SCHEDULE: Vanguard Group Discloses 10.09% Passive Stake in Zurn Elkay Water Solutions Corp

The Vanguard Group has filed an amended Schedule 13G, reporting a 10.09% beneficial ownership stake in Zurn Elkay Water Solutions Corp's common stock as of June 30, 2025.

Summary

• The Vanguard Group, a Pennsylvania-based investment adviser, reported beneficial ownership of 16,978,414 shares of Zurn Elkay Water Solutions Corp's common stock.
• This represents 10.09% of the class of securities.
• Vanguard holds sole dispositive power over 16,619,509 shares and shared dispositive power over 358,905 shares.
• Vanguard holds no sole voting power and shared voting power over 180,640 shares.
• The shares were acquired and are held in the ordinary course of business, not for the purpose of changing or influencing control of the issuer.

Sentiment

Score: 7

Explanation: The filing itself is neutral as it's a regulatory disclosure. However, a large, passive stake by a reputable institutional investor like Vanguard can be interpreted positively by the market as a vote of confidence in the company's long-term stability and prospects, without implying any activist intent.

Positives

• A major institutional investor like The Vanguard Group holding a significant stake (over 10%) can signal long-term confidence in the company's fundamentals.
• The passive nature of the investment (Schedule 13G) indicates it is for investment purposes rather than activist intent, which can be seen as stable.

Future Outlook

This document does not provide any forward-looking statements or guidance from Zurn Elkay Water Solutions Corp or The Vanguard Group regarding the issuer's future performance. It is a disclosure of current ownership.

Management Comments

• The filing includes a certification from The Vanguard Group stating that the securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing control of the issuer.

Industry Context

The filing indicates continued institutional interest in companies within the water solutions and industrial manufacturing sectors, as evidenced by a major asset manager like Vanguard maintaining a significant stake. This suggests the sector may be viewed as stable or having long-term growth potential.

Comparison to Industry Standards

• A 10.09% stake by a large institutional investor like Vanguard is a substantial passive holding, common for diversified index funds or large actively managed funds.
• Compared to other major asset managers, Vanguard's filing practices for Schedule 13G are standard, reflecting their passive investment strategies across a broad portfolio of public companies.
• This level of ownership is typical for a top institutional shareholder in a mid-to-large cap company, indicating a significant but non-controlling interest.

Stakeholder Impact

• Shareholders: Provides transparency regarding a significant institutional shareholder's stake, potentially reinforcing confidence due to Vanguard's passive, long-term investment approach.
• Management: Awareness of a large, passive institutional holder, which typically implies less direct pressure on day-to-day operations compared to an activist investor.

Next Steps

• The Vanguard Group will continue to monitor its investment in Zurn Elkay Water Solutions Corp and file further amendments to Schedule 13G as required by changes in its beneficial ownership or filing status.

Key Dates

Keywords

Zurn Elkay Water Solutions Corp, Vanguard Group, Schedule 13G, Common Stock, Beneficial Ownership, Institutional Investor, SEC Filing, Passive Investment, Water Solutions, Industrial Manufacturing