NYSE$ZWS

Zurn Elkay Water Solutions Corporation · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Zurn Elkay Water Solutions reported a solid start to the year with growth, profitability, and free cash flow exceeding expectations. Adjusted EBITDA grew 24% year over year and margin improved by 460 basis points.

Zurn Elkay Water Solutions reported first quarter 2024 financial results with net sales of $374 million, net income from continuing operations of $34 million, and adjusted EPS of $0.29. The company saw growth in profitability and free cash flow, exceeding expectations for the quarter.

  • Net sales were $374 million, a 0.5% increase year over year.
  • Net income from continuing operations was $34 million, with diluted EPS of $0.19.
  • Adjusted EPS was $0.29, compared to $0.18 in the prior year.
  • Adjusted EBITDA was $90 million, representing 24.1% of net sales, compared to $72 million in the prior year.

Headline financials

Total Revenue

$374M

Previous: $372M+0.5%
EPS

$0.19

Previous: $0.18+5.6%
Adjusted Ebitda Margin

24.1%

Previous: 19.5%+23.6%
Capital Expenditures

-$3.7M

No prior period
Free Cash Flow

$34.3M

Previous: $22.8M+50.4%
Net Income

$34.3M

Previous: $22.8M+50.4%
Operating Income

$53.2M

Previous: $43.7M+21.7%
Gross Profit

$170M

Previous: $149M+14.3%
Cash & Equivalents

$157M

Previous: $74.8M+110.0%
Total Assets

$2.66B

Previous: $2.81B-5.2%
Stock-Based Comp

$10M

Previous: $10.3M-2.9%

Revenue & EPS history

Zurn Elkay · Revenue · Quarterly

$374M

Q1 2024+0.5%vs Q1 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

For the second quarter, net sales are expected to be up low single digits on a pro forma core basis, with adjusted EBITDA margin between 24.5% and 25.0%. The full year adjusted EBITDA margin expectation is now approximately 150 bps to 200 bps of year over year adjusted EBITDA margin expansion. The company continues to expect to deliver $250 million of free cash flow for the full year.

Tailwinds

  • Net sales for the second quarter will be up low single digits on a pro forma core basis.
  • Adjusted EBITDA margin for the second quarter will be between 24.5% and 25.0%.
  • Confidence in ability to drive growth in 2024.
  • Full year free cash flow of $250 million.
  • Increasing full year adjusted EBITDA margin expectation to deliver approximately 150 bps to 200 bps of year over year adjusted EBITDA margin expansion.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+1.0%

Avg return

Earnings day

+1.4%

Avg return

5 days after

+4.7%

Avg return

30 days after

62%

36 / 58 earnings

Positive

+13.5%

Q4 2020

Best reaction

-18.5%

Q1 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+9.4%+10.1%+0.1%
Q4 2025+10.0%+11.6%+0.7%
Q3 2025+3.6%+2.2%+3.6%
Q1 2025+4.9%+8.3%+14.1%
Q4 2024-3.3%-3.6%-10.2%
Q3 2024-0.4%+2.8%+10.0%
Q2 2024+0.7%-5.3%+0.0%
Q1 2024+0.1%-1.2%-1.1%
Q4 2023+6.4%+3.3%+2.7%
Q3 2023+5.0%+9.9%+13.0%
Q2 2023+6.6%+11.4%+5.6%
Q1 2023-4.5%+0.7%+3.7%
Q4 2022+8.0%+4.3%+0.0%
Q3 2022-8.1%-5.8%+2.6%
Q2 2022-8.9%-6.9%-2.6%
Q1 2022-7.1%-10.3%-20.4%
Q4 2021+4.9%+0.7%+8.7%
Q3 2021-1.1%-0.3%+2.1%
Q2 2021+9.2%+8.7%+22.4%
Q1 2021+1.6%+2.8%+5.9%
Q4 2020+13.5%+11.7%+18.6%
Q3 2020-4.1%-0.0%+19.5%
Q2 2020-1.2%-5.4%-2.7%
Q1 2020-9.4%-13.5%+22.0%
Q4 2019+1.4%+0.5%+4.5%
Q3 2019+5.3%+6.1%+9.1%
Q2 2019+11.0%+17.3%+15.3%
Q1 2019-0.9%-0.7%+2.8%
Q4 2018-1.2%+0.6%+4.0%
Q3 2018+4.5%-2.9%-0.2%
Q2 2018-2.2%-1.9%-4.0%
Q1 2018+0.4%-0.6%+0.5%
Q4 2017-0.3%-0.3%+1.2%
Q3 2017-1.1%+1.9%+4.6%
Q2 2017-11.7%-6.2%+3.7%
Q1 2017+2.5%+0.5%+10.7%
Q4 2016-3.1%
Q3 2016+2.8%
Q2 2016+10.4%
Q1 2016+2.6%
Q4 2015-6.6%
Q3 2015+1.6%
Q2 2015-3.8%
Q1 2015+0.8%
Q4 2014-4.5%
Q3 2014-4.3%
Q2 2014+6.1%
Q1 2014+4.7%
Q4 2013+5.4%
Q3 2013+3.5%
Q3 2012+3.5%
Q2 2013+1.6%
Q1 2012-18.5%
Q1 2013+1.6%
Q4 2012+2.6%
Q4 2011+2.6%
Q2 2012+2.6%
Q4 2010+2.6%

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