Zurn Elkay Water Solutions (ZWS) concentration risks

The company's concentration profile is shaped by overlapping customer and distributor relationships that combine to create moderate aggregate exposure at the top of the book, with one relationship surfacing as the dominant individual name. The top five customers accounted for approximately 38% of consolidated net sales, a moderate share by disclosed size. The three largest independent distributors generated approximately 32% of consolidated net sales, also a moderate share by disclosed size. These two cohorts are likely to overlap in part, since large distributors often rank among the top five customers — meaning the effective single-channel exposure may be somewhat higher than either figure alone implies. At the individual-name level, the largest customer accounted for 18% of consolidated net sales for the year ended December 31, 2025, a limited share by disclosed size. The dependency character of this relationship reflects the potential impact of a demand shift or insourcing decision by that one buyer, which could move the consolidated top line in a measurable way despite the relatively limited share. No geographic, supplier, or product concentrations are disclosed separately. The profile describes a business with moderate customer and distributor concentration in aggregate, anchored by a single largest name at a limited but visible share. Monitoring the trajectory of the largest customer relationship and the combined purchasing patterns of the top distributor network are the key variables for assessing concentration risk here.

For the engine’s reasoning on ZWS’s current verdict — including which dimensions drove the score — see the per-dimension breakdown.

Concentration counts reflect items disclosed in each peer’s most recent 10-K; disclosed-size classification uses TrendMatrix’s internal 10-K extraction taxonomy.