Zurn Water Solutions Expands Revolving Credit Facility for Growth

The latest update is out from Zurn Water Solutions ( (ZWS) ).

On February 19, 2026, Zurn Elkay Water Solutions’ subsidiaries entered into a third amendment to their Fourth Amended and Restated First Lien Credit Agreement, refinancing existing revolving borrowings and significantly expanding their revolving credit facility from $200 million to $550 million. The amendment, which extends the revolving facility’s maturity to February 19, 2031, adjusts leverage-based covenants, interest margins, and fees, leaving the company with $540.1 million of additional borrowing capacity and $9.9 million in letters of credit, thereby enhancing its financial flexibility and potential funding for future operations and growth.

The most recent analyst rating on (ZWS) stock is a Buy with a $57.00 price target. To see the full list of analyst forecasts on Zurn Water Solutions stock, see the ZWS Stock Forecast page.

Spark’s Take on ZWS Stock

According to Spark, TipRanks’ AI Analyst, ZWS is a Outperform.

The score is driven primarily by strong financial performance (notably cash flow quality and improving margins) and supportive earnings-call guidance for continued growth, margin expansion, and free cash flow. These positives are tempered by a rich valuation (high P/E, low yield) and somewhat stretched technicals (RSI elevated), which increase near-term downside sensitivity.

To see Spark’s full report on ZWS stock, click here.

More about Zurn Water Solutions

Zurn Elkay Water Solutions Corporation operates in the water management and infrastructure industry through subsidiaries such as ZBS Global, Inc., Zurn Holdings, Inc., Zurn LLC, and EMC Water LLC. The company focuses on providing water solutions and related services, utilizing credit facilities to support its operational and strategic financing needs.

Average Trading Volume: 974,280

Technical Sentiment Signal: Buy

Current Market Cap: $8.54B

Learn more about ZWS stock on TipRanks’ Stock Analysis page.