Zurn Elkay Water Solutions: A High-Conviction Buy in the Water Infrastructure Play

The global water infrastructure sector is poised for sustained growth, driven by aging systems, climate resilience demands, and the urgent need for sustainable resource management. Amid this backdrop, Zurn Elkay Water Solutions emerges as a standout player, combining strategic innovation with a robust ESG (Environmental, Social, and Governance) framework to deliver long-term value. With recent accolades, transformative mergers, and product advancements, the company is uniquely positioned to capitalize on the $1.1 trillion global water market, making it a high-conviction buy for investors seeking sustainable returns.

Strategic Credibility: TIME's Recognition of Sustainable Growth

Zurn Elkay's inclusion in TIME's World's Best Companies for list for the second consecutive year underscores its leadership in aligning profitability with environmental stewardship. In 2026, the company ranked No. 229 overall, No. 40 among U.S.-based firms, and No. 1 in Wisconsin. This follows its 2025 ranking at No. 31 globally and No. 10 in the U.S.. These rankings reflect its ability to deliver strong financial performance while reducing plastic waste and conserving water-key metrics for investors prioritizing ESG-aligned portfolios.

The 2022 Merger: A Catalyst for ESG-Driven Growth

The 2022 merger between Zurn Water Solutions and Elkay Manufacturing created a powerhouse in sustainable water management. By combining complementary product lines and shared ESG values, the new entity became one of North America's largest providers of water solutions. This strategic integration enabled Zurn Elkay to set ambitious ESG targets, including reducing , increasing supplier diversity, and eliminating . The merger also amplified the company's social impact: since 2022, .

Product Innovation: ESG-Embedded Solutions

Post-merger, Zurn Elkay has launched products that directly address global water challenges. Its filtered bottle-filling stations, for instance, have been donated to schools through the Fountains for Youth program, tacking lead contamination in underserved communities. In 2024, these products alone prevented 19 billion single-use plastic bottles from entering landfills. The company also pioneered a product lifecycle analysis (LCA) for its stainless steel sinks, ensuring transparency in . Such innovations not only meet regulatory demands but also align with institutional clients' sustainability goals in education and healthcare sectors.

ESG-Aligned Value Creation: Financial and Social Impact

Zurn Elkay's ESG strategy is translating into measurable financial performance. In 2024, , exceeding its 2024 target. This includes energy-efficient faucets, water-saving fixtures, and PFAS-removing filtration systems. The company's 2023 Sustainability Report highlights progress on 24 time-bound ESG targets, and a 30% increase in supplier diversity. These efforts have earned it recognition as one of America's Most Responsible Companies for six consecutive years, enhancing brand loyalty and investor confidence.

Long-Term Investment Thesis

Zurn Elkay's dual focus on innovation and ESG positions it to through 2030. Its merger-driven scale, product diversification, and alignment with global sustainability trends create a moat against competitors. For investors, the company's recent accolades-such as being named to TIME's list and Newsweek's -signal strong governance and risk mitigation. With a clear roadmap to exceed its ESG targets and a growing pipeline of sustainable products, Zurn Elkay offers a compelling case for long-term, ESG-aligned returns.