while integrating acquisitions could absorb resources without immediate results 1.
What to watch
- Delivery of the adjusted EBITDA and free cash flow outlook for 2026Q4 2026
- Progress of the Intellihot integration and its contribution to salesQ3 2026
- Further IEEPA tariff recoveries and their effect on costsnext 10-Q
- Core sales trend in the fourth quarter and the 2027 product launches2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 28 Jul 2026; since then the company filed 8-K (27 Oct 2026 · results), 10-Q (27 Oct 2026).
The business
The business model rests on having products included in project specifications, which builds customer loyalty once a product has been accepted 1. The North American sales network relies on about 1,000 independent sales representatives, which the company presents as a key source of competitive advantage 1. Acquisitions of companies in attractive markets are also a core part of the growth strategy 1.
The company frames its operating approach as the Zurn Elkay Business System, a continuous improvement framework focused on customer satisfaction and operating efficiency 1. On the dependency side, a few large customers and distributors account for a significant share of sales, which makes those relationships central to results 1.
Segments
Water safety and control
This segment, sold under the Zurn and Wilkins brands, includes valves such as backflow preventers, fire system valves and thermostatic mixing valves 1. The products are designed to meet the strict requirements of independent test labs and are sold into both new construction and retrofit projects 1.
Flow systems and hygiene
The segment includes specification drainage products, oil and grease interceptors and acid neutralization systems, plus sinks, faucets and restroom partitions sold under brands such as Zurn, Elkay, Just and Hadrian 1. The company argues this range lets it deliver a comprehensive hygienic package for new and existing buildings 1.
Market context
The company's market consists mainly of institutional and commercial construction, with a smaller share in waterworks and residential construction 1. It sees long-term demand supported by water safety, conservation and access to clean drinking water, and core sales in the second quarter of 2026 rose 10 percent year over year 13.
The markets are described as fragmented, with different competitors in each product line, and the company says no single rival competes across its whole range 1. Historically, institutional and commercial construction has been more stable than residential construction, which reduces exposure to economic cycles 1.
Trends
- Growth in institutional and commercial constructiontailwind
Demand depends on new construction and on retrofits for energy and water efficiency, which could support volumes over the long term if construction activity stays healthy 1.
- Regulatory and building code requirementstailwind
Products must meet strict standards from bodies such as NSF, IAPMO and UL, which can raise barriers for new entrants and support the specification of existing products 1.
- Tariffs and trade policymixed
Reciprocal tariffs affected raw material costs, and after the February 2026 Supreme Court ruling the company received refunds, though further recoveries remain uncertain 2.
- Artificial intelligence and product innovationheadwind
The company warns it may not be able to adopt new technologies, including artificial intelligence, quickly enough, and competitors that use them more effectively could gain an edge 1.
Competitive position
Competition comes from larger rivals with greater financial resources as well as from many regional competitors, which can pressure prices and margins 1. The company says some competitors have gained more penetration in certain markets, so competitive pressure could affect sales volume if its position weakens 1.
The company's advantages lie in product specification, local distribution and short lead times, which let it hold large market shares in most product lines 1. If these advantages weakened, its competitive position could be affected 1.
- Large international and national competitors
The source describes larger rivals with more resources that can adopt more aggressive sales policies; they are not named in the supplied sources.
- Regional competitors
The company mentions numerous regional competitors in North America, without naming them in the supplied sources.
- Plumbing and water system manufacturers
Competition varies by product line, and no single firm covers the full range, according to the source.
- Water heating suppliers
Entry into water heating through Intellihot brings the company into competition with specialist tankless heater makers, not named in the source.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report27 Oct 2026
- Current report27 Oct 2026Results of operations · Financial statements and exhibits
- Quarterly report28 Jul 2026
- Current report28 Jul 2026Results of operations · Financial statements and exhibits
- Current report20 Jul 2026Results of operations · Other events · Financial statements and exhibits
- Current report27 May 2026Results of operations · Departure or appointment of officers · Financial statements and exhibits
- Current report01 May 2026Departure or appointment of officers · Shareholder vote
- Quarterly report21 Apr 2026
- Current report21 Apr 2026Results of operations · Financial statements and exhibits
- Proxy statement12 Mar 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Zurn Elkay Water Solutions Corporation · 09 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Zurn Elkay Water Solutions Corporation · 28 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Zurn Elkay Water Solutions Corporation · 28 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.