Detailed financial statements for Zurn Elkay Water Solutions Corporation (ZWS): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Zurn Elkay Water Solutions Corporation (ZEWS) is a leading provider of comprehensive water system solutions. The company is involved in the entire lifecycle, from design and procurement to manufacturing and marketing, with a focus on optimizing water quality, safety, flow management, and conservation within and around non-residential structures. ZEWS markets a diverse portfolio of products under several well-known brands.
Analysis Summary
Zurn Elkay Water Solutions Corporation reported revenue of $1.70B in the most recent fiscal year, growing at a 5-year CAGR of 24.7%. Net income reached $198.0M, with a 10.9% 5-year CAGR.
Trailing-twelve-month margins: gross margin 44.8%, operating margin 17.4%, net margin 15.9%. Free cash flow grew at 13.5% CAGR over 5 years.
At the current price of $47.99, ZWS trades at a P/E of 29.08 and an ROE of 17.09%. Market capitalisation stands at $8.0B.
Balance sheet quality for ZWS: current ratio of 3.1, net debt of $280.0M. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $316.6M represents 160% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $1.71B | $1.85B | $2.05B | $710.1M | $562.7M | $910.9M | $1.28B | $1.53B | $1.57B | $1.70B |
| Cost of Revenue | $1.09B | $1.15B | $1.27B | $387.5M | $309.4M | $537.7M | $816.3M | $882.4M | $859.5M | $989.8M |
| Gross Profit | $626.4M | $706.5M | $784.8M | $322.6M | $253.3M | $373.2M | $465.5M | $648.1M | $707.0M | $706.1M |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Selling, General & Admin | $356.1M | $393.8M | $433.1M | $196.4M | $153.7M | $239.0M | $309.0M | $371.3M | $389.8M | $417.6M |
| Operating Expenses | $423.2M | $440.1M | $479.2M | $218.5M | $172.3M | $266.2M | $358.4M | $456.7M | $462.4M | $417.6M |
| Operating Income | $203.2M | $266.4M | $305.6M | $104.1M | $81.0M | $107.0M | $107.1M | $191.4M | $244.6M | $288.5M |
| EBITDA | $301.0M | $351.9M | $401.0M | $166.6M | $145.8M | $164.6M | $165.2M | $273.2M | $328.4M | $373.6M |
| Interest Expense | $88.3M | $75.1M | $69.9M | $56.6M | $33.3M | $34.7M | $26.9M | $38.5M | $33.1M | $28.6M |
| Pre-tax Income | $107.3M | $187.1M | $238.8M | $23.4M | $45.5M | $52.4M | $83.8M | $146.8M | $207.0M | $256.3M |
| Income Tax | $15.6M | -$19.5M | $53.4M | $4.4M | $10.5M | $2.7M | $26.8M | $42.6M | $48.1M | $63.9M |
| Net Income | $74.1M | $75.9M | $34.3M | $180.1M | $118.2M | $120.9M | $61.7M | $112.7M | $160.2M | $198.0M |
| EPS | $0.65 | $0.73 | $0.33 | $1.48 | $0.29 | $1.00 | $0.41 | $0.65 | $0.93 | $1.14 |
| EPS (Diluted) | $0.64 | $0.72 | $0.28 | $1.33 | $0.28 | $0.97 | $0.40 | $0.64 | $0.92 | $1.12 |
| Shares Outstanding (Diluted) | $104.8M | $106.0M | $123.3M | $124.3M | $123.2M | $125.1M | $153.8M | $177.3M | $174.7M | $171.3M |
Income Statement (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Revenue | $455.4M | $407.2M | $433.0M | $442.2M |
| Gross Profit | $186.0M | $166.1M | $205.8M | $220.1M |
| Operating Income | $79.3M | $64.6M | $82.1M | $77.1M |
| EBITDA | $108.0M | $81.8M | $104.1M | $60.0M |
| Net Income | $61.8M | $42.1M | $58.9M | $113.3M |
| EPS | $0.37 | $0.25 | $0.35 | $0.68 |
| EPS (Diluted) | $0.36 | $0.24 | $0.35 | $0.67 |
Balance Sheet (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $490.1M | $217.6M | $292.5M | $292.5M | $62.3M | $96.6M | $124.8M | $136.7M | $198.0M | $300.5M |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $322.9M | $392.3M | $337.6M | $337.6M | $103.6M | $177.2M | $238.0M | $227.2M | $221.8M | $198.1M |
| Inventory | $314.9M | $344.8M | $316.5M | $316.5M | $136.1M | $184.5M | $366.7M | $277.6M | $272.6M | $274.4M |
| Total Current Assets | $1.18B | $997.7M | $982.9M | $982.9M | $907.7M | $474.8M | $757.5M | $667.8M | $722.1M | $811.7M |
| Property, Plant & Equipment | $400.9M | $396.5M | $383.0M | $378.8M | $87.7M | $64.4M | $183.8M | $180.3M | $164.0M | $157.6M |
| Goodwill | $1.32B | $1.28B | $1.30B | $1.30B | $244.8M | $254.1M | $777.0M | $796.0M | $794.2M | $795.0M |
| Intangible Assets | $558.6M | $577.5M | $511.5M | $511.5M | $200.3M | $179.1M | $1.01B | $952.4M | $891.6M | $835.0M |
| Total Assets | $3.54B | $3.42B | $3.26B | $3.26B | $3.40B | $1.08B | $2.86B | $2.67B | $2.65B | $2.68B |
| Accounts Payable | $197.8M | $226.0M | $191.7M | $191.7M | $41.3M | $105.1M | $116.9M | $56.4M | $71.7M | $65.2M |
| Short-term Debt | $16.5M | $3.9M | $1.2M | $76.4M | $15.7M | $5.6M | $5.5M | 0 | 0 | $900,000 |
| Total Current Liabilities | $400.3M | $454.2M | $397.0M | $455.5M | $317.5M | $240.4M | $289.3M | $220.9M | $247.8M | $259.4M |
| Long-term Debt | $1.61B | $1.35B | $1.24B | $1.40B | $1.19B | $533.9M | $529.8M | $473.6M | $475.0M | $537.6M |
| Total Liabilities | $2.47B | $2.21B | $2.03B | $2.03B | $1.96B | $951.3M | $1.25B | $1.06B | $1.06B | $1.08B |
| Retained Earnings | -$55.5M | $8.0M | $30.7M | $85.9M | $116.0M | -$1.24B | -$1.16B | -$1.18B | -$1.17B | -$1.13B |
| Total Equity | $1.07B | $1.21B | $1.23B | $1.23B | $1.44B | $126.4M | $1.61B | $1.60B | $1.59B | $1.60B |
| Total Debt | $1.62B | $1.36B | $1.24B | $1.49B | $1.20B | $554.5M | $579.5M | $543.2M | $551.6M | $580.5M |
| Net Debt | $1.13B | $1.14B | $945.5M | $1.19B | $1.14B | $457.9M | $454.7M | $406.5M | $353.6M | $280.0M |
| Working Capital | $777.8M | $543.5M | $585.9M | $527.4M | $590.2M | $234.4M | $468.2M | $446.9M | $474.3M | $552.3M |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $260.1M | $300.5M | $273.5M | $365.0M |
| Total Assets | $2.68B | $2.68B | $2.68B | $2.78B |
| Total Liabilities | $1.09B | $1.08B | $1.08B | $1.12B |
| Total Equity | $1.59B | $1.60B | $1.61B | $1.66B |
| Total Debt | $554.6M | $595.2M | $552.2M | $550.5M |
Cash Flow (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $74.1M | $76.0M | $34.3M | $180.1M | $118.2M | $120.9M | $61.7M | $112.7M | $160.2M | $198.0M |
| Depreciation & Amortization | $105.4M | $89.7M | $92.3M | $86.6M | $67.0M | $77.5M | $54.5M | $87.9M | $88.3M | $88.7M |
| Stock-based Compensation | $13.4M | $20.5M | $22.6M | $26.9M | $36.6M | $51.4M | $25.0M | $40.0M | $37.9M | $40.6M |
| Change in Working Capital | $12.3M | -$5.9M | -$15.8M | -$31.1M | -$19.2M | -$24.4M | -$47.9M | $20.6M | $9.6M | $26.3M |
| Operating Cash Flow | $195.1M | $228.5M | $258.1M | $298.6M | $196.3M | $223.6M | $97.0M | $253.9M | $293.5M | $346.5M |
| Capital Expenditure | -$54.5M | -$40.7M | -$44.9M | -$41.4M | -$28.3M | -$23.3M | -$7.6M | -$21.3M | -$21.8M | -$29.9M |
| Acquisitions | -$213.7M | -$173.6M | -$23.4M | -$23.4M | -$102.0M | -$17.1M | -$44.8M | 0 | 0 | 0 |
| Stock Repurchased | 0 | 0 | 0 | -$100.7M | -$59.3M | -$900,000 | -$24.7M | -$125.1M | -$150.2M | -$159.9M |
| Dividends Paid | -$4.4M | -$23.2M | -$23.2M | -$27.2M | -$28.8M | -$36.4M | -$32.5M | -$50.4M | -$56.6M | -$63.9M |
| Free Cash Flow | $140.6M | $187.8M | $213.2M | $257.2M | $168.0M | $200.3M | $89.4M | $232.6M | $271.7M | $316.6M |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | $101.3M | $91.7M | $46.1M | $162.3M |
| Capital Expenditure | -$7.4M | -$9.2M | -$3.4M | -$6.3M |
| Free Cash Flow | $93.9M | $82.5M | $42.7M | $156.0M |
| Dividends Paid | -$15.1M | -$18.5M | -$18.4M | -$18.4M |
| Stock-based Compensation | $9.6M | $11.5M | $11.7M | 0 |
Growth & Margins (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +8.1% | +10.8% | -65.4% | -20.8% | +61.9% | +40.7% | +19.4% | +2.4% | +8.3% | |
| Net Income Growth (YoY) | +2.4% | -54.8% | +425.1% | -34.4% | +2.3% | -49.0% | +82.7% | +42.1% | +23.6% | |
| EPS Growth (YoY) | +12.3% | -55.1% | +351.5% | -80.4% | +244.8% | -59.0% | +58.5% | +43.1% | +22.6% | |
| Shares Change (YoY) | +1.2% | +16.3% | +0.8% | -0.9% | +1.6% | +23.0% | +15.2% | -1.5% | -1.9% | |
| FCF Growth (YoY) | +33.6% | +13.5% | +20.6% | -34.7% | +19.2% | -55.4% | +160.2% | +16.8% | +16.5% | |
| Gross Margin | 36.6% | 38.2% | 38.3% | 45.4% | 45.0% | 41.0% | 36.3% | 42.3% | 45.1% | 41.6% |
| Operating Margin | 11.9% | 14.4% | 14.9% | 14.7% | 14.4% | 11.7% | 8.4% | 12.5% | 15.6% | 17.0% |
| EBITDA Margin | 17.6% | 19.0% | 19.6% | 23.5% | 25.9% | 18.1% | 12.9% | 17.9% | 21.0% | 22.0% |
| Net Margin | 4.3% | 4.1% | 1.7% | 25.4% | 21.0% | 13.3% | 4.8% | 7.4% | 10.2% | 11.7% |
| FCF Margin | 8.2% | 10.1% | 10.4% | 36.2% | 29.9% | 22.0% | 7.0% | 15.2% | 17.3% | 18.7% |
| Effective Tax Rate | 14.5% | -10.4% | 22.4% | 18.8% | 23.1% | 5.2% | 32.0% | 29.0% | 23.2% | 24.9% |
Per-Share Data (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $1.34 | $1.77 | $1.73 | $2.07 | $1.36 | $1.60 | $0.58 | $1.31 | $1.56 | $1.85 |
| Dividends Per Share | $0.04 | $0.22 | $0.19 | $0.22 | $0.23 | $0.29 | $0.21 | $0.28 | $0.32 | $0.37 |
| Shares Outstanding (Basic) | $102.8M | $103.9M | $104.6M | $111.7M | $120.4M | $121.5M | $151.6M | $174.3M | $171.7M | $168.7M |
What to look at in Industrials
Aerospace, defence, machinery, transport. Semi-cyclical. Key: backlog, operating margins, and FCF conversion.
- 5y revenue growth — Without growth, there is no long-term value creation
- Operating margin — The best indicator of operational discipline in industrials
- ROIC — Quality industrials have ROIC >15% — the rest destroy capital
- FCF conversion — FCF / Net Income — in industrials good >85%
- Net debt / EBITDA — Cyclical industrials with high debt suffer hard in recessions
- Capex / Revenue — Maintaining the machinery. <4% = possible underinvestment (future decline)
- Altman Z-Score — Bankruptcy model (NYU 1968) — combines liquidity, leverage and profitability. Key in cyclicals
Profitability
| Return on Equity | 17.09% |
| Return on Invested Capital | 9.25% |
| Return on Assets | 9.93% |
| Gross Margin | 44.77% |
| Operating Margin | 17.44% |
| Net Margin | 15.89% |
Financial Health
| Debt / Equity | 0.33 |
| Current Ratio | 3.05 |
| Piotroski F-Score | 7 |
| Altman Z-Score | 5.02 |
Key Ratios (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 17.11 | 19.59 | 37.77 | 7.38 | 65.59 | 36.40 | 51.59 | 45.25 | 40.11 | 40.78 |
| P/B | 1.07 | 1.23 | 1.05 | 0.99 | 1.59 | 34.99 | 1.99 | 3.20 | 4.04 | 4.89 |
| P/S | 0.67 | 0.80 | 0.63 | 1.72 | 4.07 | 4.85 | 2.50 | 3.35 | 4.09 | 4.62 |
| Gross Margin | 36.6% | 38.2% | 38.3% | 45.4% | 45.0% | 41.0% | 36.3% | 42.3% | 45.1% | 41.6% |
| Operating Margin | 11.9% | 14.4% | 14.9% | 14.7% | 14.4% | 11.7% | 8.4% | 12.5% | 15.6% | 17.0% |
| Net Margin | 4.3% | 4.1% | 1.7% | 25.4% | 21.0% | 13.3% | 4.8% | 7.4% | 10.2% | 11.7% |
Related companies: AAON · AGCO · DY · FSS · IESC · OSK · PRIM
Explore sector: Industrials · Industrial - Machinery
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