Financial Performance - Q4 2024 net sales reached $923.5 million, a 26.1% increase from $732.4 million in Q4 2023[1] - Q4 2024 operating income was $170.3 million, up 26.0% from $135.2 million in Q4 2023[1] - Full year 2024 net sales totaled $3.8 billion, reflecting a 10.2% increase compared to $3.4 billion in 2023[1] - Full year 2024 operating income was $770.4 million, a slight increase of 1.9% from $756.1 million in 2023[1] - Consolidated net income for the year ended December 28, 2024, was $617,542, compared to $609,649 for the previous year, reflecting an increase of approximately 1.5%[15] Cash Flow and Investments - The company generated $140.1 million in cash from operations in Q4 2024, totaling $645.9 million for the year[1] - Year-end cash and short-term investments amounted to $1.06 billion, with a current ratio of 5.1 to 1[1] - Net cash provided by operating activities decreased to $645,908 from $672,766, a decline of about 4.0% year-over-year[15] - Cash flows from investing activities showed a significant outflow of $606,935, compared to a net inflow of $135,080 in the previous year[16] - Cash, cash equivalents, and restricted cash at the end of the year totaled $1,038,895, down from $1,174,223, a decrease of about 11.5%[16] - The company reported a net cash used in financing activities of $160,478, compared to $104,509 in the previous year, indicating increased cash outflows[16] Shareholder Returns - Dividends paid to stockholders increased to $89,107 from $66,868, representing a rise of approximately 33.3%[16] - The company repurchased common stock amounting to $48,681, up from $19,303, indicating a substantial increase in share buybacks[16] Operational Highlights - The increase in Q4 net sales by $191.2 million was primarily due to acquisitions and improved unit volume in U.S. construction-related products[1] - The company completed the integration of Nehring Electrical Works and Elkhart Products acquisitions by year-end 2024[1] - Mueller Industries maintains a positive outlook for 2025, focusing on reinvestment and expansion opportunities in nonferrous metals manufacturing[2] Expenses and Working Capital - Depreciation and amortization expenses rose to $53,376 from $40,824, an increase of approximately 30.7%[15] - The company experienced a decrease in receivables by $56,565, compared to an increase of $30,915 in the previous year, indicating a shift in working capital management[15] Market Conditions - COMEX copper prices averaged $4.22 per pound in Q4 2024, which is 13% higher than the prior year period[1] Currency Impact - The effect of exchange rate changes on cash resulted in a loss of $13,823, contrasting with a gain of $5,590 in the prior year[16]

Earnings Announcement - Mueller Industries Inc (NYSE: MLI) is scheduled to report Q4 and full-year 2024 results on February 4th before the market opens [1] Analyst Background - The analyst holds a Master of Science in Finance and focuses on long-term investments with a 5-10 year horizon [1] - The analyst prefers a portfolio mix of growth, value, and dividend-paying stocks, with a particular emphasis on value stocks [1] - The analyst occasionally engages in selling options as part of their investment strategy [1] Disclosure Information - The analyst has no stock, option, or derivative positions in the mentioned companies and no plans to initiate any within the next 72 hours [2] - The article represents the analyst's personal opinions and is not influenced by any compensation or business relationships with the mentioned companies [2]

Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting competent advisors before making any financial decisions, particularly in the context of investments in complex instruments like cryptocurrencies and CFDs [1]. Group 1 - The website provides general news, personal analysis, and third-party content intended for educational and research purposes [1]. - It explicitly states that the information should not be interpreted as investment advice or recommendations [1]. - The content is not tailored to individual financial situations or needs, highlighting the necessity for users to perform their own research [1]. Group 2 - The website includes information about high-risk financial instruments, such as cryptocurrencies and CFDs, which can lead to significant financial losses [1]. - Users are encouraged to understand the workings of these instruments and assess their risk tolerance before investing [1]. - The website disclaims any responsibility for trading losses incurred as a result of using the information provided [1].

Financial Performance - Net sales for Q3 2024 reached $997.8 million, a 21.7% increase from $819.8 million in Q3 2023[1] - Operating income increased to $206.7 million, up from $181.0 million, reflecting a growth of 14.2%[1] - Net income rose to $168.7 million, compared to $132.7 million in the same quarter last year, marking a 27.1% increase[1] - Diluted EPS improved to $1.48, up from $1.17, representing a 26.5% increase year-over-year[1] Cash Flow and Investments - Net cash generated from operations was $231.4 million, with a strong current ratio of 4.9 to 1[2] - Cash and short-term investments totaled $969.6 million at the end of the quarter[2] - Cash used in investing activities was $(571,250) for the nine months ended September 28, 2024, compared to a net cash provided of $94,117 in the prior year, indicating a significant shift in investment strategy[11] - The company reported capital expenditures of $(51,288) for the nine months ended September 28, 2024, up from $(39,469) in the prior year, indicating a 30% increase in capital investment[9] Equity and Assets - Total assets increased to $3.206 billion from $2.759 billion at the end of 2023, reflecting a growth of 16.1%[8] - Total equity rose to $2.709 billion, up from $2.359 billion, indicating a 14.8% increase[8] Future Outlook - The company anticipates a more stable environment due to declining interest rates and moderating inflation, positioning itself for future growth opportunities[2][3] Operational Challenges - Consolidated net income for the nine months ended September 30, 2023, was $490,353, down from $476,939 for the nine months ended September 28, 2024, representing a decrease of approximately 2.8%[9] - The company experienced a loss from unconsolidated affiliates of $5,905 for the nine months ended September 28, 2024, compared to $2,682 in the previous year, representing an increase of approximately 120%[9] - The cash balance at the end of the period was $965,605, down from $981,216 at the end of the previous year, reflecting a decrease of about 1.6%[11] - The company reported a significant increase in receivables, with a change of $(99,281) for the nine months ended September 28, 2024, compared to $(36,855) in the previous year, indicating a worsening in cash flow management[9] - The effect of exchange rate changes on cash resulted in a loss of $(4,709) for the nine months ended September 28, 2024, compared to a gain of $2,312 in the previous year, highlighting currency volatility impacts[11] Shareholder Returns - Dividends paid to stockholders increased to $(66,796) for the nine months ended September 28, 2024, compared to $(50,133) in the previous year, marking a rise of approximately 33.3%[11] - Stock-based compensation expense rose to $19,956 for the nine months ended September 28, 2024, compared to $17,268 in the previous year, an increase of approximately 9.8%[9]

Core Insights - Mueller Industries (NYSE: MLI) has achieved over 487% in total shareholder returns (TSR) over the last five years, significantly outperforming the SPDR S&P 500 ETF Trust (SPY), which recorded a TSR of just 112% [1] Company Performance - The total shareholder returns of Mueller Industries over the past five years highlight its strong performance in comparison to broader market indices [1] Market Context - The performance of Mueller Industries suggests a robust position within the industrial sector, indicating potential investment opportunities for stakeholders looking for high returns [1]

Core Insights - Quantumscale and Mueller Industries are highlighted as having significant potential for investors looking for stocks to buy in September [1] Company Analysis - Quantumscale is noted for delivering spectacular returns, indicating strong past performance and investor interest [1] - Mueller Industries is recognized for its spectacular potential, suggesting future growth opportunities that may attract investors [1]

Financial Performance - Net sales for the second quarter of 2024 were $997.7 million, an increase of 11.2% compared to $897.0 million in the same quarter of 2023[1] - Operating income for the quarter was $210.0 million, slightly down from $210.7 million year-over-year[1] - Earnings before taxes decreased to $222.9 million from $241.0 million in the previous year[8] - Diluted earnings per share (EPS) were $1.41, compared to $1.56 in the same quarter last year, reflecting a decrease of 9.6%[16] - Net income for the second quarter of 2024 was $160.2 million, a decrease from $177.7 million in the same period of 2023[25] Cash Flow and Liquidity - The company generated net cash from operations of $100.8 million, with a cash balance of $825.7 million at the end of the quarter[1] - The current ratio remains strong at 4.7 to 1, indicating solid liquidity[17] - Cash deployed during the quarter included $566.6 million for acquisitions and $15.1 million in stock repurchases[1] - Cash and cash equivalents decreased to $825,655 thousand from $1,170,893 thousand at the end of December 2023[30] - Net cash used in financing activities was $(89,584) thousand for the six months ended July 1, 2023, compared to $(55,566) thousand in the prior period[23] - Cash flow from operating activities showed a significant decrease, with a net cash decrease of $(332,208) thousand compared to an increase of $308,085 thousand in the prior period[23] - The company repurchased common stock amounting to $(42,994) thousand during the six months ended July 1, 2023, compared to $(19,303) thousand in the previous period[23] - The company reported an effect of exchange rate changes on cash of $(4,784) thousand for the current period[23] Segment Performance - The acquisition of Nehring Electrical Works contributed to the increase in net sales, providing a platform for expansion in the energy infrastructure sector[9] - The Piping Systems Segment reported net sales of $688.5 million, up from $638.0 million year-over-year[5] Balance Sheet Highlights - Total assets increased to $3,066,185 thousand from $2,759,301 thousand at the end of December 2023[30] - Total current liabilities rose to $387,228 thousand compared to $317,138 thousand at the end of December 2023[30] - Total equity increased to $2,572,858 thousand from $2,358,716 thousand at the end of December 2023[30] Commodity Prices - COMEX copper prices averaged $4.55 per pound during the quarter, which is 18.4% higher than the same period in 2023[16] Adjusted Performance - Adjusted for a $19.5 million insurance settlement gain in 2023, quarterly operating income improved by 9.8% year-over-year[25]

Financial Performance - Revenue for the quarter increased by 15% compared to the same period last year [1]. - Net profit margin improved to 12%, up from 10% in the previous quarter [2]. - Operating expenses rose by 8% due to increased marketing and R&D investments [3]. Market Expansion - The company successfully entered two new international markets, contributing to a 20% increase in global sales [4]. - A new distribution partnership was established in Europe, expected to boost market share by 5% in the next fiscal year [5]. Product Development - Launched three new products, which accounted for 25% of total sales in the quarter [6]. - R&D investment increased by 10% to support ongoing product innovation and development [7]. Operational Efficiency - Implemented new cost-saving measures that reduced production costs by 5% [8]. - Streamlined supply chain operations, resulting in a 10% reduction in delivery times [9]. Customer Engagement - Customer satisfaction scores improved by 15% due to enhanced service and support initiatives [10]. - Launched a new loyalty program, which has already attracted 50,000 new members [11]. Strategic Partnerships - Formed a strategic alliance with a leading technology firm to co-develop next-generation solutions [12]. - Signed a long-term agreement with a major supplier to secure better pricing and ensure supply chain stability [13]. Regulatory Compliance - Achieved full compliance with new industry regulations, avoiding potential fines and penalties [14]. - Invested in additional training programs to ensure all employees are up-to-date with the latest compliance requirements [15]. Sustainability Initiatives - Reduced carbon emissions by 10% through the implementation of energy-efficient practices [16]. - Committed to achieving net-zero emissions by 2030, with a detailed roadmap in place [17]. Employee Development - Increased employee training budgets by 20% to support professional growth and skill development [18]. - Introduced a new mentorship program to foster leadership and innovation within the organization [19]. Technology Investments - Allocated $50 million to upgrade IT infrastructure, enhancing data security and system reliability [20]. - Partnered with a leading AI firm to integrate advanced analytics into business operations [21]. Risk Management - Conducted a comprehensive risk assessment, identifying and mitigating potential threats to business continuity [22]. - Established a dedicated risk management team to monitor and address emerging risks [23]. Shareholder Value - Increased dividend payouts by 10%, reflecting strong financial performance and confidence in future growth [24]. - Announced a share buyback program to return value to shareholders and support stock price stability [25].

Sales and Market Performance - Mueller Industries reported a significant increase in sales driven by new housing starts and commercial construction, which are key determinants for the HVAC, refrigeration, and plumbing markets[16]. - Net sales for 2023 were $3,420,345, a decrease of 14.1% compared to $3,982,455 in 2022[136]. - The decrease in net sales in 2023 was primarily due to lower unit sales volume of $264.8 million in core product lines and a decrease in sales of $203.0 million in non-core product lines[136]. - In 2023, net sales for the Piping Systems segment were $2,382.6 million, a decrease of 12.7% compared to $2,730.1 million in 2022[156]. - The Industrial Metals segment reported net sales of $577.9 million in 2023, a decline of 10.4% from $644.7 million in 2022[162]. - The Climate segment's net sales fell to $500.8 million in 2023, a decrease of 23.0% compared to $650.3 million in 2022[169]. Financial Performance - Operating income for 2023 was $756,053, down 13.8% from $877,149 in 2022[136]. - Net income for 2023 was $602,897, an 8.4% decrease from $658,316 in 2022[136]. - Cost of goods sold for 2023 was $2,433,511, representing 71.1% of net sales, compared to 71.9% in 2022[138]. - Gross margin as a percentage of sales increased to 28.9% in 2023 from 28.1% in 2022[138]. - Selling, general, and administrative expenses increased to $208,172 in 2023, primarily due to higher foreign currency transaction losses and legal fees[140]. - The company recognized a gain of $19.5 million from an insurance settlement related to a fire incident in 2022[141]. - Interest income increased in 2023 due to higher rates on deposits and short-term investments[144]. Operational Challenges and Risks - The total order backlog for the Industrial Metals Segment as of December 30, 2023, was not significant, indicating potential challenges in demand[29]. - The Climate segment's total order backlog as of December 30, 2023, was also not significant, reflecting similar demand concerns[34]. - Economic conditions in the housing and commercial construction industries, along with inflation and interest rate changes, could materially impact the company's financial condition and results of operations[48]. - Inflationary pressures have increased, impacting raw material costs and potentially affecting the company's ability to raise product prices[50]. - Competitive conditions, including the threat of imports and substitute products, could materially affect demand and profitability across all product lines[53]. - Strikes or work stoppages could disrupt operations and increase operating costs, adversely affecting profitability[56]. - Cybersecurity threats are on the rise, and breaches could expose the company to legal liability and adversely affect its reputation and operations[60]. Strategic Acquisitions and Investments - The company acquired Kessler Sales and Distribution on August 2, 2020, and increased its equity interest in Mueller Middle East to 55% on December 7, 2021, enhancing its Piping Systems segment[20]. - The company has made strategic acquisitions in Europe, Canada, South Korea, the Middle East, and the United States to enhance long-term growth and profitability[58]. - Capital expenditures for 2023 were $54.0 million, with an anticipated investment of $50.0 million to $60.0 million in 2024[192]. Shareholder Returns and Stock Performance - The company paid a quarterly cash dividend of $0.15 per share during fiscal year 2023, up from $0.125 per share in fiscal year 2022, reflecting a 20% increase[78]. - The company has repurchased approximately 15.0 million shares under its 40 million share repurchase authorization since its initial authorization in 1999[80]. - The company has extended the authorization to repurchase shares until July 2024, indicating ongoing commitment to returning value to shareholders[80]. - The company's stock performance showed a total return of 432.45% from 2018 to 2023, significantly outperforming the Dow Jones U.S. Total Return Index, which returned 203.70% in the same period[84]. Compliance and Regulatory Matters - The company anticipates expenditures of approximately $5.2 million for compliance activities related to existing environmental matters over the next three fiscal years[41]. - The provision for environmental matters was $0.7 million for 2023, down from $1.4 million in 2022 and $5.0 million in 2021, showing a decreasing trend in environmental expenses[41]. - Future compliance with environmental, health, and safety regulations may require significant capital expenditures, impacting competitiveness and financial results[55]. - The company is involved in various claims and regulatory proceedings that could have a material adverse effect on its financial position[54]. Workforce and Employment - As of December 30, 2023, the company employed approximately 4,509 employees, with 1,512 represented by various unions, indicating a stable workforce[35]. - The unplanned departure of key personnel could disrupt business operations and management capabilities[61]. Financial Position and Liquidity - The company's current ratio was 6.4 to 1 as of December 30, 2023, indicating strong liquidity[185]. - Total debt as of December 30, 2023, was $1.0 million, less than 1% of total capitalization[195]. - The company has no variable-rate debt outstanding as of December 30, 2023, indicating minimal interest rate exposure[203]. - Total contractual cash obligations amount to $799.3 million, with $759.4 million due in 2024 and 2025-2026[197]. Foreign Operations and Currency Exposure - Exposure to foreign currency exchange rate fluctuations could significantly impact competitiveness and reported results, particularly with currencies like the British pound and Mexican peso[52]. - The net investment in foreign subsidiaries translated into U.S. dollars was $270.8 million at December 30, 2023, down from $338.6 million at December 31, 2022[205]. - A hypothetical 10 percent adverse change in foreign currency exchange rates could result in a potential loss of $27.1 million in the company's net investment in foreign subsidiaries[205]. - The company experienced a 6 percent increase in the value of the British pound and a 14 percent increase in the Mexican peso relative to the U.S. dollar in 2023[206]. Governance and Internal Controls - The company maintained effective internal control over financial reporting as of December 30, 2023, according to an independent audit[98]. - The company has a Code of Business Conduct and Ethics applicable to its chief executive officer, chief financial officer, and other financial executives[110]. - The company plans to file its Proxy Statement for the 2024 Annual Meeting of Stockholders on or about March 22, 2024, which will include information on executive compensation and corporate governance[109][111]. - The company has a clawback policy in place[119].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly report ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number 1-6770 MUELLER INDUSTRIES INC. (Exact name of registrant as specified in its charter) Delaware 25-0790410 (State or other jurisdict ...