Zurn Elkay Water Solutions (NYSE:ZWS) Q4 2025 Earnings call February 04, 2026 08:30 AM ET Company ParticipantsDavid Pauli - CFOJames Coe - Equity Research AssociateTodd Adams - Chairman and CEOConference Call ParticipantsAdam Farley - Associate AnalystBen Pezan - Research AnalystBrett Linzey - Equity Research AnalystBryan Blair - Managing Director and Senior AnalystJeff Hammond - Managing Director and Equity Research AnalystOperatorGood morning and welcome to the Zurn Elkay Water Solutions Corporation Fourt ...

Zurn Elkay Water Solutions (NYSE:ZWS) Q4 2025 Earnings call February 04, 2026 08:30 AM ET Company ParticipantsDavid Pauli - CFOJames Coe - Equity Research AssociateTodd Adams - Chairman and CEOConference Call ParticipantsAdam Farley - Associate AnalystBen Pezan - Research AnalystBrett Linzey - Equity Research AnalystBryan Blair - Managing Director and Senior AnalystJeff Hammond - Managing Director and Equity Research AnalystOperatorGood morning and welcome to the Zurn Elkay Water Solutions Corporation fourt ...

Zurn Elkay Water Solutions (NYSE:ZWS) Q4 2025 Earnings call February 04, 2026 08:30 AM ET Speaker1Good morning and welcome to the Zurn Elkay Water Solutions Corporation fourth quarter 2025 earnings results conference call with Todd Adams, Chairman and Chief Executive Officer, and David Pauli, Chief Financial Officer for Zurn Elkay Water Solutions. A replay of the conference call will be made available as a webcast on the company's investor relations website. As a reminder, this call contains certain forward ...

Fourth Quarter 2025 Financial Results February 4, 2026 2 . 3 | | Fourth Quarter | | | CY 2025 | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | $ in millions | 4Q 2025 | 4Q 2024 | Change | $ in millions | CY 2025 | CY 2024 | Change | | Net Sales | $407 | $371 | 10% | Net Sales | $1,696 | $1,567 | 8% | | Growth from: | | | | Growth from: | | | | | Core (1) | | | 10% | Core (1) | | | 8% | | Adjusted EBITDA(1) | $104 | $91 | 14% | Adjusted EBITDA(1) | $442 | $390 | 13% | | % of Sales | 25.6% | 24.6% ...

Exhibit 99.1 Press Release | February 3, 2026 | Contact Information: | | --- | --- | | For Immediate Release | Dave Pauli | | | Chief Financial Officer | | | 414.223.7770 | Zurn Elkay Water Solutions Reports Fourth Quarter and Full Year 2025 Financial Results Investor call scheduled for Wednesday, February 4, 2026 at 8:30 a.m. Eastern Time MILWAUKEE, WI (USA) - Zurn Elkay Water Solutions Corporation (NYSE:ZWS) Fourth Quarter Highlights Calendar Year 2025 Highlights Todd A. Adams, Chairman and Chief Executiv ...

MILWAUKEE--(BUSINESS WIRE)--Zurn Elkay Water Solutions Corporation (NYSE: ZWS) announced today that its Board of Directors declared a quarterly common stock dividend of $0.11 per share. The dividend is payable in cash on March 6, 2026 to stockholders of record as of February 20, 2026. Named one of America's Most Responsible Companies and one of America's Greenest Companies by Newsweek and one of the World's Best Companies for Sustainable Growth by TIME, Zurn Elkay Water Solutions is headquartered in Milwauk ...

Core Viewpoint - The U.S. stock market experienced a decline primarily due to Nvidia's ban on H200 AI chips in China, which negatively impacted major technology stocks and bank earnings [2][10]. Market Overview - The three major U.S. stock indices fell on January 14, 2026, with Nvidia's decline leading the way, affecting other technology stocks [2]. - Major banks like Citigroup and Wells Fargo reported disappointing fourth-quarter results, contributing to the market's downturn [2]. Investment Strategy - Investors are advised to favor low-leverage stocks over high-growth technology stocks to mitigate risks associated with high-debt companies [3][10]. - Recommended companies include REV Group (REVG), TechnipFMC (FTI), Resmed (RMD), Zurn Elkay Water Solutions (ZWS), and SEI Investments (SEIC), all of which exhibit low leverage and solid growth prospects [3][10]. Significance of Low-Leverage Stocks - Leverage refers to borrowing capital for operations and expansion, typically through debt financing, which can pose risks if not managed properly [5][6]. - Companies with excessive reliance on debt financing may face significant losses during economic downturns, making low-leverage stocks a safer investment choice [6][7]. Debt Analysis - The debt-to-equity ratio is a key metric for assessing a company's financial risk, with lower ratios indicating better solvency [8]. - Investors should focus on stocks with solid earnings growth and low debt-to-equity ratios, especially during earnings seasons [8][10]. Stock Recommendations - **REV Group (REVG)**: Reported a 11.1% year-over-year increase in net sales to $664.4 million and a 62.7% surge in adjusted earnings per share [14][15]. - **TechnipFMC (FTI)**: Awarded a significant contract by BP, with a projected revenue increase of 6.6% for 2026 [16][17]. - **Resmed (RMD)**: Received FDA clearance for an AI-enabled medical device, with an expected 8.4% revenue growth for 2026 [18][19]. - **Zurn Elkay Water Solutions (ZWS)**: Recognized as one of America's Most Responsible Companies, with a projected revenue increase of 5.3% for 2026 [20][21]. - **SEI Investments (SEIC)**: Completed multiple client projects, with a forecasted revenue growth of 9.3% for 2026 [22][23].

Core Viewpoint - Investors in the Waste Removal Services sector should consider Veolia Environnement SA (VEOEY) and Zurn Water (ZWS) to determine which stock offers better value at present [1] Group 1: Company Rankings and Performance - VEOEY has a Zacks Rank of 2 (Buy), while ZWS has a Zacks Rank of 3 (Hold) [3] - VEOEY has shown a stronger improvement in its earnings outlook compared to ZWS [3] Group 2: Valuation Metrics - VEOEY has a forward P/E ratio of 12.73, significantly lower than ZWS's forward P/E of 27.88 [5] - VEOEY's PEG ratio is 1.18, while ZWS has a PEG ratio of 1.99, indicating VEOEY may be more favorably valued considering expected EPS growth [5] - VEOEY's P/B ratio is 1.78, compared to ZWS's P/B of 4.85, suggesting VEOEY is undervalued relative to its book value [6] - Based on these metrics, VEOEY holds a Value grade of B, while ZWS has a Value grade of C, indicating VEOEY is the better option for value investors [6]

Core Viewpoint - Montrose Environmental (MEG) is currently viewed as a better value opportunity compared to Zurn Water (ZWS) based on various financial metrics and rankings [1]. Group 1: Zacks Rank and Earnings Outlook - Montrose Environmental has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while Zurn Water has a Zacks Rank of 3 (Hold) [3]. - The Zacks Rank system is designed to identify companies with improving earnings outlooks, which favors MEG over ZWS [3]. Group 2: Valuation Metrics - MEG has a forward P/E ratio of 16.27, significantly lower than ZWS's forward P/E of 28.23, suggesting that MEG is undervalued relative to ZWS [5]. - MEG's PEG ratio is 0.85, indicating a favorable growth outlook compared to ZWS's PEG ratio of 2.01, which suggests that ZWS may be overvalued [5]. - MEG's P/B ratio stands at 1.98, while ZWS has a P/B ratio of 4.91, further supporting the notion that MEG is a more attractive value option [6]. Group 3: Overall Value Assessment - Based on the aforementioned metrics, MEG holds a Value grade of B, whereas ZWS has a Value grade of C, reinforcing MEG's position as the superior value investment at this time [6].

Core Insights - The investment approach focuses on identifying businesses with potential for long-term growth and significant terminal value generation [1] - Emphasis is placed on understanding core business economics, including competitive advantages, unit economics, reinvestment opportunities, and management quality [1] - The goal is to generate long-term free cash flow and create shareholder value through fundamental research in sectors with strong secular growth trends [1] Investment Philosophy - The investor is self-educated and has been active in the investment field for 10 years, currently managing personal funds sourced from friends and family [1] - The motivation for sharing insights on platforms like Seeking Alpha is to provide valuable analysis and receive feedback from other investors [1] - The focus is on helping readers understand the drivers of long-term equity value, with an emphasis on analytical and accessible analysis [1]