Zurn Elkay Water Solutions Corporation (ZWS) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning and welcome to the Zurn LK Water Solutions Corporation fourth quarter 2025 earnings results conference call with Todd Adams, Chairman and Chief Executive Officer, and David Pauley, Chief Financial Officer for Zurn LK Water Solutions. A replay of the conference call will be made available as a webcast on the company's investor relations website. As a reminder, this call contains certain forward-looking statements which are subject to the safe harbor language outlined in Zurn LK's press release issued yesterday afternoon and in the company's filings with the SEC. In addition, some comparisons will refer to non-GAAP measures. The company's earnings release and SEC filings contain additional information about these non-GAAP measures. why they are used, and why the company believes they are helpful to investors and contain reconciliations to the corresponding GAAP information. Consistent with prior quarters, the company will speak to certain non-GAAP metrics as they feel they provide a better understanding of the company's operating results. These measures are not a substitute for GAAP. Zurn LK encourages you to review the GAAP information in its earnings release and SEC filings. With that, I'll turn the call over to Todd Adams, Chairman and CEO of Zurin LK Water Solutions. Thanks, Rebecca, and good morning, everyone. I'll start on page three. We wrapped up calendar year 2025 with a pretty decent fourth quarter as sales grew 10% organically over the prior year Q4, and EBITDA grew 14% to $104 million with margins expanding 100 basis points to 25.6%. In the quarter, we generated $83 million of free cash flow, bringing the full year to $317 million, which was up 17% over 2024. Over the course of the year, we repurchased about 3% of our outstanding shares for $16...