Q2 2024 Zurn Elkay Water Solutions Corp Earnings Call Transcript
Key Points
- Zurn Elkay Water Solutions Corp (ZWS) reported a 20% increase in adjusted EBITDA, reaching $104 million.
- The company achieved a 370 basis point expansion in adjusted EBITDA margin year-over-year, now at 25.3%.
- Free cash flow for the quarter was $80 million, with $61 million deployed to repurchase nearly 2 million shares.
- The company has raised its full-year outlook for adjusted EBITDA margin expansion to between 200 and 250 basis points.
- Zurn Elkay Water Solutions Corp (ZWS) continues to see strong performance in its sustainability initiatives, with the majority of sales coming from products with sustainable attributes.
- Sales to residential end markets were flat year-over-year, indicating potential stagnation in this segment.
- The commercial end market continues to face headwinds, which may persist in the near term.
- Despite overall growth, the company is experiencing some pressure in pockets of the commercial segment within non-residential markets.
- The company has noted a potential 2-point headwind to overall growth due to commercial market challenges.
- There is a slight anticipated decline in adjusted EBITDA margin for Q3, projected to be around 25%, down from 25.3% in Q2.
Good morning, and welcome to the Zurn Elkay Water Solutions Corporation's second quarter 2024 earnings results conference call with Todd Adams, Chairman and Chief Executive Officer; David Pauli, Chief Financial Officer; and Bryan Wendlandt, Director of FP&A for Zurn Elkay Water Solutions. A replay of the conference call will be available as a webcast on the company's Investor Relations website. At this time, for opening remarks and introduction, I'll turn the call over to Bryan Wendlandt.
Good morning, everyone, and thanks for joining the call today. Before we begin, I'd like to remind everyone that this call contains certain forward-looking statements that are subject to the safe harbor language contained in the press release that we issued yesterday afternoon, as well as in our filings with the SEC. In addition, some comparisons will refer to non-GAAP measures.
Our earnings release and SEC filings contain additional information about these non-GAAP measures, why we use them,
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