Mueller Water Products (NYSE: MWA) lifts Q3 earnings and hikes 2026 adjusted EBITDA guidance
Rhea-AI Filing Summary
Mueller Water Products reported a strong third quarter of fiscal 2026, with net sales of $395.9 million, up 4.1% from $380.3 million. Net income was $67.3 million versus $52.5 million, and net income per diluted share rose to $0.43 from $0.33. Adjusted net income per diluted share reached $0.50, up 47.1% from $0.34. Adjusted EBITDA increased 24.3% to $107.4 million, and adjusted EBITDA margin expanded to 27.1% from 22.7%, reflecting higher pricing, tariff refunds and lower SG&A.
By segment, Water Flow Solutions net sales were essentially flat at $215.3 million but delivered a 30.7% operating and adjusted operating margin, up from 27.9%. Water Management Solutions grew net sales 10.3% to $180.6 million, with adjusted operating margin rising to 25.2% from 18.5%. The company repurchased $10.0 million of common stock in the quarter.
For the nine months ended June 30, 2026, net cash provided by operating activities was $154.2 million and free cash flow was $110.6 million. Mueller ended the quarter with $495.3 million of cash and cash equivalents and $452.9 million of total debt, and cited total liquidity of $659.0 million. For fiscal 2026, it now expects consolidated net sales of $1,470–$1,480 million and has raised adjusted EBITDA guidance to $367–$372 million, an increase of 12.5% to 14.0% versus the prior year.
Positive
- Q3 profitability and margins improved sharply, with net income up 28.2% to $67.3 million, adjusted net income per diluted share up 47.1% to $0.50, and adjusted EBITDA up 24.3% to $107.4 million as margin expanded 440 basis points to 27.1%.
- Fiscal 2026 guidance was raised for adjusted EBITDA to $367–$372 million, implying 12.5%–14.0% growth year over year, while net sales guidance of $1,470–$1,480 million still targets 2.8%–3.5% growth.
- Balance sheet and cash generation remain strong, with nine-month operating cash flow of $154.2 million, free cash flow of $110.6 million, cash of $495.3 million exceeding total debt of $452.9 million, and total liquidity of $659.0 million with no debt maturities until June 2029.
Negative
- None.
Filing Explained
No debt maturities are due until June 2029, while third-quarter results include $11.2 million of reorganization charges excluded from adjusted measures.
Form 8-K reports the company’s third-quarter results for the period ended
The quarter includes
The filing also identifies a one-time tax benefit from recognizing a loss on a foreign subsidiary investment; management says it increased adjusted net income per diluted share by
The next dated resolution point is the company’s earnings conference call on
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q3 2026 Net Sales: $395.9 million
Q3 2026 Net Income: $67.3 million
Q3 2026 Adjusted EPS (diluted): $0.50
+5 more
8 metrics
Q3 2026 Net Sales
$395.9 million
Quarter ended June 30, 2026; up 4.1% from $380.3 million in prior-year quarter
Q3 2026 Net Income
$67.3 million
Quarter ended June 30, 2026; up 28.2% from $52.5 million
Q3 2026 Adjusted EPS (diluted)
$0.50
Adjusted net income per diluted share; up 47.1% from $0.34 in prior-year quarter
Q3 2026 Adjusted EBITDA
$107.4 million
Quarter ended June 30, 2026; up 24.3% from $86.4 million; margin 27.1%
Nine-month Free Cash Flow
$110.6 million
Nine months ended June 30, 2026; net cash from operations less capital expenditures
Cash and Cash Equivalents
$495.3 million
Balance as of June 30, 2026 on condensed consolidated balance sheet
Total Debt
$452.9 million
Total debt outstanding as of June 30, 2026
FY 2026 Adjusted EBITDA Guidance
$367–$372 million
Forecast increase of 12.5% to 14.0% compared with prior year
Key Terms
adjusted EBITDA, free cash flow, strategic reorganization and other charges, portfolio optimization costs, +2 more
6 terms
adjusted EBITDA financial
"Increased adjusted EBITDA 24.3% to $107.4 million as compared with $86.4 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
free cash flow financial
"Generated free cash flow for the nine-month period of $110.6 million"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
strategic reorganization and other charges financial
"the Company incurred $11.2 million of strategic reorganization and other charges"
portfolio optimization costs financial
"Cost of sales included $3.1 million of portfolio optimization costs in the Water Management"
Section 232 tariffs regulatory
"including the impact of the Section 232 tariffs on the products produced by our Krausz business"
A U.S. law authority that lets the government impose import duties if certain goods are judged to threaten national security, commonly used for metals like steel or aluminum. For investors, these tariffs act like a sudden price hike or import tax on a company's raw materials or foreign competitors, which can raise costs, change profit margins, shift supply chains, and alter competitive advantage across affected industries.
ABL Agreement financial
"We did not have any borrowings under our ABL Agreement at the end of the quarter"
ABL agreement is a loan contract where borrowing is secured by a company's specific assets—typically inventory, accounts receivable, machinery, or real estate—rather than by the borrower's overall credit. Think of it like a home equity loan that uses certain owned items as collateral; it matters to investors because it affects a company’s liquidity, borrowing capacity and default risk, and often includes rules (covenants) that can influence operations and access to cash.
Earnings Snapshot
Net sales: $395.9 million · Guidance included
Third quarter ended June 30, 2026
Net sales
$395.9 million
Increased 4.1% from $380.3 million in the prior year quarter
Net income
$67.3 million
Increased 28.2% from $52.5 million in the prior year quarter
Adjusted net income per diluted share
$0.50
Increased 47.1% from $0.34 in the prior year quarter
Adjusted EBITDA
$107.4 million
Increased 24.3% from $86.4 million in the prior year quarter
Guidance
For fiscal 2026, Mueller Water Products expects consolidated net sales of $1,470–$1,480 million (2.8%–3.5% growth) and increased adjusted EBITDA guidance of $367–$372 million (12.5%–14.0% growth), with total SG&A expenses between $241–$245 million and an effective tax rate between 21% and 23%.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Mueller Water Products (MWA) perform in its Q3 2026 results?
Mueller Water Products delivered Q3 2026 net sales of $395.9 million, up 4.1% year over year, with net income of $67.3 million versus $52.5 million. Adjusted EBITDA rose 24.3% to $107.4 million, and adjusted EBITDA margin expanded to 27.1% from 22.7%.
What fiscal 2026 guidance did Mueller Water Products (MWA) provide?
For fiscal 2026, Mueller Water Products guides consolidated net sales to $1,470–$1,480 million, representing 2.8%–3.5% growth. It raised adjusted EBITDA guidance to $367–$372 million, implying 12.5%–14.0% growth, and expects an effective tax rate between 21% and 23%.
How strong is Mueller Water Products’ (MWA) cash flow and balance sheet?
Over the nine months ended June 30, 2026, Mueller generated $154.2 million of operating cash flow and $110.6 million of free cash flow. It held $495.3 million of cash against $452.9 million of total debt, with total liquidity of $659.0 million and no debt maturities until June 2029.
How did Mueller Water Products’ (MWA) business segments perform in Q3 2026?
In Q3 2026, Water Flow Solutions posted net sales of $215.3 million with a 30.7% operating margin, while Water Management Solutions delivered net sales of $180.6 million (up 10.3%) and improved adjusted operating margin to 25.2%, supported by higher pricing, volume growth and lower SG&A.
What non-GAAP measures does Mueller Water Products (MWA) emphasize?
Mueller highlights adjusted net income, adjusted EPS, adjusted operating income, adjusted EBITDA and free cash flow. Management uses these non-GAAP measures to evaluate underlying performance and liquidity, and provides reconciliations to GAAP figures in the attached financial schedules.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (Date of earliest event reported): August 5, 2026
(Exact Name of Registrant as Specified in Its Charter)
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(Address of Principal Executive Offices)
(Registrant’s telephone number, including area code)
Not Applicable.
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b)) | ||||||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240-13e-4(c)) | ||||||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | ||||||||||||||
| Emerging growth company | ||||||||||||||
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ | |||||||||||||
Item 2.02. Results of Operations and Financial Condition.
On August 5, 2026, Mueller Water Products, Inc. (the “Company”) announced its results of operations for the quarter ended June 30, 2026. A copy of the press release is attached as Exhibit 99.1.
The information provided pursuant to this Item 2.02, including Exhibit 99.1 in Item 9.01, is “furnished” and shall not be deemed to be “filed” with the Securities and Exchange Commission or incorporated by reference in any filing under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or the Securities Act of 1933, as amended (the “Securities Act”), except as shall be expressly set forth by specific reference in any such filings.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
99.1 | Press Release regarding Results of Operations for the Quarter Ended June 30, 2026, dated August 5, 2026 | ||||
| 104 | The cover page of this Current Report on Form 8-K, formatted in Inline XBRL | ||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, Mueller Water Products, Inc. has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Dated: August 5, 2026 | MUELLER WATER PRODUCTS, INC. | |||||||||||||
| By: | /s/ Melissa Rasmussen | |||||||||||||
| Melissa Rasmussen | ||||||||||||||
| Senior Vice President and Chief Financial Officer | ||||||||||||||
MUELLER WATER PRODUCTS REPORTS 2026 THIRD QUARTER RESULTS
Increased Net Sales 4.1% to $395.9 Million
Reported Net Income per Diluted Share of $0.43
Achieved Adjusted Net Income per Diluted Share of $0.50
Raises Annual Guidance for Fiscal 2026 Adjusted EBITDA
ATLANTA, August 5, 2026 - 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 third quarter ended June 30, 2026.
In the third quarter of 2026, the Company:
•Increased net sales 4.1% to $395.9 million as compared with $380.3 million in the prior year quarter
•Reported operating income of $80.6 million as compared with $73.7 million in the prior year quarter, and increased adjusted operating income 27.0% to $94.9 million as compared with $74.7 million in the prior year quarter
•Reported operating margin of 20.4% as compared with 19.4% in the prior year quarter, and expanded adjusted operating margin to 24.0% as compared with 19.6% in the prior year quarter
•Reported net income of $67.3 million as compared with $52.5 million in the prior year quarter, with net income margin of 17.0% as compared with 13.8% in the prior year quarter, and increased adjusted net income 48.1% to $78.8 million as compared with $53.2 million in the prior year quarter
•Reported net income per diluted share of $0.43 as compared with $0.33 in the prior year quarter, and increased adjusted net income per diluted share 47.1% to $0.50 as compared with $0.34 in the prior year quarter
•Increased adjusted EBITDA 24.3% to $107.4 million as compared with $86.4 million in the prior year quarter, and expanded adjusted EBITDA margin to 27.1% as compared with 22.7% in the prior year quarter
•Reported net cash provided by operating activities for the nine-month period of $154.2 million as compared with $135.8 million in the prior year period
•Generated free cash flow for the nine-month period of $110.6 million as compared with $103.0 million in the prior year period
•Repurchased $10.0 million of common stock during the third quarter
“Our outstanding third quarter results reflect strong execution across the business and continued progress against our operating priorities, despite a dynamic operating environment. We delivered quarterly records for net sales, adjusted EBITDA and adjusted net income per diluted share, while expanding our adjusted EBITDA margin 440 basis points year-over-year. These results demonstrate the strength of our brands and product portfolio, as well as the benefits from our continued focus on operational excellence, productivity and disciplined cost management. I am proud of what our teams have accomplished and their continued commitment to serving our customers,” said Paul McAndrew, President and Chief Executive Officer of Mueller Water Products.
“With our increased fiscal 2026 adjusted EBITDA guidance, we remain on track to deliver another year of meaningful margin expansion. While we continue to navigate slower new residential construction activity and broader external uncertainty, we remain focused on executing our strategies, investing in growth and proactively managing costs. We believe the disciplined execution embedded in the Mueller Operating System positions us well to build on this momentum and create long-term value for our customers and shareholders,” Mr. McAndrew concluded.
Consolidated Results
Net sales for the third quarter increased $15.6 million, or 4.1%, to $395.9 million as compared with $380.3 million in the prior year quarter, primarily due to higher pricing across most product lines, partially offset by slightly lower volumes.
Gross profit for the third quarter increased $10.1 million, or 6.9%, to $155.8 million as compared with $145.7 million in the prior year quarter. Gross margin of 39.4% increased 110 basis points as compared with 38.3% in the prior year quarter, primarily due to higher pricing and tariff refunds, partially offset by inflationary pressures, performance, lower volumes, portfolio optimization costs and product mix.
Selling, general and administrative expenses for the third quarter decreased $7.0 million, or 9.9%, to $64.0 million as compared with $71.0 million in the prior year quarter. This decrease was primarily due to reduced foreign currency headwinds and lower incentive-based compensation, partially offset by inflationary pressures.
Operating income for the third quarter increased $6.9 million, or 9.4%, to $80.6 million as compared with $73.7 million in the prior year quarter. This increase was primarily driven by higher pricing, tariff refunds and lower SG&A expenses, partially offset by strategic reorganization and other charges, inflationary pressures, performance, lower volumes, portfolio optimization costs and product mix. Operating margin for the third quarter expanded to 20.4% as compared with 19.4% in the prior year quarter.
During the quarter, the Company incurred $11.2 million of strategic reorganization and other charges, primarily related to certain transaction-related expenses, non-cash asset impairment expenses, severance and expenses associated with our leadership transition. Adjusted results do not include the strategic reorganization and other charges or the portfolio optimization costs.
Adjusted operating income increased $20.2 million, or 27.0%, to $94.9 million as compared with $74.7 million in the prior year quarter. This increase was primarily driven by higher pricing, tariff refunds and lower SG&A expenses, partially offset by inflationary pressures, performance, lower
volumes and product mix. Adjusted operating margin expanded 440 basis points to 24.0% as compared with 19.6% in the prior year quarter.
Net income increased $14.8 million, or 28.2%, to $67.3 million as compared with $52.5 million in the prior year quarter. Net income margin expanded to 17.0% as compared with 13.8% in the prior year quarter. Adjusted net income increased $25.6 million, or 48.1%, to $78.8 million as compared with $53.2 million in the prior year quarter.
Adjusted EBITDA of $107.4 million increased $21.0 million, or 24.3%, as compared with $86.4 million in the prior year quarter. Adjusted EBITDA margin expanded 440 basis points to 27.1% as compared with 22.7% in the prior year quarter.
Segment Results
Water Flow Solutions
Net sales for the 2026 third quarter decreased $1.3 million, or 0.6%, to $215.3 million as compared with $216.6 million in the prior year quarter, primarily due to lower volumes, mostly offset by higher pricing across most product lines.
Operating income and adjusted operating income were both $66.0 million for the third quarter. Adjusted operating income increased $5.5 million, or 9.1%, compared with the prior year quarter. Benefits from higher pricing, tariff refunds and performance more than offset lower volumes, inflationary pressures and product mix. Operating and adjusted operating margin were both 30.7% as compared with 27.9% for both the prior year quarter operating and adjusted operating margins, respectively.
Adjusted EBITDA of $73.5 million increased $6.4 million, or 9.5%, as compared with $67.1 million in the prior year quarter. Adjusted EBITDA margin expanded 310 basis points to 34.1% as compared with 31.0% in the prior year quarter.
Water Management Solutions
Net sales for the 2026 third quarter increased $16.9 million, or 10.3%, to $180.6 million as compared with $163.7 million in the prior year quarter, primarily due to increased volumes and higher pricing across most product lines.
Operating income was $35.9 million and adjusted operating income was $45.6 million for the third quarter. Adjusted operating income increased $15.3 million, or 50.5%, compared with the prior year quarter. Benefits from higher pricing, lower SG&A expenses, including reduced foreign currency headwinds, volume growth and tariff refunds more than offset performance and inflationary pressures. Operating margin was 19.9% and adjusted operating margin was 25.2%, as compared with 18.4% and 18.5% for the prior year quarter operating and adjusted operating margins, respectively.
Adjusted EBITDA of $50.7 million increased $15.4 million, or 43.6%, as compared with $35.3 million in the prior year quarter. Adjusted EBITDA margin expanded 650 basis points to 28.1% as compared with 21.6% in the prior year quarter.
Interest Expense, Net
Interest expense, net, for the 2026 third quarter decreased to $0.7 million as compared with $1.7 million in the prior year quarter, primarily as a result of higher interest income.
Income Taxes
For the 2026 third quarter, income tax expense was $12.5 million, or 15.7% of income before tax, as compared with $19.5 million in the prior year quarter, or 27.1% of income before tax. The decrease in effective tax rate was primarily attributable to a one-time tax benefit resulting from the recognition of a loss on a foreign subsidiary investment, benefiting adjusted net income per diluted share by $0.06.
Cash Flow and Balance Sheet
Net cash provided by operating activities for the nine-month period ended June 30, 2026, increased $18.4 million to $154.2 million as compared with $135.8 million in the prior year period. The increase was primarily driven by favorable non-cash adjustments and higher net income compared with the prior year period, partially offset by changes in working capital and other assets and liabilities.
Through the first nine months of 2026, the Company invested $43.6 million in capital expenditures as compared with $32.8 million in the prior year period, primarily driven by investments in our iron foundries.
Free cash flow (defined as net cash provided by operating activities less capital expenditures) for the nine-month period increased $7.6 million to $110.6 million as compared with $103.0 million in the prior year period, due to the increase in net cash provided by operating activities partially offset by higher capital expenditures.
As of June 30, 2026, the Company had $452.9 million of total debt outstanding and $495.3 million of cash and cash equivalents. We did not have any borrowings under our ABL Agreement at the end of the quarter, nor did we borrow any amounts under our ABL during the quarter. There are no maturities on the Company’s debt financings until June 2029, and our 4.0% Senior Notes have no financial maintenance covenants. At the end of the quarter, the Company had $659.0 million of total liquidity, including $163.7 million in availability under the ABL.
Fiscal 2026 Outlook
The Company is narrowing its guidance for fiscal 2026 consolidated net sales to between $1,470 million and $1,480 million, or an increase of 2.8% to 3.5% compared with the prior year. The Company is increasing its expectations for fiscal 2026 adjusted EBITDA to between $367 million and $372 million, or an increase of 12.5% to 14.0% compared with the prior year. The Company is reducing its total SG&A expenses to be between $241 million and $245 million and its guidance for the effective tax rate to be between 21% and 23%, reflecting the one-time tax benefit in the third quarter. The Company is reiterating its expectation for free cash flow as a percentage of adjusted net income to exceed 70% in fiscal 2026.
The Company’s expectations for certain additional financial metrics for fiscal 2026 are as follows:
•Total SG&A expenses between $241 million and $245 million
•Net interest expense between $4 million and $5 million
•Effective income tax rate between 21% and 23%
•Depreciation and amortization between $49 million and $50 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, August 6, 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 1-866-386-1299. 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.
Free cash flow is a non-GAAP liquidity measure used to assist management and investors in analyzing the Company’s ability to generate liquidity from its operating activities.
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)
| June 30, | September 30, | ||||||||||
| 2026 | 2025 | ||||||||||
| (in millions, except share amounts) | |||||||||||
| Assets: | |||||||||||
| Cash and cash equivalents | $ | 495.3 | $ | 431.5 | |||||||
Receivables, net of allowance for credit losses of $2.0 million and $3.6 million | 203.2 | 211.9 | |||||||||
| Inventories, net | 379.8 | 328.7 | |||||||||
| Other current assets | 52.0 | 56.8 | |||||||||
| Total current assets | 1,130.3 | 1,028.9 | |||||||||
| Property, plant and equipment, net | 345.1 | 335.7 | |||||||||
| Intangible assets, net | 300.6 | 307.3 | |||||||||
| Goodwill, net | 92.1 | 89.2 | |||||||||
| Other noncurrent assets | 85.2 | 77.8 | |||||||||
| Total assets | $ | 1,953.3 | $ | 1,838.9 | |||||||
| Liabilities and stockholders’ equity: | |||||||||||
| Current portion of long-term debt | $ | 1.6 | $ | 1.2 | |||||||
| Accounts payable | 131.2 | 134.4 | |||||||||
| Other current liabilities | 111.0 | 154.7 | |||||||||
| Total current liabilities | 243.8 | 290.3 | |||||||||
| Long-term debt | 451.3 | 450.4 | |||||||||
| Deferred income taxes | 69.9 | 51.0 | |||||||||
| Other noncurrent liabilities | 67.9 | 65.5 | |||||||||
| Total liabilities | 832.9 | 857.2 | |||||||||
| Commitments and contingencies | |||||||||||
Preferred stock: par value $0.01 per share; 60,000,000 shares authorized; | — | — | |||||||||
none outstanding at June 30, 2026, and September 30, 2025 | |||||||||||
Common stock: par value $0.01 per share; 600,000,000 shares authorized; | 1.6 | 1.6 | |||||||||
156,101,616 and 156,331,004 shares outstanding at | |||||||||||
June 30, 2026, and September 30, 2025, respectively | |||||||||||
| Additional paid-in capital | 1,119.1 | 1,158.9 | |||||||||
| Accumulated deficit | (4.6) | (174.2) | |||||||||
| Accumulated other comprehensive income (loss) | 4.3 | (4.6) | |||||||||
| Total stockholders' equity | 1,120.4 | 981.7 | |||||||||
| Total liabilities and stockholders' equity | $ | 1,953.3 | $ | 1,838.9 | |||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| Three months ended | Nine months ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||||||||||
| Net sales | $ | 395.9 | $ | 380.3 | $ | 1,098.5 | $ | 1,048.9 | |||||||||||||||
Cost of sales (1) | 240.1 | 234.6 | 678.4 | 672.2 | |||||||||||||||||||
| Gross profit | 155.8 | 145.7 | 420.1 | 376.7 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Selling, general and administrative | 64.0 | 71.0 | 183.5 | 180.6 | |||||||||||||||||||
Strategic reorganization and other charges (2) | 11.2 | 1.0 | 18.9 | 5.1 | |||||||||||||||||||
| Total operating expenses | 75.2 | 72.0 | 202.4 | 185.7 | |||||||||||||||||||
| Operating income | 80.6 | 73.7 | 217.7 | 191.0 | |||||||||||||||||||
| Pension expense (benefit) other than service | 0.1 | — | 0.1 | (0.1) | |||||||||||||||||||
| Interest expense, net | 0.7 | 1.7 | 3.3 | 5.6 | |||||||||||||||||||
| Income before income taxes | 79.8 | 72.0 | 214.3 | 185.5 | |||||||||||||||||||
| Income tax expense | 12.5 | 19.5 | 44.7 | 46.4 | |||||||||||||||||||
| Net income | $ | 67.3 | $ | 52.5 | $ | 169.6 | $ | 139.1 | |||||||||||||||
| Net income per basic share | $ | 0.43 | $ | 0.34 | $ | 1.09 | $ | 0.89 | |||||||||||||||
| Net income per diluted share | $ | 0.43 | $ | 0.33 | $ | 1.08 | $ | 0.88 | |||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | 156.3 | 156.5 | 156.3 | 156.5 | |||||||||||||||||||
| Diluted | 157.3 | 157.4 | 157.3 | 157.5 | |||||||||||||||||||
| Dividends declared per share | $ | 0.070 | $ | 0.067 | $ | 0.210 | $ | 0.201 | |||||||||||||||
(1) For the three- and nine-month periods ended June 30, 2026, Cost of sales included $3.1 million of portfolio optimization costs in the Water Management Solutions segment. Portfolio optimization costs primarily relate to certain transaction-related expenses. For the nine-month period ended June 30, 2025, Cost of sales included $4.1 million in inventory and other asset write-downs associated with the closure of our legacy brass foundry in Decatur, Illinois. | |||||||||||||||||||||||
(2) For the three-month period ended June 30, 2026, Strategic reorganization and other charges primarily relate to certain transaction-related expenses, non-cash asset impairment expenses, severance, and expenses related to our leadership transition. For the nine-month period ended June 30, 2026, Strategic reorganization and other charges primarily relate to certain transaction-related expenses, expenses associated with our leadership transition, non-cash asset impairment expenses and severance. For the three-month period ended June 30, 2025, Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition. For the nine-month period ended June 30, 2025, Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition, non-cash asset impairment expenses, and certain transaction-related expenses. | |||||||||||||||||||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| Nine months ended | |||||||||||
| June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| (in millions) | |||||||||||
| Operating activities: | |||||||||||
| Net income | $ | 169.6 | $ | 139.1 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation | 31.7 | 28.7 | |||||||||
| Amortization | 5.4 | 5.4 | |||||||||
| Non-cash asset impairment | 4.0 | 1.0 | |||||||||
| Gain on sale of assets | (0.4) | (0.1) | |||||||||
| Stock-based compensation | 10.5 | 7.3 | |||||||||
| Pension expense | 0.5 | 0.4 | |||||||||
| Deferred income taxes | 18.2 | (6.8) | |||||||||
| Inventory reserve provision | 9.4 | 3.1 | |||||||||
| Other, net | 1.1 | 0.9 | |||||||||
| Changes in assets and liabilities: | |||||||||||
| Receivables, net | 8.4 | 4.2 | |||||||||
| Inventories | (59.9) | (16.5) | |||||||||
| Other assets | (0.8) | (3.5) | |||||||||
| Accounts payable | (3.4) | 3.9 | |||||||||
| Other current liabilities | (42.2) | (25.6) | |||||||||
| Other noncurrent liabilities | 2.1 | (5.7) | |||||||||
| Net cash provided by operating activities | 154.2 | 135.8 | |||||||||
| Investing activities: | |||||||||||
| Capital expenditures | (43.6) | (32.8) | |||||||||
| Proceeds from sale of assets | 1.2 | 0.1 | |||||||||
| Net cash used in investing activities | (42.4) | (32.7) | |||||||||
| Financing activities: | |||||||||||
| Dividends paid | (32.8) | (31.4) | |||||||||
| Stock repurchased under buyback program | (15.5) | (15.0) | |||||||||
| Employee taxes related to stock-based compensation | (3.9) | (4.3) | |||||||||
| Common stock issued | 1.9 | 4.3 | |||||||||
| Principal payments for finance lease obligations | (1.2) | (0.8) | |||||||||
| Net cash used in financing activities | (51.5) | (47.2) | |||||||||
| Effect of currency exchange rate changes on cash | 3.5 | 6.2 | |||||||||
| Net change in cash and cash equivalents | 63.8 | 62.1 | |||||||||
| Cash and cash equivalents at beginning of period | 431.5 | 309.9 | |||||||||
| Cash and cash equivalents at end of period | $ | 495.3 | $ | 372.0 | |||||||
| Nine months ended | |||||||||||
| June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| (in millions) | |||||||||||
| Supplemental cash flow information: | |||||||||||
| Cash paid for interest, net | $ | 7.5 | $ | 9.1 | |||||||
| Cash paid for income taxes, net | $ | 45.6 | $ | 49.8 | |||||||
| Non-cash investing and financing activities: | |||||||||||
| Property, plant and equipment accrued and unpaid | $ | 6.8 | $ | 5.1 | |||||||
| Property, plant and equipment acquired through finance leases | $ | 1.8 | $ | 1.7 | |||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP TO GAAP PERFORMANCE MEASURES
(UNAUDITED)
| Three months ended June 30, 2026 | |||||||||||||||||||||||||||||
Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||||||||||||||||
| Net sales | $ | 215.3 | $ | 180.6 | $ | — | $ | 395.9 | |||||||||||||||||||||
Gross profit (1) | $ | 89.5 | $ | 66.3 | $ | — | $ | 155.8 | |||||||||||||||||||||
| Selling, general and administrative expenses | 23.5 | 23.8 | 16.7 | 64.0 | |||||||||||||||||||||||||
Strategic reorganization and other charges (2) | — | 6.6 | 4.6 | 11.2 | |||||||||||||||||||||||||
| Operating income (loss) | $ | 66.0 | $ | 35.9 | $ | (21.3) | $ | 80.6 | |||||||||||||||||||||
| Operating margin | 30.7 | % | 19.9 | % | 20.4 | % | |||||||||||||||||||||||
| Capital expenditures | $ | 6.9 | $ | 4.8 | $ | — | $ | 11.7 | |||||||||||||||||||||
| Net income | $ | 67.3 | |||||||||||||||||||||||||||
| Net income margin | 17.0 | % | |||||||||||||||||||||||||||
| Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||||||||||||||||
| Net income | $ | 67.3 | |||||||||||||||||||||||||||
Strategic reorganization and other charges (2) | 11.2 | ||||||||||||||||||||||||||||
Portfolio optimization costs (5) | 3.1 | ||||||||||||||||||||||||||||
Income tax expense of adjusting items (3) | (2.8) | ||||||||||||||||||||||||||||
| Adjusted net income | $ | 78.8 | |||||||||||||||||||||||||||
| Weighted average diluted shares outstanding | 157.3 | ||||||||||||||||||||||||||||
Net income per diluted share | $ | 0.43 | |||||||||||||||||||||||||||
Strategic reorganization and other charges per diluted share (2) | 0.07 | ||||||||||||||||||||||||||||
Portfolio optimization costs per diluted share (5) | 0.02 | ||||||||||||||||||||||||||||
Income tax expense of adjusting items per diluted share (3) | (0.02) | ||||||||||||||||||||||||||||
| Adjusted net income per diluted share | $ | 0.50 | |||||||||||||||||||||||||||
| Net income | $ | 67.3 | |||||||||||||||||||||||||||
Income tax expense (4) | 12.5 | ||||||||||||||||||||||||||||
Interest expense, net (4) | 0.7 | ||||||||||||||||||||||||||||
Pension expense other than service (4) | 0.1 | ||||||||||||||||||||||||||||
| Operating income (loss) | $ | 66.0 | $ | 35.9 | $ | (21.3) | 80.6 | ||||||||||||||||||||||
Strategic reorganization and other charges (2) | — | 6.6 | 4.6 | 11.2 | |||||||||||||||||||||||||
Portfolio optimization costs (5) | — | 3.1 | — | 3.1 | |||||||||||||||||||||||||
| Adjusted operating income (loss) | 66.0 | 45.6 | (16.7) | 94.9 | |||||||||||||||||||||||||
Pension expense other than service (4) | — | — | (0.1) | (0.1) | |||||||||||||||||||||||||
| Depreciation and amortization | 7.5 | 5.1 | — | 12.6 | |||||||||||||||||||||||||
| Adjusted EBITDA | $ | 73.5 | $ | 50.7 | $ | (16.8) | $ | 107.4 | |||||||||||||||||||||
| Adjusted operating margin | 30.7 | % | 25.2 | % | 24.0 | % | |||||||||||||||||||||||
| Adjusted EBITDA margin | 34.1 | % | 28.1 | % | 27.1 | % | |||||||||||||||||||||||
| Reconciliation of free cash flow to net cash provided by operating activities: | |||||||||||||||||||||||||||||
| Net cash provided by operating activities | $ | 105.8 | |||||||||||||||||||||||||||
| Less capital expenditures | 11.7 | ||||||||||||||||||||||||||||
| Free cash flow | $ | 94.1 | |||||||||||||||||||||||||||
(1) Gross profit includes $3.1 million of portfolio optimization costs in the Water Management Solutions segment, which primarily relate to certain transaction-related expenses. | |||||||||||||||||||||||||||||
(2) Strategic reorganization and other charges primarily relate to expenses associated with certain transaction-related expenses, non-cash asset impairment expenses, severance, and expenses related to our leadership transition. | |||||||||||||||||||||||||||||
(3) The income tax expense of adjusting items reflects an effective tax rate of 20.9%, and may be subject to rounding. | |||||||||||||||||||||||||||||
(4) The Company does not allocate interest, income taxes or pension amounts other than service to its segments. | |||||||||||||||||||||||||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP TO GAAP PERFORMANCE MEASURES
(UNAUDITED)
(5) Portfolio optimization costs are primarily associated with certain transaction-related expenses. | |||||||||||||||||||||||||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP TO GAAP PERFORMANCE MEASURES
(UNAUDITED)
| Three months ended June 30, 2025 | |||||||||||||||||||||||
| Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||||||||||
| Net sales | $ | 216.6 | $ | 163.7 | $ | — | $ | 380.3 | |||||||||||||||
| Gross profit | $ | 83.8 | $ | 61.9 | $ | — | $ | 145.7 | |||||||||||||||
| Selling, general and administrative expenses | 23.3 | 31.6 | 16.1 | 71.0 | |||||||||||||||||||
Strategic reorganization and other charges (1) | — | 0.2 | 0.8 | 1.0 | |||||||||||||||||||
| Operating income (loss) | $ | 60.5 | $ | 30.1 | $ | (16.9) | $ | 73.7 | |||||||||||||||
| Operating margin | 27.9 | % | 18.4 | % | 19.4 | % | |||||||||||||||||
| Capital expenditures | $ | 5.3 | $ | 6.4 | $ | — | $ | 11.7 | |||||||||||||||
| Net income | $ | 52.5 | |||||||||||||||||||||
| Net income margin | 13.8 | % | |||||||||||||||||||||
| Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||||||||||
| Net income | $ | 52.5 | |||||||||||||||||||||
Strategic reorganization and other charges (1) | 1.0 | ||||||||||||||||||||||
Income tax expense of adjusting items (2) | (0.3) | ||||||||||||||||||||||
| Adjusted net income | $ | 53.2 | |||||||||||||||||||||
| Weighted average diluted shares outstanding | 157.4 | ||||||||||||||||||||||
| Net income per diluted share | $ | 0.33 | |||||||||||||||||||||
Strategic reorganization and other charges per diluted share (1) | 0.01 | ||||||||||||||||||||||
Income tax expense of adjusting items per diluted share (2) | — | ||||||||||||||||||||||
| Adjusted net income per diluted share | $ | 0.34 | |||||||||||||||||||||
| Net income | $ | 52.5 | |||||||||||||||||||||
Income tax expense (3) | 19.5 | ||||||||||||||||||||||
Interest expense, net (3) | 1.7 | ||||||||||||||||||||||
| Operating income (loss) | $ | 60.5 | $ | 30.1 | $ | (16.9) | 73.7 | ||||||||||||||||
Strategic reorganization and other charges (1) | — | 0.2 | 0.8 | 1.0 | |||||||||||||||||||
| Adjusted operating income (loss) | 60.5 | 30.3 | (16.1) | 74.7 | |||||||||||||||||||
| Depreciation and amortization | 6.6 | 5.0 | 0.1 | 11.7 | |||||||||||||||||||
| Adjusted EBITDA | $ | 67.1 | $ | 35.3 | $ | (16.0) | $ | 86.4 | |||||||||||||||
| Adjusted operating margin | 27.9 | % | 18.5 | % | 19.6 | % | |||||||||||||||||
| Adjusted EBITDA margin | 31.0 | % | 21.6 | % | 22.7 | % | |||||||||||||||||
| Reconciliation of free cash flow to net cash provided by operating activities: | |||||||||||||||||||||||
| Net cash provided by operating activities | $ | 67.4 | |||||||||||||||||||||
| Less capital expenditures | 11.7 | ||||||||||||||||||||||
| Free cash flow | $ | 55.7 | |||||||||||||||||||||
(1) Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition. | |||||||||||||||||||||||
(2) The income tax expense of adjusting items reflects an effective tax rate of 27.1%, and may be subject to rounding. | |||||||||||||||||||||||
(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)
| Nine months ended June 30, 2026 | |||||||||||||||||||||||
Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||||||||||
| Net sales | $ | 606.6 | $ | 491.9 | $ | — | $ | 1,098.5 | |||||||||||||||
Gross profit (1) | $ | 247.4 | $ | 172.7 | $ | — | $ | 420.1 | |||||||||||||||
| Selling, general and administrative expenses | 66.8 | 70.2 | 46.5 | 183.5 | |||||||||||||||||||
Strategic reorganization and other charges (2) | — | 6.8 | 12.1 | 18.9 | |||||||||||||||||||
| Operating income (loss) | $ | 180.6 | $ | 95.7 | $ | (58.6) | $ | 217.7 | |||||||||||||||
| Operating margin | 29.8 | % | 19.5 | % | 19.8 | % | |||||||||||||||||
| Capital expenditures | $ | 18.3 | $ | 25.3 | $ | — | $ | 43.6 | |||||||||||||||
| Net income | $ | 169.6 | |||||||||||||||||||||
| Net income margin | 15.4 | % | |||||||||||||||||||||
| Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||||||||||
| Net income | $ | 169.6 | |||||||||||||||||||||
Strategic reorganization and other charges (2) | 18.9 | ||||||||||||||||||||||
Portfolio optimization costs (5) | 3.1 | ||||||||||||||||||||||
Income tax expense of adjusting items (3) | (4.6) | ||||||||||||||||||||||
| Adjusted net income | $ | 187.0 | |||||||||||||||||||||
| Weighted average diluted shares outstanding | 157.3 | ||||||||||||||||||||||
| Net income per diluted share | $ | 1.08 | |||||||||||||||||||||
Strategic reorganization and other charges per diluted share (2) | 0.12 | ||||||||||||||||||||||
Portfolio optimization costs per diluted share (5) | 0.02 | ||||||||||||||||||||||
Income tax expense of adjusting items per diluted share (3) | (0.03) | ||||||||||||||||||||||
| Adjusted net income per diluted share | $ | 1.19 | |||||||||||||||||||||
| Net income | $ | 169.6 | |||||||||||||||||||||
Income tax expense (4) | 44.7 | ||||||||||||||||||||||
Interest expense, net (4) | 3.3 | ||||||||||||||||||||||
Pension expense other than service (4) | 0.1 | ||||||||||||||||||||||
| Operating income (loss) | $ | 180.6 | $ | 95.7 | $ | (58.6) | 217.7 | ||||||||||||||||
Strategic reorganization and other charges (2) | — | 6.8 | 12.1 | 18.9 | |||||||||||||||||||
Portfolio optimization costs (5) | — | 3.1 | — | 3.1 | |||||||||||||||||||
| Adjusted operating income (loss) | 180.6 | 105.6 | (46.5) | 239.7 | |||||||||||||||||||
Pension expense other than service (4) | — | — | (0.1) | (0.1) | |||||||||||||||||||
| Depreciation and amortization | 21.8 | 15.2 | 0.1 | 37.1 | |||||||||||||||||||
| Adjusted EBITDA | $ | 202.4 | $ | 120.8 | $ | (46.5) | $ | 276.7 | |||||||||||||||
| Adjusted operating margin | 29.8 | % | 21.5 | % | 21.8 | % | |||||||||||||||||
| Adjusted EBITDA margin | 33.4 | % | 24.6 | % | 25.2 | % | |||||||||||||||||
| Reconciliation of free cash flow to net cash provided by operating activities: | |||||||||||||||||||||||
Net cash provided by operating activities | $ | 154.2 | |||||||||||||||||||||
| Less capital expenditures | 43.6 | ||||||||||||||||||||||
| Free cash flow | $ | 110.6 | |||||||||||||||||||||
(1) Gross profit includes $3.1 million of portfolio optimization costs in the Water Management Solutions segment, which primarily relate to certain transaction-related expenses. | |||||||||||||||||||||||
(2) Strategic reorganization and other charges primarily relate to certain transaction-related expenses, expenses associated with our leadership transition, non-cash asset impairment expenses, and severance. | |||||||||||||||||||||||
(3) The income tax expense of adjusting items reflects an effective tax rate of 20.9% and may be subject to rounding. | |||||||||||||||||||||||
(4) The Company does not allocate interest, income taxes or pension amounts other than service to its segments. | |||||||||||||||||||||||
(5) Portfolio optimization costs are primarily associated with certain transaction-related expenses. | |||||||||||||||||||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP TO GAAP PERFORMANCE MEASURES
(UNAUDITED)
| Nine months ended June 30, 2025 | |||||||||||||||||||||||
Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||||||||||
| Net sales | $ | 607.4 | $ | 441.5 | $ | — | $ | 1,048.9 | |||||||||||||||
Gross profit (1) | $ | 215.9 | $ | 160.8 | $ | — | $ | 376.7 | |||||||||||||||
| Selling, general and administrative expenses | 65.0 | 71.5 | 44.1 | 180.6 | |||||||||||||||||||
Strategic reorganization and other charges (2) | 1.0 | 0.6 | 3.5 | 5.1 | |||||||||||||||||||
| Operating income (loss) | $ | 149.9 | $ | 88.7 | $ | (47.6) | $ | 191.0 | |||||||||||||||
| Operating margin | 24.7 | % | 20.1 | % | 18.2 | % | |||||||||||||||||
| Capital expenditures | $ | 15.8 | $ | 17.0 | $ | — | $ | 32.8 | |||||||||||||||
| Net income | $ | 139.1 | |||||||||||||||||||||
| Net income margin | 13.3 | % | |||||||||||||||||||||
| Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||||||||||
| Net income | $ | 139.1 | |||||||||||||||||||||
Strategic reorganization and other charges (2) | 5.1 | ||||||||||||||||||||||
| Inventory and other asset restructuring write-down | 4.1 | ||||||||||||||||||||||
Income tax expense of adjusting items (3) | (2.3) | ||||||||||||||||||||||
| Adjusted net income | $ | 146.0 | |||||||||||||||||||||
| Weighted average diluted shares outstanding | 157.5 | ||||||||||||||||||||||
| Net income per diluted share | $ | 0.88 | |||||||||||||||||||||
Strategic reorganization and other charges per diluted share (2) | 0.03 | ||||||||||||||||||||||
| Inventory and other asset restructuring write-down per diluted share | 0.03 | ||||||||||||||||||||||
Income tax expense of adjusting items per diluted share (3) | (0.01) | ||||||||||||||||||||||
| Adjusted net income per diluted share | $ | 0.93 | |||||||||||||||||||||
| Net income | $ | 139.1 | |||||||||||||||||||||
Income tax expense (4) | 46.4 | ||||||||||||||||||||||
Interest expense, net (4) | 5.6 | ||||||||||||||||||||||
Pension benefit other than service (4) | (0.1) | ||||||||||||||||||||||
| Operating income (loss) | $ | 149.9 | $ | 88.7 | $ | (47.6) | 191.0 | ||||||||||||||||
Strategic reorganization and other charges (2) | 1.0 | 0.6 | 3.5 | 5.1 | |||||||||||||||||||
| Inventory and other asset restructuring write-down | 4.1 | — | — | 4.1 | |||||||||||||||||||
| Adjusted operating income (loss) | 155.0 | 89.3 | (44.1) | 200.2 | |||||||||||||||||||
Pension benefit other than service (4) | — | — | 0.1 | 0.1 | |||||||||||||||||||
| Depreciation and amortization | 19.0 | 15.0 | 0.1 | 34.1 | |||||||||||||||||||
| Adjusted EBITDA | $ | 174.0 | $ | 104.3 | $ | (43.9) | $ | 234.4 | |||||||||||||||
| Adjusted operating margin | 25.5 | % | 20.2 | % | 19.1 | % | |||||||||||||||||
| Adjusted EBITDA margin | 28.6 | % | 23.6 | % | 22.3 | % | |||||||||||||||||
Reconciliation of free cash flow to net cash provided by operating activities: | |||||||||||||||||||||||
Net cash provided by operating activities | $ | 135.8 | |||||||||||||||||||||
| Less capital expenditures | 32.8 | ||||||||||||||||||||||
| Free cash flow | $ | 103.0 | |||||||||||||||||||||
(1) Gross profit includes $4.1 million in inventory and other asset write-downs associated with the closure of our legacy brass foundry in Decatur, Illinois. | |||||||||||||||||||||||
(2) Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition, non-cash asset impairment expenses, and certain transaction-related expenses. | |||||||||||||||||||||||
(3) The income tax expense of adjusting items reflects an effective tax rate of 25.0%, and may be subject to rounding. | |||||||||||||||||||||||
(4) The Company does not allocate interest, income taxes, or pension amounts other than service to its segments. | |||||||||||||||||||||||