Mueller Water Products signs ZENNER metering deal
The metering transition is expected to provide an annualized adjusted EBITDA margin benefit of 100 to 140 basis points, primarily beginning in fiscal 2027's second quarter.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Mueller Water Products, Inc. (MWA) reported fiscal 2026 results and announced an agreement to transition its metering business to ZENNER USA. Fiscal-year net sales were $1,475.0 million, up 3.2%; adjusted EBITDA was $372.2 million, up 14.1%, and net cash provided by operating activities was $262.9 million, up 19.9%. Fourth-quarter sales declined 1.1% to $376.5 million, while adjusted EBITDA rose 4.0% to $95.5 million.
Metering software customers are expected to transition to ZENNER; Mueller will retain its existing hardware contracts and warranty obligations and expects to meet them using its inventory or products purchased from ZENNER. Mueller expects approximately $26 million in one-time pre-tax charges, substantially all recognized in fiscal 2027 and the majority in its first quarter. The company expects an annualized adjusted EBITDA margin benefit of 100 to 140 basis points, primarily beginning in fiscal 2027's second quarter.
Fiscal 2027 guidance is $1,440 million to $1,470 million in net sales, excluding metering-related results, and $378 million to $388 million in adjusted EBITDA. The Board declared a quarterly dividend of $0.08 per share, up 14.3% from $0.07, payable November 19, 2026, to stockholders of record November 9, 2026.
3 points · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointFiscal 2026 adjusted EBITDA rose 14.1% to $372.2 million.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Expected annualized margin benefit: 100 to 140 basis points.
- Minor pointQuarterly dividend increased 14.3% to $0.08 per share.
Negative
- Moderate point. Forward-looking: it has not happened yet and may not happen.Expected one-time pre-tax charges total approximately $26 million.
Filing Explained
Mueller reports a
8-K Event Classification
4 items: 2.02, 2.05, 7.01, 9.01
4 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 2.05
Costs Associated with Exit or Disposal Activities
Financial
The company committed to an exit plan involving layoffs, facility closures, or restructuring charges.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Fiscal 2026 net sales: $1,475.0 million
Fiscal 2026 adjusted EBITDA: $372.2 million; up 14.1%
Net cash provided by operating activities: $262.9 million; up 19.9%
+5 more
8 metrics
Fiscal 2026 net sales
$1,475.0 million
Year ended September 30, 2026; up 3.2% from the prior year
Fiscal 2026 adjusted EBITDA
$372.2 million; up 14.1%
Year ended September 30, 2026
Net cash provided by operating activities
$262.9 million; up 19.9%
Fiscal 2026
Free cash flow
$207.3 million; up 20.5%
Fiscal 2026
Fiscal 2027 consolidated net sales guidance
$1,440 million to $1,470 million
Excludes all metering-related financial results
Fiscal 2027 adjusted EBITDA guidance
$378 million to $388 million
Fiscal 2027 outlook
Expected one-time pre-tax transition charges
Approximately $26 million
Substantially all expected to be recognized in fiscal 2027
Expected annualized adjusted EBITDA margin benefit
100 to 140 basis points
Primarily beginning in the second quarter of fiscal 2027
Key Terms
Adjusted EBITDA, Free cash flow, ABL Agreement, annualized benefit
4 terms
Adjusted EBITDA financial
"adjusted EBITDA of $372.2 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
"defined as net cash provided by operating activities less capital expenditures"
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.
ABL Agreement financial
"We did not have any borrowings under our ABL Agreement"
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.
annualized benefit financial
"100 to 140 basis point annualized benefit"
Earnings Snapshot
Fourth-quarter net sales: $376.5 million · Guidance included
Fourth quarter and fiscal year ended September 30, 2026
Fourth-quarter net sales
$376.5 million
Down 1.1% from the prior-year quarter
Fourth-quarter adjusted EBITDA
$95.5 million
Up 4.0% from the prior-year quarter
Fiscal 2026 net sales
$1,475.0 million
Up 3.2% from the prior year
Fiscal 2026 adjusted EBITDA
$372.2 million
Up 14.1% from the prior year
Guidance
Fiscal 2027 net sales of $1,440 million to $1,470 million, excluding metering-related financial results; adjusted EBITDA of $378 million to $388 million.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What is MWA's fiscal 2027 guidance?
MWA expects fiscal 2027 consolidated net sales of $1,440 million to $1,470 million and adjusted EBITDA of $378 million to $388 million. Net sales guidance excludes all metering-related financial results; fiscal 2026 metering-related net sales were approximately $40 million.
What happens to MWA's metering customers and hardware contracts?
Metering software customers are expected to transition to ZENNER USA. Mueller will retain existing hardware contracts and warranty obligations, which it expects to satisfy using its inventory or products purchased from ZENNER. The transition is expected to be substantially completed in fiscal 2027, though some activity and associated costs could extend beyond that year.
When will MWA pay its $0.08 quarterly dividend?
The dividend is payable on November 19, 2026, to stockholders of record at the close of business on November 9, 2026.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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): November 4, 2026
(Exact Name of Registrant as Specified in Its Charter)
| (State or Other Jurisdiction of Incorporation or Organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(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 November 4, 2026, Mueller Water Products, Inc. (the “Company”) announced its results of operations for the quarter and fiscal year ended September 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 2.05. Costs Associated with Exit or Disposal Activities.
On November 4, 2026, the Company announced that it has entered into agreements with ZENNER USA, part of the Minol-ZENNER Group (“ZENNER”), to transition the Company’s metering business to ZENNER. The decision to pursue the transition of the metering business follows a comprehensive review by the Company’s Board of Directors and management of the strategic fit and performance of the metering business on the Company’s portfolio.
Under its agreements with ZENNER, the Company’s metering software customers are expected to transition to ZENNER, and the Company will retain its existing hardware contracts and warranty obligations, which it expects to satisfy using its own inventory or products purchased from ZENNER. The Company expects the transition of its metering business to be substantially completed in fiscal 2027, though some activity and associated costs could extend beyond that year.
In connection with the transition of the Company’s metering business, the Company expects to record total one-time pre-tax charges of approximately $26 million, substantially all of which are expected to be recognized in fiscal 2027, with the majority expected to be recognized in the first quarter of fiscal 2027.
At this time, the Company is unable in good faith to make a determination of an estimate or range of estimates required by paragraphs (b) and (d) of Item 2.05 of Form 8-K, and the Company will file an amendment to this Current Report on Form 8-K after it makes a determination of such estimate or range of estimates.
Forward-Looking Statements
Item 2.05 of this Current Report on Form 8-K contains certain statements that may be deemed “forward-looking statements” within the meaning of the federal securities laws. These include statements regarding the expected timing, completion and effects of the transition of the metering business; the amount, nature and timing of related charges and cash expenditures; and expected benefits of the transition of the metering business. 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, changes in the estimated costs of the transition of the metering business, including warranty costs; the pace of customer transition and meter replacement; ZENNER’s performance under its agreements with the Company; customer, supplier and employee reactions to the transition of the metering business; potential claims arising from the transition of the metering business, and the other factors 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.
Item 7.01. Regulation FD Disclosure.
On November 4, 2026, the Company issued a press release announcing the transition of the Company’s metering business. A copy of the press release is furnished as Exhibit 99.2 to this Current Report on Form 8-K.
The information provided pursuant to this Item 7.01, including Exhibit 99.2 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 Exchange Act or 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, dated November 4, 2026 | ||||
99.2 | Press Release Regarding Transition Agreements with ZENNER USA, dated November 4, 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: November 4, 2026 | MUELLER WATER PRODUCTS, INC. | |||||||||||||
| By: | /s/ Chason A. Carroll | |||||||||||||
| Chason A. Carroll | ||||||||||||||
| Senior Vice President, General Counsel, Chief Compliance Officer and Corporate Secretary | ||||||||||||||
MUELLER WATER PRODUCTS REPORTS RECORD FOURTH QUARTER AND FULL YEAR 2026 RESULTS; INTRODUCES FISCAL 2027 GUIDANCE
Achieved Net Sales of $376.5 million in Quarter, $1.5 billion in Fiscal Year
Earned Net Income per Diluted Share of $0.33 in Quarter, $1.41 in Fiscal Year
Reported Adjusted Net Income per Diluted Share of $0.38 in Quarter, $1.57 in Fiscal Year
Generated Adjusted EBITDA of $95.5 million in Quarter, $372.2 million in Fiscal Year
Announced Agreement to Transition Metering Business to ZENNER USA
ATLANTA, November 4, 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 fourth quarter and fiscal year ended September 30, 2026.
In the fourth quarter of 2026, the Company:
•Achieved net sales of $376.5 million, a 1.1% decrease as compared with $380.8 million in the prior year quarter
•Reported operating income of $73.1 million as compared with $69.6 million in the prior year quarter, and increased adjusted operating income 4.7% to $82.6 million as compared with $78.9 million in the prior year quarter
•Reported operating margin of 19.4% as compared with 18.3% in the prior year quarter, and increased adjusted operating margin to 21.9% as compared with 20.7% in the prior year quarter
•Generated net income of $52.3 million as compared with $52.6 million in the prior year quarter, with net income margin of 13.9% as compared with 13.8% in the prior year quarter, and reported adjusted net income of $59.2 million as compared with $59.7 million in the prior year quarter
•Reported net income per diluted share of $0.33 as compared with $0.33 in the prior year quarter, and generated adjusted net income per diluted share of $0.38 as compared with $0.38 in the prior year quarter
•Increased adjusted EBITDA 4.0% to $95.5 million as compared with $91.8 million in the prior year quarter, and expanded adjusted EBITDA margin to 25.4% as compared with 24.1% in the prior year quarter
In the 2026 fiscal year, the Company:
•Increased net sales 3.2% to $1,475.0 million as compared with $1,429.7 million in the prior year
•Reported operating income of $290.8 million as compared with $260.6 million in the prior year, and increased adjusted operating income 15.5% to $322.3 million as compared with $279.1 million in the prior year
•Reported operating margin of 19.7% as compared with 18.2% in the prior year, and increased adjusted operating margin to 21.9% as compared with 19.5% in the prior year
•Generated net income of $221.9 million as compared with $191.7 million in the prior year, with net income margin of 15.0% as compared with 13.4% in the prior year, and increased adjusted net income 19.7% to $246.2 million as compared with $205.6 million in the prior year
•Reported net income per diluted share of $1.41 as compared with $1.22 in the prior year, and increased adjusted net income per diluted share 19.8% to $1.57 as compared with $1.31 in the prior year
•Increased adjusted EBITDA 14.1% to $372.2 million as compared with $326.2 million in the prior year, and expanded adjusted EBITDA margin to 25.2% as compared with 22.8% in the prior year
•Increased net cash provided by operating activities $43.6 million, or 19.9%, to $262.9 million as compared with $219.3 million in the prior year
•Increased free cash flow $35.3 million, or 20.5%, to $207.3 million as compared with $172.0 million in the prior year
•Returned $74.3 million to shareholders through dividends and common stock repurchases
“We delivered record profitability to close fiscal 2026 with our fourth quarter adjusted EBITDA increasing 4.0% year-over-year and adjusted EBITDA margin expanding to 25.4%. These results capped another record year for the Company, as we expanded adjusted EBITDA margin by 240 basis points this year and 940 basis points over three years, achieved record net sales with 3.2% year-over-year growth, despite slower new residential construction activity, increased adjusted earnings per share by approximately 20% and generated more than $200 million in free cash flow. That combination of sales growth, stronger profitability and outstanding cash generation underscores the quality of our execution, the stability of our business and the dedication of our employees,” said Paul McAndrew, President and Chief Executive Officer of Mueller Water Products.
“What stands out the most to me is how our teams delivered these results while continuing to improve the way we work. Across Mueller, employees stayed close to our customers, managed through changing demands in uncertain times and continued to make and capitalize on important investments in our foundries and manufacturing network. We are building a more streamlined and accountable organization through portfolio optimization, and the Mueller Operating System, which is giving our people a common framework to solve problems, share best practices and raise performance.”
“Our priorities for fiscal year 2027 are straightforward. We will protect the strength of our core business, improve returns from our operations and invest where we see the best opportunities to create value. Municipal repair and replacement demand remains resilient, and our balance sheet provides capacity to invest as we pursue strategies to drive above-market sales growth and continue margin expansion. While we remain mindful of market uncertainty, we enter the year with a clear agenda and confidence in our ability to deliver another step forward in margin performance,” Mr. McAndrew concluded.
Consolidated Results
Net sales for the 2026 fourth quarter decreased $4.3 million, or 1.1%, to $376.5 million as compared with $380.8 million in the prior year quarter, primarily due to lower volumes, partially offset by higher pricing across most product lines.
Gross profit for the fourth quarter decreased $0.7 million, or 0.5%, to $139.3 million as compared with $140.0 million in the prior year quarter. Gross margin increased 20 basis points to 37.0% as compared with 36.8% in the prior year quarter, primarily due to higher pricing and manufacturing performance, partially offset by inflationary pressures, lower volumes, product mix and tariffs, and $0.6 million of Decatur legacy brass foundry closure costs.
Selling, general and administrative expenses for the fourth quarter decreased $9.4 million, or 14.1%, to $57.3 million as compared with $66.7 million in the prior year quarter, primarily due to lower incentive-based compensation, favorable personnel-related costs and reduced foreign currency headwinds, partially offset by inflationary pressures.
Operating income for the fourth quarter increased $3.5 million, or 5.0%, to $73.1 million as compared with $69.6 million in the prior year quarter. This increase was primarily driven by higher pricing, lower SG&A expenses and manufacturing performance, partially offset by strategic reorganization and other charges, inflationary pressures, lower volumes, product mix and tariffs. Operating margin increased to 19.4% as compared with 18.3% in the prior year quarter.
During the quarter, the Company incurred $8.9 million of strategic reorganization and other charges, primarily related to the closure of our legacy brass foundry in Decatur, Illinois, and severance. Strategic reorganization and other charges and the Decatur legacy brass foundry closure costs in gross profit have been excluded from adjusted results.
Adjusted operating income for the quarter increased $3.7 million, or 4.7%, to $82.6 million as compared with $78.9 million in the prior year quarter. Adjusted operating margin improved to 21.9% as compared with 20.7% in the prior year quarter.
Net income decreased $0.3 million, or 0.6%, to $52.3 million as compared with $52.6 million in the prior year quarter. Net income margin improved to 13.9% as compared with 13.8% in the prior year quarter. Adjusted net income decreased $0.5 million, or 0.8%, to $59.2 million as compared with $59.7 million in the prior year quarter.
Adjusted EBITDA of $95.5 million increased $3.7 million, or 4.0%, as compared with $91.8 million in the prior year quarter, and adjusted EBITDA margin improved to 25.4% as compared with 24.1% in the prior year quarter.
Segment Results
Water Flow Solutions
Net sales for the 2026 fourth quarter decreased $6.6 million, or 3.0%, to $210.9 million as compared with $217.5 million in the prior year quarter, primarily due to lower volumes, partially offset by higher pricing across most product lines.
Operating income was $58.8 million and adjusted operating income was $59.4 million for the quarter. Adjusted operating income increased $4.3 million, or 7.8%, compared with the prior year quarter. Benefits from manufacturing performance, higher pricing and lower SG&A expenses more than offset lower volumes, product mix, inflationary pressures and tariffs. Operating margin was 27.9% and adjusted operating margin was 28.2% as compared with 25.3% for both operating and adjusted operating margins in the prior year quarter.
Adjusted EBITDA of $67.1 million increased $4.4 million, or 7.0%, as compared with $62.7 million in the prior year quarter. Adjusted EBITDA margin improved to 31.8% as compared with 28.8% in the prior year quarter.
Water Management Solutions
Net sales for the 2026 fourth quarter increased $2.3 million, or 1.4%, to $165.6 million, as compared with $163.3 million in the prior year quarter, primarily due to higher pricing across most product lines, partially offset by lower volumes.
Operating income was $35.6 million and adjusted operating income was $36.0 million for the quarter. Adjusted operating income decreased $3.8 million, or 9.5%, compared with the prior year quarter. Lower volumes, tariffs and inflationary pressures were partially offset by benefits from higher pricing and lower SG&A expenses, including reduced foreign currency headwinds. Operating margin and adjusted operating margin were 21.5% and 21.7%, respectively, as compared with the prior year quarter operating margin of 20.9% and adjusted operating margin of 24.4%.
Adjusted EBITDA of $41.2 million decreased $3.8 million, or 8.4%, as compared with $45.0 million in the prior year quarter. Adjusted EBITDA margin decreased to 24.9% as compared with 27.6% in the prior year quarter.
Interest Expense, Net
Interest expense, net, for the 2026 fourth quarter and fiscal year decreased to $0.5 million and $3.8 million, respectively, as compared with $1.0 million and $6.6 million in the prior year periods, respectively, primarily as a result of higher interest income.
Income Taxes
For the 2026 fourth quarter, income tax expense was $20.3 million, or 28.0% of income before tax, as compared with $16.1 million in the prior year quarter, or 23.4% of income before tax. For the fiscal year, income tax expense was $65.0 million, or 22.7% of income before tax, as compared with $62.5 million in the prior year, or 24.6% of income before tax. The lower effective tax rate for the fiscal year compared with the prior year was primarily due to a one-time tax benefit resulting from the recognition of a loss on a foreign subsidiary investment.
Cash Flow and Balance Sheet
Net cash provided by operating activities for the 2026 fiscal year increased $43.6 million, or 19.9%, to $262.9 million, as compared with $219.3 million in the prior year. The increase was primarily driven by higher net income and lower cash taxes compared with the prior year, partially offset by changes in working capital.
During the fiscal year, the Company invested $55.6 million in capital expenditures as compared with $47.3 million in the prior year, primarily driven by investments in our iron foundries.
Free cash flow (defined as net cash provided by operating activities less capital expenditures) for the fiscal year increased $35.3 million, or 20.5%, to $207.3 million, as compared with $172.0 million in the prior year, due to the increase in net cash provided by operating activities partially offset by higher capital expenditures.
As of September 30, 2026, Mueller Water Products had $453.8 million of total debt outstanding and $566.0 million of cash and cash equivalents. We did not have any borrowings under our ABL Agreement at the end of the year, nor did we borrow any amounts under our ABL during the year.
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 $730.7 million of total liquidity, including $164.7 million in availability under the ABL.
Return of Capital to Shareholders
On October 22, 2026, the Company announced that its Board of Directors approved a $300.0 million increase to the Company’s common stock repurchase authorization, bringing the total authorization to $334.5 million. Repurchases may be made from time to time through open market purchases, privately negotiated transactions or other means in accordance with applicable securities laws. The timing and amount of any repurchases will depend on market conditions and other factors, and the program may be suspended or discontinued at any time.
The Board also declared a quarterly dividend of $0.08 per share, a 14.3% increase compared with the prior quarterly dividend of $0.07 per share. The dividend is payable on November 19, 2026, to stockholders of record at the close of business on November 9, 2026.
During fiscal 2026, the Company returned $74.3 million to shareholders, including $43.8 million in dividends and $30.5 million in common stock repurchases.
Portfolio Optimization to Transition Metering Business
In a separate press release issued today, Mueller Water Products announced that it has entered into an agreement to transition its metering business, which operates via its Mueller Systems subsidiary, to ZENNER USA, part of the Minol-ZENNER Group, a leading global manufacturer and distributor of water meters, heat and cooling energy meters, gas meters, submetering and digital solutions for remote reading. The Company’s press release can be found on the Company’s investor relations website at www.muellerwaterproducts.com.
Fiscal 2027 Outlook
The Company is introducing fiscal 2027 consolidated net sales guidance of $1,440 million to $1,470 million. This guidance excludes all metering-related financial results. In fiscal 2026, the metering-related net sales were approximately $40 million. The Company anticipates its fiscal 2027 adjusted EBITDA to be between $378 million and $388 million. At the midpoint of the guidance range, the Company expects to achieve an adjusted EBITDA margin of 26.3% for the year, reflecting a 110 basis point year-over-year improvement. The Company anticipates the second half of fiscal 2027 adjusted EBITDA margin will be higher than the first half, driven primarily by the seasonality of net sales, benefits from portfolio optimization and operational improvements. The Company expects free cash flow as a percentage of adjusted net income to be more than 80% in fiscal 2027.
The Company’s expectations for certain additional financial metrics for fiscal 2027 are as follows:
•Total SG&A expenses between $228 million and $233 million
•Net interest expense between $3 million and $5 million
•Effective income tax rate between 24% and 26%
•Depreciation and amortization between $48 million and $52 million
•Capital expenditures between $60 million and $70 million
Conference Call Webcast
Mueller Water Products’ quarterly earnings conference call will take place on Thursday, November 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 1-800-819-5743. 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 Company regularly evaluates its portfolio of businesses and product lines as part of its strategic planning process and may incur costs associated with portfolio optimization initiatives, including, but not limited to, transaction-related expenses, restructuring costs, and other costs related to acquisitions, divestitures, or other strategic actions.
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, 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 or portfolio optimization activities, including the execution of transitioning the metering business to Zenner USA; 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) | |||||||||||
| September 30, | September 30, | ||||||||||
| 2026 | 2025 | ||||||||||
| (in millions, except share amounts) | |||||||||||
| Assets: | |||||||||||
| Cash and cash equivalents | $ | 566.0 | $ | 431.5 | |||||||
Receivables, net of allowance for credit losses of $1.7 million and $3.6 million | 189.7 | 211.9 | |||||||||
| Inventories, net | 385.8 | 328.7 | |||||||||
| Other current assets | 51.4 | 56.8 | |||||||||
| Total current assets | 1,192.9 | 1,028.9 | |||||||||
| Property, plant and equipment, net | 357.2 | 335.7 | |||||||||
| Intangible assets, net | 299.7 | 307.3 | |||||||||
| Goodwill, net | 92.1 | 89.2 | |||||||||
| Other noncurrent assets | 83.2 | 77.8 | |||||||||
| Total assets | $ | 2,025.1 | $ | 1,838.9 | |||||||
| Liabilities and stockholders’ equity: | |||||||||||
| Current portion of long-term debt | $ | 1.8 | $ | 1.2 | |||||||
| Accounts payable | 149.1 | 134.4 | |||||||||
| Other current liabilities | 117.0 | 154.7 | |||||||||
| Total current liabilities | 267.9 | 290.3 | |||||||||
| Long-term debt | 452.0 | 450.4 | |||||||||
| Deferred income taxes | 87.6 | 51.0 | |||||||||
| Other noncurrent liabilities | 65.5 | 65.5 | |||||||||
| Total liabilities | 873.0 | 857.2 | |||||||||
| Commitments and contingencies | |||||||||||
Preferred stock: par value $0.01 per share; 60,000,000 shares authorized; | — | — | |||||||||
none outstanding at September 30, 2026, and September 30, 2025 | |||||||||||
Common stock: par value $0.01 per share; 600,000,000 shares authorized; | 1.6 | 1.6 | |||||||||
155,500,988 and 156,331,004 shares outstanding at September 30, 2026, | |||||||||||
and September 30, 2025, respectively | |||||||||||
| Additional paid-in capital | 1,096.5 | 1,158.9 | |||||||||
| Retained earnings (accumulated deficit) | 47.7 | (174.2) | |||||||||
| Accumulated other comprehensive income (loss) | 6.3 | (4.6) | |||||||||
| Total stockholders’ equity | 1,152.1 | 981.7 | |||||||||
| Total liabilities and stockholders’ equity | $ | 2,025.1 | $ | 1,838.9 | |||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| Three months ended | Year ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||||||||||
| Net sales | $ | 376.5 | $ | 380.8 | $ | 1,475.0 | $ | 1,429.7 | |||||||||||||||
Cost of sales (1) | 237.2 | 240.8 | 915.6 | 913.0 | |||||||||||||||||||
| Gross profit | 139.3 | 140.0 | 559.4 | 516.7 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Selling, general and administrative | 57.3 | 66.7 | 240.8 | 247.3 | |||||||||||||||||||
Strategic reorganization and other charges (2) | 8.9 | 3.7 | 27.8 | 8.8 | |||||||||||||||||||
| Total operating expenses | 66.2 | 70.4 | 268.6 | 256.1 | |||||||||||||||||||
| Operating income | 73.1 | 69.6 | 290.8 | 260.6 | |||||||||||||||||||
| Pension (benefit) expense other than service | — | (0.1) | 0.1 | (0.2) | |||||||||||||||||||
| Interest expense, net | 0.5 | 1.0 | 3.8 | 6.6 | |||||||||||||||||||
| Income before income taxes | 72.6 | 68.7 | 286.9 | 254.2 | |||||||||||||||||||
| Income tax expense | 20.3 | 16.1 | 65.0 | 62.5 | |||||||||||||||||||
| Net income | $ | 52.3 | $ | 52.6 | $ | 221.9 | $ | 191.7 | |||||||||||||||
| Net income per basic share | $ | 0.34 | $ | 0.34 | $ | 1.42 | $ | 1.23 | |||||||||||||||
| Net income per diluted share | $ | 0.33 | $ | 0.33 | $ | 1.41 | $ | 1.22 | |||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | 156.0 | 156.3 | 156.3 | 156.4 | |||||||||||||||||||
| Diluted | 157.0 | 157.4 | 157.3 | 157.5 | |||||||||||||||||||
| Dividends declared per share | $ | 0.070 | $ | 0.067 | $ | 0.280 | $ | 0.268 | |||||||||||||||
(1) For the year ended September 30, 2026, the Company recorded charges of $3.1 million in connection with portfolio optimization costs in the Water Management Solutions segment. Portfolio optimization costs primarily relate to certain transaction-related expenses, restructuring costs, and other costs related to acquisitions, divestitures, or other strategic actions. For the year ended September 30, 2025, the Company recorded charges of $5.6 million in connection with warranty obligations in the Water Management Solutions segment. Additionally, cost of sales included $0.6 million and $4.1 million for the year ended September 30, 2026 and 2025, respectively, of Decatur legacy brass foundry closure costs, including inventory and other asset restructuring write-downs. | |||||||||||||||||||||||
(2) For the year ended September 30, 2026, strategic reorganization and other charges primarily relate to expenses associated with certain transaction-related expenses, severance, the Company's leadership transition, non-cash asset impairment expenses, and the closure of its legacy brass foundry in Decatur, Illinois. For the year ended September 30, 2025, strategic reorganization and other charges primarily relate to expenses associated with the Company's leadership transition, certain transaction-related expenses, severance, and non-cash asset impairment. | |||||||||||||||||||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| Year ended | |||||||||||
| September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| (in millions) | |||||||||||
| Operating activities: | |||||||||||
| Net income | $ | 221.9 | $ | 191.7 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation | 43.0 | 39.7 | |||||||||
| Amortization | 7.0 | 7.2 | |||||||||
| Non-cash asset impairment | 4.0 | 1.0 | |||||||||
| Gain on sale of assets | (0.4) | (0.2) | |||||||||
| Stock-based compensation | 13.7 | 10.7 | |||||||||
| Pension cost | 0.7 | 0.5 | |||||||||
| Deferred income taxes | 33.5 | (7.0) | |||||||||
| Inventory reserves provision | 1.7 | 2.0 | |||||||||
| Other, net | 1.3 | 0.9 | |||||||||
| Changes in assets and liabilities: | |||||||||||
| Receivables, net | 22.0 | (2.4) | |||||||||
| Inventories | (58.1) | (27.3) | |||||||||
| Other assets | 5.8 | (20.0) | |||||||||
| Accounts payable | 5.1 | 17.5 | |||||||||
| Other current liabilities | (37.9) | 4.2 | |||||||||
| Other noncurrent liabilities | (0.4) | 0.8 | |||||||||
| Net cash provided by operating activities | 262.9 | 219.3 | |||||||||
| Investing activities: | |||||||||||
| Capital expenditures | (55.6) | (47.3) | |||||||||
| Proceeds from sales of assets | 1.2 | 0.2 | |||||||||
| Net cash used in investing activities | (54.4) | (47.1) | |||||||||
| Financing activities: | |||||||||||
| Dividends paid | (43.8) | (41.9) | |||||||||
| Stock repurchased under buyback program | (30.5) | (15.0) | |||||||||
| Employee taxes related to stock-based compensation | (4.0) | (4.8) | |||||||||
| Common stock issued | 2.2 | 4.7 | |||||||||
| Payments for finance lease obligations | (1.5) | (1.3) | |||||||||
| Net cash used in financing activities | (77.6) | (58.3) | |||||||||
| Effect of currency exchange rate changes on cash | 3.6 | 7.7 | |||||||||
| Net change in cash and cash equivalents | 134.5 | 121.6 | |||||||||
| Cash and cash equivalents at beginning of year | 431.5 | 309.9 | |||||||||
| Cash and cash equivalents at end of year | $ | 566.0 | $ | 431.5 | |||||||
| Year ended | |||||||||||
| September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| (in millions) | |||||||||||
| Supplemental cash flow information: | |||||||||||
| Cash paid for interest, net | $ | 3.4 | $ | 5.5 | |||||||
| Cash paid for income taxes, net | $ | 48.7 | $ | 69.1 | |||||||
| Non-cash investing and financing activities: | |||||||||||
| Property, plant and equipment accrued and unpaid | $ | 17.9 | $ | 8.8 | |||||||
| Property, plant and equipment acquired through finance leases | $ | 3.0 | $ | 2.8 | |||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP TO GAAP PERFORMANCE MEASURES
(UNAUDITED)
| Quarter ended September 30, 2026 | |||||||||||||||||||||||
| Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||||||||||
| (dollars in millions, except per share amounts) | |||||||||||||||||||||||
| Net sales | $ | 210.9 | $ | 165.6 | $ | — | $ | 376.5 | |||||||||||||||
Gross profit (1) | $ | 82.1 | $ | 57.2 | $ | — | $ | 139.3 | |||||||||||||||
| Selling, general and administrative expenses | 23.3 | 21.2 | 12.8 | 57.3 | |||||||||||||||||||
Strategic reorganization and other charges (2) | — | 0.4 | 8.5 | 8.9 | |||||||||||||||||||
| Operating income (loss) | $ | 58.8 | $ | 35.6 | $ | (21.3) | $ | 73.1 | |||||||||||||||
| Operating margin | 27.9 | % | 21.5 | % | 19.4 | % | |||||||||||||||||
| Capital expenditures | $ | 7.8 | $ | 4.2 | $ | — | $ | 12.0 | |||||||||||||||
| Net income | $ | 52.3 | |||||||||||||||||||||
| Net income margin | 13.9 | % | |||||||||||||||||||||
| Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||||||||||
| Net income | $ | 52.3 | |||||||||||||||||||||
Strategic reorganization and other charges (2) | 8.9 | ||||||||||||||||||||||
| Decatur legacy brass foundry closure costs | 0.6 | ||||||||||||||||||||||
Income tax expense of adjusting items (3) | (2.6) | ||||||||||||||||||||||
| Adjusted net income | $ | 59.2 | |||||||||||||||||||||
| Weighted average diluted shares outstanding | 157.0 | ||||||||||||||||||||||
| Net income per diluted share | $ | 0.33 | |||||||||||||||||||||
Strategic reorganization and other charges per diluted share (2) | 0.06 | ||||||||||||||||||||||
| Decatur legacy brass foundry closure costs per diluted share | 0.00 | ||||||||||||||||||||||
Income tax expense of adjusting items per diluted share (3) | (0.01) | ||||||||||||||||||||||
| Adjusted net income per diluted share | $ | 0.38 | |||||||||||||||||||||
| Net income | $ | 52.3 | |||||||||||||||||||||
Income tax expense (4) | 20.3 | ||||||||||||||||||||||
Interest expense, net (4) | 0.5 | ||||||||||||||||||||||
| Operating income (loss) | $ | 58.8 | $ | 35.6 | $ | (21.3) | 73.1 | ||||||||||||||||
Strategic reorganization and other charges (2) | — | 0.4 | 8.5 | 8.9 | |||||||||||||||||||
| Decatur legacy brass foundry closure costs | 0.6 | — | — | 0.6 | |||||||||||||||||||
| Adjusted operating income (loss) | 59.4 | 36.0 | (12.8) | 82.6 | |||||||||||||||||||
| Depreciation and amortization | 7.7 | 5.2 | — | 12.9 | |||||||||||||||||||
| Adjusted EBITDA | $ | 67.1 | $ | 41.2 | $ | (12.8) | $ | 95.5 | |||||||||||||||
| Adjusted operating margin | 28.2 | % | 21.7 | % | 21.9 | % | |||||||||||||||||
| Adjusted EBITDA margin | 31.8 | % | 24.9 | % | 25.4 | % | |||||||||||||||||
| Reconciliation of free cash flow to net cash provided by operating activities: | |||||||||||||||||||||||
| Net cash provided by operating activities | $ | 108.7 | |||||||||||||||||||||
| Less capital expenditures | 12.0 | ||||||||||||||||||||||
| Free cash flow | $ | 96.7 | |||||||||||||||||||||
(1) Gross profit includes $0.6 million in closure costs for our legacy brass foundry in Decatur, Illinois. | |||||||||||||||||||||||
(2) Strategic reorganization and other charges primarily relate to the closure of our legacy brass foundry in Decatur, Illinois, and severance. | |||||||||||||||||||||||
(3) The income tax expense of adjusting items reflects an effective tax rate of 22.7%, and may be subject to rounding. | |||||||||||||||||||||||
(4) 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)
| Quarter ended September 30, 2025 | |||||||||||||||||||||||
| Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||||||||||
| (dollars in millions, except per share amounts) | |||||||||||||||||||||||
| Net sales | $ | 217.5 | $ | 163.3 | $ | — | $ | 380.8 | |||||||||||||||
Gross profit (1) | $ | 80.4 | $ | 59.6 | $ | — | $ | 140.0 | |||||||||||||||
| Selling, general and administrative expenses | 25.3 | 25.4 | 16.0 | 66.7 | |||||||||||||||||||
Strategic reorganization and other charges (2) | — | 0.1 | 3.6 | 3.7 | |||||||||||||||||||
| Operating income (loss) | $ | 55.1 | $ | 34.1 | $ | (19.6) | $ | 69.6 | |||||||||||||||
| Operating margin | 25.3 | % | 20.9 | % | 18.3 | % | |||||||||||||||||
| Capital expenditures | $ | 8.3 | $ | 6.2 | $ | — | $ | 14.5 | |||||||||||||||
| Net income | $ | 52.6 | |||||||||||||||||||||
| Net income margin | 13.8 | % | |||||||||||||||||||||
| Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||||||||||
| Net income | $ | 52.6 | |||||||||||||||||||||
Warranty charge (1) | 5.6 | ||||||||||||||||||||||
Strategic reorganization and other charges (2) | 3.7 | ||||||||||||||||||||||
Income tax expense of adjusting items (3) | (2.2) | ||||||||||||||||||||||
| Adjusted net income | $ | 59.7 | |||||||||||||||||||||
| Weighted average diluted shares outstanding | 157.4 | ||||||||||||||||||||||
| Net income per diluted share | $ | 0.33 | |||||||||||||||||||||
| Warranty charge per diluted share | 0.04 | ||||||||||||||||||||||
| Strategic reorganization and other charges per diluted share | 0.02 | ||||||||||||||||||||||
| Income tax expense of adjusting items per diluted share | (0.01) | ||||||||||||||||||||||
| Adjusted net income per diluted share | $ | 0.38 | |||||||||||||||||||||
| Net income | $ | 52.6 | |||||||||||||||||||||
Income tax expense (4) | 16.1 | ||||||||||||||||||||||
Interest expense, net (4) | 1.0 | ||||||||||||||||||||||
Pension benefit other than service (4) | (0.1) | ||||||||||||||||||||||
| Operating income (loss) | $ | 55.1 | $ | 34.1 | $ | (19.6) | 69.6 | ||||||||||||||||
Warranty charge (1) | — | 5.6 | — | 5.6 | |||||||||||||||||||
Strategic reorganization and other charges (2) | — | 0.1 | 3.6 | 3.7 | |||||||||||||||||||
| Adjusted operating income (loss) | 55.1 | 39.8 | (16.0) | 78.9 | |||||||||||||||||||
Pension benefit other than service (4) | — | — | 0.1 | 0.1 | |||||||||||||||||||
| Depreciation and amortization | 7.6 | 5.2 | — | 12.8 | |||||||||||||||||||
| Adjusted EBITDA | $ | 62.7 | $ | 45.0 | $ | (15.9) | $ | 91.8 | |||||||||||||||
| Adjusted operating margin | 25.3 | % | 24.4 | % | 20.7 | % | |||||||||||||||||
| Adjusted EBITDA margin | 28.8 | % | 27.6 | % | 24.1 | % | |||||||||||||||||
| Reconciliation of free cash flow to net cash provided by operating activities: | |||||||||||||||||||||||
| Net cash provided by operating activities | $ | 83.5 | |||||||||||||||||||||
| Less capital expenditures | 14.5 | ||||||||||||||||||||||
| Free cash flow | $ | 69.0 | |||||||||||||||||||||
(1) Gross profit includes a charge of $5.6 million in connection with warranty obligations in Water Management Solutions. | |||||||||||||||||||||||
(2) Strategic reorganization and other charges primarily relate to certain transaction-related expenses, severance, and expenses associated with our leadership transition. | |||||||||||||||||||||||
(3) The income tax expense of adjusting items reflects an effective tax rate of 23.4%, and may be subject to rounding. | |||||||||||||||||||||||
(4) The Company does not allocate interest, income taxes or pension benefit other than service to its segments. | |||||||||||||||||||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP TO GAAP PERFORMANCE MEASURES
(UNAUDITED)
| Year ended September 30, 2026 | |||||||||||||||||||||||
| Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||||||||||
| (dollars in millions, except per share amounts) | |||||||||||||||||||||||
| Net sales | $ | 817.5 | $ | 657.5 | $ | — | $ | 1,475.0 | |||||||||||||||
Gross profit (1) | $ | 329.5 | $ | 229.9 | $ | — | $ | 559.4 | |||||||||||||||
| Selling, general and administrative expenses | 90.1 | 91.4 | 59.3 | 240.8 | |||||||||||||||||||
Strategic reorganization and other charges (2) | — | 7.2 | 20.6 | 27.8 | |||||||||||||||||||
| Operating income (loss) | $ | 239.4 | $ | 131.3 | $ | (79.9) | $ | 290.8 | |||||||||||||||
| Operating margin | 29.3 | % | 20.0 | % | 19.7 | % | |||||||||||||||||
| Capital expenditures | $ | 26.1 | $ | 29.5 | $ | — | $ | 55.6 | |||||||||||||||
| Net income | $ | 221.9 | |||||||||||||||||||||
| Net income margin | 15.0 | % | |||||||||||||||||||||
| Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||||||||||
| Net income | $ | 221.9 | |||||||||||||||||||||
Strategic reorganization and other charges (2) | 27.8 | ||||||||||||||||||||||
| Decatur legacy brass foundry closure costs | 0.6 | ||||||||||||||||||||||
Portfolio optimization costs (5) | 3.1 | ||||||||||||||||||||||
Income tax expense of adjusting items (3) | (7.2) | ||||||||||||||||||||||
| Adjusted net income | $ | 246.2 | |||||||||||||||||||||
| Weighted average diluted shares outstanding | 157.3 | ||||||||||||||||||||||
| Net income per diluted share | $ | 1.41 | |||||||||||||||||||||
Strategic reorganization and other charges per diluted share (2) | 0.18 | ||||||||||||||||||||||
| Decatur legacy brass foundry closure costs per diluted share | 0.00 | ||||||||||||||||||||||
Portfolio optimization costs per diluted share (5) | 0.02 | ||||||||||||||||||||||
Income tax expense of adjusting items per diluted share (3) | (0.04) | ||||||||||||||||||||||
| Adjusted net income per diluted share | $ | 1.57 | |||||||||||||||||||||
| Net income | $ | 221.9 | |||||||||||||||||||||
Income tax expense (4) | 65.0 | ||||||||||||||||||||||
Interest expense, net (4) | 3.8 | ||||||||||||||||||||||
Pension expense other than service (4) | 0.1 | ||||||||||||||||||||||
| Operating income (loss) | $ | 239.4 | $ | 131.3 | $ | (79.9) | 290.8 | ||||||||||||||||
Strategic reorganization and other charges (2) | — | 7.2 | 20.6 | 27.8 | |||||||||||||||||||
Portfolio optimization costs (5) | — | 3.1 | — | 3.1 | |||||||||||||||||||
| Decatur legacy brass foundry closure costs | 0.6 | — | — | 0.6 | |||||||||||||||||||
| Adjusted operating income (loss) | 240.0 | 141.6 | (59.3) | 322.3 | |||||||||||||||||||
Pension expense other than service (4) | — | — | (0.1) | (0.1) | |||||||||||||||||||
| Depreciation and amortization | 29.5 | 20.4 | 0.1 | 50.0 | |||||||||||||||||||
| Adjusted EBITDA | $ | 269.5 | $ | 162.0 | $ | (59.3) | $ | 372.2 | |||||||||||||||
| Adjusted operating margin | 29.4 | % | 21.5 | % | 21.9 | % | |||||||||||||||||
Adjusted EBITDA margin | 33.0 | % | 24.6 | % | 25.2 | % | |||||||||||||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP TO GAAP PERFORMANCE MEASURES
(UNAUDITED)
| Reconciliation of free cash flow to net cash provided by operating activities: | |||||||||||||||||||||||
| Net cash provided by operating activities | $ | 262.9 | |||||||||||||||||||||
| Less capital expenditures | 55.6 | ||||||||||||||||||||||
| Free cash flow | $ | 207.3 | |||||||||||||||||||||
(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 and $0.6 million in closure costs for our legacy brass foundry in Decatur, Illinois, in the Water Flow Solutions segment. | |||||||||||||||||||||||
(2) Strategic reorganization and other charges primarily relate to expenses associated with certain transaction-related expenses, severance, our leadership transition, non-cash asset impairment expenses and the closure of our legacy brass foundry in Decatur, Illinois. | |||||||||||||||||||||||
(3) The income tax expense of adjusting items reflects an effective tax rate of 22.7%, and may be subject to rounding. | |||||||||||||||||||||||
(4) The Company does not allocate interest, income taxes or pension benefit 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)
| Year ended September 30, 2025 | |||||||||||||||||||||||
| Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||||||||||
| (dollars in millions, except per share amounts) | |||||||||||||||||||||||
| Net sales | $ | 824.9 | $ | 604.8 | $ | — | $ | 1,429.7 | |||||||||||||||
Gross profit (1) | $ | 296.3 | $ | 220.4 | $ | — | $ | 516.7 | |||||||||||||||
| Selling, general and administrative expenses | 90.3 | 96.9 | 60.1 | 247.3 | |||||||||||||||||||
Strategic reorganization and other charges (2) | 1.0 | 0.7 | 7.1 | 8.8 | |||||||||||||||||||
| Operating income (loss) | $ | 205.0 | $ | 122.8 | $ | (67.2) | $ | 260.6 | |||||||||||||||
| Operating margin | 24.9 | % | 20.3 | % | 18.2 | % | |||||||||||||||||
| Capital expenditures | $ | 24.1 | $ | 23.2 | $ | — | $ | 47.3 | |||||||||||||||
| Net income | $ | 191.7 | |||||||||||||||||||||
| Net income margin | 13.4 | % | |||||||||||||||||||||
| Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||||||||||
| Net income | $ | 191.7 | |||||||||||||||||||||
Warranty charge (1) | 5.6 | ||||||||||||||||||||||
Strategic reorganization and other charges (2) | 8.8 | ||||||||||||||||||||||
| Inventory and other asset restructuring write-down | 4.1 | ||||||||||||||||||||||
Income tax expense of adjusting items (3) | (4.6) | ||||||||||||||||||||||
| Adjusted net income | $ | 205.6 | |||||||||||||||||||||
| Weighted average diluted shares outstanding | 157.5 | ||||||||||||||||||||||
| Net income per diluted share | $ | 1.22 | |||||||||||||||||||||
Warranty charge per diluted share (1) | 0.04 | ||||||||||||||||||||||
Strategic reorganization and other charges per diluted share (2) | 0.06 | ||||||||||||||||||||||
| Inventory and other asset restructuring write-down per diluted share | 0.03 | ||||||||||||||||||||||
Income tax expense of adjusting items per diluted share (3) | (0.04) | ||||||||||||||||||||||
| Adjusted net income per diluted share | $ | 1.31 | |||||||||||||||||||||
| Net income | $ | 191.7 | |||||||||||||||||||||
Income tax expense (4) | 62.5 | ||||||||||||||||||||||
Interest expense, net (4) | 6.6 | ||||||||||||||||||||||
Pension benefit other than service (4) | (0.2) | ||||||||||||||||||||||
| Operating income (loss) | $ | 205.0 | $ | 122.8 | $ | (67.2) | 260.6 | ||||||||||||||||
Warranty charge (1) | — | 5.6 | — | 5.6 | |||||||||||||||||||
Strategic reorganization and other charges (2) | 1.0 | 0.7 | 7.1 | 8.8 | |||||||||||||||||||
| Inventory and other asset restructuring write-down | 4.1 | — | — | 4.1 | |||||||||||||||||||
| Adjusted operating income (loss) | 210.1 | 129.1 | (60.1) | 279.1 | |||||||||||||||||||
Pension benefit other than service (4) | — | — | 0.2 | 0.2 | |||||||||||||||||||
| Depreciation and amortization | 26.6 | 20.2 | 0.1 | 46.9 | |||||||||||||||||||
| Adjusted EBITDA | $ | 236.7 | $ | 149.3 | $ | (59.8) | $ | 326.2 | |||||||||||||||
| Adjusted operating margin | 25.5 | % | 21.3 | % | 19.5 | % | |||||||||||||||||
| Adjusted EBITDA margin | 28.7 | % | 24.7 | % | 22.8 | % | |||||||||||||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP TO GAAP PERFORMANCE MEASURES
(UNAUDITED)
| Reconciliation of free cash flow to net cash provided by operating activities: | |||||||||||||||||||||||
| Net cash provided by operating activities | $ | 219.3 | |||||||||||||||||||||
| Less capital expenditures | 47.3 | ||||||||||||||||||||||
| Free cash flow | $ | 172.0 | |||||||||||||||||||||
(1) Gross profit includes a charge of $5.6 million in connection with warranty obligations in the Water Management Solutions segment and $4.1 million in Inventory and other asset write-downs associated with the closure of our legacy brass foundry in Decatur, Illinois, in the Water Flow Solutions segment. | |||||||||||||||||||||||
(2) Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition, certain transaction-related expenses, severance, and non-cash asset impairment. | |||||||||||||||||||||||
(3) The income tax expense of adjusting items reflects an effective tax rate of 24.6%, and may be subject to rounding. | |||||||||||||||||||||||
(4) The Company does not allocate interest, income taxes or pension benefit other than service to its segments. | |||||||||||||||||||||||
Exhibit 99.2
MUELLER WATER PRODUCTS ANNOUNCES AGREEMENT TO TRANSITION METERING BUSINESS TO ZENNER USA
Portfolio Optimization through Execution of Mueller Operating System Supports Future Margin Expansion
ATLANTA, November 4, 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, today announced it has entered into an agreement to transition its metering business, which operates via its Mueller Systems subsidiary, to ZENNER USA, part of the Minol-ZENNER Group, a leading global manufacturer and distributor of water meters, heat and cooling energy meters, gas meters, submetering and digital solutions for remote reading.
This action follows a comprehensive review by Mueller’s Board of Directors and management of the strategic fit and performance of the metering business in the Company’s portfolio. Under the agreement, Mueller is exiting the metering business and will transition customers to ZENNER USA for replacement software and hardware to continue to fulfill our customer commitments. Transitioning the metering business will simplify Mueller’s portfolio and allow the Company to focus capital, talent and management attention on areas where it has stronger competitive positions and clearer opportunities for profitable growth.
“We are taking this step to sharpen Mueller’s focus and strengthen the Company for the future,” said Paul McAndrew, President and Chief Executive Officer of Mueller Water Products. “It reflects our Mueller Operating System in action: making disciplined, fact-based decisions, putting customers first and executing with clear accountability. By working closely with ZENNER USA, we plan to provide continuity for customers while concentrating our resources on the businesses where Mueller is best positioned to lead, grow and create long-term value.”
McAndrew concluded, “Our priority throughout this process has been and will be protecting customers and ensuring they continue to receive the products, service and support they expect from Mueller. ZENNER USA brings the specialized scale, technology investment, compatible products and global manufacturing capabilities needed to support customers over the long term. We are dedicated to working closely with ZENNER USA to deliver a seamless transition and honor our existing customer commitments.”
Mueller expects the transition to support adjusted EBITDA margin expansion with a 100 to 140 basis point annualized benefit, primarily beginning in the second quarter of fiscal 2027. The Company and ZENNER USA will begin the transition process immediately and work closely with customers and suppliers to provide continuity of service and ongoing support. In connection with the agreement, the Company expects to incur approximately $26 million of one-time expenses in fiscal 2027, primarily related to the outstanding warranty liability, operating and customer
service costs, transaction-related costs, severance, inventory and other asset write-offs. The transition impacts will be adjusted as appropriate in the Company’s key financial metrics. The one-time and ongoing transition activities will be included in net sales, cost of sales and strategic reorganization and other charges. The majority of the expenses will be incurred during the first quarter, with most of the remaining expenses incurred prior to the end of the year. The financial impacts and benefits will occur in the Water Management Solutions segment. Taking the one-time expenses and annualized benefit into account, the Company believes the cash return on investment of completing the transition is very attractive relative to other opportunities.
Fourth Quarter and Full Year Financial Results
In a separate press release issued today, Mueller Water Products announced fourth quarter and full year 2026 financial results. The Company’s earnings press release can be found on the Company’s investor relations website at www.muellerwaterproducts.com.
Forward-Looking Statements
This press release contains certain statements that may be deemed “forward-looking statements” within the meaning of the federal securities laws. These include statements regarding the expected timing, completion and effects of the transition of the Company’s metering business to ZENNER USA; the Company’s ability to provide continuity of service and support to customers and to honor existing customer commitments; the amount, nature and timing of related one-time expenses and cash expenditures, including the warranty liability; the expected treatment of those expenses in the Company’s financial results; and the expected benefits of the transition and the Company’s ability to focus capital, talent and management attention on its other businesses. 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: changes in the estimated costs of the transition of the metering business, including warranty costs; the pace of customer transition and meter replacement; ZENNER USA’s performance under its agreements with the Company; customer, supplier and employee reactions to the transition of the metering business; the Company’s ability to realize the anticipated margin and other benefits of the transition within the expected timeframe, or at all; potential claims arising from the transition of the metering business; and the other factors 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