Mueller Water (NYSE: MWA) grows Q2 sales, boosts 2026 EBITDA outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Mueller Water Products reported solid growth for its fiscal 2026 second quarter ended March 31, 2026. Net sales rose 5.5% to $384.4 million, driven mainly by higher pricing and volume. Gross margin improved to 37.6%, up from 35.1%, helped by manufacturing efficiencies despite tariffs and inflation.
Operating income increased 15.0% to $80.4 million, while net income grew 15.2% to $59.1 million, or $0.38 per diluted share. Adjusted net income per diluted share rose to $0.40. Adjusted EBITDA climbed 15.0% to $97.2 million, with margin expanding to 25.3%.
For fiscal 2026, the company reiterates net sales guidance of $1.47–$1.49 billion and raises its adjusted EBITDA outlook to $360–$365 million, implying double‑digit growth over the prior year. Six‑month free cash flow declined to $16.5 million as higher capital spending and working capital needs offset higher earnings.
Positive
- Strong profit growth and margin expansion: Q2 2026 net sales rose 5.5% to $384.4 million, net income increased 15.2% to $59.1 million, and adjusted EBITDA grew 15.0% to $97.2 million, with adjusted EBITDA margin improving from 23.2% to 25.3%.
- Raised full‑year profitability guidance: Fiscal 2026 adjusted EBITDA outlook increased to $360–$365 million, implying about 10–12% growth over the prior year, while management continues to expect modest net sales growth to $1.47–$1.49 billion.
Negative
- Free cash flow under pressure: For the six months ended March 31, 2026, free cash flow declined to $16.5 million from $47.3 million a year earlier, as working capital usage and higher capital expenditures outpaced the improvement in earnings.
Insights
Mueller delivers record margins, raises 2026 EBITDA outlook despite weaker free cash flow.
Mueller Water Products posted a strong Q2, with net sales up 5.5% to $384.4 million and adjusted EBITDA rising 15.0% to $97.2 million. Margin expansion was notable: gross margin reached 37.6% and adjusted EBITDA margin improved to 25.3%, supported by pricing, volumes and efficiencies.
Both segments contributed. Water Flow Solutions achieved adjusted operating margin of 29.9% and adjusted EBITDA margin of 33.2%, while Water Management Solutions grew net sales 12.2% with stable margins. At the corporate level, total debt was $452.4 million and cash and equivalents were $421.0 million as of March 31, 2026, leaving ample liquidity.
Management raised fiscal 2026 adjusted EBITDA guidance to $360–$365 million, implying roughly low‑double‑digit growth versus the prior year, while keeping net sales guidance at $1.47–$1.49 billion. However, free cash flow for the first six months fell to $16.5 million from $47.3 million, as inventories, other working capital changes and higher capital expenditures of $31.9 million weighed on cash generation. Subsequent filings may provide more detail on how quickly free cash flow tracks the higher earnings trajectory.
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
Q2 2026 net sales: $384.4 million
Q2 2026 net income: $59.1 million
Q2 2026 diluted EPS: $0.38 per share
+5 more
8 metrics
Q2 2026 net sales
$384.4 million
Up 5.5% from $364.3 million in prior-year quarter
Q2 2026 net income
$59.1 million
Net income margin 15.4% vs 14.1% a year earlier
Q2 2026 diluted EPS
$0.38 per share
Adjusted diluted EPS $0.40 vs $0.34 prior-year quarter
Q2 2026 adjusted EBITDA
$97.2 million
Up 15.0% from $84.5 million; margin 25.3%
Six‑month free cash flow
$16.5 million
Down from $47.3 million for six months ended March 31, 2025
Total debt
$452.4 million
As of March 31, 2026; no ABL borrowings outstanding
Fiscal 2026 net sales guidance
$1.47–$1.49 billion
Represents 2.8%–4.2% growth over prior year
Fiscal 2026 adjusted EBITDA guidance
$360–$365 million
Expected 10.4%–11.9% growth over prior year
Key Terms
adjusted EBITDA, free cash flow, non-GAAP measures, Section 232 tariffs, +1 more
5 terms
adjusted EBITDA financial
"Increased adjusted EBITDA 15.0% to $97.2 million as compared with $84.5 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 six-month period of $16.5 million as compared with $47.3 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.
non-GAAP measures financial
"the Company also provides non-GAAP information that management believes is useful to investors"
Financial results that companies present using formulas or adjustments different from standard accounting rules (GAAP) to highlight what management considers the business’s ongoing performance. Investors care because these figures can make trends or profitability look clearer—like showing a car’s fuel efficiency after removing unusual trips—but they can also hide one‑time costs or aggressive assumptions, so comparing them with GAAP numbers helps judge reliability.
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"
Earnings Snapshot
Revenue: $384.4 million · Guidance included
Q2 2026
Revenue
$384.4 million
+5.5% YoY
Net income
$59.1 million
+15.2% YoY
Diluted EPS
$0.38
up from $0.33 YoY
Adjusted EBITDA
$97.2 million
+15.0% YoY
Guidance
Fiscal 2026 net sales expected at $1.47–$1.49 billion and adjusted EBITDA at $360–$365 million, representing 2.8%–4.2% and 10.4%–11.9% growth over the prior year, respectively.
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): May 5, 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 May 5, 2026, Mueller Water Products, Inc. (the “Company”) announced its results of operations for the quarter ended March 31, 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 March 31, 2026, dated May 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: May 5, 2026 | MUELLER WATER PRODUCTS, INC. | |||||||||||||
| By: | /s/ Melissa Rasmussen | |||||||||||||
| Melissa Rasmussen | ||||||||||||||
| Senior Vice President and Chief Financial Officer | ||||||||||||||
MUELLER WATER PRODUCTS REPORTS 2026 SECOND QUARTER RESULTS
Increased Net Sales 5.5% to $384.4 Million
Reported Net Income per Diluted Share of $0.38
Achieved Adjusted Net Income per Diluted Share of $0.40
Raises Annual Guidance for Fiscal 2026 Adjusted EBITDA
ATLANTA, May 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 second quarter ended March 31, 2026.
In the second quarter of 2026, the Company:
•Increased net sales 5.5% to $384.4 million as compared with $364.3 million in the prior year quarter
•Reported operating income of $80.4 million as compared with $69.9 million in the prior year quarter, and increased adjusted operating income 16.0% to $84.8 million as compared with $73.1 million in the prior year quarter
•Reported operating margin of 20.9% as compared with 19.2% in the prior year quarter, and expanded adjusted operating margin to 22.1% as compared with 20.1% in the prior year quarter
•Reported net income of $59.1 million as compared with $51.3 million in the prior year quarter, with net income margin of 15.4% as compared with 14.1% in the prior year quarter, and increased adjusted net income 16.2% to $62.4 million as compared with $53.7 million in the prior year quarter
•Reported net income per diluted share of $0.38 as compared with $0.33 in the prior year quarter, and increased adjusted net income per diluted share 17.6% to $0.40 as compared with $0.34 in the prior year quarter
•Increased adjusted EBITDA 15.0% to $97.2 million as compared with $84.5 million in the prior year quarter, and expanded adjusted EBITDA margin to 25.3% as compared with 23.2% in the prior year quarter
•Reported net cash provided by operating activities for the six-month period of $48.4 million as compared with $68.4 million in the prior year period
•Generated free cash flow for the six-month period of $16.5 million as compared with $47.3 million in the prior year period
“We are pleased with our strong second quarter results, which were achieved through disciplined execution and resilient end-market demand. We set new quarterly records for net sales, adjusted EBITDA and adjusted net income per diluted share, demonstrating the strength of our brands and impact of our ongoing commitment to operational excellence and cost management. I want to thank our employees for their continued dedication and effort in supporting our customers and delivering value for all our stakeholders,” said Paul McAndrew, President and Chief Executive Officer of Mueller Water Products.
“We delivered another quarter of strong margin growth, with adjusted EBITDA margin improving 210 basis points year-over-year, supported by our team’s execution and commitment to delivering value for customers while enhancing efficiencies across our operations and supply chain. As we navigate increased uncertainty and ongoing external challenges, we remain focused on providing outstanding customer service, driving operational efficiencies and proactively managing our supply chain. Based on our outstanding performance through the first half of the year and our current expectations for the remainder of the year, we are raising our fiscal 2026 outlook for adjusted EBITDA.”
“We believe we are positioned for another record year. Our key strategic priorities to drive continued net sales growth and future margin improvements are supported by our strong, flexible balance sheet, which continues to provide ample capacity for capital investments and acquisitions, as well as continuing to return cash to shareholders. While we are experiencing greater uncertainty in the external operating environment, including changes in demand, tariffs and inflationary pressures, we are focused on driving results and investing in the capabilities and capacity needed to support long-term value creation,” Mr. McAndrew concluded.
Consolidated Results
Net sales for the second quarter increased $20.1 million, or 5.5%, to $384.4 million as compared with $364.3 million in the prior year quarter, primarily due to higher pricing across most product lines and increased volumes.
Gross profit for the second quarter increased $16.5 million, or 12.9%, to $144.5 million as compared with $128.0 million in the prior year quarter. Gross margin of 37.6% increased 250 basis points as compared with 35.1% in the prior year, primarily due to higher pricing, manufacturing efficiencies and increased volumes, partially offset by increased tariffs and inflationary pressures.
Selling, general and administrative expenses for the second quarter increased $4.0 million, or 7.2%, to $59.7 million as compared with $55.7 million in the prior year quarter. This increase was primarily due to unfavorable foreign currency and inflationary pressures.
Operating income for the second quarter increased $10.5 million, or 15.0%, to $80.4 million as compared with $69.9 million in the prior year quarter. This increase was primarily driven by higher pricing, manufacturing efficiencies and increased volumes, partially offset by increased tariffs, inflationary pressures, higher SG&A expenses and strategic reorganization and other charges. Operating margin for the second quarter expanded to 20.9% as compared with 19.2% in the prior year quarter.
During the quarter, the Company incurred $4.4 million of strategic reorganization and other charges, primarily related to expenses associated with our leadership transition, certain transaction-related expenses, and severance, which have been excluded from adjusted results.
Adjusted operating income increased $11.7 million, or 16.0%, to $84.8 million as compared with $73.1 million in the prior year quarter. This increase was primarily driven by higher pricing, manufacturing efficiencies and increased volumes, partially offset by increased tariffs, inflationary pressures and higher SG&A expenses. Adjusted operating margin expanded 200 basis points to 22.1% as compared with 20.1% in the prior year quarter.
Net income increased $7.8 million, or 15.2%, to $59.1 million as compared with $51.3 million in the prior year quarter. Net income margin expanded to 15.4% as compared with 14.1% in the prior year quarter. Adjusted net income increased $8.7 million, or 16.2%, to $62.4 million as compared with $53.7 million in the prior year quarter.
Adjusted EBITDA of $97.2 million increased $12.7 million, or 15.0%, as compared with $84.5 million in the prior year quarter. Adjusted EBITDA margin expanded 210 basis points to 25.3% as compared with 23.2% in the prior year quarter.
Segment Results
Water Flow Solutions
Net sales for the 2026 second quarter increased $2.1 million, or 1.0%, to $218.3 million as compared with $216.2 million in the prior year quarter, primarily due to higher pricing across most product lines partially offset by lower volumes.
Operating income and adjusted operating income were both $65.2 million for the second quarter. Adjusted operating income increased $9.3 million, or 16.6%, compared with the prior year quarter. Benefits from manufacturing efficiencies and higher pricing more than offset increased tariffs, inflationary pressures and lower volumes. Operating and adjusted operating margin were both 29.9% as compared with 25.0% and 25.9% for the prior year quarter operating and adjusted operating margins, respectively.
Adjusted EBITDA of $72.4 million increased $10.2 million, or 16.4%, as compared with $62.2 million in the prior year quarter. Adjusted EBITDA margin expanded 440 basis points to 33.2% as compared with 28.8% in the prior year quarter.
Water Management Solutions
Net sales for the 2026 second quarter increased $18.0 million, or 12.2%, to $166.1 million as compared with $148.1 million in the prior year quarter, primarily due to increased volumes and higher pricing across most product lines.
Operating income was $35.3 million and adjusted operating income was $35.5 million for the second quarter. Adjusted operating income increased $4.1 million, or 13.1%, compared with the prior year quarter. Benefits from higher pricing and volume growth more than offset increased tariffs, manufacturing inefficiencies, higher SG&A expenses, including unfavorable foreign currency, and inflationary pressures. Operating margin was 21.3% and adjusted operating margin was 21.4%, as compared with 21.1% and 21.2% for the prior year quarter operating and adjusted operating margins, respectively.
Adjusted EBITDA of $40.6 million increased $4.2 million, or 11.5%, as compared with $36.4 million in the prior year quarter. Adjusted EBITDA margin was 24.4% as compared with 24.6% in the prior year quarter.
Interest Expense, Net
Interest expense, net, for the 2026 second quarter decreased to $1.6 million as compared with $2.3 million in the prior year quarter, primarily as a result of higher interest income.
Income Taxes
For the 2026 second quarter, income tax expense was $19.7 million, or 25.0% of income before tax, as compared with $16.4 million in the prior year quarter, or 24.2% of income before tax.
Cash Flow and Balance Sheet
Net cash provided by operating activities for the six-month period ended March 31, 2026, decreased $20.0 million to $48.4 million as compared with $68.4 million in the prior year period. The decrease was primarily driven by changes in working capital and other assets and liabilities, partially offset by higher net income and non-cash adjustments compared with the prior year period.
Through the first six months of 2026, the Company invested $31.9 million in capital expenditures as compared with $21.1 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 six-month period decreased $30.8 million to $16.5 million as compared with $47.3 million in the prior year period, due to the decrease in net cash provided by operating activities and higher capital expenditures.
As of March 31, 2026, the Company had $452.4 million of total debt outstanding and $421.0 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 $584.7 million of total liquidity, including $163.7 million in availability under the ABL.
Fiscal 2026 Outlook
The Company is reiterating its guidance for fiscal 2026 consolidated net sales to between $1,470 million and $1,490 million, or an increase of 2.8% to 4.2% compared with the prior year. The Company is increasing its expectations for fiscal 2026 adjusted EBITDA to between $360 million and $365 million, or an increase of 10.4% to 11.9% compared with the prior year. The Company now expects free cash flow as a percentage of adjusted net income to exceed 70% in fiscal 2026. With increased uncertainty in the external operating environment, including the anticipated slowdown in new residential construction activity, the Company is working closely with customers and suppliers to adapt, as needed, to changes in demand, tariffs and inflationary pressures.
The Company’s expectations for certain additional financial metrics for fiscal 2026 are as follows:
•Total SG&A expenses between $243 million and $247 million
•Net interest expense between $5 million and $6 million
•Effective income tax rate between 24% and 25%
•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 Wednesday, May 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 1-800-839-1334. 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)
| March 31, | September 30, | ||||||||||
| 2026 | 2025 | ||||||||||
| (in millions, except share amounts) | |||||||||||
| Assets: | |||||||||||
| Cash and cash equivalents | $ | 421.0 | $ | 431.5 | |||||||
Receivables, net of allowance for credit losses of $3.2 million and $3.6 million | 208.6 | 211.9 | |||||||||
| Inventories, net | 385.4 | 328.7 | |||||||||
| Other current assets | 51.0 | 56.8 | |||||||||
| Total current assets | 1,066.0 | 1,028.9 | |||||||||
| Property, plant and equipment, net | 343.7 | 335.7 | |||||||||
| Intangible assets, net | 305.7 | 307.3 | |||||||||
| Goodwill, net | 92.1 | 89.2 | |||||||||
| Other noncurrent assets | 77.3 | 77.8 | |||||||||
| Total assets | $ | 1,884.8 | $ | 1,838.9 | |||||||
| Liabilities and stockholders’ equity: | |||||||||||
| Current portion of long-term debt | $ | 1.4 | $ | 1.2 | |||||||
| Accounts payable | 128.6 | 134.4 | |||||||||
| Other current liabilities | 103.3 | 154.7 | |||||||||
| Total current liabilities | 233.3 | 290.3 | |||||||||
| Long-term debt | 451.0 | 450.4 | |||||||||
| Deferred income taxes | 67.0 | 51.0 | |||||||||
| Other noncurrent liabilities | 62.7 | 65.5 | |||||||||
| Total liabilities | 814.0 | 857.2 | |||||||||
| Commitments and contingencies | |||||||||||
Preferred stock: par value $0.01 per share; 60,000,000 shares authorized; | — | — | |||||||||
none outstanding at March 31, 2026, and September 30, 2025 | |||||||||||
Common stock: par value $0.01 per share; 600,000,000 shares authorized; | 1.6 | 1.6 | |||||||||
156,446,656 and 156,331,004 shares outstanding at | |||||||||||
March 31, 2026, and September 30, 2025, respectively | |||||||||||
| Additional paid-in capital | 1,136.7 | 1,158.9 | |||||||||
| Accumulated deficit | (71.9) | (174.2) | |||||||||
| Accumulated other comprehensive income (loss) | 4.4 | (4.6) | |||||||||
| Total stockholders' equity | 1,070.8 | 981.7 | |||||||||
| Total liabilities and stockholders' equity | $ | 1,884.8 | $ | 1,838.9 | |||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| Three months ended | Six months ended | ||||||||||||||||||||||
| March 31, | March 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||||||||||
| Net sales | $ | 384.4 | $ | 364.3 | $ | 702.6 | $ | 668.6 | |||||||||||||||
Cost of sales (1) | 239.9 | 236.3 | 438.3 | 437.6 | |||||||||||||||||||
| Gross profit | 144.5 | 128.0 | 264.3 | 231.0 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Selling, general and administrative | 59.7 | 55.7 | 119.5 | 109.6 | |||||||||||||||||||
Strategic reorganization and other charges (2) | 4.4 | 2.4 | 7.7 | 4.1 | |||||||||||||||||||
| Total operating expenses | 64.1 | 58.1 | 127.2 | 113.7 | |||||||||||||||||||
| Operating income | 80.4 | 69.9 | 137.1 | 117.3 | |||||||||||||||||||
| Pension benefit other than service | — | (0.1) | — | (0.1) | |||||||||||||||||||
| Interest expense, net | 1.6 | 2.3 | 2.6 | 3.9 | |||||||||||||||||||
| Income before income taxes | 78.8 | 67.7 | 134.5 | 113.5 | |||||||||||||||||||
| Income tax expense | 19.7 | 16.4 | 32.2 | 26.9 | |||||||||||||||||||
| Net income | $ | 59.1 | $ | 51.3 | $ | 102.3 | $ | 86.6 | |||||||||||||||
| Net income per basic share | $ | 0.38 | $ | 0.33 | $ | 0.65 | $ | 0.55 | |||||||||||||||
| Net income per diluted share | $ | 0.38 | $ | 0.33 | $ | 0.65 | $ | 0.55 | |||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | 156.4 | 156.6 | 156.4 | 156.5 | |||||||||||||||||||
| Diluted | 157.4 | 157.5 | 157.4 | 157.5 | |||||||||||||||||||
| Dividends declared per share | $ | 0.070 | $ | 0.067 | $ | 0.140 | $ | 0.134 | |||||||||||||||
(1) For the three and six-month periods ended March 31, 2025, Cost of sales included $0.8 million and $4.1 million, respectively, 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 March 31, 2026, Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition, certain transaction-related expenses, and severance. For the six-month period ended March 31, 2026, Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition, severance, and certain transaction-related expenses. For the three and six-month periods ended March 31, 2025, Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition, non-cash asset impairment, and certain transaction-related expenses. | |||||||||||||||||||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| Six months ended | |||||||||||
| March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| (in millions) | |||||||||||
| Operating activities: | |||||||||||
| Net income | $ | 102.3 | $ | 86.6 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation | 20.9 | 18.8 | |||||||||
| Amortization | 3.6 | 3.6 | |||||||||
| Non-cash asset impairment | — | 1.0 | |||||||||
| Gain on sale of assets | (0.1) | (0.1) | |||||||||
| Stock-based compensation | 7.6 | 5.0 | |||||||||
| Pension cost | 0.3 | 0.2 | |||||||||
| Deferred income taxes | 15.5 | (2.3) | |||||||||
| Inventory reserve provision | 4.6 | 4.9 | |||||||||
| Other, net | 0.8 | 0.6 | |||||||||
| Changes in assets and liabilities: | |||||||||||
| Receivables, net | 3.3 | (7.0) | |||||||||
| Inventories | (60.4) | (9.5) | |||||||||
| Other assets | 8.4 | (1.6) | |||||||||
| Accounts payable | (5.3) | 6.0 | |||||||||
| Other current liabilities | (49.9) | (33.1) | |||||||||
| Other noncurrent liabilities | (3.2) | (4.7) | |||||||||
| Net cash provided by operating activities | 48.4 | 68.4 | |||||||||
| Investing activities: | |||||||||||
| Capital expenditures | (31.9) | (21.1) | |||||||||
| Proceeds from sale of assets | 0.1 | 0.1 | |||||||||
| Net cash used in investing activities | (31.8) | (21.0) | |||||||||
| Financing activities: | |||||||||||
| Dividends paid | (21.9) | (21.0) | |||||||||
| Stock repurchased under buyback program | (5.5) | (5.0) | |||||||||
| Employee taxes related to stock-based compensation | (3.7) | (4.3) | |||||||||
| Common stock issued | 1.3 | 3.9 | |||||||||
| Principal payments for finance lease obligations | (0.7) | (0.5) | |||||||||
| Net cash used in financing activities | (30.5) | (26.9) | |||||||||
| Effect of currency exchange rate changes on cash | 3.4 | (1.2) | |||||||||
| Net change in cash and cash equivalents | (10.5) | 19.3 | |||||||||
| Cash and cash equivalents at beginning of period | 431.5 | 309.9 | |||||||||
| Cash and cash equivalents at end of period | $ | 421.0 | $ | 329.2 | |||||||
| Six months ended | |||||||||||
| March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| (in millions) | |||||||||||
| Supplemental cash flow information: | |||||||||||
| Cash paid for interest, net | $ | 2.3 | $ | 3.2 | |||||||
| Cash paid for income taxes, net | $ | 32.8 | $ | 30.5 | |||||||
| Non-cash investing and financing activities: | |||||||||||
| Property, plant and equipment accrued and unpaid | $ | 6.1 | $ | 4.8 | |||||||
| Property, plant and equipment acquired through finance leases | $ | 1.2 | $ | 1.1 | |||||||
MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP TO GAAP PERFORMANCE MEASURES
(UNAUDITED)
| Three months ended March 31, 2026 | |||||||||||||||||||||||
Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||||||||||
| Net sales | $ | 218.3 | $ | 166.1 | $ | — | $ | 384.4 | |||||||||||||||
| Gross profit | $ | 87.1 | $ | 57.4 | $ | — | $ | 144.5 | |||||||||||||||
| Selling, general and administrative expenses | 21.9 | 21.9 | 15.9 | 59.7 | |||||||||||||||||||
Strategic reorganization and other charges (1) | — | 0.2 | 4.2 | 4.4 | |||||||||||||||||||
| Operating income (loss) | $ | 65.2 | $ | 35.3 | $ | (20.1) | $ | 80.4 | |||||||||||||||
| Operating margin | 29.9 | % | 21.3 | % | 20.9 | % | |||||||||||||||||
| Capital expenditures | $ | 5.0 | $ | 9.7 | $ | — | $ | 14.7 | |||||||||||||||
| Net income | $ | 59.1 | |||||||||||||||||||||
| Net income margin | 15.4 | % | |||||||||||||||||||||
| Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||||||||||
| Net income | $ | 59.1 | |||||||||||||||||||||
Strategic reorganization and other charges (1) | 4.4 | ||||||||||||||||||||||
Income tax expense of adjusting items (2) | (1.1) | ||||||||||||||||||||||
| Adjusted net income | $ | 62.4 | |||||||||||||||||||||
| Weighted average diluted shares outstanding | 157.4 | ||||||||||||||||||||||
Net income per diluted share | $ | 0.38 | |||||||||||||||||||||
Strategic reorganization and other charges per diluted share (1) | 0.03 | ||||||||||||||||||||||
Income tax expense of adjusting items per diluted share (2) | (0.01) | ||||||||||||||||||||||
| Adjusted net income per diluted share | $ | 0.40 | |||||||||||||||||||||
| Net income | $ | 59.1 | |||||||||||||||||||||
Income tax expense (3) | 19.7 | ||||||||||||||||||||||
Interest expense, net (3) | 1.6 | ||||||||||||||||||||||
| Operating income (loss) | $ | 65.2 | $ | 35.3 | $ | (20.1) | 80.4 | ||||||||||||||||
Strategic reorganization and other charges (1) | — | 0.2 | 4.2 | 4.4 | |||||||||||||||||||
| Adjusted operating income (loss) | 65.2 | 35.5 | (15.9) | 84.8 | |||||||||||||||||||
| Depreciation and amortization | 7.2 | 5.1 | 0.1 | 12.4 | |||||||||||||||||||
| Adjusted EBITDA | $ | 72.4 | $ | 40.6 | $ | (15.8) | $ | 97.2 | |||||||||||||||
| Adjusted operating margin | 29.9 | % | 21.4 | % | 22.1 | % | |||||||||||||||||
| Adjusted EBITDA margin | 33.2 | % | 24.4 | % | 25.3 | % | |||||||||||||||||
| Reconciliation of free cash flow to net cash used in operating activities: | |||||||||||||||||||||||
| Net cash used in operating activities | $ | (12.8) | |||||||||||||||||||||
| Less capital expenditures | 14.7 | ||||||||||||||||||||||
| Free cash flow | $ | (27.5) | |||||||||||||||||||||
(1) Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition, certain transaction-related expenses, and severance. | |||||||||||||||||||||||
(2) The income tax expense of adjusting items reflects an effective tax rate of 25.0%, 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)
| Three months ended March 31, 2025 | |||||||||||||||||||||||
| Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||||||||||
| Net sales | $ | 216.2 | $ | 148.1 | $ | — | $ | 364.3 | |||||||||||||||
Gross profit (1) | $ | 77.0 | $ | 51.0 | $ | — | $ | 128.0 | |||||||||||||||
| Selling, general and administrative expenses | 21.9 | 19.6 | 14.2 | 55.7 | |||||||||||||||||||
Strategic reorganization and other charges (2) | 1.0 | 0.1 | 1.3 | 2.4 | |||||||||||||||||||
| Operating income (loss) | $ | 54.1 | $ | 31.3 | $ | (15.5) | $ | 69.9 | |||||||||||||||
| Operating margin | 25.0 | % | 21.1 | % | 19.2 | % | |||||||||||||||||
| Capital expenditures | $ | 4.8 | $ | 4.4 | $ | — | $ | 9.2 | |||||||||||||||
| Net income | $ | 51.3 | |||||||||||||||||||||
| Net income margin | 14.1 | % | |||||||||||||||||||||
| Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||||||||||
| Net income | $ | 51.3 | |||||||||||||||||||||
Strategic reorganization and other charges (2) | 2.4 | ||||||||||||||||||||||
| Other asset restructuring write-down | 0.8 | ||||||||||||||||||||||
Income tax expense of adjusting items (3) | (0.8) | ||||||||||||||||||||||
| Adjusted net income | $ | 53.7 | |||||||||||||||||||||
| Weighted average diluted shares outstanding | 157.5 | ||||||||||||||||||||||
| Net income per diluted share | $ | 0.33 | |||||||||||||||||||||
Strategic reorganization and other charges per diluted share (2) | 0.02 | ||||||||||||||||||||||
| Other asset restructuring write-down per diluted share | 0.01 | ||||||||||||||||||||||
Income tax expense of adjusting items per diluted share (3) | (0.02) | ||||||||||||||||||||||
| Adjusted net income per diluted share | $ | 0.34 | |||||||||||||||||||||
| Net income | $ | 51.3 | |||||||||||||||||||||
Income tax expense (4) | 16.4 | ||||||||||||||||||||||
Interest expense, net (4) | 2.3 | ||||||||||||||||||||||
Pension benefit other than service (4) | (0.1) | ||||||||||||||||||||||
| Operating income (loss) | $ | 54.1 | $ | 31.3 | $ | (15.5) | 69.9 | ||||||||||||||||
Strategic reorganization and other charges (2) | 1.0 | 0.1 | 1.3 | 2.4 | |||||||||||||||||||
| Other asset restructuring write-down | 0.8 | — | — | 0.8 | |||||||||||||||||||
| Adjusted operating income (loss) | 55.9 | 31.4 | (14.2) | 73.1 | |||||||||||||||||||
Pension benefit other than service (4) | — | — | 0.1 | 0.1 | |||||||||||||||||||
| Depreciation and amortization | 6.3 | 5.0 | — | 11.3 | |||||||||||||||||||
| Adjusted EBITDA | $ | 62.2 | $ | 36.4 | $ | (14.1) | $ | 84.5 | |||||||||||||||
| Adjusted operating margin | 25.9 | % | 21.2 | % | 20.1 | % | |||||||||||||||||
| Adjusted EBITDA margin | 28.8 | % | 24.6 | % | 23.2 | % | |||||||||||||||||
| Reconciliation of free cash flow to net cash provided by operating activities: | |||||||||||||||||||||||
| Net cash provided by operating activities | $ | 14.3 | |||||||||||||||||||||
| Less capital expenditures | 9.2 | ||||||||||||||||||||||
| Free cash flow | $ | 5.1 | |||||||||||||||||||||
(1) Gross profit includes $0.8 million in 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, and certain transaction-related expenses. | |||||||||||||||||||||||
(3) The income tax expense of adjusting items reflects an effective tax rate of 24.2%, 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)
| Six months ended March 31, 2026 | |||||||||||||||||||||||
Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||||||||||
| Net sales | $ | 391.3 | $ | 311.3 | $ | — | $ | 702.6 | |||||||||||||||
| Gross profit | $ | 157.9 | $ | 106.4 | $ | — | $ | 264.3 | |||||||||||||||
| Selling, general and administrative expenses | 43.3 | 46.4 | 29.8 | 119.5 | |||||||||||||||||||
Strategic reorganization and other charges (1) | — | 0.2 | 7.5 | 7.7 | |||||||||||||||||||
| Operating income (loss) | $ | 114.6 | $ | 59.8 | $ | (37.3) | $ | 137.1 | |||||||||||||||
| Operating margin | 29.3 | % | 19.2 | % | 19.5 | % | |||||||||||||||||
| Capital expenditures | $ | 11.4 | $ | 20.5 | $ | — | $ | 31.9 | |||||||||||||||
| Net income | $ | 102.3 | |||||||||||||||||||||
| Net income margin | 14.6 | % | |||||||||||||||||||||
| Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||||||||||
| Net income | $ | 102.3 | |||||||||||||||||||||
Strategic reorganization and other charges (1) | 7.7 | ||||||||||||||||||||||
Income tax expense of adjusting items (2) | (1.8) | ||||||||||||||||||||||
| Adjusted net income | $ | 108.2 | |||||||||||||||||||||
| Weighted average diluted shares outstanding | 157.4 | ||||||||||||||||||||||
| Net income per diluted share | $ | 0.65 | |||||||||||||||||||||
Strategic reorganization and other charges per diluted share (1) | 0.05 | ||||||||||||||||||||||
Income tax expense of adjusting items per diluted share (2) | (0.01) | ||||||||||||||||||||||
| Adjusted net income per diluted share | $ | 0.69 | |||||||||||||||||||||
| Net income | $ | 102.3 | |||||||||||||||||||||
Income tax expense (3) | 32.2 | ||||||||||||||||||||||
Interest expense, net (3) | 2.6 | ||||||||||||||||||||||
| Operating income (loss) | $ | 114.6 | $ | 59.8 | $ | (37.3) | 137.1 | ||||||||||||||||
Strategic reorganization and other charges (1) | — | 0.2 | 7.5 | 7.7 | |||||||||||||||||||
| Adjusted operating income (loss) | 114.6 | 60.0 | (29.8) | 144.8 | |||||||||||||||||||
| Depreciation and amortization | 14.3 | 10.1 | 0.1 | 24.5 | |||||||||||||||||||
| Adjusted EBITDA | $ | 128.9 | $ | 70.1 | $ | (29.7) | $ | 169.3 | |||||||||||||||
| Adjusted operating margin | 29.3 | % | 19.3 | % | 20.6 | % | |||||||||||||||||
| Adjusted EBITDA margin | 32.9 | % | 22.5 | % | 24.1 | % | |||||||||||||||||
| Reconciliation of free cash flow to net cash provided by operating activities: | |||||||||||||||||||||||
Net cash provided by operating activities | $ | 48.4 | |||||||||||||||||||||
| Less capital expenditures | 31.9 | ||||||||||||||||||||||
| Free cash flow | $ | 16.5 | |||||||||||||||||||||
(1) Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition, severance, and certain transaction-related expenses. | |||||||||||||||||||||||
(2) The income tax expense of adjusting items reflects an effective tax rate of 23.9% 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)
| Six months ended March 31, 2025 | |||||||||||||||||||||||
Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||||||||||
| Net sales | $ | 390.8 | $ | 277.8 | $ | — | $ | 668.6 | |||||||||||||||
Gross profit (1) | $ | 132.1 | $ | 98.9 | $ | — | $ | 231.0 | |||||||||||||||
| Selling, general and administrative expenses | 41.7 | 39.9 | 28.0 | 109.6 | |||||||||||||||||||
Strategic reorganization and other charges (2) | 1.0 | 0.4 | 2.7 | 4.1 | |||||||||||||||||||
| Operating income (loss) | $ | 89.4 | $ | 58.6 | $ | (30.7) | $ | 117.3 | |||||||||||||||
| Operating margin | 22.9 | % | 21.1 | % | 17.5 | % | |||||||||||||||||
| Capital expenditures | $ | 10.5 | $ | 10.6 | $ | — | $ | 21.1 | |||||||||||||||
| Net income | $ | 86.6 | |||||||||||||||||||||
| Net income margin | 13.0 | % | |||||||||||||||||||||
| Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||||||||||
| Net income | $ | 86.6 | |||||||||||||||||||||
Strategic reorganization and other charges (2) | 4.1 | ||||||||||||||||||||||
| Inventory and other asset restructuring write-down | 4.1 | ||||||||||||||||||||||
Income tax expense of adjusting items (3) | (1.9) | ||||||||||||||||||||||
| Adjusted net income | $ | 92.9 | |||||||||||||||||||||
| Weighted average diluted shares outstanding | 157.5 | ||||||||||||||||||||||
| Net income per diluted share | $ | 0.55 | |||||||||||||||||||||
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) | (0.02) | ||||||||||||||||||||||
| Adjusted net income per diluted share | $ | 0.59 | |||||||||||||||||||||
| Net income | $ | 86.6 | |||||||||||||||||||||
Income tax expense (4) | 26.9 | ||||||||||||||||||||||
Interest expense, net (4) | 3.9 | ||||||||||||||||||||||
Pension benefit other than service (4) | (0.1) | ||||||||||||||||||||||
| Operating income (loss) | $ | 89.4 | $ | 58.6 | $ | (30.7) | 117.3 | ||||||||||||||||
Strategic reorganization and other charges (2) | 1.0 | 0.4 | 2.7 | 4.1 | |||||||||||||||||||
| Inventory and other asset restructuring write-down | 4.1 | — | — | 4.1 | |||||||||||||||||||
| Adjusted operating income (loss) | 94.5 | 59.0 | (28.0) | 125.5 | |||||||||||||||||||
Pension benefit other than service (4) | — | — | 0.1 | 0.1 | |||||||||||||||||||
| Depreciation and amortization | 12.4 | 10.0 | — | 22.4 | |||||||||||||||||||
| Adjusted EBITDA | $ | 106.9 | $ | 69.0 | $ | (27.9) | $ | 148.0 | |||||||||||||||
| Adjusted operating margin | 24.2 | % | 21.2 | % | 18.8 | % | |||||||||||||||||
| Adjusted EBITDA margin | 27.4 | % | 24.8 | % | 22.1 | % | |||||||||||||||||
Reconciliation of free cash flow to net cash provided by operating activities: | |||||||||||||||||||||||
Net cash provided by operating activities | $ | 68.4 | |||||||||||||||||||||
| Less capital expenditures | 21.1 | ||||||||||||||||||||||
| Free cash flow | $ | 47.3 | |||||||||||||||||||||
(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, and certain transaction-related expenses. | |||||||||||||||||||||||
(3) The income tax expense of adjusting items reflects an effective tax rate of 23.7%, and may be subject to rounding. | |||||||||||||||||||||||
(4) The Company does not allocate interest, income taxes, or pension amounts other than service to its segments. | |||||||||||||||||||||||
FAQ
How did Mueller Water Products (MWA) perform in Q2 fiscal 2026?
Mueller Water Products delivered higher sales and profits in Q2 2026. Net sales grew 5.5% to $384.4 million and net income rose 15.2% to $59.1 million, reflecting stronger pricing, improved manufacturing efficiencies and higher volumes across key product lines.
What guidance did Mueller Water Products (MWA) give for fiscal 2026?
For fiscal 2026, Mueller Water Products expects consolidated net sales between $1.47 billion and $1.49 billion. The company raised its adjusted EBITDA outlook to $360–$365 million and now anticipates free cash flow to exceed 70% of adjusted net income for the year.
How is Mueller Water Products’ cash flow and balance sheet position?
For the six months ended March 31, 2026, net cash from operating activities was $48.4 million and free cash flow was $16.5 million. As of March 31, 2026, the company had $452.4 million of total debt, $421.0 million in cash and total liquidity of $584.7 million.
How did Mueller Water Products’ business segments perform in Q2 2026?
In Q2 2026, Water Flow Solutions net sales were $218.3 million with adjusted operating margin of 29.9% and adjusted EBITDA margin of 33.2%. Water Management Solutions net sales reached $166.1 million, growing 12.2%, with adjusted operating margin of 21.4% and adjusted EBITDA margin of 24.4%.
Why did Mueller Water Products’ free cash flow decline year over year?
Free cash flow fell to $16.5 million for the six months ended March 31, 2026, from $47.3 million a year earlier. The decline mainly reflected increased inventories, other working capital changes, and higher capital expenditures of $31.9 million, particularly in the company’s iron foundries.