Mueller Water Products Reports 2026 First Quarter Results
Rhea-AI Summary
Mueller Water Products (NYSE: MWA) reported fiscal 2026 first quarter results for the period ended December 31, 2025. Net sales rose 4.6% to $318.2 million and adjusted EBITDA increased 13.5% to $72.1 million, with margin expansion. The company raised fiscal 2026 guidance for net sales and adjusted EBITDA and reported strong operating cash flow and liquidity.
Positive
- Net sales +4.6% to $318.2 million in Q1
- Adjusted EBITDA +13.5% to $72.1 million; margin 22.7%
- Raised fiscal 2026 guidance to $1,470–1,490M net sales
- Generated $61.2M operating cash flow and $44.0M free cash flow
- Ended quarter with $623.3M total liquidity
Negative
- SG&A +10.9% to $59.8 million, pressuring operating costs
- Water Management Solutions adjusted EBITDA down 9.5% YoY
- Inflation and increased tariffs reduced margin headroom in Q1
News Market Reaction – MWA
On the day this news was published, MWA gained 1.49%, reflecting a mild positive market reaction. This price movement added approximately $66M to the company's valuation, bringing the market cap to $4.48B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
MWA fell 1.25% while key peers like KAI, FELE, NPO, CXT and MIR were all up between 0.75% and 2.05%, pointing to a stock-specific reaction rather than a sector-wide move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 23 | Earnings date | Neutral | +1.4% | Announcement of timing for first-quarter 2026 earnings release and call. |
| Jan 22 | Dividend declaration | Positive | -1.0% | Board declared a quarterly dividend of $0.070 per share. |
| Dec 19 | Board changes | Neutral | +1.5% | Board refresh with new director nomination and planned retirement. |
| Nov 07 | Conference participation | Neutral | +0.1% | Participation in Baird 2025 Global Industrial Conference with webcast. |
| Nov 06 | CEO succession & earnings | Neutral | -4.0% | Planned CEO transition combined with Q4 and fiscal 2025 results release. |
Recent news shows a mix of aligned and divergent reactions, with dividend and leadership/earnings headlines drawing negative moves while board and event updates saw mild positives.
Over the last few months, Mueller Water Products has issued a series of governance, capital return and event-related updates. A dividend declaration on Jan 22, 2026 saw a small negative move, while board changes on Dec 19, 2025 and a conference announcement on Nov 7, 2025 had modestly positive impacts. The CEO succession and fiscal 2025 results on Nov 6, 2025 coincided with a more pronounced drop, suggesting leadership headlines have been sensitive.
Market Pulse Summary
This announcement delivered year-over-year growth in net sales, margins and adjusted EBITDA, alongside higher full-year guidance for net sales and adjusted EBITDA. The balance sheet showed substantial cash and cash equivalents and no near-term debt maturities. Historically, Mueller Water Products’ news flow has included dividends, governance changes and leadership succession, which have drawn varied market responses. Investors may watch execution on margin expansion, capital allocation and end-market demand trends in upcoming quarters.
Key Terms
adjusted EBITDA financial
free cash flow financial
non-GAAP financial
AI-generated analysis. Not financial advice.
Increased Net Sales
Reported Net Income per Diluted Share of
Achieved Adjusted Net Income per Diluted Share of
Raises Annual Guidance for Fiscal 2026 Net Sales and Adjusted EBITDA
ATLANTA, Feb. 04, 2026 (GLOBE NEWSWIRE) -- Mueller Water Products, Inc. (NYSE: MWA), a leading manufacturer and marketer of products and solutions used in the transmission, distribution and measurement of water in North America, announced financial results for its fiscal 2026 first quarter ended December 31, 2025.
In the first quarter of 2026, the Company:
- Increased net sales
4.6% to$318.2 million as compared with$304.3 million in the prior year quarter - Reported operating income of
$56.7 million as compared with$47.4 million in the prior year quarter, and increased adjusted operating income14.5% to$60.0 million as compared with$52.4 million in the prior year quarter - Reported operating margin of
17.8% as compared with15.6% in the prior year quarter, and expanded adjusted operating margin to18.9% as compared with17.2% in the prior year quarter - Reported net income of
$43.2 million as compared with$35.3 million in the prior year quarter, with net income margin of13.6% as compared with11.6% in the prior year quarter, and increased adjusted net income16.8% to$45.8 million as compared with$39.2 million in the prior year quarter - Reported net income per diluted share of
$0.27 as compared with$0.22 in the prior year quarter, and increased adjusted net income per diluted share16.0% to$0.29 as compared with$0.25 in the prior year quarter - Increased adjusted EBITDA
13.5% to$72.1 million as compared with$63.5 million in the prior year quarter, and expanded adjusted EBITDA margin to22.7% as compared with20.9% in the prior year quarter - Reported net cash provided by operating activities for the three-month period of
$61.2 million as compared with$54.1 million in the prior year period - Generated free cash flow for the three-month period of
$44.0 million as compared with$42.2 million in the prior year period - Repurchased
$5.5 million of common stock during the first quarter
“We are pleased with the great start to our fiscal year, with solid net sales growth and year-over-year adjusted EBITDA margin expansion. Our continued focus on delivering outstanding customer service and operational excellence, along with resilient end-market demand, led to first-quarter records for net sales, adjusted EBITDA and adjusted EBITDA margin,” said Martie Edmunds Zakas, Chief Executive Officer of Mueller Water Products.
“We are raising our fiscal 2026 guidance based on our first quarter performance, current expectations for end market demand, orders and price realization, including the expected benefits from our recently announced price actions across most product lines. With our continued commitment to superior customer service and operational excellence, we are well-positioned to capture the benefits from the investments needed to address the aging North American water infrastructure. I remain grateful for our dedicated employees, who serve our stakeholders with tireless energy and passion,” added Ms. Zakas.
“We are on track to deliver another year of gross and adjusted EBITDA margin expansion supported by our operational and commercial initiatives. I am pleased with our team’s strong execution and focus on delivering value to our customers, while also enhancing efficiencies in our operations and supply chain. We expect that our ongoing investments in our commercial and operational capabilities, together with strategic capital expenditures, will enable us to increase capacity, achieve sustained margin expansion and deliver long-term value creation,” said Paul McAndrew, President and Chief Operating Officer.
Consolidated Results
Net sales for the first quarter increased
Gross profit for the first quarter increased
Selling, general and administrative expenses for the first quarter increased
Operating income for the first quarter increased
During the quarter, the Company incurred
Adjusted operating income increased
Net income increased
Adjusted EBITDA of
Segment Results
Water Flow Solutions
Net sales for the 2026 first quarter decreased
Operating income and adjusted operating income were both
Adjusted EBITDA of
Water Management Solutions
Net sales for the 2026 first quarter increased
Operating income and adjusted operating income were both
Adjusted EBITDA of
Interest Expense, Net
Interest expense, net, for the 2026 first quarter decreased to
Income Taxes
For the 2026 first quarter, income tax expense was
Cash Flow and Balance Sheet
Net cash provided by operating activities for the three-month period ended December 31, 2025, increased
During the quarter, the Company invested
Free cash flow (defined as net cash provided by operating activities less capital expenditures) through the quarter increased
As of December 31, 2025, the Company had
Fiscal 2026 Outlook
The Company is increasing its guidance for fiscal 2026 consolidated net sales to between
The Company’s expectations for certain additional financial metrics for fiscal 2026 are as follows:
- Total SG&A expenses between
$243 million and$247 million - Net interest expense between
$5 million and$6 million - Effective income tax rate between
25% and27% - Depreciation and amortization between
$47 million and$49 million - Capital expenditures between
$60 million and$65 million - Pension expense other than service of approximately
$0.1 million
Conference Call Webcast
Mueller Water Products’ quarterly earnings conference call will take place on Thursday, February 5, 2026, at 11:00 a.m. ET. Members of Mueller Water Products’ leadership team will discuss the Company’s recent financial performance and respond to questions from financial analysts. A live webcast of the call will be available on the Investor Relations section of the Company’s website. Please go to the website (www.muellerwaterproducts.com) at least 15 minutes prior to the start of the call to register, download and install any necessary software. A replay of the call will be available for 30 days and can be accessed by dialing 1-800-814-6745. An archive of the webcast will also be available for at least 90 days on the Investor Relations section of the Company’s website.
Use of Non-GAAP Measures
In an effort to provide investors with additional information regarding the Company’s results as determined by accounting principles generally accepted in the United States (“GAAP”), the Company also provides non-GAAP information that management believes is useful to investors. These non-GAAP measures have limitations as analytical tools, and securities analysts, investors and other interested parties should not consider any of these non-GAAP measures in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures used by other companies.
Adjusted net income, adjusted net income per diluted share, adjusted operating income, adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures that the Company presents as performance measures because management uses these measures to evaluate the Company’s underlying performance on a consistent basis across periods and to make decisions about operational strategies. Management also believes these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of the Company’s recurring performance.
The calculations of these non-GAAP measures and reconciliations to GAAP results are included as an attachment to this press release, which has been posted online at www.muellerwaterproducts.com. The Company does not reconcile forward-looking non-GAAP measures to the comparable GAAP measures, as permitted by Regulation S-K, as certain items, e.g., expenses related to corporate development activities, transactions, pension expenses/(benefits), corporate restructuring and non-cash asset impairment, may have not yet occurred, are out of the Company’s control or cannot be reasonably predicted without unreasonable efforts. Additionally, such reconciliation would imply a degree of precision and certainty regarding relevant items that may be confusing to investors. Such items could have a substantial impact on GAAP measures of the Company's financial performance.
Forward-Looking Statements
This press release contains certain statements that may be deemed “forward-looking statements” within the meaning of the federal securities laws. All statements that address activities, events or developments that the Company intends, expects, plans, projects, believes or anticipates will or may occur in the future are forward-looking statements, including, without limitation, statements regarding outlooks, projections, forecasts, expectations, commitments, trend descriptions and the ability to capitalize on trends, value creation, long-term strategies and the execution or acceleration thereof, operational improvements, inventory positions, the benefits of capital investments, financial or operating performance, including driving increased margins, operational and commercial initiatives, capital allocation and growth strategy plans, and the demand for the Company’s products. Forward-looking statements are based on certain assumptions and assessments made by the Company in light of the Company’s experience and perception of historical trends, current conditions and expected future developments.
Actual results and the timing of events may differ materially from those contemplated by the forward-looking statements due to a number of factors, including, without limitation, changing regulatory, trade and tariff conditions, including the impact of the Section 232 tariffs on the products produced by our Krausz business; logistical challenges and supply chain disruptions, geopolitical conditions, public health crises, or other events; inventory and in-stock positions of our distributors and end customers; an inability to realize the anticipated benefits from our operational initiatives, including our large capital investments, plant closures, and reorganization and related strategic realignment activities; an inability to attract or retain a skilled and diverse workforce, increased competition related to the workforce and labor markets; an inability to protect the Company’s information systems against service interruption, risks resulting from possible future cybersecurity incidents, misappropriation of data or breaches of security; failure to comply with personal data protection and privacy laws; cyclical and changing demand in core markets such as municipal spending, residential construction and natural gas distribution; government monetary or fiscal policies; the impact of adverse weather conditions; the impact of manufacturing and product performance; the impact of wage, commodity and materials price inflation; foreign exchange rate fluctuations; the impact of higher interest rates; the impact of warranty charges and claims, and related accommodations; the strength of our brands and reputation; an inability to successfully resolve significant legal proceedings or government investigations; compliance with environmental, trade and anti-corruption laws and regulations; climate change and legal or regulatory responses thereto; the failure to integrate and/or realize any of the anticipated benefits of acquisitions or divestitures; an inability to achieve our goals and commitments in environmental and sustainability programs; and other factors that are described in the section entitled “RISK FACTORS” in Item 1A. of the Company’s most recent Annual Report on Form 10-K and later filings on Form 10-Q, as applicable.
Forward-looking statements do not guarantee future performance and are only as of the date they are made. The Company undertakes no duty to update its forward-looking statements except as required by law. Undue reliance should not be placed on any forward-looking statements. You are advised to review any further disclosures the Company makes on related subjects in subsequent Forms 10-K, 10-Q, 8-K and other reports filed with the United States Securities and Exchange Commission.
About Mueller Water Products, Inc.
Mueller Water Products, Inc. is a leading manufacturer and marketer of products and solutions used in the transmission, distribution and measurement of water in North America. Our broad portfolio includes engineered valves, fire hydrants, pipe connection and repair products, metering products, leak detection, pipe condition assessment, pressure management products, and software that provides critical water system data. We help municipalities increase operational efficiencies, improve customer service and prioritize capital spending, demonstrating why Mueller Water Products is Where Intelligence Meets Infrastructure®. Visit us at www.muellerwaterproducts.com.
Mueller refers to one or more of Mueller Water Products, Inc. (MWP), a Delaware corporation, and its subsidiaries. MWP and each of its subsidiaries are legally separate and independent entities when providing products and services. MWP does not provide products or services to third parties. MWP and each of its subsidiaries are liable only for their own acts and omissions and not those of each other.
Investor Relations Contact: Whit Kincaid
770-206-4116
wkincaid@muellerwp.com
Media Contact: Jenny Barabas
470-806-5771
jbarabas@muellerwp.com
| MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||
| December 31, | September 30, | ||||||
| 2025 | 2025 | ||||||
| (in millions, except share amounts) | |||||||
| Assets: | |||||||
| Cash and cash equivalents | $ | 459.6 | $ | 431.5 | |||
| Receivables, net of allowance for credit losses of | 137.1 | 211.9 | |||||
| Inventories, net | 376.7 | 328.7 | |||||
| Other current assets | 55.5 | 56.8 | |||||
| Total current assets | 1,028.9 | 1,028.9 | |||||
| Property, plant and equipment, net | 341.7 | 335.7 | |||||
| Intangible assets, net | 307.0 | 307.3 | |||||
| Goodwill, net | 92.1 | 89.2 | |||||
| Other noncurrent assets | 77.1 | 77.8 | |||||
| Total assets | $ | 1,846.8 | $ | 1,838.9 | |||
| Liabilities and stockholders’ equity: | |||||||
| Current portion of long-term debt | $ | 1.4 | $ | 1.2 | |||
| Accounts payable | 127.5 | 134.4 | |||||
| Other current liabilities | 127.1 | 154.7 | |||||
| Total current liabilities | 256.0 | 290.3 | |||||
| Long-term debt | 450.9 | 450.4 | |||||
| Deferred income taxes | 57.6 | 51.0 | |||||
| Other noncurrent liabilities | 64.1 | 65.5 | |||||
| Total liabilities | 828.6 | 857.2 | |||||
| Commitments and contingencies | |||||||
| Preferred stock: par value | |||||||
| none outstanding at December 31, 2025, and September 30, 2025 | — | — | |||||
| Common stock: par value | 1.6 | 1.6 | |||||
| 156,360,152 and 156,331,004 shares outstanding at | |||||||
| December 31, 2025, and September 30, 2025, respectively | |||||||
| Additional paid-in capital | 1,143.1 | 1,158.9 | |||||
| Accumulated deficit | (131.0 | ) | (174.2 | ) | |||
| Accumulated other comprehensive income (loss) | 4.5 | (4.6 | ) | ||||
| Total stockholders' equity | 1,018.2 | 981.7 | |||||
| Total liabilities and stockholders' equity | $ | 1,846.8 | $ | 1,838.9 | |||
| MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||
| Three months ended | |||||||
| December 31, | |||||||
| 2025 | 2024 | ||||||
| (in millions, except per share amounts) | |||||||
| Net sales | $ | 318.2 | $ | 304.3 | |||
| Cost of sales(1) | 198.4 | 201.3 | |||||
| Gross profit | 119.8 | 103.0 | |||||
| Operating expenses: | |||||||
| Selling, general and administrative | 59.8 | 53.9 | |||||
| Strategic reorganization and other charges(2) | 3.3 | 1.7 | |||||
| Total operating expenses | 63.1 | 55.6 | |||||
| Operating income | 56.7 | 47.4 | |||||
| Interest expense, net | 1.0 | 1.6 | |||||
| Income before income taxes | 55.7 | 45.8 | |||||
| Income tax expense | 12.5 | 10.5 | |||||
| Net income | $ | 43.2 | $ | 35.3 | |||
| Net income per basic share | $ | 0.28 | $ | 0.23 | |||
| Net income per diluted share | $ | 0.27 | $ | 0.22 | |||
| Weighted average shares outstanding: | |||||||
| Basic | 156.3 | 156.3 | |||||
| Diluted | 157.3 | 157.5 | |||||
| Dividends declared per share | $ | 0.070 | $ | 0.067 | |||
| (1) For the three-month period ended December 31, 2024, Cost of sales included | |||||||
| (2) For the three-month period ended December 31, 2025, Strategic reorganization and other charges primarily relate to severance and expenses associated with our leadership transition. For the three-month period ended December 31, 2024, Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition and severance. | |||||||
| MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||
| Three months ended | |||||||
| December 31, | |||||||
| 2025 | 2024 | ||||||
| (in millions) | |||||||
| Operating activities: | |||||||
| Net income | $ | 43.2 | $ | 35.3 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation | 10.3 | 9.3 | |||||
| Amortization | 1.8 | 1.8 | |||||
| Gain on sale of assets | (0.1 | ) | — | ||||
| Stock-based compensation | 3.5 | 2.5 | |||||
| Pension cost | 0.1 | 0.2 | |||||
| Deferred income taxes | 6.2 | (0.6 | ) | ||||
| Inventory reserve provision | 2.8 | 4.0 | |||||
| Other, net | 0.4 | 0.3 | |||||
| Changes in assets and liabilities: | |||||||
| Receivables, net | 75.1 | 62.9 | |||||
| Inventories | (49.6 | ) | (20.8 | ) | |||
| Other assets | 3.7 | (1.3 | ) | ||||
| Accounts payable | (7.3 | ) | (10.8 | ) | |||
| Other current liabilities | (27.1 | ) | (26.2 | ) | |||
| Other noncurrent liabilities | (1.8 | ) | (2.5 | ) | |||
| Net cash provided by operating activities | 61.2 | 54.1 | |||||
| Investing activities: | |||||||
| Capital expenditures | (17.2 | ) | (11.9 | ) | |||
| Proceeds from sale of assets | 0.1 | — | |||||
| Net cash used in investing activities | (17.1 | ) | (11.9 | ) | |||
| Financing activities: | |||||||
| Dividends paid | (10.9 | ) | (10.5 | ) | |||
| Common stock repurchased under buyback program | (5.5 | ) | — | ||||
| Employee taxes related to stock-based compensation | (3.6 | ) | (4.0 | ) | |||
| Common stock issued | 0.7 | 1.6 | |||||
| Principal payments for finance lease obligations | (0.3 | ) | (0.2 | ) | |||
| Net cash used in financing activities | (19.6 | ) | (13.1 | ) | |||
| Effect of currency exchange rate changes on cash | 3.6 | (0.8 | ) | ||||
| Net change in cash and cash equivalents | 28.1 | 28.3 | |||||
| Cash and cash equivalents at beginning of period | 431.5 | 309.9 | |||||
| Cash and cash equivalents at end of period | $ | 459.6 | $ | 338.2 | |||
| Three months ended | |||||||
| December 31, | |||||||
| 2025 | 2024 | ||||||
| (in millions) | |||||||
| Supplemental cash flow information: | |||||||
| Cash paid for interest, net | $ | 5.3 | $ | 5.8 | |||
| Cash paid for income taxes, net | $ | 0.1 | $ | 0.4 | |||
| Non-cash investing and financing activities: | |||||||
| Property, plant and equipment accrued and unpaid | $ | 7.9 | $ | — | |||
| Property, plant and equipment acquired through finance leases | $ | 0.8 | $ | — | |||
| MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP TO GAAP PERFORMANCE MEASURES (UNAUDITED) | |||||||||||||||
| Three months ended December 31, 2025 | |||||||||||||||
| Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||
| (dollars in millions, except per share amounts) | |||||||||||||||
| Net sales | $ | 173.0 | $ | 145.2 | $ | — | $ | 318.2 | |||||||
| Gross profit | $ | 70.8 | $ | 49.0 | $ | — | $ | 119.8 | |||||||
| Selling, general and administrative expenses | 21.4 | 24.5 | 13.9 | 59.8 | |||||||||||
| Strategic reorganization and other charges(1) | — | — | 3.3 | 3.3 | |||||||||||
| Operating income (loss) | $ | 49.4 | $ | 24.5 | $ | (17.2 | ) | $ | 56.7 | ||||||
| Operating margin | 28.6 | % | 16.9 | % | 17.8 | % | |||||||||
| Capital expenditures | $ | 6.4 | $ | 10.8 | $ | — | $ | 17.2 | |||||||
| Net income | $ | 43.2 | |||||||||||||
| Net income margin | 13.6 | % | |||||||||||||
| Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||
| Net income | $ | 43.2 | |||||||||||||
| Strategic reorganization and other charges(1) | 3.3 | ||||||||||||||
| Income tax expense of adjusting items(2) | (0.7 | ) | |||||||||||||
| Adjusted net income | $ | 45.8 | |||||||||||||
| Weighted average diluted shares outstanding | 157.3 | ||||||||||||||
| Net income per diluted share | $ | 0.27 | |||||||||||||
| Strategic reorganization and other charges per diluted share(1) | 0.02 | ||||||||||||||
| Income tax expense of adjusting items per diluted share(2) | — | ||||||||||||||
| Adjusted net income per diluted share | $ | 0.29 | |||||||||||||
| Net income | $ | 43.2 | |||||||||||||
| Income tax expense(3) | 12.5 | ||||||||||||||
| Interest expense, net(3) | 1.0 | ||||||||||||||
| Operating income (loss) | $ | 49.4 | $ | 24.5 | $ | (17.2 | ) | 56.7 | |||||||
| Strategic reorganization and other charges(1) | — | — | 3.3 | 3.3 | |||||||||||
| Adjusted operating income (loss) | 49.4 | 24.5 | (13.9 | ) | 60.0 | ||||||||||
| Depreciation and amortization | 7.1 | 5.0 | — | 12.1 | |||||||||||
| Adjusted EBITDA | $ | 56.5 | $ | 29.5 | $ | (13.9 | ) | $ | 72.1 | ||||||
| Adjusted operating margin | 28.6 | % | 16.9 | % | 18.9 | % | |||||||||
| Adjusted EBITDA margin | 32.7 | % | 20.3 | % | 22.7 | % | |||||||||
| Adjusted EBITDA | $ | 56.5 | $ | 29.5 | $ | (13.9 | ) | $ | 72.1 | ||||||
| Three prior quarters' adjusted EBITDA | 192.0 | 116.7 | (46.0 | ) | 262.7 | ||||||||||
| Trailing twelve months' adjusted EBITDA | $ | 248.5 | $ | 146.2 | $ | (59.9 | ) | $ | 334.8 | ||||||
| Reconciliation of free cash flow to net cash provided by operating activities: | |||||||||||||||
| Net cash provided by operating activities | $ | 61.2 | |||||||||||||
| Less capital expenditures | 17.2 | ||||||||||||||
| Free cash flow | $ | 44.0 | |||||||||||||
| (1)Strategic reorganization and other charges primarily relate to severance and expenses associated with our leadership transition. | |||||||||||||||
| (2)The income tax expense of adjusting items reflects an effective tax rate of | |||||||||||||||
| (3)The Company does not allocate interest or income taxes to its segments. | |||||||||||||||
| MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP TO GAAP PERFORMANCE MEASURES (UNAUDITED) | |||||||||||||||
| Three months ended December 31, 2024 | |||||||||||||||
| Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||
| (dollars in millions, except per share amounts) | |||||||||||||||
| Net sales | $ | 174.6 | $ | 129.7 | $ | — | $ | 304.3 | |||||||
| Gross profit(1) | $ | 55.1 | $ | 47.9 | $ | — | $ | 103.0 | |||||||
| Selling, general and administrative expenses | 19.8 | 20.3 | 13.8 | 53.9 | |||||||||||
| Strategic reorganization and other charges(2) | — | 0.3 | 1.4 | 1.7 | |||||||||||
| Operating income (loss) | $ | 35.3 | $ | 27.3 | $ | (15.2 | ) | $ | 47.4 | ||||||
| Operating margin | 20.2 | % | 21.0 | % | 15.6 | % | |||||||||
| Capital expenditures | $ | 5.7 | $ | 6.2 | $ | — | $ | 11.9 | |||||||
| Net income | $ | 35.3 | |||||||||||||
| Net income margin | 11.6 | % | |||||||||||||
| Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||
| Net income | $ | 35.3 | |||||||||||||
| Strategic reorganization and other charges(2) | 1.7 | ||||||||||||||
| Inventory and other asset restructuring write-down | 3.3 | ||||||||||||||
| Income tax expense of adjusting items(3) | (1.1 | ) | |||||||||||||
| Adjusted net income | $ | 39.2 | |||||||||||||
| Weighted average diluted shares outstanding | 157.5 | ||||||||||||||
| Net income per diluted share | $ | 0.22 | |||||||||||||
| Strategic reorganization and other charges per diluted share(2) | 0.01 | ||||||||||||||
| Inventory and other asset restructuring write-down per diluted share | 0.02 | ||||||||||||||
| Income tax expense of adjusting items per diluted share(3) | — | ||||||||||||||
| Adjusted net income per diluted share | $ | 0.25 | |||||||||||||
| Net income | $ | 35.3 | |||||||||||||
| Income tax expense(4) | 10.5 | ||||||||||||||
| Interest expense, net(4) | 1.6 | ||||||||||||||
| Operating income (loss) | $ | 35.3 | $ | 27.3 | $ | (15.2 | ) | 47.4 | |||||||
| Strategic reorganization and other charges(2) | — | 0.3 | 1.4 | 1.7 | |||||||||||
| Inventory and other asset restructuring write-down | 3.3 | — | — | 3.3 | |||||||||||
| Adjusted operating income (loss) | 38.6 | 27.6 | (13.8 | ) | 52.4 | ||||||||||
| Depreciation and amortization | 6.1 | 5.0 | — | 11.1 | |||||||||||
| Adjusted EBITDA | $ | 44.7 | $ | 32.6 | $ | (13.8 | ) | $ | 63.5 | ||||||
| Adjusted operating margin | 22.1 | % | 21.3 | % | 17.2 | % | |||||||||
| Adjusted EBITDA margin | 25.6 | % | 25.1 | % | 20.9 | % | |||||||||
| Adjusted EBITDA | $ | 44.7 | $ | 32.6 | $ | (13.8 | ) | $ | 63.5 | ||||||
| Three prior quarters' adjusted EBITDA | 181.0 | 106.4 | (47.5 | ) | 239.9 | ||||||||||
| Trailing twelve months' adjusted EBITDA | $ | 225.7 | $ | 139.0 | $ | (61.3 | ) | $ | 303.4 | ||||||
| Reconciliation of free cash flow to net cash provided by operating activities: | |||||||||||||||
| Net cash provided by operating activities | $ | 54.1 | |||||||||||||
| Less capital expenditures | 11.9 | ||||||||||||||
| Free cash flow | $ | 42.2 | |||||||||||||
| (1) Gross profit includes | |||||||||||||||
| (2) Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition and severance. | |||||||||||||||
| (3) The income tax expense of adjusting items reflects an effective tax rate of | |||||||||||||||
| (4) The Company does not allocate interest or income taxes to its segments. | |||||||||||||||
FAQ
What were Mueller Water Products (MWA) Q1 fiscal 2026 net sales and revenue growth?
How did MWA's adjusted EBITDA and margins perform in the quarter ended December 31, 2025?
What guidance did Mueller Water Products (MWA) provide for fiscal 2026 net sales and adjusted EBITDA?
What was MWA's cash flow, capital spending and liquidity position at the end of Q1 2026?
