At a glance
Zurn Elkay Water Solutions Corporation is worth $7.18B, about 38 times its fiscal 2025 earnings. Revenue grew 8.3% to $1.70B in fiscal 2025, with 11.7% kept as profit; over 5 years it has grown 17.8% a year. It pays a 1.01% dividend yield, raised every year for at least 3 years, and returned $700.6M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned −4.6% over the past year with dividends reinvested and +4.3% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 34.9% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 24 months after the low.
The business in plain English
Zurn Elkay Water Solutions makes products that control, deliver, filter and conserve water in buildings. Its product lines cover water safety and control, flow systems, hygienic and environmental products, and filtered drinking water. Its brands include Zurn, Elkay, Wilkins, World Dryer, Halsey Taylor and Green Turtle. Most sales go to institutional buildings, such as schools, hospitals and government sites, and to commercial ones, such as offices, stores, hotels and arenas. Public water systems and homes are smaller markets.
The business depends on “specification.” That means an architect or engineer names a product in a building's plans, and contractors then buy it through distributors. The products must meet plumbing codes and pass testing by groups such as NSF and UL. They are usually a small share of a project's cost. The company says designers who get good results tend to specify its products again. About 1,000 independent sales representatives across 120 agencies sell its products in North America. Demand comes from new construction and from retrofits that help older buildings use less water and energy.
Revenue was $1.70 billion in fiscal 2025, which ended December 31, 2025. The United States supplied 91.5% of it, Canada 5.8% and the rest of the world 2.8%. The company was once called Rexnord. It spun off its motion-control business in October 2021. The remaining Zurn water business merged with Elkay Manufacturing in July 2022.
Price history
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ZWS -4.6% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By geography
| United States | $1.55B | 91.5% |
| Canada | $97.8M | 5.8% |
| Rest of world | $47.0M | 2.8% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $495.1M, up 8.7% from a year earlier, and net income was $76.3M (+23.5%).
- For fiscal 2025, revenue was $1.70B (+8.3% year over year; +17.8% a year from FY2020 to FY2025) with a 11.7% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +17.8% good |
|---|---|
| Operating margin | 16.4% good |
| Return on equity (FY2025) | 12.3% watch |
| Return on assets (FY2025) | 7.4% watch |
| Net cash (cash minus debt) | $-193.2M watch |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $746.1M | $146.7M | — |
| FY2021 | $910.9M | $120.9M | — |
| FY2022 | $1.28B | $61.7M | — |
| FY2023 | $1.53B | $112.7M | — |
| FY2024 | $1.57B | $160.2M | — |
| FY2025 | $1.70B | $198.0M | — |
Valuation snapshot
| Market value | $7.18B |
|---|---|
| P/E ratio | 37.8 |
| Dividend yield | 1.01% |
Rank among 1514 US companies
Market value at each year end
Zurn Elkay Water Solutions’s market value went from $4.42B at the end of 2021 to $7.18B on Oct 28, 2026, up 63%; since the end of 2025 it is down 8%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $7.18B | -7.7% |
| 2025 | $7.78B | +22.9% |
| 2024 | $6.33B | +24.6% |
| 2023 | $5.08B | +35.2% |
| 2022 | $3.76B | -14.9% |
| 2021 | $4.42B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| ZWS price data to Oct 28, 2026 | -5.8% | -4.6% | +20.2% | +4.3% | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -5.8% |
| 2025 | +25.8% |
| 2024 | +28.1% |
| 2023 | +40.6% |
| 2022 | -41.5% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 33.6% over that stretch · deepest drop along the way 34.9%, back to its old high 23.7 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 1 open-market purchases ($100K) and 8 sales ($3.1M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 4, 2026 | Mark W Peterson Chief Administrative Officer | sell | $1.3M |
| Feb 17, 2026 | Timothy J Jahnke Director | sell | $1.3M |
| Feb 11, 2026 | Mark W Peterson Chief Administrative Officer | sell | $195K |
| Feb 17, 2026 | Sudhanshu Chhabra VP-Zurn Business Systems | sell | $103K |
| Feb 17, 2026 | Mark W Peterson Chief Administrative Officer | sell | $102K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 13.6% | Mar 31, 2025 |
| Ice Mountain LLC | 9.06% | Feb 13, 2025 |
| Vanguard Portfolio Management | 5.37% | Mar 31, 2026 |
| Kayne Anderson Rudnick Investment Management, LLC | 5.3% | Jun 30, 2026 |
| Impax Asset Management Group plc | 2.2% | Dec 31, 2024 |
ETFs with the most weight in ZWS
| IWTR iShares MSCI Water Management Multisector ETF | 2.98% |
| AQWA Global X Clean Water ETF | 2.63% |
| PSCI Invesco S&P SmallCap Industrials ETF | 1.98% |
| FIW First Trust Water ETF | 1.83% |
| CGW Invesco S&P Global Water Index ETF | 1.78% |
| CAFG Pacer US Small Cap Cash Cows Growth Leaders ETF | 1.17% |
| TAX Cambria Tax Aware ETF | 0.94% |
| XSLV Invesco S&P SmallCap Low Volatility ETF | 0.75% |
What could go wrong
- Tied to the commercial construction cycle. Sales depend mostly on new and renovated schools, hospitals, offices and other buildings. Higher interest rates, tighter credit or a weak economy can cut demand and push down prices and profit margins.
- Depends on independent sales reps and distributors. Products reach buyers through independent distributors and roughly 1,000 independent sales representatives. If a key distributor ends its relationship, or many representatives leave, sales and cash flow could suffer seriously.
- Factory and supply chain overhaul could disappoint. The company is reshaping where and how it makes products through its Supply Chain Optimization and Footprint Repositioning initiatives, along with restructuring and divestitures. If these fall short of their goals, profits could suffer.
- Acquisitions and a large goodwill balance. The company expects to keep buying businesses, and a poorly integrated deal could hurt results. Goodwill and intangible assets, accounting values mostly from past deals, already exceed stockholders' equity, so write-downs are possible.
- Raw material prices and tariffs. Higher prices or shortages of raw materials, including those caused by tariffs and other trade measures, could raise costs. Profit margins shrink if the company cannot pass those costs on to customers.
- Product liability and other lawsuits. Some subsidiaries face lawsuits, including product liability claims that allege a product caused harm. Because its products carry water in schools, hospitals and offices, such claims could bring legal costs and reputational damage.
Recent events
- Quarterly results released
- Quarterly results released
- Quarterly results released; Other company announcement
- Quarterly results released; Executive or board change
- Executive or board change; Shareholder vote results
- Quarterly results released
- Major agreement signed; New debt or financial obligation
- Quarterly results released
For income and retirement investors
Zurn Elkay pays a small but rising dividend. The yield was 1.01% as of October 28, 2026. Regular dividends per share fell from about $0.31 in fiscal 2020 to $0.20 in fiscal 2022. They then rose three years in a row, reaching $0.38 in fiscal 2025. That is growth of about 4% a year over fiscal 2020–2025. The fiscal 2025 dividend took 32.3% of earnings. The company spent more on buybacks ($460.8 million) than on dividends ($239.8 million) over fiscal 2021–2025. Even so, the share count rose 31.3% between February 2022 and October 2026, a span that includes the Elkay merger.
The price figures cover about five years through October 28, 2026, so they miss the 2008 and 2020 crashes. In the 2022 bear market (a long, broad market decline), the stock fell 34.9% between January 4 and October 12, 2022. It took about 24 months to regain that peak, on October 2, 2024. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Zurn Elkay make money?
Zurn Elkay makes money by selling water products for buildings. These include water control, flow, hygiene and filtered drinking water products, sold under brands such as Zurn, Elkay and Wilkins. Architects and engineers write its products into building plans, and contractors buy them through independent distributors. The main end markets are schools, hospitals, offices and other institutional and commercial buildings. Revenue was $1.70 billion in fiscal 2025, and 91.5% of it came from the United States.
Does Zurn Elkay raise its dividend every year?
Not every year. Regular dividends per share slipped from about $0.31 in fiscal 2020 to $0.30 in 2021 and $0.20 in 2022. That stretch included the motion-control spin-off and the Elkay merger. Dividends then rose three years in a row, to $0.29, $0.33 and $0.38 in fiscal 2025. The yield was 1.01% as of October 28, 2026. The fiscal 2025 dividend used 32.3% of earnings.
Is Zurn Elkay the same company as Rexnord?
It is the same corporation under a new name, but it runs a different business. Zurn Elkay was once called Rexnord. On October 4, 2021, it passed its Process & Motion Control business to Regal Rexnord (formerly Regal Beloit) in a Reverse Morris Trust. That is a tax-free way to spin off a unit and combine it with another company. The remaining water business, then called Zurn Water Solutions, merged with Elkay Manufacturing on July 1, 2022, and took its present name.
Is ZWS stock expensive?
Judged by its earnings, the stock is priced for growth. ZWS traded at about 37.8 times its fiscal 2025 earnings as of October 28, 2026, based on diluted earnings per share of $1.15. This price-to-earnings ratio (P/E) means buyers paid roughly $38 for each dollar of yearly profit. That leaves less room for error if growth slows. Net income rose 23.6% in fiscal 2025, and 23.5% from a year earlier in the quarter ended September 30, 2026. The share price fell 4.6% in the year to October 28, 2026.
Does Zurn Elkay have a lot of debt?
It has a moderate amount for its size. As of September 30, 2026, Zurn Elkay had $500.3 million of debt and $307.1 million of cash and investments. That left net debt (debt minus cash) of about $193.2 million, less than its fiscal 2025 operating income of $278.9 million. Stockholders' equity was $1.69 billion. In February 2026, the company reported a major agreement and a new debt obligation. Its loan agreements limit some of its operating and financial choices.