Zurn Elkay Water Solutions expands revolving credit facility to $550 million

Zurn Elkay Water Solutions Corp (NYSE:ZWS) announced on February 19, 2026 that its subsidiaries have expanded their revolving credit facility from $200 million to $550 million, providing the company with increased financial flexibility to support operations and strategic initiatives. The amendment, executed by Zurn Elkay Water Solutions' subsidiaries—ZBS Global, Inc., Zurn Holdings, Inc., Zurn LLC, and EMC Water LLC—also refinances the amounts outstanding under the previous facility, with JPMorgan Chase Bank, N.A. serving as the new administrative and collateral agent. The company maintains a strong balance sheet with a current ratio of 3.13 and operates with a moderate debt level of $553 million against its $8.5 billion market cap. As of the effective date, Zurn Elkay Water Solutions has $540.1 million in available borrowing capacity and $9.9 million in outstanding letters of credit. The revised agreement includes changes to certain financial ratios and definitions related to borrowing capacity, adjusts interest rate margins and commitment fees based on the borrowers' net first lien leverage ratio, and extends the maturity date to February 19, 2031. This financial expansion follows impressive quarterly results, with Zurn Water Solutions reporting revenue of $407.2 million, surpassing both Stifel's estimate of $401.6 million and the Street consensus of $400.8 million. The company's adjusted EBITDA reached $104.1 million, exceeding expectations from analysts. Following these results, Stifel reiterated its Buy rating on Zurn Water Solutions, maintaining a price target of $54, while Jefferies initiated coverage with a Buy rating and a price target of $58, highlighting the company's potential benefits from growing adoption of filtered drinking water and strong cash flow. Additionally, Zurn Elkay Water Solutions declared a quarterly cash dividend of $0.11 per share, payable on March 6, 2026, to stockholders of record as of February 20, 2026, reflecting positive momentum in the water solutions industry.