ZWSMEDIUM SIGNALFINANCIAL10-K

ZWS delivered strong financial performance with 19.4% revenue growth and 23.6% net income increase, though share count declined and interest expenses rose significantly.

The company demonstrates solid operational momentum with revenue approaching $1.5B and improved profitability metrics. However, the 43% jump in interest expense and reduced share count from 170M to 167M shares suggests potential debt financing or share repurchase activity that warrants monitoring.

Comparing 2026-02-09 vs 2025-02-10View on EDGAR →
FINANCIAL ANALYSIS

ZWS shows robust growth across key metrics with revenue up 19.4% to $1.5B, net income climbing 23.6% to $198M, and operating cash flow increasing 18.1% to $346.5M, while cash position strengthened dramatically by 51.8% to $300.5M. The notable concern is interest expense surging 43.1% to $38.5M, indicating higher debt levels, though this appears manageable given the strong operational performance. Overall, the financial picture reflects a growing, profitable company with improved liquidity, though investors should monitor the debt trajectory and capital allocation strategy behind the reduced share count.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
+51.8%
$198.0M$300.5M

Cash position surged 51.8% — strong cash generation or capital raise providing significant financial cushion.

Interest Expense
P&L
+43.1%
$26.9M$38.5M

Interest expense surged 43.1% — significant debt increase or rising rates materially impacting earnings.

Net Income
P&L
+23.6%
$160.2M$198.0M

Net income grew 23.6% — bottom-line growth signals improving overall business health.

Revenue
P&L
+19.4%
$1.3B$1.5B

Revenue growing 19.4% — solid top-line momentum, watch margins for quality of growth.

Operating Cash Flow
Cash Flow
+18.1%
$293.5M$346.5M

Operating cash flow grew 18.1% — strong conversion of earnings to cash, healthy business fundamentals.

Operating Income
P&L
+14%
$244.6M$278.9M

Operating income improving — cost discipline or growing revenue base absorbing fixed costs.

Current Assets
Balance Sheet
+12.4%
$722.1M$811.7M

Current assets grew 12.4% — improving short-term liquidity or inventory/receivables build.

LANGUAGE CHANGES
NEW — 2026-02-09
PRIOR — 2025-02-10
ADDED
As of February 4, 2026, there were 166,797,974 shares of common stock outstanding.
We are led by an experienced, high-caliber management team that employs ZEBS as a proven operating philosophy to drive excellence and world-class performance in all aspects of our business, which includes our "Voice of the Customer" process to promote superior customer satisfaction and striving for continuous improvement across the business.
As previously disclosed, on February 12, 2022, Zurn Water Solutions Corporation entered into a definitive agreement to combine with Elkay Manufacturing Company (the Merger" or "Elkay Merger ).
Also, as previously disclosed, on October 4, 2021, we completed a Reverse Morris Trust tax-free spin-off transaction (the Spin-Off Transaction ) in which our former Process Motion Control business was divested to Regal Rexnord Corporation (formerly known as Regal Beloit Corporation).
Following the transaction, we operate as a pure-play water management business.
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REMOVED
As of February 5, 2025, there were 170,056,256 shares of common stock outstanding.
We are led by an experienced, high-caliber management team that employs ZEBS as a proven operating philosophy to drive excellence and world-class performance in all aspects of our business, which includes our "Voice of the Customer" process to promote superior customer satisfaction.
As previously disclosed, on February 12, 2022, Zurn Water Solutions Corporation ("Zurn") entered into a definitive agreement to combine with Elkay Manufacturing Company ( Elkay ), pursuant to an Agreement and Plan of Merger (the Merger Agreement ) by and among Zurn, Elkay, Zebra Merger Sub, Inc., a wholly owned subsidiary of Zurn ( Merger Sub ), and Elkay Interior Systems International, Inc., as representative of the stockholders of Elkay, providing for the merger of Elkay with and into Merger Sub, with Elkay surviving as a wholly owned subsidiary of Zurn (the Merger ).
Also, as previously disclosed, on October 4, 2021, we completed a Reverse Morris Trust tax-free spin-off transaction (the Spin-Off Transaction ) in which (i) substantially all the assets and liabilities of our Process Motion Control business were transferred to a newly created subsidiary, Land Newco, Inc.
( Land ), (ii) the shares of Land were distributed to our stockholders pro rata, and (iii) Land was merged with a subsidiary of Regal Rexnord Corporation (formerly known as Regal Beloit Corporation), in which the stock of Land was converted into shares of Regal Rexnord Corporation.
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