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ZWS · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Zurn Elkay Water Solutions Corporation (ZWS) stock moving?
ZWS reported Q3 2026 results on Oct 27 with net sales of $495M (+7% core, +2% from acquisitions), adjusted EPS of $0.52 versus $0.43, adjusted EBITDA of $140M (28.3% margin), and free cash flow of $110M excluding IEEPA tariff refunds. The company also reported net debt leverage of 0.4x, repurchased $35M of stock, closed the Intellihot acquisition, and raised its annual dividend 18% to $0.52. Despite these figures, the stock fell 11.5% on Oct 28, from $49.15 to $43.50, on about 2.5M shares versus a typical 1.0-1.3M. Sell-side reaction was mostly target cuts while ratings held: RBC cut to $47 (Sector Perform) on Nov 2, Barclays cut to $56 (Overweight), and Oppenheimer cut to $58 (Outperform). The provided filing excerpt does not include the guidance section, so the specific reason for the selloff is not confirmed in the news. Since the drop, the shares have stabilized in a $43.47-$45.85 range, closing at $45.48 on Nov 10 on 1.33M shares, which is still below the pre-earnings level and under all three current targets.
News behind the analysis
- RBC Lowers Price Target on Zurn Elkay Water Solutions to $47RBC Capital Markets cut its price target from $49 to $47 and kept a Sector Perform rating. This follows an earlier cut from $54 to $49 on Oct 29.
- Zurn Elkay Water Solutions Named One of America's Greenest Companies for Third Consecutive YearZWS was recognized as one of America's Greenest Companies for 2027 with a five-star rating, its third straight year on the list. This is a reputational recognition with no direct financial impact disclosed.
- Zurn Elkay Water Solutions Named One of America's Growth Leaders 2027ZWS ranked 224th on TIME's list of America's Growth Leaders 2027. This is a recognition item with no direct financial impact disclosed.
- Barclays Lowers Price Target on Zurn Elkay Water SolutionsBarclays kept an Overweight rating and lowered its price target to $56 from $61. The cut came after the Q3 report.
- RBC Lowers Price Target on Zurn Elkay Water Solutions to $49 From $54RBC Capital Markets lowered its price target to $49 from $54 and maintained a Sector Perform rating after the Q3 report.
- Barclays Maintains Overweight on Zurn Elkay Water Solns, Lowers Price Target to $56Barclays maintained its Overweight rating and cut its price target to $56. The move is part of the post-earnings target revisions.
- Oppenheimer Reiterates Outperform on Zurn Elkay Water Solns, Lowers Price Target to $58Oppenheimer reiterated its Outperform rating and lowered its price target to $58. The target cut followed the Q3 results.
- Zurn Elkay Water Solns Q3 2026 Earnings Call TranscriptZWS reported Q3 2026 results on Oct 28, with net sales of $495M (+7% core), adjusted EPS of $0.52 versus $0.43, and adjusted EBITDA margin of 28.3%. Management also cited the Intellihot acquisition, $35M in buybacks, and an 18% dividend increase to $0.52.
About Zurn Elkay Water Solutions Corporation
Zurn Elkay Water Solutions is a Milwaukee-based maker of water management products for commercial, institutional, industrial and residential buildings, including drains, commercial faucets and flush valves, backflow preventers, water filters, drinking fountains and bottle-filling stations. It was formed when Zurn merged with Elkay in 2022, and it focuses only on water. Its products are often written into building plans by engineers, and it added tankless water heating in 2026 when it bought Intellihot.
How it makes money
It sells plumbing and water products, mostly through wholesale distributors and independent sales reps, into new construction and renovation projects. Its biggest customers are non-residential buildings such as schools, hospitals, offices and public facilities. Main product groups are flow systems (drains, backflow and water-control valves), water safety and control, hygiene and environmental products (faucets, flush valves, sensor fixtures), and drinking water products (fountains and filtered bottle fillers). Its trailing 12-month revenue was about $1.8 billion as of late 2026.
What usually moves ZWS
- Non-residential construction and renovation activity
- Pricing power versus input costs like metals
- Tariffs and supply-chain costs
- Demand for filtered drinking water and water-safety products
- Share buybacks and acquisitions