Revenue growth accelerated to 11.4% in 2026Q1, while operating margins expanded to 19.0% as the company successfully leveraged its SG&A base.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Dec'99 | Dec'98 | Dec'97 | Dec'96 | Dec'95 | Dec'94 | Dec'93 | Dec'92 | Dec'91 | Dec'90 | Dec'89 |
|---|
| Sales/Revenue | 1.74B | 1.7B | 1.57B | 1.53B | 1.28B | 910.9M | 562.7M | 710.1M | 2.05B | 1.85B | 1.71B | 1.92B | 2.05B | 2.03B | 1.94B | 1.94B | 1.67B | 1.51B | 15.89M | 13.74M | 2.3M | 100K | 100K | 84.2M | 83.9M | 86.4M | 91.2M | 118.2M | 117.8M |
| Revenue Growth % | 10.03% | 8.26% | 2.35% | 19.4% | 40.72% | 61.88% | -20.76% | -65.38% | 10.76% | 8.12% | -10.98% | -6.17% | 0.78% | 4.67% | -0.04% | 16.08% | 10.92% | 9399.84% | 15.66% | 498.04% | 2198% | 0% | -99.88% | 0.36% | -2.89% | -5.26% | -22.84% | 0.34% | - |
| Cost of Goods Sold | 979.9M | 989.8M | 859.5M | 882.4M | 816.3M | 537.7M | 309.4M | 387.5M | 1.27B | 1.15B | 1.09B | 1.26B | 1.3B | 1.28B | 1.23B | 1.25B | 1.08B | 994.4M | 12.39M | 10M | 1.1M | 0 | 300K | 66.6M | 65.4M | 67M | 66.9M | 92.3M | 89.4M |
| COGS % of Revenue | - | 58.36% | 54.87% | 57.65% | 63.68% | 59.03% | 54.98% | 54.57% | 61.73% | 61.84% | 63.42% | 65.42% | 63.6% | 62.97% | 63.13% | 64.5% | 64.62% | 65.85% | 77.94% | 72.76% | 47.87% | - | 300% | 79.1% | 77.95% | 77.55% | 73.36% | 78.09% | 75.89% |
| Gross Profit | 760.2M | 706.1M | 707M | 648.1M | 465.5M | 373.2M | 253.3M | 322.6M | 784.8M | 706.5M | 626.4M | 665.2M | 746.2M | 753.4M | 716.6M | 690.1M | 592.5M | 515.6M | 3.51M | 3.74M | 1.2M | 0 | -200K | 17.6M | 18.5M | 19.4M | 24.3M | 25.9M | 28.4M |
| Gross Margin % | 43.69% | 41.64% | 45.13% | 42.35% | 36.32% | 40.97% | 45.02% | 45.43% | 38.27% | 38.16% | 36.58% | 34.58% | 36.4% | 37.03% | 36.87% | 35.5% | 35.38% | 34.15% | 22.06% | 27.24% | 52.13% | - | -200% | 20.9% | 22.05% | 22.45% | 26.64% | 21.91% | 24.11% |
| Gross Profit Growth % | - | -0.13% | 9.09% | 39.23% | 24.73% | 47.34% | -21.48% | -58.89% | 11.08% | 12.79% | -5.83% | -10.85% | -0.96% | 5.14% | 3.84% | 16.47% | 14.91% | 14606.22% | -6.33% | 212.44% | - | 100% | -101.14% | -4.86% | -4.64% | -20.16% | -6.18% | -8.8% | - |
| Operating Expenses | 456.6M | 417.6M | 462.4M | 456.7M | 358.4M | 266.2M | 172.3M | 218.5M | 479.2M | 440.1M | 423.2M | 490.9M | 542.5M | 481M | 473.7M | 444.8M | 375.3M | 354.2M | 3.92M | 4.3M | 1.4M | 500K | 500K | 15.4M | 16.8M | 20M | 22.3M | 29.5M | 26M |
| OpEx % of Revenue | - | 24.62% | 29.52% | 29.84% | 27.96% | 29.22% | 30.62% | 30.77% | 23.37% | 23.77% | 24.71% | 25.52% | 26.46% | 23.64% | 24.37% | 22.88% | 22.41% | 23.46% | 24.65% | 31.29% | 60.92% | 500% | 500% | 18.29% | 20.02% | 23.15% | 24.45% | 24.96% | 22.07% |
| Selling, General & Admin | 424.6M | 417.6M | 389.8M | 371.3M | 309M | 239M | 153.7M | 196.4M | 433.1M | 393.8M | 356.1M | 385.7M | 415.1M | 419.1M | 398.4M | 387.1M | 326.7M | 297.7M | 3.43M | 3.9M | 1.2M | 500K | 200K | 14.9M | 16.2M | 19.4M | 21.7M | 28.9M | 25.4M |
| SG&A % of Revenue | - | 24.62% | 24.88% | 24.26% | 24.11% | 26.24% | 27.31% | 27.66% | 21.12% | 21.27% | 20.79% | 20.05% | 20.25% | 20.6% | 20.5% | 19.91% | 19.51% | 19.72% | 21.6% | 28.38% | 52.22% | 500% | 200% | 17.7% | 19.31% | 22.45% | 23.79% | 24.45% | 21.56% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 0 | 72.6M | 85.4M | 49.4M | 27.2M | 18.6M | 22.1M | 46.1M | 46.3M | 67.1M | 105.2M | 127.4M | 61.9M | 75.3M | 57.7M | 48.6M | 56.5M | 485K | 400K | 200K | 0 | 300K | 500K | 600K | 600K | 600K | 600K | 600K |
| Operating Income | 303.6M | 288.5M | 244.6M | 191.4M | 107.1M | 107M | 81M | 104.1M | 305.6M | 266.4M | 203.2M | 174.3M | 203.7M | 272.4M | 242.9M | 245.3M | 217.2M | 161.4M | -412K | -557K | -202K | -400K | -700K | 2.2M | 1.7M | -600K | 2M | -3.6M | 2.4M |
| Operating Margin % | 17.45% | 17.01% | 15.61% | 12.51% | 8.36% | 11.75% | 14.39% | 14.66% | 14.9% | 14.39% | 11.87% | 9.06% | 9.94% | 13.39% | 12.5% | 12.62% | 12.97% | 10.69% | -2.59% | -4.05% | -8.79% | -400% | -700% | 2.61% | 2.03% | -0.69% | 2.19% | -3.05% | 2.04% |
| Operating Income Growth % | - | 17.95% | 27.8% | 78.71% | 0.09% | 32.1% | -22.19% | -65.94% | 14.71% | 31.1% | 16.58% | -14.43% | -25.22% | 12.14% | -0.98% | 12.94% | 34.57% | 39274.76% | 26.03% | -175.74% | 49.5% | 42.86% | -131.82% | 29.41% | 383.33% | -130% | 155.56% | -250% | - |
| EBITDA | 370.6M | 377.2M | 332.9M | 279.3M | 161.6M | 184.5M | 148M | 190.7M | 397.9M | 356.1M | 308.6M | 289.7M | 315.9M | 379.3M | 353.8M | 359.3M | 323.1M | 270.7M | -897K | -957K | -402K | -400K | -1M | 1.7M | 1.1M | -1.2M | 1.4M | -4.2M | 1.8M |
| EBITDA Margin % | 21.3% | 22.24% | 21.25% | 18.25% | 12.61% | 20.25% | 26.3% | 26.86% | 19.4% | 19.23% | 18.02% | 15.06% | 15.41% | 18.65% | 18.2% | 18.48% | 19.29% | 17.93% | -5.64% | -6.96% | -17.49% | -400% | -1000% | 2.02% | 1.31% | -1.39% | 1.54% | -3.55% | 1.53% |
| EBITDA Growth % | 6.49% | 13.31% | 19.19% | 72.83% | -12.41% | 24.66% | -22.39% | -52.07% | 11.74% | 15.39% | 6.52% | -8.29% | -16.71% | 7.21% | -1.53% | 11.2% | 19.36% | 30278.37% | 6.27% | -138.06% | -0.5% | 60% | -158.82% | 54.55% | 191.67% | -185.71% | 133.33% | -333.33% | - |
| D&A (Non-Cash Add-back) | 66M | 88.7M | 88.3M | 87.9M | 54.5M | 77.5M | 67M | 86.6M | 92.3M | 89.7M | 105.4M | 115.4M | 112.2M | 106.9M | 110.9M | 114M | 105.9M | 109.3M | -485K | -400K | -200K | 0 | -300K | -500K | -600K | -600K | -600K | -600K | -600K |
| EBIT | 304.6M | 284.9M | 240.1M | 185.3M | 110.7M | 87.1M | 78.8M | 80M | 308.7M | 262.2M | 195.6M | 177.4M | 196.5M | 124.1M | 216M | 221.1M | 117.5M | 312.8M | -412K | -557K | -202K | -400K | -700K | 2.2M | 1.7M | -600K | 2M | -3.6M | 2.4M |
| Net Interest Income | -27.5M | -28.6M | -33.1M | -38.5M | -26.9M | -34.7M | -33.3M | -56.6M | -69.9M | -75.1M | -88.3M | -91.4M | -87.9M | -109.1M | -153.3M | -176.2M | -180.8M | -194.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 27.5M | 28.6M | 33.1M | 38.5M | 26.9M | 34.7M | 33.3M | 56.6M | 69.9M | 75.1M | 88.3M | 91.4M | 87.9M | 109.1M | 153.3M | 176.2M | 180.8M | 194.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -26.5M | -32.2M | -37.6M | -44.6M | -23.3M | -54.6M | -35.5M | -80.7M | -66.8M | -79.3M | -95.9M | -88.3M | -95.1M | -257.4M | -180.2M | -200.4M | -280.5M | -42.8M | -315K | 557K | 202K | 400K | 700K | -2.2M | -1.7M | -1.2M | -1.2M | -2.4M | -2.2M |
| Pretax Income | 277.1M | 256.3M | 207M | 146.8M | 83.8M | 52.4M | 45.5M | 23.4M | 238.8M | 187.1M | 107.3M | 86M | 108.6M | 15M | 62.7M | 44.9M | -63.3M | 118.6M | -727K | 0 | 0 | 0 | 0 | 0 | 0 | -1.8M | 800K | -6M | 200K |
| Pretax Margin % | 15.92% | 15.11% | 13.21% | 9.59% | 6.54% | 5.75% | 8.09% | 3.3% | 11.64% | 10.1% | 6.27% | 4.47% | 5.3% | 0.74% | 3.23% | 2.31% | -3.78% | 7.85% | -4.57% | - | - | - | - | - | - | -2.08% | 0.88% | -5.08% | 0.17% |
| Income Tax | 66.8M | 63.9M | 48.1M | 42.6M | 26.8M | 2.7M | 10.5M | 4.4M | 53.4M | -19.5M | 15.6M | 17.1M | 16.8M | -10M | 15.4M | 9.4M | -10.2M | 30.5M | 9K | 0 | 0 | 0 | 0 | 0 | 0 | -500K | 300K | -2.4M | 100K |
| Effective Tax Rate % | 24.11% | 24.93% | 23.24% | 29.02% | 31.98% | 5.15% | 23.08% | 18.8% | 22.36% | -10.42% | 14.54% | 19.88% | 15.47% | -66.67% | 24.56% | 20.94% | 16.11% | 25.72% | -1.24% | - | - | - | - | - | - | 27.78% | 37.5% | 40% | 50% |
| Net Income | 213.3M | 198M | 160.2M | 112.7M | 61.7M | 120.9M | 118.2M | 180.1M | 34.3M | 75.9M | 74.1M | 67.9M | 83.8M | 30.2M | 50.1M | 29.9M | -51.3M | 88.1M | -736K | -500K | -200K | -1.3M | -6.9M | 200K | 200K | -1.3M | 500K | -3.6M | 100K |
| Net Margin % | 12.26% | 11.68% | 10.23% | 7.36% | 4.81% | 13.27% | 21.01% | 25.36% | 1.67% | 4.1% | 4.33% | 3.53% | 4.09% | 1.48% | 2.58% | 1.54% | -3.06% | 5.83% | -4.63% | -3.64% | -8.7% | -1300% | -6900% | 0.24% | 0.24% | -1.5% | 0.55% | -3.05% | 0.08% |
| Net Income Growth % | 25.84% | 23.6% | 42.15% | 82.66% | -48.97% | 2.28% | -34.37% | 425.07% | -54.81% | 2.43% | 9.13% | -18.97% | 177.48% | -39.72% | 67.56% | 158.28% | -158.23% | 12070.11% | -47.2% | -150% | 84.62% | 81.16% | -3550% | 0% | 115.38% | -360% | 113.89% | -3700% | - |
| Net Income (Continuing) | 210.3M | 192.4M | 158.9M | 104.2M | 57M | 49.7M | 35M | 19M | 189M | 206.6M | 91.7M | 68.9M | 91.8M | 25M | 47.3M | 35.5M | -53.1M | 88.1M | -736K | -500K | -200K | -200K | -100K | 200K | 200K | -1.3M | 500K | -3.6M | 100K |
| Discontinued Operations | 1.8M | 5.6M | 1.3M | 8.5M | 4.7M | 71.2M | 83.2M | 161.1M | -154.7M | -130.6M | -17.6M | -1.4M | -8M | 4.6M | 2.8M | -5.6M | 1.8M | 0 | 0 | 0 | 0 | -1.1M | -6.8M | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 3M | 2.4M | 2.4M | 100K | 0 | -600K | -200K | -200K | 0 | -900K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.26 | 1.12 | 0.92 | 0.64 | 0.40 | 0.97 | 0.28 | 1.33 | 0.28 | 0.72 | 0.64 | 0.66 | 0.80 | 0.30 | 0.50 | 0.42 | -0.71 | 1.22 | -0.30 | -0.20 | -0.08 | -0.64 | -3.32 | 0.11 | 0.08 | -0.65 | 0.22 | -1.74 | 0.06 |
| EPS Growth % | 28.87% | 21.74% | 43.75% | 60% | -58.76% | 246.43% | -78.95% | 378.21% | -61.37% | 12.5% | -3.03% | -17.5% | 166.67% | -40% | 19.05% | 159.15% | -158.2% | 506.67% | -50% | -150% | 87.5% | 80.72% | -3118.18% | 37.5% | 112.31% | -395.45% | 112.64% | -3000% | - |
| EPS (Basic) | - | 1.14 | 0.93 | 0.65 | 0.41 | 1.00 | 0.29 | 1.48 | 0.33 | 0.73 | 0.65 | 0.67 | 0.82 | 0.31 | 0.52 | 0.32 | -0.77 | 1.32 | -0.30 | -0.20 | -0.08 | -0.64 | -3.32 | 0.11 | 0.08 | -0.65 | 0.22 | -1.74 | 0.06 |
| Diluted Shares Outstanding | 169.68M | 171.26M | 174.66M | 177.26M | 153.84M | 125.11M | 123.2M | 124.26M | 123.33M | 106M | 104.78M | 103.31M | 104.73M | 101.32M | 99.87M | 72.06M | 71.99M | 71.99M | 2.47M | 2.5M | 2.5M | 2.03M | 2.08M | 1.82M | 2.5M | 2M | 2.27M | 2.07M | 1.67M |
| Basic Shares Outstanding | 167.7M | 168.66M | 171.69M | 174.25M | 151.58M | 121.49M | 120.43M | 111.69M | 104.64M | 103.89M | 102.75M | 100.84M | 101.53M | 98.11M | 95.97M | 94.1M | 66.72M | 66.72M | 2.47M | 2.5M | 2.5M | 2.03M | 2.08M | 1.82M | 2.5M | 2M | 2.27M | 2.07M | 1.67M |
| Dividend Payout Ratio | - | 32.27% | 35.33% | 44.72% | 52.67% | 30.11% | 24.37% | 5.44% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Non-residential construction cyclicality
According to the latest quarterly financial data, ZWS achieved a revenue growth rate of 11.4% in 2026Q1, marking a notable acceleration from the 0.5% growth observed in 2024Q1 and suggesting that the company's specification-led strategy is successfully capturing demand within the institutional water management sector.
The recent uptick in top-line performance appears to reflect the successful integration of Elkay and a sustained focus on non-discretionary institutional retrofits. Investors should monitor whether this growth trajectory can persist if the broader Architectural Billings Index continues to show volatility in upcoming periods.
As reported in recent income statements, ZWS experienced significant gross margin fluctuations, ranging from a low of 39.5% in 2024Q4 to a peak of 47.5% in 2026Q1, indicating that the company's pricing power remains sensitive to input cost cycles and potential shifts in product mix.
While the 47.5% margin in the most recent quarter is encouraging, the historical variance suggests that raw material exposure remains a primary driver of profitability. The ability to maintain these levels will likely depend on the company's continued success in passing through costs to distributors.
Based on the provided financial figures, operating income scaled to $82.1M in 2026Q1 from $32.8M in 2023Q4, demonstrating that management has successfully leveraged its SG&A base to drive higher profitability as the company's revenue footprint expands following the recent merger and integration activities.
The expansion of operating margins to 19.0% suggests that the company is achieving meaningful scale efficiencies. This trend implies that the current cost structure is well-positioned to benefit from incremental revenue growth, provided that SG&A expenses remain disciplined relative to top-line gains.
Financial statements reveal that ZWS consistently records stock-based compensation expenses, with $11.7M reported in 2026Q1, which represents a non-trivial portion of net income and suggests that investors should adjust for these recurring equity-based charges when evaluating the true underlying profitability of the business.
While the company shows strong EPS growth, the persistent level of stock-based compensation warrants further investigation into the dilution impact on shareholders. Analysts should consider whether these expenses are appropriately aligned with long-term value creation or if they mask underlying operational cost pressures.
Quick answers to the most common questions about buying ZWS stock.
For fiscal year 2025, Zurn Elkay Water Solutions Corporation (ZWS) reported total revenue of $1.70B. This represents a 1339.6% increase compared to $117.8M in 1989.
Zurn Elkay Water Solutions Corporation (ZWS) is profitable, generating $198.0M in net income for the fiscal year ending 2025 with a net profit margin of 11.7%.
Zurn Elkay Water Solutions Corporation (ZWS) reported an operating income of $288.5M, resulting in an operating profit margin of 17.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Zurn Elkay Water Solutions Corporation (ZWS) generated $706.1M in gross profit for the year, representing a gross profit margin of 41.6%. This demonstrates the company's core pricing power and production efficiency.