NYSE$ZWS

Zurn Elkay Water Solutions Corporation · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Zurn Elkay's financial performance for Q2 2024 was reported, showcasing sales and margin growth exceeding expectations.

Zurn Elkay Water Solutions reported a 2% increase in net sales to $412 million. Net income from continuing operations rose to $45 million, with adjusted EPS at $0.33. The company saw a significant improvement in adjusted EBITDA, reaching $104 million, and deployed $61 million to repurchase 1.9 million shares.

  • Net sales increased to $412 million, a 2% rise year-over-year.
  • Net income from continuing operations reached $45 million, up from $33 million in the previous year.
  • Adjusted EBITDA grew to $104 million, representing 25.3% of net sales.
  • The company deployed $61 million to repurchase 1.9 million shares of common stock.

Headline financials

Total Revenue

$412M

Previous: $403M+2.2%
EPS

$0.27

Previous: $0.24+12.5%
Adjusted Ebitda Margin

25.3%

Previous: 21.6%+17.1%
Capital Expenditures

-$4.9M

No prior period
Free Cash Flow

$46M

Previous: $34.6M+32.9%
Net Income

$46M

Previous: $34.6M+32.9%
Operating Income

$71.9M

Previous: $54.8M+31.2%
Gross Profit

$186M

Previous: $174M+7.4%
Cash & Equivalents

$163M

Previous: $103M+58.0%
Total Assets

$2.68B

Previous: $2.8B-4.3%
Stock-Based Comp

$9.4M

Previous: $10.2M-7.8%

Revenue & EPS history

Zurn Elkay · Revenue · Quarterly

$412M

Q2 2024+2.2%vs Q2 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

For the third quarter, the company expects pro forma core sales growth in the low single-digit range and an adjusted EBITDA margin of approximately 25%. Full-year adjusted EBITDA margin expansion is now expected to be 200 to 250 basis points, with free cash flow exceeding $250 million.

Tailwinds

  • Expects pro forma core sales growth in the low single-digit range for Q3.
  • Anticipates an adjusted EBITDA margin of approximately 25% for Q3.
  • Raising full-year adjusted EBITDA margin expansion to 200 to 250 basis points.
  • Expects full-year free cash flow to exceed $250 million.
  • Focus on customers and strategic breakthroughs.

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 Q2 2024

Historical avgQ2 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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