Zurn Elkay (ZWS) Q4 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Tue, April 21, 2026 astatine 9:28 AM CDT 30 min read

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Wednesday, February 4, 2026 astatine 8:30 a.m. ET

• Chairman & Chief Executive Officer — Todd Adams

• Senior Vice President & Chief Financial Officer — David Pauli

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Todd Adams: Thanks, Rebecca, and bully morning, everyone. I'll commencement connected Page 3. We wrapped up calendar twelvemonth 2025 with a beauteous decent 4th fourth arsenic income grew 10% organically implicit the anterior twelvemonth Q4 and EBITDA grew 14% to $104 million, with margins expanding 100 ground points to 25.6%. In the quarter, we generated $83 cardinal of escaped currency flow, bringing the afloat twelvemonth to $317 million, which was up 17% implicit 2024. Over the people of the year, we repurchased astir 3% of our outstanding shares for $160 cardinal and paid $64 cardinal successful dividends. All this portion leverage declined to 0.4x. Taken arsenic a whole, we accomplished a batch implicit the people of 2025.

The astir important of which are the further sustainable competitory advantages we've built successful our concern that volition assistance america turn faster and beryllium much profitable successful the future, and I'll interaction connected those successful conscionable a bit. Along the way, 2025 afforded america the accidental to unrecorded trial the proviso concatenation optimization program that we person been deploying and talking astir for respective years and for the astir part, it's worked flawlessly. We rapidly celebrated 2025 here, our attraction has turned to the adjacent 3 years and adjacent much specifically delivering different grounds twelvemonth successful 2026.

For us, leveraging the Zurn Elkay Business System and everything we do, and however we operate, keeps america relentlessly focused connected getting conscionable a small spot amended each day. To that end, 1 of the halfway pillars of ZEBS is our strategical readying and strategy deployment process. We wrapped up our yearly 3-year strategical readying process successful Q4 and are present actively deploying twelvemonth 1 of that plan. It's a process we've utilized and done annually for astir the past 18 years oregon so, and we deliberation we've made continual improvements successful that process. But this process isn't a table exercise.

It's a afloat interaction athletics wherever we measure each facet of our concern from our markets, contention and our manufacture to products, customers, channels and adjacency arsenic good arsenic larger, much disruptive ideas. We inquire what's changed, what did we get incorrect past twelvemonth and what are our risks? And importantly, wherever tin we further exploit the competitory advantages we've built? This defines and aligns our enactment astir what our priorities are going to beryllium implicit the adjacent coming 1, 2 oregon 3 years. The resources and investments required arsenic good arsenic the tools, processes and capabilities we request to leverage oregon make to get there.