Zurn Water Solutions Beats Q1 Earnings and Revenue Expectations

Zurn Water Solutions reports strong Q1 2024 results, exceeding Wall Street expectations. The company's focus on sustainability and clean water solutions drives its market leadership and growth potential.

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Quadri Adejumo
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Zurn Water Solutions Beats Q1 Earnings and Revenue Expectations

Zurn Water Solutions Beats Q1 Earnings and Revenue Expectations

Zurn Water Solutions Corporation, a Milwaukee-based motion control and water management company, reported strong financial results for the first quarter of 2024. The company posted net income of $34.3 million, or 29 cents per share, surpassing Wall Street expectations. Analysts surveyed by Zacks Investment Research had anticipated earnings of 26 cents per share.

Zurn's revenue for the quarter reached $373.8 million, also exceeding Street forecasts of $368.4 million. The company's adjusted earnings, which exclude one-time gains and costs, came in at 29 cents per share, outperforming the average analyst estimate.

CEO Todd A. Adams highlighted Zurn's strategic growth initiatives and commitment to sustainability as key drivers of the positive financial performance. The company's focus on clean water solutions and operational efficiency contributed to the strong results.

Why this matters: Zurn's better-than-expected earnings and revenue demonstrate the company's resilience and market leadership in the water solutions industry. The strong financial performance positions Zurn well for sustained growth and underscores the increasing importance of sustainable water management solutions.

Looking ahead, Zurn provided guidance for the second quarter and full year 2024. The company anticipates low single-digit growth in net sales on a pro forma core basis and expects an adjusted EBITDA margin between 24.5% and 25.0% for the second quarter. For the full year, Zurn has revised its adjusted EBITDA margin expectations upwards, projecting an annual increase of 150 to 200 basis points.

Zurn's first-quarter results reflect the company's ability to navigate challenges and capitalize on opportunities in the water solutions market. "We started the year strong with $50 million in free cash flow and deployed $19 million to buy back 0.6 million shares of common stock during the quarter," stated Adams. The company's solid financial position and positive outlook indicate its potential for continued success in the coming quarters.

Key Takeaways

  • Zurn reported strong Q1 2024 results, with net income of $34.3M and EPS of $0.29.
  • Revenue reached $373.8M, exceeding analyst estimates of $368.4M.
  • CEO cited growth initiatives and sustainability focus as key drivers of performance.
  • Zurn provided Q2 and FY2024 guidance, projecting low single-digit net sales growth.
  • Zurn generated $50M in free cash flow and repurchased 0.6M shares in Q1.