ATLANTA, Feb. 23, 2026 (GLOBE NEWSWIRE) -- 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 that its management team will participate in the Gabelli 36th Annual Pump, Valve and Water Systems Symposium in New York on Thursday, February 26, 2026, with the fireside chat taking place at 10:30 a.m. local time. The fireside chat will be webcast and available on the Ev ...

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates is challenging due to inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Mueller Water Products (MWA) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth indicating strong prospects [3] - Mueller Water Products has a historical EPS growth rate of 22.8%, with a projected EPS growth of 10.9% this year, surpassing the industry average of 10.1% [4] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, enabling them to fund new projects without external financing [5] - Mueller Water Products has a year-over-year cash flow growth of 16.7%, significantly higher than the industry average of 3.5% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 12.5%, compared to the industry average of 10.3% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate with stock price movements, making them an important consideration for investors [7] - Current-year earnings estimates for Mueller Water Products have increased by 3.1% over the past month [7] Group 5: Overall Positioning - Mueller Water Products has achieved a Growth Score of B and a Zacks Rank 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [9]

Financial Performance - For fiscal year 2026, the company anticipates consolidated net sales to increase between 2.8% and 4.2% compared to fiscal 2025[103]. - Net sales for the three months ended December 31, 2025, were $318.2 million, an increase of $13.9 million or 4.6% from $304.3 million in the prior year period[107]. - Gross profit for the three months ended December 31, 2025, was $119.8 million, an increase of $16.8 million or 16.3% from $103.0 million in the prior year period[108]. - Gross margin for the three months ended December 31, 2025, was 37.6%, compared to 33.8% in the prior year period[108]. - Net sales for the Water Management Solutions segment increased by $15.5 million or 12.0% to $145.2 million for the three months ended December 31, 2025, driven by higher pricing and volumes[115]. - Gross profit for the three months ended December 31, 2025, was $49.0 million, an increase of $1.1 million or 2.3%, with gross margin decreasing to 33.7% from 36.9%[116]. Expenses and Costs - Selling, general and administrative expenses for the three months ended December 31, 2025, were $59.8 million, an increase of $5.9 million or 10.9% from $53.9 million in the prior year period[109]. - SG&A for the three months ended December 31, 2025, was $21.4 million, an increase of $1.6 million or 8.1% compared to the prior year, with SG&A as a percentage of net sales rising to 12.4% from 11.3%[114]. - Net interest expense for the three months ended December 31, 2025, was $1.0 million, a decrease of $0.6 million or 37.5% from $1.6 million in the prior year period[111]. - The company expects inflation to continue to modestly impact manufacturing costs, primarily due to wage inflation and higher direct tariff costs of approximately 3% of costs of sales during fiscal 2026[104]. - The increase in Section 232 tariffs to 50% has resulted in upward pressure on certain purchased components and raw material costs, particularly affecting the Repair products imported to the United States[101]. Cash Flow and Capital Expenditures - Cash and cash equivalents on hand as of December 31, 2025, were $459.6 million, with an additional borrowing capacity of $163.7 million under the asset-based lending arrangement[119]. - Net cash flows provided by operating activities increased by $7.1 million to $61.2 million for the three months ended December 31, 2025, driven by an increase in net income[135]. - Capital expenditures for the three months ended December 31, 2025, were $17.2 million, up from $11.9 million in the prior year, primarily due to higher expenditures associated with iron foundries[136]. - For fiscal year 2026, capital expenditures are expected to be between $60.0 million and $65.0 million to expand production capacity and enhance operational capabilities[140]. Shareholder Returns - The company repurchased $5.5 million of common stock during the three months ended December 31, 2025, with $59.5 million remaining under the share repurchase authorization[122]. - A quarterly dividend of $0.070 per share was declared, resulting in an estimated cash outlay of $10.9 million[141]. Credit Rating - The corporate credit rating as of December 31, 2025, was Ba1 from Moody's and BB+ from Standard & Poor's, with a stable outlook[138].

Financial Data and Key Metrics Changes - The company reported consolidated net sales of $318.2 million, a 4.6% increase compared to the previous year [11] - Gross profit increased by 16.3% to $119.8 million, with gross margin expanding by 380 basis points to 37.6% [11] - Adjusted EBITDA reached a record $72.1 million, up 13.5% year-over-year, with adjusted EBITDA margin expanding by 180 basis points to 22.7% [13] - Free cash flow for the quarter was $44 million, representing 96% of adjusted net income [16] Business Line Data and Key Metrics Changes - WFS (Water Flow Solutions) net sales decreased by 0.9% to $173 million, while adjusted operating income increased by 28% to $49.4 million [14] - WMS (Water Management Solutions) net sales increased by 12% to $145.2 million, but adjusted operating income decreased by 11.2% to $24.5 million [15] Market Data and Key Metrics Changes - The company anticipates healthy municipal repair and replacement activity, with strong growth in project-related work using specialty valves, offsetting slower new residential construction activity [9] - The residential construction market is expected to see a high single-digit decrease, while municipal repair and replacement growth is projected in the low to mid-single-digit range [57] Company Strategy and Development Direction - The company is focused on operational execution and strengthening relationships with stakeholders, aiming for sustained margin expansion and long-term value creation [10] - Strategic capital expenditures are expected to increase capacity and drive efficiencies, particularly in domestic capabilities related to iron foundries [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance and the resilience of end markets, raising fiscal 2026 guidance based on strong first-quarter results [9][18] - The company expects to maintain a price-cost positive position for the full year, despite inflationary pressures and tariffs impacting costs [35] Other Important Information - The company has a strong balance sheet with no debt maturities until June 2029 and $623 million of total liquidity [17] - The leadership transition is structured to ensure continuity and stability, with the outgoing CEO remaining as a senior advisor [6] Q&A Session Summary Question: Can you quantify how much you guys have raised prices so far this year? - The majority of the increased growth in guidance is predominantly price-related, with the annual price increase not included in prior guidance [24] Question: Can you break down the impacts from manufacturing efficiencies and pricing on margins? - The closure of the legacy brass foundry provided significant benefits, impacting margins positively in the first quarter [25] Question: Can you size the inflation pressures? - The company expects a 3% impact from tariffs, with inflation typically in the low single-digit range [35] Question: What is the expectation for residential construction activity? - A high single-digit range of slowdown in residential construction is anticipated, but there is potential for increased land and housing activity if rates lower [36] Question: What are the next steps in the company's transformation? - The company aims to continue improving commercial and operational investments, focusing on capital expenditures to drive further capacity and efficiencies [42] Question: What is the focus for capital deployment? - The company is prioritizing acquisitions in drinking water and wastewater infrastructure, evaluating opportunities that can drive synergies with operations [45]

Financial Data and Key Metrics Changes - The company reported a net sales growth of 4.6% for Q1, reaching $318.2 million, driven by higher pricing across most product lines despite slightly lower volumes [11][8] - Gross profit increased by 16.3% to $119.8 million, with gross margin expanding by 380 basis points to 37.6% [11][12] - Adjusted EBITDA reached a record $72.1 million, up 13.5% year-over-year, with an adjusted EBITDA margin of 22.7%, marking a new Q1 record [13][11] - Adjusted net income per diluted share increased by 16% year-over-year to $0.29, setting another Q1 record [13] Business Line Data and Key Metrics Changes - Water Flow Solutions (WFS) net sales decreased by 0.9% to $173 million, primarily due to lower volumes of service brass products, but adjusted operating income increased by 28% to $49.4 million [14] - Water Management Solutions (WMS) net sales increased by 12% to $145.2 million, driven by higher pricing and strong volume growth of hydrants, although adjusted operating income decreased by 11.2% [15] Market Data and Key Metrics Changes - The company anticipates healthy municipal repair and replacement activity and strong growth in project-related work using specialty valves, which will offset slower new residential construction activity [9][18] - The residential construction market is expected to see a high single-digit decrease, while municipal repair and replacement growth is projected in the low to mid-single-digit range [55][57] Company Strategy and Development Direction - The company is focused on operational execution and strengthening relationships with stakeholders, aiming for sustained margin expansion and long-term value creation through strategic capital expenditures [10][9] - The leadership transition is structured to ensure continuity and build on the company's positive momentum [6][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance and the resilience of end markets, despite challenges from tariffs and inflation [20][60] - The company raised its FY 2026 guidance for consolidated net sales and adjusted EBITDA, reflecting strong Q1 results and expectations for the rest of the year [18][9] Other Important Information - The company generated $44 million of free cash flow and maintained a strong balance sheet with $452 million of total debt and $460 million of cash and cash equivalents [16][17] - The company plans to continue investing in capital expenditures between $60 million and $65 million for the year [19] Q&A Session Summary Question: Can you quantify how much you guys have raised prices so far this year? - Management indicated that the majority of the increased growth in guidance is predominantly price-related, with annual price increases recently announced [24] Question: Can you break down the impacts from manufacturing efficiencies and pricing on Water Flow? - Management noted that the closure of the legacy brass foundry provided significant benefits, which are expected to continue into the first half of the year [25] Question: Can you size for us the inflation pressures? - Management expects to be price positive for the full year, with approximately 3% impact from tariffs factored into guidance [35] Question: What is the expectation for residential construction activity? - Management anticipates a high single-digit range of slowdown in residential construction, but sees potential for increased activity if rates lower [36] Question: Can you provide insights on repair and replace contributions in the quarter? - Management reported strong performance in municipal markets, with expectations for growth driven by specialty valves, offset by a decrease in residential construction [54][57]

Financial Data and Key Metrics Changes - Consolidated net sales increased by 4.6% to $318.2 million, driven primarily by higher pricing across most product lines, partially offset by slightly lower volumes [12][9] - Gross profit rose by 16.3% to $119.8 million, with gross margin expanding by 380 basis points to 37.6% [12][14] - Adjusted EBITDA reached a first-quarter record of $72.1 million, an increase of 13.5% compared to the prior year [14] - Adjusted net income per diluted share increased by 16% year-over-year to $0.29, setting another first-quarter record [14] Business Line Data and Key Metrics Changes - Water Flow Solutions (WFS) net sales decreased by 0.9% to $173 million, while adjusted operating income increased by 28% to $49.4 million [15] - Water Management Solutions (WMS) net sales increased by 12% to $145.2 million, but adjusted operating income decreased by 11.2% to $24.5 million due to increased tariffs and inflationary pressures [17] Market Data and Key Metrics Changes - The company anticipates healthy municipal repair and replacement activity and strong growth in project-related work using specialty valves, which will offset slower new residential construction activity [10][20] - A high single-digit decrease in the residential construction market is expected, while municipal repair and replacement growth is projected in the low to mid-single-digit range [55][57] Company Strategy and Development Direction - The company is focused on improving operational execution and strengthening relationships with stakeholders, aiming for sustained margin expansion and long-term value creation [11][22] - Strategic capital expenditures are expected to increase capacity and drive efficiencies, particularly in domestic capabilities related to iron foundries [46][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance and the resilience of end markets, despite challenges from tariffs and inflation [10][60] - The company raised its fiscal 2026 guidance for consolidated net sales and adjusted EBITDA, reflecting strong first-quarter results and expectations for end market demand [20][21] Other Important Information - The company generated $44 million of free cash flow and returned approximately $16 million to shareholders through dividends and share repurchases [9] - The balance sheet remains strong, with no debt maturities until June 2029 and ample liquidity to support strategic priorities [19] Q&A Session Summary Question: Can you quantify how much you guys have raised prices so far this year? - The majority of the increased growth in guidance is predominantly price-related, with annual price increases recently announced [26] Question: Can you break down the impacts from manufacturing efficiencies and pricing on margins? - The closure of the legacy brass foundry provided significant benefits, impacting margins positively [27] Question: Can you size for us the inflation pressures? - The company expects to be price positive for the full year, with approximately a 3% impact from tariffs factored into guidance [36][37] Question: What is the expectation for residential construction activity? - A high single-digit range of slowdown in residential construction is anticipated, but there is potential for increased activity if rates lower [38] Question: Can you provide more color on Mueller's transformation and growth prospects? - The company has improved commercial and operational investments, with further capital expenditures planned to drive capacity and efficiencies [43][44] Question: What are the priorities for capital deployment? - The company is focused on evaluating acquisition opportunities, particularly in drinking water and wastewater sectors [46] Question: Can you run through your exposures in repair and replace contributions? - The company expects resilient end markets, with growth in municipal repair and replacement offsetting declines in residential construction [55][57]

Where Intelligence Meets Infrastructure® 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 ...

Core Insights - Mueller Water Products (MWA) reported revenue of $318.2 million for the quarter ended December 2025, marking a year-over-year increase of 4.6% and exceeding the Zacks Consensus Estimate by 3.7% [1] - The earnings per share (EPS) for the same period was $0.29, up from $0.25 a year ago, representing an EPS surprise of 8.74% compared to the consensus estimate of $0.27 [1] Financial Performance - Net Sales for Water Management Solutions reached $145.2 million, surpassing the average estimate of $131.5 million by two analysts, reflecting a year-over-year increase of 12% [4] - Net Sales for Water Flow Solutions were reported at $173 million, slightly below the average estimate of $175.5 million, indicating a year-over-year decline of 0.9% [4] - Adjusted operating income for Water Management Solutions was $24.5 million, below the average estimate of $29 million [4] - Adjusted operating income for Water Flow Solutions was $49.4 million, exceeding the average estimate of $41.5 million [4] Stock Performance - Shares of Mueller Water Products have returned +11.5% over the past month, significantly outperforming the Zacks S&P 500 composite, which changed by +0.9% [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

Financial Performance - Net sales increased by 4.6% to $318.2 million compared to $304.3 million in the prior year quarter[2] - Reported net income rose by 22.4% to $43.2 million, with a net income margin of 13.6% compared to 11.6% in the prior year quarter[12] - Adjusted EBITDA increased by 13.5% to $72.1 million, with an adjusted EBITDA margin of 22.7% compared to 20.9% in the prior year quarter[13] - Adjusted net income per diluted share increased by 16.0% to $0.29 compared to $0.25 in the prior year quarter[2] - Operating income increased by 19.6% to $56.7 million, with an operating margin of 17.8% compared to 15.6% in the prior year quarter[9] - Net income for the quarter was $43.2 million, a 22.4% increase from $35.3 million in the same quarter of 2024[42] - The adjusted operating margin for Q4 2025 was 18.9%, compared to 17.2% in Q4 2024, indicating an improvement of 1.7 percentage points[46] - The company reported an adjusted net income of $45.8 million for Q4 2025, up from $39.2 million in Q4 2024, which is an increase of 16.8%[46] Guidance and Future Outlook - The company raised its fiscal 2026 guidance for consolidated net sales to between $1,470 million and $1,490 million, representing a 2.8% to 4.2% increase compared to the prior year[26] Cash Flow and Liquidity - Free cash flow for the quarter increased to $44.0 million compared to $42.2 million in the prior year period[24] - The company reported a net cash provided by operating activities of $61.2 million, an increase from $54.1 million in the same quarter of the previous year[44] - Cash and cash equivalents at the end of the period were $459.6 million, up from $431.5 million at the end of the previous quarter[44] - Total debt outstanding as of December 31, 2025, was $452.3 million, with total liquidity of $623.3 million[25] Capital Expenditures - Capital expenditures for the quarter were $17.2 million, up from $11.9 million in the prior year period[23] - Capital expenditures for Q4 2025 totaled $17.2 million, compared to $11.9 million in Q4 2024, representing a significant increase of 44.5%[46] Profitability Metrics - Gross profit for the same period was $119.8 million, representing a gross margin of 37.6%, up from $103.0 million and a gross margin of 33.8% in the prior year[42] - Gross profit for the same period in 2025 was $119.8 million, compared to $103.0 million in 2024, indicating an increase of 16.3%[46] Balance Sheet Strength - Total assets increased to $1,846.8 million, compared to $1,838.9 million at the end of the previous quarter[40] - Total liabilities decreased to $828.6 million from $857.2 million in the prior quarter, indicating improved financial health[40] Dividends - The company declared dividends of $0.070 per share, up from $0.067 per share in the same period last year[42] Interest Expense - The company reported a decrease in interest expense to $1.0 million from $1.6 million in the prior year quarter[20] Share Information - The weighted average diluted shares outstanding for Q4 2025 were 157.3 million, slightly down from 157.5 million in Q4 2024[46]

Core Insights - Mueller Water Products, Inc. reported a 4.6% increase in net sales to $318.2 million for the first quarter of fiscal 2026, compared to $304.3 million in the prior year quarter [1][5][6] - The company achieved a reported net income of $43.2 million, or $0.27 per diluted share, reflecting a 22.4% increase from $35.3 million, or $0.22 per diluted share, in the prior year [1][12][41] - Adjusted EBITDA rose 13.5% to $72.1 million, with an adjusted EBITDA margin expansion to 22.7% from 20.9% in the prior year [1][13][27] Financial Performance - Net sales increased by $13.9 million, or 4.6%, primarily due to higher pricing across most product lines, partially offset by slightly lower volumes [6] - Gross profit increased by $16.8 million, or 16.3%, to $119.8 million, with a gross margin of 37.6%, up 380 basis points from the prior year [7] - Operating income rose by $9.3 million, or 19.6%, to $56.7 million, with an operating margin of 17.8%, compared to 15.6% in the prior year [9] Adjusted Metrics - Adjusted operating income increased by $7.6 million, or 14.5%, to $60.0 million, with an adjusted operating margin of 18.9%, up from 17.2% in the prior year [11] - Adjusted net income rose by $6.6 million, or 16.8%, to $45.8 million, with adjusted net income per diluted share increasing to $0.29 from $0.25 [12][46] Cash Flow and Capital Expenditures - Net cash provided by operating activities increased by $7.1 million to $61.2 million, driven by higher net income and non-cash adjustments [23] - Free cash flow for the quarter was $44.0 million, up from $42.2 million in the prior year, despite higher capital expenditures of $17.2 million compared to $11.9 million [25][44] Fiscal 2026 Outlook - The company raised its fiscal 2026 guidance for consolidated net sales to between $1,470 million and $1,490 million, representing a 2.8% to 4.2% increase compared to the prior year [27] - Adjusted EBITDA expectations for fiscal 2026 were increased to between $355 million and $360 million, an increase of 8.8% to 10.4% compared to the prior year [27]