Zurn Elkay Water reports Q3 adjusted EPS 34c, consensus 32c

Reports Q3 revenue $410.0M, consensus $405.84M. The company said, “We delivered a solid quarter as both sales and margins exceeded the guidance we provided 90 days ago. Despite pockets of challenging end markets, our third quarter pro forma core sales(1) growth was 4% and adjusted EBITDA margins grew by 150 basis points year over year to 25.6%. Free cash flow(1) continues to be exceptional as we generated $87 million of free cash flow in the third quarter bringing our year to date total to $217 million. We continue to leverage our robust cash flow to invest in our business and return capital to shareholders as we cultivate the right M&A opportunities. In the quarter we deployed an additional $50 million of capital to repurchase 1.6 million shares, while increasing our quarterly dividend by 13% and reducing our net debt leverage to an all-time low of 0.8x.”