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# Zurn Elkay Eyes A $50 Million Mixing-Valve Category With Its New Wilkins Runpoint
- URL: https://www.bullished.co/zurn-elkay-eyes-a-50-million-mixing-valve-category-with-its-new-wilkins-runpoint-7fd78f89/
- Published: 2026-10-28T13:37:59.000Z
- Updated: 2026-10-28T13:37:59.000Z
- Description: President Jeff Schoon sized a $200 million market and promised more hot water products through 2027, after the IntelliHot purchase.
- Author: Matteo Parrino
- Tags: Earnings, ZWS, Industry: Industrials

[Zurn Elkay Water Solutions](https://www.bullished.co/tag/zws/), which makes drinking water stations, valves, drains and restroom fixtures, unveiled a digital mixing valve on its earnings call Wednesday and said it believes the product can grow into a [$50 million category](https://www.sec.gov/Archives/edgar/data/1439288/000162828026067574/ex991earningsrelease93026.htm?ref=bullished.co) over the long run. President Jeff Schoon introduced the Wilkins Runpoint Digital Master Mixing Valve as the next step after the company's entry into commercial hot water.

## A $200 million adjacent market

Schoon said mixing valves, which regulate water temperature and flow and help manage Legionella risk, open a complementary market of more than $200 million. He said the digital segment where Runpoint competes is growing double digits.

Runpoint sells through Wilkins' existing network of specifying engineers, wholesalers and contractors. "We don't need to build anything new," Schoon said.

Paired with IntelliHot's tankless water heaters, he said, the valve puts the company at the core of the hot water system, both generating the water and controlling its delivery.

## Build or buy, and what comes in 2027

Asked by a Jefferies analyst how the company chooses between developing and acquiring, CEO Todd Adams said it looks at both. If it concludes a deal won't happen, he said, "we go out and do it on our own," which is a longer road. Of Runpoint specifically, he said the company developed a "far superior product at far less cost."

Adams said 2027 adjacencies should be thought of as categories in the $100 to $200 million range, with "more to come out the pipe in 27." Management has not given 2027 guidance, which it said will come in February.

Answering an RBC Capital Markets analyst on services, Schoon said the company will build on IntelliHot's certified IntelliPro installer network, helping contractors with commissioning and troubleshooting.

## Balance sheet behind the push

CFO Dan Klun said the company used $107 million of cash to buy IntelliHot earlier this year, and ended the third quarter with leverage of 0.4 times. IntelliHot contributed $6 million of third-quarter sales.

Third-quarter sales were $495 million, up 9% reported and 7% core. Adjusted EBITDA rose 15% to $140 million, a 28.3% margin. For the fourth quarter, Klun guided to sales of $430 million to $437 million and adjusted EBITDA of $120 million to $123 million, and raised full-year adjusted EBITDA guidance to $512 million to $515 million.

Management plans to add hot water products and services throughout 2027, with formal guidance for that year due in February.

### Sources

- [Document](https://www.sec.gov/Archives/edgar/data/1439288/000162828026067574/ex991earningsrelease93026.htm?ref=bullished.co) — sec.gov
- [Zurn Water (ZWS) Q3 Earnings and Revenues Surpass Estimates](https://finance.yahoo.com/markets/stocks/articles/zurn-water-zws-q3-earnings-212012579.html?ref=bullished.co) — Yahoo Finance
- [Zurn Elkay Water Solutions Non-GAAP EPS of $0.52 beats by $0.02, revenue of $495.1M beats by $1.73M (NYSE:ZWS)](https://seekingalpha.com/news/4658405-zurn-elkay-water-solutions-non-gaap-eps-of-0%5F52-beats-by-0%5F02-revenue-of-495%5F1m-beats-by?ref=bullished.co) — seekingalpha.com
- [Zurn Elkay Water Solutions Reports Third Quarter 2026 Financial Results – Company Announcement - FT.com](https://markets.ft.com/data/announce/detail?dockey=600-202610271605BIZWIRE%5FUSPRX%5F%5F%5F%5F20261027%5FBW819007-1&ref=bullished.co) — Financial Times
- [Here are the major earnings after the close Tuesday | Seeking Alpha](https://seekingalpha.com/news/4657214-here-are-the-major-earnings-after-the-close-tuesday?ref=bullished.co) — seekingalpha.com

### More on Zurn Elkay Water Solutions

- [Zurn Elkay Sees Its 2027 Market Down 'A Couple Points' But Still Promises Growth](https://www.bullished.co/zurn-elkay-sees-its-2027-market-down-a-couple-points-but-still-promises-growth-74f64528/)
- [Zurn Elkay Third-Quarter Profit Rises To $76 Million, Dividend Up 18% — Fourth-Quarter Sales Outlook Is $430 Million To $437 Million](https://www.bullished.co/zurn-elkay-third-quarter-profit-rises-to-76-million-dividend-up-18-fourth-quarter-sales-07e8f81d/)
- [Zurn Elkay's Intellihot Deal Came With $13.4 Million In Warranty Obligations](https://www.bullished.co/zurn-elkays-intellihot-deal-came-with-13-4-million-in-warranty-obligations-9d3e51e7/)

[All Zurn Elkay Water Solutions (ZWS) coverage →](https://www.bullished.co/tag/zws/)