Key Highlights

  • Consensus EPS of 0.50 compares with diluted EPS of 0.67 reported for the second quarter, against 0.29 a year earlier.
  • Consensus revenue of USD 493.36 million compares with net sales of USD 491.0 million reported for the second quarter.
  • The company received a USD 47.6 million IEEPA reciprocal tariff refund, and income from operations was USD 152.3 million.
  • Excluding the refund, income from operations rose USD 27.1 million, an increase of 380 basis points year over year.

Zurn Elkay Water Solutions (NYSE:ZWS) reports third-quarter results on Tuesday, Oct. 27, after the market closes. Consensus stands at EPS of 0.50 on revenue of USD 493.36 million, and the company has a market capitalization of USD 8.18 billion.

Zurn Elkay Water Solutions makes water solutions products. In the second quarter, it reported net sales of USD 491.0 million against USD 444.5 million and gross profit of USD 288.3 million against USD 202.3 million.

Estimates Against the Last Reported Quarter

The EPS estimate of 0.50 is below the diluted EPS of 0.67 reported for the second quarter, which compared with 0.29 a year earlier. The revenue estimate of USD 493.36 million is above the USD 491.0 million of net sales reported.

Net income was USD 113.3 million against USD 50.5 million, and income before taxes was USD 150.1 million against USD 67.9 million. Basic EPS was 0.68 against 0.30, and dividends declared were 0.11 per share against 0.09.

The Tariff Refund in the Quarter

Income from operations was USD 152.3 million against USD 77.6 million. During the quarter, the company received a USD 47.6 million IEEPA reciprocal tariff refund.

Excluding that item, income from operations rose USD 27.1 million, or 380 basis points year over year, which the filing ties to sales growth, including price realization, and productivity initiatives led by the Zurn Elkay Business System.

Cost of sales was USD 202.7 million against USD 242.2 million, and gross profit was USD 288.3 million against USD 202.3 million. For the six months, gross profit was USD 494.1 million against USD 383.3 million, and selling, general and administrative expenses were USD 227.7 million against USD 209.4 million.

Expenses, Interest and Balance Sheet

Selling, general and administrative expenses were USD 119.5 million against USD 108.2 million. Restructuring and other similar charges were USD 1.8 million against USD 1.9 million, and amortization of intangible assets was USD 14.7 million against USD 14.6 million.

Net interest expense was USD 6.1 million against USD 7.7 million, which the filing ties to lower interest rates and interest earned on higher cash balances.

At June 30, 2026, cash and cash equivalents were USD 365.0 million against USD 300.5 million at the prior year-end, and total assets were USD 2,781.1 million against USD 2,679.4 million. For the six months, net sales were USD 924.0 million against USD 833.3 million. The estimates table lists a market capitalization of USD 8.18 billion. Net income attributable to the company was USD 113.3 million, and the company reported income from operations of USD 152.3 million against USD 77.6 million.

Figures to Follow in the Release

Diluted EPS against 0.50 and revenue against USD 493.36 million are the headline comparisons. Other markers are income from operations excluding the tariff refund, selling, general and administrative expenses and any further refund receipts.