Key Highlights

  • Zurn Elkay Water Solutions (NYSE:ZWS) is scheduled to report third-quarter 2026 results after the close on Tuesday, October 27, 2026, against consensus adjusted earnings of USD 0.50 per share.
  • In the second quarter, Zurn Elkay (NYSE:ZWS) posted net sales of USD 491.0 million, up 10%, adjusted earnings of USD 0.50 per share and an adjusted EBITDA margin of 27.7%.
  • Management guided to third-quarter core sales growth of about 6% to 7% and mid-single-digit growth in the fourth quarter, with full-year adjusted EBITDA of USD 503 million to USD 513 million.
  • Free cash flow is guided to at least USD 350 million for 2026, and the outlook was lifted in July, so the company now has a higher standard to meet.

The Setup and the Guidance

Zurn Elkay Water Solutions (NYSE:ZWS), a maker of water products such as drinking fountains, bottle filling stations, drains, flush valves and faucets for commercial buildings, is scheduled to report third-quarter 2026 results after the close on Tuesday, October 27, 2026. Consensus adjusted earnings are USD 0.50 per share. In its release of Tuesday, July 28, 2026, the company reported second-quarter net sales of USD 491.0 million, up 10% from USD 444.5 million, adjusted earnings of USD 0.50 per share, up from USD 0.42, and an adjusted EBITDA margin of 27.7%, up from 26.5%. Core sales, which exclude acquisitions and currency, also rose 10%. Results cannot be known in advance.

Why Core Growth and Margin Drive the Quarter

Zurn Elkay (NYSE:ZWS) sells largely into nonresidential construction and renovation, where demand follows regulation on water safety, building codes and hydration and sanitation upgrades, so growth has stayed positive. Management guided to third-quarter core sales growth of about 6% to 7%, a slowdown from the 10% of the second quarter, and to mid-single-digit growth in the fourth quarter. Adjusted EBITDA of USD 503 million to USD 513 million for 2026 implies about 140 basis points of margin expansion over 2025, excluding tariff refunds. A basis point is one hundredth of one percentage point. Free cash flow of at least USD 350 million would fund acquisitions and share repurchases. Consensus of USD 0.50 equals the second-quarter result.

Risks and What to Watch

A positive reading for Zurn Elkay (NYSE:ZWS) would be adjusted earnings above USD 0.50, core growth at or above the guided 6% to 7% and a margin near or above 27.7%, with the EBITDA range raised again, which could support the shares. A negative reading would be core growth below 6%, margin pressure from tariffs or input costs, or a fourth-quarter outlook below mid-single digits, which would suggest that commercial construction demand is cooling. Higher interest rates after the Federal Reserve increase on Wednesday, September 16, 2026 to a range of 3.75% to 4.00% weigh on building starts. Investors should watch backlog commentary, tariff effects and the Federal Reserve decision on Wednesday, October 28, 2026.

Where Things Stand

The answer is that Zurn Elkay (NYSE:ZWS) can meet USD 0.50 if core growth lands in its 6% to 7% range, but the fourth-quarter tone and the EBITDA range of USD 503 million to USD 513 million carry more weight. The slower guided growth means the second-quarter margin has to hold. The next catalysts are the release after the close on Tuesday, October 27, 2026, the trading session on Wednesday, October 28 and the Federal Reserve decision the same day. Consensus figures and guidance are estimates, not guarantees, and this is not investment advice.