Zurn Elkay Water Solutions Corporation · NYSE:ZWS
Zurn Elkay Water Solutions — Q4 2024 Earnings Presentation
13 slides from Zurn Elkay Water Solutions's earnings presentation, Feb 5, 2025
Slide 1: Fourth Quarter 2024 Financial Results
Fourth Quarter 2024 Financial Results February 5, 2025 zurn + elkay
Slide 2: Cautionary Statement Under The Private Securities Litigation Reform Act
Cautionary Statement Under The Private Securities Litigation Reform Act Forward-Looking Statements This presentation includes "forward-looking statements” within the meaning of the federal securities laws that involve risks and uncertainties. Forward-looking statements include statements we make con
Slide 3: Performance Update
Performance Update 2024 Strategic Developments Share repurchases of $150M (4.7M shares, ~3% of outstanding shares) Quarterly dividend increased 12.5% Sustainability report to be issued mid- February 4Q Results v Core sales“ +4% YoY v Adjusted EBITDA” margin of 24.6% v¥ FCF of $55M in the quarter CY
Slide 4: 4Q 2024 financial results vs 4Q 2023
$ in millions 4Q 2024 4Q 2023 Change Net Sales $371 $357 4% Growth from: Core (1) 4% Adjusted EBITDA (1) $91 $84 8% % of Sales 24.6% 23.6% +100 bps 4
Slide 5: Zurn Elkay Leverage and Debt
Zurn Elkay Leverage and Debt Net Debt Leverage Ratio Total Debt ($ millions) 2.5x 2.0x 1.5x 1.0x 0.5x 1.4x 1x 0.9x 0.9x Dec-21 Dec-22 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 (Net Debt Leverage is defined as the ratio of total debt less cash to pro forma LTM Adjusted EBITDA. 750 500 250 Dec-21 Dec-22 Dec-
Slide 6: Sustainability Impact in 2024
SUSTAINABLE PRODUCTS 32.5B Gallons of water saved through the use of our products ENERGY REDUCTION 23.2% Reduction in energy intensity since 2021, surpassing our 15% target HEALTH AND SAFETY 0.65 Total Recordable Incident Rate compared to 2.6 industry average PEOPLE 95% Response rate on Total Associ
Slide 7: Zurn Elkay Value Creation
Zurn Elkay Value Creation Pure Play: Water and Environmental Zurn Elkay Business System Superior Value Creation Incremental Acquisitions Multibillion Dollar Markets Margins Customer Satisfaction Flexible Business Model Leading Brand Positions Long-Term Growth Potential / Shareholder Returns Sustaina
Slide 8: Our Zurn Elkay Business System
Our Zurn Elkay Business System w Breakthrough Year 3 HCl Breakthrough Year 2 Breakthrough #Cl = Daily Management ¥ igeme #Cl Year1 Breakthrough Daily Management Year2 Year3 Year 4 zurn:elkay
Slide 9: Culture of Continuous Improvement
Culture of Continuous Improvement 50% 45% 40% 35% 30% # of Continuous Improvement Projects 2022 2023 Gross Profit Trend 2024 2022 2023 2024 #Cl PROJE #Cl PROJECT (S 7) w ° 4 a 3 = #Cl PROJECT #Cl PROJECT Reviocu tayuut Ui sink polishing station +$123k annual save (reduced changeover time: 60%) East
Slide 10: Planning Horizon Focus
Planning Horizon Focus MRO Growth Continue to increase MRO Exposure Invest in dedicated MRO resources Leverage new MRO partnerships Regional Growth Invest in fastest growing regions Improve spec share in focused regions Targeted contractor conversion by region Drinking Water Growth Conversion of lar
Slide 11: Zurn Elkay Outlook
Zurn Elkay Outlook Key 2025 Assumptions Core sales growth” similar to 2024 1Q 2025 Outlook @ Institutional market +LSD @ Waterworks market +LSD so) RES II SiC * Adjusted EBITDA® margin 24.5% to 25.0% Commercial market down -LSD * Core sales growth” +LSD * Below the line assumptions: Adjusted EBITDA
Slide 12: Core Core Core
+3% Core +7% +10% +3% +2% Core Core Core Core • • • • • • • • • • • • • • 12
Slide 13: Thank You
Thank You
Zurn Elkay Water Solutions — Q4 2024 Earnings Presentation on 6ix