ATLANTA, July 22, 2025 (GLOBE NEWSWIRE) -- Mueller Water Products, Inc. (NYSE: MWA) plans to release financial results for its third quarter ended June 30, 2025, after U.S. markets close on Monday, August 4, 2025. On Tuesday, August 5, 2025, at 10:00 a.m. ET, the Company will hold a conference call to discuss earnings and business results. Interested parties are invited to listen via webcast available on the Investor Relations section of the Company’s website www.muellerwaterproducts.com. An archive of the ...

Company Overview - Mueller Water Products, Inc. (MWA) is experiencing significant attention from investors due to high implied volatility in its options market, particularly the Aug 15, 2025 $15.00 Call option [1] - The company currently holds a Zacks Rank 3 (Hold) in the Steel - Pipe and Tube industry, which is positioned in the top 39% of the Zacks Industry Rank [3] Analyst Sentiment - Over the past 60 days, no analysts have increased their earnings estimates for the current quarter, while two analysts have lowered their estimates, resulting in a decrease in the Zacks Consensus Estimate from earnings of 36 cents per share to 34 cents [3] Options Market Insights - The high implied volatility suggests that options traders are anticipating a significant price movement for Mueller Water Products shares, indicating potential upcoming events that could lead to a major rally or sell-off [2][4] - Seasoned options traders often seek to sell premium on options with high implied volatility, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected [4]

PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Mueller Water Products, Inc.'s unaudited condensed consolidated financial statements for the periods ended March 31, 2025, detailing financial position and performance - The company operates in two business segments: **Water Flow Solutions** (iron gate valves, specialty valves, service brass) and **Water Management Solutions** (fire hydrants, repair/installation, metering, leak detection, etc.)[25](index=25&type=chunk) - The business is seasonal, with net sales and operating income historically **lowest** in the quarters ending December 31 and March 31 due to weather conditions restricting construction activity[27](index=27&type=chunk) [Unaudited Condensed Consolidated Balance Sheets](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of March 31, 2025, shows increased total assets and stockholders' equity, alongside a decrease in total liabilities Condensed Consolidated Balance Sheet Data (in millions) | Account | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | **Total current assets** | $890.7 | $858.4 | | **Total assets** | $1,670.6 | $1,635.9 | | **Total current liabilities** | $235.3 | $258.0 | | **Total liabilities** | $797.0 | $825.8 | | **Total stockholders' equity** | $873.6 | $810.1 | [Unaudited Condensed Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Net sales and net income increased for both the three and six-month periods ended March 31, 2025, reflecting improved operational performance Key Operating Results (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $364.3 | $353.4 | $668.6 | $609.8 | | **Gross profit** | $128.0 | $130.4 | $231.0 | $216.7 | | **Operating income** | $69.9 | $63.5 | $117.3 | $86.3 | | **Net income** | $51.3 | $44.3 | $86.6 | $58.6 | | **Diluted EPS** | $0.33 | $0.28 | $0.55 | $0.37 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities increased for the six months ended March 31, 2025, contributing to a higher cash balance at period-end Cash Flow Summary - Six Months Ended March 31 (in millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $68.4 | $62.2 | | **Net cash used in investing activities** | $(21.0) | $(15.7) | | **Net cash used in financing activities** | $(26.9) | $(31.4) | | **Net change in cash and cash equivalents** | $19.3 | $18.9 | | **Cash and cash equivalents at end of period** | $329.2 | $179.2 | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed disclosures on segment performance, debt, legal contingencies, and subsequent events supporting the financial statements Segment Performance - Six Months Ended March 31, 2025 (in millions) | Segment | Net Revenue | Operating Income | | :--- | :--- | :--- | | Water Flow Solutions | $390.8 | $89.4 | | Water Management Solutions | $277.8 | $58.6 | | Corporate | - | $(30.7) | | **Total** | **$668.6** | **$117.3** | - The company has **$450.0 million** of **4.0%** Senior Unsecured Notes outstanding, which mature on June 15, 2029[61](index=61&type=chunk) - Contingencies include a matter with U.S. Customs and Border Protection (CBP) for underpayment of duties, for which **$9.1 million** was expensed in 2024, and a class-action lawsuit related to a 2023 cybersecurity incident[91](index=91&type=chunk)[93](index=93&type=chunk) - On April 30, 2025, the Board of Directors declared a quarterly dividend of **$0.067 per share**[99](index=99&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, highlighting sales growth, gross margin trends, liquidity, and future outlook for fiscal year 2025 - For fiscal year 2025, the company anticipates consolidated net sales will increase between **5.7%** and **6.5%** compared with fiscal 2024[109](index=109&type=chunk) - The company expects continued resilient demand in the municipal repair and replacement market, but anticipates new residential construction will be constrained by the interest rate environment[109](index=109&type=chunk) - Liquidity is **strong** with **$329.2 million** in cash and cash equivalents and an additional **$163.0 million** of borrowing capacity under the ABL facility as of March 31, 2025[140](index=140&type=chunk) - Fiscal 2025 capital expenditures are expected to be between **$45.0 million** and **$50.0 million**[144](index=144&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Net sales and operating income increased for the six months ended March 31, 2025, despite a slight decline in gross margin due to inefficiencies YTD 2025 vs. YTD 2024 Performance (in millions) | Metric | YTD 2025 | YTD 2024 | Change (%) | | :--- | :--- | :--- | :--- | | **Net Sales** | $668.6 | $609.8 | +9.6% | | **Gross Profit** | $231.0 | $216.7 | +6.6% | | **Operating Income** | $117.3 | $86.3 | +35.9% | | **SG&A** | $109.6 | $120.6 | -9.1% | - Water Flow Solutions YTD net sales increased **12.6%** to **$390.8 million**, driven by higher volumes and pricing[133](index=133&type=chunk) - Water Management Solutions YTD net sales increased **5.7%** to **$277.8 million**, also due to higher volumes and pricing[136](index=136&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with substantial cash and available credit, supported by positive operating cash flows and a share repurchase program - The company repurchased **$5.0 million** of its common stock in the first six months of fiscal 2025, with **$75.0 million** remaining under the share repurchase authorization[141](index=141&type=chunk) - Net cash provided by operating activities increased to **$68.4 million** for the six months ended March 31, 2025, from **$62.2 million** in the prior year, primarily due to higher net income[143](index=143&type=chunk) - Material cash requirements include annual interest payments of **$18.0 million** on senior notes, lease obligations, and purchase obligations of approximately **$110.9 million** expected in the next 12 months[158](index=158&type=chunk) [Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **effective** as of the end of the period covered by this report[165](index=165&type=chunk) - There were **no changes** in internal control over financial reporting during the quarter ended March 31, 2025, that materially affected, or are reasonably likely to materially affect, internal controls[163](index=163&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 10 of the financial statements for details on various legal proceedings, including environmental, customs, and cybersecurity-related matters - The company is involved in various legal proceedings, with details provided in Note 10 of the financial statements[169](index=169&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) This section indicates no material changes to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K - The report refers to the risk factors discussed in the company's 2024 Annual Report on Form 10-K and indicates **no material changes** from that disclosure[170](index=170&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 fiscal 2025, the company repurchased shares under its stock repurchase program, with a significant amount remaining authorized for future repurchases Share Repurchases in Q2 Fiscal 2025 | Period | Total Shares Purchased | Avg. Price Paid per Share | Shares Purchased as Part of Program | Remaining Authorization (millions) | | :--- | :--- | :--- | :--- | :--- | | Jan 2025 | — | — | — | $80.0 | | Feb 2025 | 199,389 | $26.75 | 185,961 | $75.0 | | Mar 2025 | — | — | — | $75.0 | - During the three months ended March 31, 2025, the company repurchased **185,961 shares** under its share repurchase authorization. An additional **13,428 shares** were surrendered to pay tax withholding obligations for equity awards[174](index=174&type=chunk) [Other Information](index=36&type=section&id=Item%205.%20Other%20Information) This section discloses a Rule 10b5-1 trading plan adopted by a Board member, with no other Section 16 officers or directors adopting or modifying plans - On February 7, 2025, a Board Member, Brian Healy, adopted a Rule 10b5-1 trading plan to purchase up to **$110,000** worth of company stock, with a maximum duration until January 30, 2026[172](index=172&type=chunk) [Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL-formatted financial data - The report includes required certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[176](index=176&type=chunk)

Mueller Water Products (MWA) Q2 2025 Earnings Call May 06, 2025 10:00 AM ET Company Participants Whit Kincaid - VP, Investor Relations & CommunicationsMarietta Zakas - President & CEOPaul McAndrew - President & COOMelissa Rasmussen - SVP & CFODeane Dray - Managing Director Conference Call Participants None - AnalystWalter Liptak - Industry Analyst Operator Today's conference is being recorded. If you have any objections, you may disconnect at this time. It is now my pleasure to turn the call over to Mr. Whi ...

Mueller Water Products (MWA) Q2 2025 Earnings Call May 06, 2025 10:00 AM ET Speaker0 Today's conference is being recorded. If you have any objections, you may disconnect at this time. It is now my pleasure to turn the call over to Mr. Whit Kincaid. Sir, you may begin. Speaker1 Good morning, everyone. Thank you for joining us for Mueller Water Products second quarter conference call. Yesterday afternoon, we issued our press release reporting results of operations for the quarter ended 03/31/2025. A copy of t ...

Where Intelligence Meets Infrastructure® Earnings Conference Call 2025 Second Quarter March 31, 2025 May 6, 2025 These slides are not intended to be a stand-alone presentation, but are for use in conjunction with the earnings call 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 usefu ...

Core Insights - Mueller Water Products (MWA) reported revenue of $364.3 million for the quarter ended March 2025, marking a year-over-year increase of 3.1% and a surprise of +4.67% over the Zacks Consensus Estimate of $348.05 million [1] - The earnings per share (EPS) for the same period was $0.34, compared to $0.30 a year ago, resulting in an EPS surprise of +6.25% against the consensus estimate of $0.32 [1] Financial Performance Metrics - Net Sales for Water Management Solutions were $148.10 million, slightly below the two-analyst average estimate of $153.50 million, reflecting a year-over-year change of +0.3% [4] - Net Sales for Water Flow Solutions reached $216.20 million, exceeding the two-analyst average estimate of $194.50 million, with a year-over-year change of +5.1% [4] - Adjusted operating income for Corporate was reported at -$15.50 million, worse than the -$14.50 million estimated by analysts [4] - Adjusted operating income for Water Management Solutions was $31.30 million, slightly above the $31 million estimated by analysts [4] - Adjusted operating income for Water Flow Solutions was $54.10 million, surpassing the $52.50 million estimated by analysts [4] Stock Performance - Shares of Mueller Water Products have returned +17% over the past month, significantly outperforming the Zacks S&P 500 composite's +0.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Company Performance - Mueller Water Products (MWA) reported quarterly earnings of $0.34 per share, exceeding the Zacks Consensus Estimate of $0.32 per share, and up from $0.30 per share a year ago [1][2] - The company achieved revenues of $364.3 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.67% and up from $353.4 million year-over-year [3] - Over the last four quarters, Mueller Water Products has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2][3] Stock Performance - The stock has increased approximately 20.9% since the beginning of the year, while the S&P 500 has declined by 3.3% [4] - The current consensus EPS estimate for the upcoming quarter is $0.36 on revenues of $365.65 million, and for the current fiscal year, it is $1.23 on revenues of $1.38 billion [8] Industry Outlook - Mueller Water Products operates within the Zacks Steel - Pipe and Tube industry, which is currently ranked in the bottom 13% of over 250 Zacks industries [9] - The performance of the stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [9]

Financial Performance - Net sales increased by 3.1 percent to $364.3 million compared to $353.4 million in the prior year quarter[2]. - Reported net income of $51.3 million, a 15.8 percent increase from $44.3 million in the prior year quarter, with a net income margin of 14.1 percent[9]. - Adjusted EBITDA rose by 2.8 percent to $84.5 million, achieving an adjusted EBITDA margin of 23.2 percent[10]. - Adjusted net income increased by 16.0 percent to $53.7 million compared to $46.3 million in the prior year quarter[9]. - Operating income increased by 10.1 percent to $69.9 million, with an operating margin of 19.2 percent[6]. - Net income for the six months ended March 31, 2025, was $86.6 million, a significant increase of 48% from $58.6 million in the same period in 2024[43]. - Net sales for the six months ended March 31, 2025, reached $668.6 million, a 9.6% increase from $609.8 million in the same period of 2024[49][50]. - Gross profit for the six months ended March 31, 2025, was $231.0 million, compared to $216.7 million in the prior year, reflecting a gross profit margin of 34.5%[49][50]. - Operating income for the six months ended March 31, 2025, was $117.3 million, with an operating margin of 17.5%, up from $86.3 million and a margin of 14.2% in the previous year[49][50]. - Net income for the six months ended March 31, 2025, was $86.6 million, resulting in a net income margin of 13.0%[49]. - Adjusted net income for the six months ended March 31, 2025, was $92.9 million, translating to an adjusted net income per diluted share of $0.59[49]. Guidance and Projections - The company raised its fiscal 2025 net sales guidance to between $1,390 million and $1,400 million, reflecting a 5.7 percent to 6.5 percent increase compared to the prior year[23]. Cash Flow and Capital Expenditures - Free cash flow for the six-month period increased by $0.9 million to $47.3 million compared to $46.4 million in the prior year period[21]. - Capital expenditures for the first six months of fiscal 2025 were $21.1 million, up from $15.8 million in the prior year period[20]. - Free cash flow for Q1 2025 was $5.1 million, compared to a negative free cash flow of $15.8 million in Q1 2024[46][48]. - Capital expenditures for Q1 2025 totaled $9.2 million, a decrease from $10.1 million in Q1 2024[45][47]. - Capital expenditures for the six months ended March 31, 2025, totaled $21.1 million, consistent with the previous year's expenditures[49][50]. Debt and Leverage - The company reported a total debt of $450.5 million and cash and cash equivalents of $329.2 million, resulting in a debt leverage ratio of 1.5 times[22]. - Net debt at the end of Q1 2025 was $121.3 million, with total debt of $450.5 million and cash and cash equivalents of $329.2 million[45][46]. - Debt leverage ratio was 1.5x based on trailing twelve months' adjusted EBITDA, while net debt leverage ratio was 0.4x[46]. Tax and Other Charges - The effective income tax rate for the second quarter was 24.2 percent, slightly down from 24.8 percent in the prior year quarter[18]. - The effective tax rate for adjusting items was 23.7% for the six months ended March 31, 2025[49]. - Strategic reorganization and other charges amounted to $4.1 million for the six months ended March 31, 2025, impacting net income[49]. Assets and Liabilities - Cash and cash equivalents at the end of the period were $329.2 million, up from $179.2 million at the end of March 31, 2024[43]. - Total assets increased to $1,670.6 million as of March 31, 2025, compared to $1,635.9 million as of September 30, 2024[39]. - The company reported a decrease in total current liabilities to $235.3 million as of March 31, 2025, from $258.0 million as of September 30, 2024[39]. Quarterly Performance - Net sales for the three months ended March 31, 2025, were $364.3 million, an increase of 3% compared to $353.4 million for the same period in 2024[41]. - Gross profit for Q1 2025 was $128.0 million, with a gross profit margin of 35.1%, compared to $130.4 million and a margin of 36.9% in Q1 2024[45][47]. - Operating income for Q1 2025 was $69.9 million, with an operating margin of 19.2%, compared to an operating income of $63.5 million and a margin of 18.0% in Q1 2024[45][47]. - Net income for Q1 2025 was $51.3 million, resulting in a net income margin of 14.1%, compared to $44.3 million and a margin of 12.5% in Q1 2024[45][47]. - Adjusted EBITDA for Q1 2025 was $84.5 million, with an adjusted EBITDA margin of 23.2%, compared to $82.2 million and a margin of 23.3% in Q1 2024[45][47]. - The company reported a trailing twelve months' adjusted EBITDA of $305.7 million for Q1 2025, compared to $236.8 million for the same period in 2024[45][47].

Core Insights - Mueller Water Products, Inc. reported a solid performance in the second quarter of fiscal 2025, achieving record levels in consolidated net sales, adjusted EBITDA, and adjusted net income per share, driven by healthy order levels and resilient end-market demand [2][4][6] Financial Performance - Net sales increased by 3.1 percent to $364.3 million compared to $353.4 million in the prior year quarter, primarily due to higher pricing and increased volumes across most product lines [4][6] - Operating income rose by 10.1 percent to $69.9 million, with an operating margin of 19.2 percent, up from 18.0 percent in the prior year quarter [7][10] - Adjusted net income increased by 16.0 percent to $53.7 million, with adjusted net income per diluted share rising by 13.3 percent to $0.34 [10][11] - Adjusted EBITDA increased by 2.8 percent to $84.5 million, with an adjusted EBITDA margin of 23.2 percent [11][12] Segment Results - Water Flow Solutions segment net sales increased by 5.1 percent to $216.2 million, driven by higher volumes of iron gate and specialty valves [12][13] - Water Management Solutions segment net sales increased by 0.3 percent to $148.1 million, primarily due to increased volumes of repair products [15][16] Cash Flow and Balance Sheet - Net cash provided by operating activities for the six-month period increased by $6.2 million to $68.4 million compared to $62.2 million in the prior year period [20][22] - Free cash flow for the six-month period increased by $0.9 million to $47.3 million [22] - As of March 31, 2025, total debt outstanding was $450.5 million, with cash and cash equivalents of $329.2 million, resulting in a debt leverage ratio of 1.5 times [23] Fiscal 2025 Outlook - The company raised its guidance for fiscal 2025 consolidated net sales to between $1,390 million and $1,400 million, reflecting an increase of 5.7 percent to 6.5 percent compared to the prior year [24] - The company reaffirmed its expectations for fiscal 2025 adjusted EBITDA to be between $310 million and $315 million, an increase of 8.9 percent to 10.6 percent compared to the prior year [24][25]