Question · Q4 2025
Ben Pezan asked if Zurn Elkay Water Solutions foresees an opportunity for its baseline incremental margin to increase beyond the 35% guidance over time, driven by supply chain optimization, new product innovation, and evolving business mix.
Answer
Todd Adams, Chairman and CEO, confirmed that the company does see an opportunity for the incremental margin to move higher. He attributed this to investments in organic growth, with faster-growing categories and products having above-average margins, which will naturally improve the overall incremental margin over time.
Ask follow-up questions
Fintool can predict
ZWS's earnings beat/miss a week before the call