Zurn Elkay Water Solutions (ZWS)

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Zurn Elkay Water Solutions (ZWS) - 2025 Q1 - Quarterly Results
2025-04-22 20:12
Exhibit 99.1 Press Release • Net sales in the quarter were $389 million compared with $374 million in last year's March quarter (+5% core sales , exchange rates reduced net sales by 1%). (1) • Net income from continuing operations was $41 million (diluted EPS from continuing operations of $0.24) compared with net income from continuing operations of $34 million (diluted EPS from continuing operations of $0.19) in the year-ago quarter. • Adjusted EPS was $0.31 compared with $0.29 in the year-ago quarter. (1) ...
Zurn Elkay Water Solutions: Nice Growth, But Not At A Nice Price
Seeking Alpha· 2025-04-17 08:47
Company Overview - Zurn Elkay Water Solutions Corporation (NYSE: ZWS) is highlighted as an intriguing business with potential for investment [1]. Industry Insights - Crude Value Insights focuses on the oil and natural gas sector, emphasizing cash flow generation and identifying companies with value and growth prospects [1].
Zurn Water (ZWS) Expected to Beat Earnings Estimates: Should You Buy?
ZACKS· 2025-04-15 15:06
Core Viewpoint - Wall Street anticipates flat earnings for Zurn Water (ZWS) in the upcoming quarter, with a consensus EPS estimate of $0.29, unchanged from the previous year, while revenues are expected to rise by 2.3% to $382.37 million [1][3]. Earnings Expectations - The stock may experience upward movement if actual earnings exceed expectations in the earnings report scheduled for April 22 [2]. - Conversely, if the earnings report falls short of estimates, the stock could decline [2]. Estimate Revisions - The consensus EPS estimate has been revised 0.08% higher in the last 30 days, indicating a slight bullish sentiment among analysts [4]. - The Zacks Earnings ESP for Zurn Water is +2.34%, suggesting a higher likelihood of beating the consensus EPS estimate [11]. Earnings Surprise Prediction - The Most Accurate Estimate for Zurn Water is above the Zacks Consensus Estimate, indicating recent analyst optimism regarding the company's earnings prospects [10]. - A positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. Historical Performance - Zurn Water has consistently beaten consensus EPS estimates, achieving a surprise of +10.34% in the last reported quarter and surpassing estimates in all four of the last quarters [12][13]. Conclusion - Zurn Water is positioned as a compelling candidate for an earnings beat, but investors should consider additional factors beyond earnings expectations when making investment decisions [16].
Zurn Water (ZWS) Upgraded to Buy: Here's Why
ZACKS· 2025-04-08 17:01
Core Viewpoint - Zurn Water (ZWS) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to institutional investors adjusting their valuations, resulting in buying or selling actions that influence stock prices [4]. Company Performance Indicators - Zurn Water is projected to earn $1.36 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 6.3% [8]. - Over the past three months, the Zacks Consensus Estimate for Zurn Water has risen by 0.5%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, highlighting their potential for market-beating returns [9][10]. - Zurn Water's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a favorable outlook for price movement in the near term [10].
Down -13.6% in 4 Weeks, Here's Why You Should You Buy the Dip in Zurn Water (ZWS)
ZACKS· 2025-04-08 14:35
A downtrend has been apparent in Zurn Water (ZWS) lately with too much selling pressure. The stock has declined 13.6% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.How to Determine if a Stock is OversoldWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for s ...
Zurn Elkay Water Solutions (ZWS) - 2024 Q4 - Annual Report
2025-02-10 21:13
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 _________________________________________________ FORM 10-K (Mark one) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to _________________________________________________ ZURN ELKAY WATER SOLUTIONS CORPORATION (Exact name of registrant as ...
Zurn Elkay Water Solutions (ZWS) - 2024 Q4 - Earnings Call Presentation
2025-02-05 15:19
Fourth Quarter 2024 Financial Results February 5, 2025 2 3 4Q Zurn Elkay 2024 Results Consolidated Results Sustainability Impact in 2024 SUSTAINABLE PRODUCTS 32.5B Gallons of water saved through the use of our products ENERGY REDUCTION 23.2% | $ in millions | 4Q 2024 | 4Q 2023 | Change | | --- | --- | --- | --- | | Net Sales | $371 | $357 | 4% | | Growth from: | | | | | Core (1) | | | 4% | | Adiusted EBITDA (1) | ਵੇਰੇ ਹ | $84 | 8% | | % of Sales | 24.6% | 23.6% | +100 bps | zurn · elkay 4 Non-G-AAP measure ...
Zurn Elkay Water Solutions (ZWS) - 2024 Q4 - Earnings Call Transcript
2025-02-05 15:19
Financial Data and Key Metrics Changes - In Q4 2024, the company achieved $371 million in sales, reflecting a 4% core and reported growth year-over-year [10] - Adjusted EBITDA for Q4 was $91 million, with an adjusted EBITDA margin of 24.6%, up 100 basis points year-over-year [11] - For the full year, EBITDA grew about 15% to $390 million, with margins ending at 24.9%, an increase of 270 basis points [6][12] - Free cash flow for Q4 was $55 million, totaling $272 million for the year [7] Business Line Data and Key Metrics Changes - Core sales growth in non-residential end markets was mid-single digits, offset by softness in residential and some commercial segments [11] - The company leveraged $36 million in sales growth into $50 million of EBITDA growth year-over-year [7] Market Data and Key Metrics Changes - The outlook for 2025 anticipates core sales growth similar to 2024, with a low single-digit decline in commercial markets offset by growth in institutional and waterworks markets [32] - The company expects to capture approximately a point of price realization during the year [32] Company Strategy and Development Direction - The company is focused on being a pure-play water business, targeting specific end markets and geographies for superior performance [18] - A continuous improvement mindset is central to the company's culture, driving above-market core growth and strong incremental margins [20][21] - The company aims to reduce exposure to China to less than 10% by the end of 2026, having already decreased it significantly [33][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating potential uncertainties in 2025, leveraging the Zurn Elkay business system [9] - The company is monitoring the tariff environment closely, having successfully managed previous tariffs [33][54] - Management indicated that interest rates are not expected to significantly impact the business, as most operations are not interest rate sensitive [59] Other Important Information - The company repurchased $20 million worth of shares in Q4, totaling $150 million for the year [7][14] - The company documented 3,749 unique continuous improvement submissions in the past year, leading to significant operational efficiencies [26] Q&A Session Summary Question: Insights on full-year outlook by end market for 2025 - Management indicated that institutional markets are expected to accelerate in the second half of 2025 based on Dodge Starts data [46] Question: Update on M&A activity and confidence in closing deals - Management is actively working on several potential M&A opportunities but emphasized the importance of timing and discipline in capital deployment [48][50] Question: Expectations regarding tariffs and their impact on guidance - Management has not included incremental tariff impacts in the guidance, expressing confidence in navigating any future tariffs [54][56] Question: Impact of elevated interest rates on growth - Management noted that the majority of the business is not sensitive to interest rates, focusing instead on driving above-market growth [59] Question: Clarification on institutional growth assumptions - Management confirmed that growth assumptions remain intact and are based on updated internal data [67] Question: Current exposure to China and supply chain flexibility - Management stated that current exposure to China is around 25%, with significant flexibility in the supply chain to adapt to changing conditions [71][72]
Zurn Water (ZWS) Surpasses Q4 Earnings and Revenue Estimates
ZACKS· 2025-02-04 23:56
Core Insights - Zurn Water (ZWS) reported quarterly earnings of $0.32 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, and showing an increase from $0.26 per share a year ago, resulting in an earnings surprise of 10.34% [1] - The company achieved revenues of $370.7 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.13% and up from $356.8 million year-over-year [2] - Zurn Water has consistently outperformed consensus EPS estimates over the last four quarters [2] Earnings Outlook - The sustainability of Zurn Water's stock price movement will largely depend on management's commentary during the earnings call [3] - The current consensus EPS estimate for the upcoming quarter is $0.30 on revenues of $384.03 million, and for the current fiscal year, it is $1.35 on revenues of $1.62 billion [7] Industry Context - The Manufacturing - Electronics industry, to which Zurn Water belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Zurn Water's performance [5][6]
Zurn Elkay Water Solutions (ZWS) - 2024 Q4 - Annual Results
2025-02-04 21:13
Financial Performance - Fourth quarter net sales were $371 million, a 4% increase from $357 million in the same quarter last year[6] - Net income from continuing operations was $36 million, with diluted EPS of $0.21, compared to $14 million and $0.08 in the prior year[6] - Adjusted EBITDA for the fourth quarter was $91 million, representing 24.6% of net sales, up from $84 million or 23.6% of net sales in the previous year[6] - Full year net sales reached $1,567 million, a 2% increase from $1,531 million in 2023, with core sales growth of 3%[6] - Full year adjusted EBITDA was $390 million, or 24.9% of net sales, compared to $340 million or 22.2% in 2023[6] - Free cash flow for the year was a record $272 million[6] - For the twelve months ended December 31, 2024, net income was $160.2 million, up from $112.7 million in 2023, indicating a year-over-year increase of 42.2%[25] - The company reported an EBITDA of $72.4 million for the three months ended December 31, 2024, compared to $54.4 million in the same period of 2023, an increase of 33.1%[27] - The company’s income from operations for the twelve months ended December 31, 2024, was $244.6 million, compared to $191.4 million in 2023, reflecting a growth of 27.8%[25] - The adjusted net income for the twelve months ended December 31, 2024, was $223.9 million, compared to $172.1 million for the same period in 2023[41] - Net income for the twelve months ended December 31, 2024, increased to $160.2 million, up from $112.7 million in the previous year, representing a growth of 42.2%[50] Cash Flow and Investments - The company repurchased $150 million of common stock and paid $57 million in dividends during the year[6] - Cash provided by operating activities rose to $293.5 million, compared to $253.9 million in the prior year, reflecting an increase of 15.6%[50] - The company reported a free cash flow of $271.7 million for the twelve months ended December 31, 2024, compared to $232.6 million in the prior year[43] - Cash used for investing activities was $20.2 million, compared to $4.6 million in the previous year, indicating a substantial increase in investment outflows[50] - Cash used for financing activities decreased to $207.5 million from $239.2 million, showing a reduction of 13.3%[50] - The company repurchased common stock amounting to $150.2 million, up from $125.1 million in the previous year, indicating a 20.5% increase in buybacks[50] Tax and Income - The provision for income taxes for the twelve months ended December 31, 2024, was $48.1 million, with an effective tax rate of 23.2%[30] - The provision for income taxes indicated a rate of 25.8% for the twelve months ended December 31, 2023[36] Stock and Shares - Basic net income per share for the three months ended December 31, 2024, was $0.21, compared to $0.08 in the same period of 2023, an increase of 162.5%[25] - The weighted-average number of shares outstanding for the three months ended December 31, 2024, was 170,583 thousand, down from 173,119 thousand in the same period of 2023[25] - The diluted earnings per share for the twelve months ended December 31, 2024, was $1.28, an increase from $0.97 in the previous year[41] Sustainability and Strategic Initiatives - The company plans to release its 2024 sustainability report, highlighting progress in sustainability initiatives[7] - The company has undertaken strategic supply chain optimization initiatives, which included accelerated depreciation of $2.0 million for the twelve months ended December 31, 2024[30] Assets and Liabilities - The total assets as of December 31, 2024, were $2,648.5 million, slightly down from $2,667.0 million as of December 31, 2023[48] - The company’s cash and cash equivalents increased to $198.0 million as of December 31, 2024, up from $136.7 million a year earlier[48] - The company experienced a loss on divestiture of asbestos liabilities and certain assets amounting to $9.3 million in the previous year, which was not present in the current year[50] - Accounts payable showed a significant change, increasing by $15.8 million compared to a decrease of $60.8 million in the previous year[50] - The company reported a decrease in inventories, net, to $2.7 million from $65.0 million, indicating a substantial reduction in stock levels[50]