Zurn Elkay Water Solutions Corporation

Good morning and welcome to the Zern Elkay Water Solutions Corporation third quarter 2026 earnings results conference call with Todd Adams, Chairman and Chief Executive Officer, Dan Klun, Chief Financial Officer, Dave Pauli, Chief Operating Officer, Jeff Schoon, President, and Bobbi Belstner, Vice President and Corporate Controller for Zern 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 Bobbi Belstner.

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 which are subject to safe harbor language outlined in our press release issued yesterday afternoon and 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 and why we believe they are helpful to investors and contain reconciliations to the corresponding GAAP information. Consistent with prior quarters, we will speak to certain non-GAAP metrics as we feel they provide a better understanding of our operating results. These measures are not a substitute for GAAP. We encourage you to review the GAAP information in our earnings release and in our SEC filings. With that, I'll turn the call over to Todd Adams, Chairman and CEO of Zurn Elkay Water Solutions.

Thanks, Bobbi, and thanks for joining us this morning. As you may have seen in the materials, we've got a lot to cover this morning, so I'll get right to it. We grew our top line 9% in the quarter, 7% organically, and EBITDA grew 15% year-over-year as margins expanded 150 basis points to 28.3%. In addition to that, we continue to generate significant free cash flow, which we use to invest in Zurn Elkay stock, repurchasing $35 million of stock in the quarter. Our board also made the decision to increase our annual dividend 18%, reflecting the confidence we have in our business and desire to continue to reward shareholders with an ever-growing dividend amidst the capital allocation option set that continues to just have tons of flexibility. This morning, aside from the results and outlook, we'll provide some details how our adjacency work is coming along, including an update on the Intel hot acquisition. In addition, as we typically do in the third quarter, we'll provide a market overview based on the Dodge information available and provide some perspective as to how that information translates to our business. As we close out another record year in 2026 and begin to look ahead, we're excited with the progress we've made over the last several years to position ourselves to build on the track record we've built over the almost past two decades. In that track record is a financial crisis, a pandemic, and several things over just the past couple of years, which on the surface seems like things that we couldn't overcome. Sitting here today, and not surprisingly, the broader economy and parts of our end markets don't feel like they're going to be a tailwind for our business in 2027. So we're going to simply do what we know how to do and what's worked. by showing some grit and leveraging our culture and the Zurn Elkay business system to drive superior results. We're excited to get through all of this this morning and take your questions at the end. And with that, I'll turn it over to our CFO, Dan Klun.