Zurn Elkay Water Solutions Corporation · NYSE:ZWS
Zurn Elkay Water Solutions — Q1 2025 Earnings Presentation
11 slides from Zurn Elkay Water Solutions's earnings presentation, Apr 23, 2025
Slide 1: First Quarter 2025 Financial Results
First Quarter 2025 Financial Results April 23, 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: Zurn Elkay Performance Update
Zurn Elkay Performance Update 1Q Results Strategic Developments v Core sales +5% YoY VY Share repurchases of $77M (2.3M shares) v Adjusted EBITDA® margin of 25.2% ... up +110 bps YoY y Published our 2024 sustainability report v FCF of $39M in the quarter v Ending net debt leverage of 0.9x (Non-GAAP
Slide 4: Q1 2025 Results
Q1 2025 Results Consolidated Results $ in millions 1Q 2025 1Q 2024 Change Net Sales $389 $374 4% Growth from: Core 5% FX Translation (1%) Adjusted EBITDA “ $98 $90 9% % of Sales 25.2% 24.1% +110 bps (Non-GAAP measure defined, reconciled, and discussed in the earnings release included in the Form 8-
Slide 5: Leverage and Debt
Leverage and Debt Net Debt Leverage Ratio Total Debt ($ millions) 1.5x 1.4x 11x 1.0x 0.8x 0.5x Dec-22 Dec-23 Dec-24 (Net Debt Leverage is defined as the ratio of total debt less cash to pro forma LTM Adjusted EBITDA. oe 09x — 0.9x Mar-24 — Mar-25 $750 $500 $250 536 - - i Dec-22 Dec-23— Dec-24 Mar-24
Slide 6: Q1 Sustainability Impact
Q1 Sustainability Impact RECENT RECOGNITION SUSTAINABLE PRODUCTS SUSTAINABLE PRODUCTS SUSTAINABLE PRODUCTS 86% 8 pill 600 miti (0) billion million revenue from products gallons of water saved gallons of safer, cleaner with sustainable from our products filtered water delivered by attributes our filt
Slide 7: Supply Chain Price/Cost Update
Supply Chain Price/Cost Update Continued multi-year journey to re-position supply chain out of China Experienced management team executing plan vs. reacting Industry supply chain parity/advantage in consolidated industry Price increases effective 4/15 and 5/15 China direct material soend to be under
Slide 8: Zurn Elkay Cost Structure (2024)
Zurn Elkay Cost Structure (2024) 2024 COST OF GOODS SOLD 2024 DIRECT MATERIALS SUBJECT TO TARIFFS Amount %ofCOGS %ofDM 2024 Total COGS $860 100% $285 33% 56% Direct material $507 59% All Other $158 18% 31% China $127 15% 25% All other COGS $353 41% 2024 DIRECT MATERIAL PROJECTED CHINA DIRECT MATERIA
Slide 9: Supply Chain Price/Cost Update
Supply Chain Price/Cost Update Obviously a “fluid environment” ... not assuming it goes “back to the way it was’ 3 Managing customers ordering ahead Accelerating non-China capacity as much as possible High confidence (and track record) in delivering price/cost positive results in near and long-term
Slide 10: Q2 2025 Outlook
#Cl Projects Q2 2025 Outlook Submitted Core sales growth + L/MSD Adjusted EBITDA® margin 25.5% to 26.0% +60% YoY Below the line assumptions: ° Interest expense of ~$8 million * Stock compensation expense of ~$10 million * Depreciation & amortization of ~$23 million e Adjusted tax rate ~26.5% - 27.5%
Slide 11: Thank You
Thank You
Zurn Elkay Water Solutions — Q1 2025 Earnings Presentation on 6ix