What Happened?
Shares of water management solutions company Zurn Elkay (NYSE: ZWS) jumped 3.3% in the afternoon session after the company reported strong third-quarter 2025 financial results that surpassed analyst expectations and provided an upbeat full-year outlook. The water solutions company announced that its revenue rose 11.1% from the previous year to $455.4 million, surpassing analyst estimates. Adjusted earnings per share came in at $0.43, also beating forecasts and growing about 26% compared to the same period in the prior year. Looking ahead, Zurn Elkay provided an optimistic forecast, with its full-year guidance for adjusted EBITDA topping Wall Street's forecasts.
After the initial pop the shares cooled down to $47.78, up 3.7% from previous close.
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What Is The Market Telling Us
Zurn Elkay’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 15.2% on the news that the company reported strong second-quarter 2025 financial results that surpassed expectations and raised its full-year guidance. The water solutions provider announced net sales of $445 million, an 8% increase year-over-year that surpassed analyst expectations. Profitability also showed significant strength, with adjusted earnings per share (EPS) growing 27% to $0.42 and adjusted EBITDA margins expanding. Buoyed by the strong performance, Zurn Elkay raised its full-year 2025 outlook for sales, adjusted EBITDA, and free cash flow. The company also demonstrated confidence by repurchasing $33 million worth of its stock during the quarter. This robust corporate performance occurred despite mixed conditions in the broader Industrials sector, and the positive investor sentiment pushed the stock to a new 52-week high.
Zurn Elkay is up 29.5% since the beginning of the year, and at $47.78 per share, it is trading close to its 52-week high of $47.94 from September 2025. Investors who bought $1,000 worth of Zurn Elkay’s shares 5 years ago would now be looking at an investment worth $1,503.
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