Mueller Industries(MLI) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights Introduction and Key Adjustments Mueller Industries reported Q2 2025 earnings, including a $36.3 million pre-tax gain from a March 2023 tornado insurance claim, with partial proceeds received and more expected - Mueller Industries, Inc. (NYSE: MLI) announced its second quarter 2025 results, with comparisons made to the second quarter of 2024[2] - The results include a $36.3 million gain ($28.1 million net of tax) from an insurance claim related to a March 2023 tornado, with $15.0 million received in 2025 and additional insurance recovery amounts expected[3] Second Quarter Financial and Operating Highlights Mueller Industries achieved a record quarter, excluding insurance recovery, with net sales up 14.1% from acquisitions and higher prices, maintaining a strong cash position Q2 2025 Financial Highlights (vs Q2 2024) | Metric | Q2 2025 (GAAP) | Q2 2024 | Change | Q2 2025 (Excl. Insurance Gain) | | :-------------------------------- | :------------- | :-------- | :----- | :----------------------------- | | Net Income | $245.9 million | $160.2 million | +53.5% | $217.9 million | | Operating Income | $304.2 million | $210.0 million | +44.9% | $267.9 million | | Net Sales | $1.14 billion | $997.7 million | +14.1% | N/A | | Diluted EPS | $2.22 | $1.41 | +57.4% | $1.96 | - The quarter-over-quarter increase in net sales was largely attributable to sales from the two businesses acquired in 2024 (Nehring and EPC) and to higher selling prices related to a rise in raw material costs across all businesses[5][6] - COMEX copper averaged $4.72 per pound during the quarter, representing a 3.7% increase over the prior period[6] - Net cash generated from operations was $190.6 million, with a cash balance net of debt of $1.0 billion at quarter end, and a strong current ratio of 4.9 to 1[6] CEO Commentary and Business Outlook CEO Greg Christopher praised a record quarter, noting acquisition benefits and optimism for future growth despite market uncertainties - CEO Greg Christopher stated that, excluding the tornado-related insurance recovery, the company delivered a record quarter, crediting manufacturing operations and commercial teams for outstanding execution[5] - Positive progress and contributions were observed from the 2024 acquisitions, Nehring and EPC, with expectations for continued improvement[5] - Business conditions are unsettled, with U.S. residential construction subdued; demand is expected to increase when interest rates are reduced, and trade protections are believed to ultimately benefit most portfolio companies[7] - The company is optimistic about its future, focusing on a growth platform in water infrastructure, HVAC/R, and electrical transmission, and continues to invest in efficiency and capabilities while actively seeking strategic acquisitions[7] Company Overview Mueller Industries is an industrial corporation manufacturing vital goods for diverse markets globally - Mueller Industries, Inc. (NYSE: MLI) is an industrial corporation whose holdings manufacture vital goods for important markets such as air, water, oil and gas distribution; climate comfort; food preservation; energy transmission; medical; aerospace; and automotive[7] - The company includes a network of companies and brands throughout North America, Europe, Asia, and the Middle East[7] Forward-Looking Statements This section outlines potential risks and uncertainties associated with forward-looking statements, advising caution - Statements in this release that are not strictly historical may be 'forward-looking' statements, involving risks and uncertainties such as economic and currency conditions, raw material availability, market demand, pricing, competitive and technological factors, and financing availability[8] - Readers should not place undue reliance on forward-looking statements, which speak only as of the report date, and the Company has no obligation to publicly update or revise these statements[8] Contact Information For inquiries, please contact Jeffrey A. Martin - For inquiries, contact Jeffrey A. Martin at (901) 753-3226[9] Financial Statements Condensed Consolidated Statements of Income The consolidated income statement for Q2 2025 and YTD 2025 shows significant increases in net sales, operating income, and net income, driven by higher sales and operating performance, including an insurance proceeds gain Consolidated Income Statement Condensed Consolidated Statements of Income (Q2 2025 vs Q2 2024) | Metric (in thousands) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :---------------------------------- | :-------- | :-------- | :--------- | :--------- | | Net sales | $1,138,173 | $997,745 | $2,138,338 | $1,847,399 | | Cost of goods sold | $785,194 | $724,990 | $1,513,379 | $1,333,693 | | Operating income | $304,168 | $210,006 | $510,430 | $393,431 | | Income before income taxes | $324,443 | $222,926 | $535,663 | $424,476 | | Net income attributable to Mueller Industries, Inc. | $245,924 | $160,165 | $403,356 | $298,528 | | Diluted earnings per share | $2.22 | $1.41 | $3.60 | $2.62 | | Dividends per share | $0.25 | $0.20 | $0.50 | $0.40 | - The Q2 2025 income statement includes a $36,278 thousand gain on insurance proceeds, which contributed to the reported operating income and net income[11] Summary Segment Data Net Sales by Segment (Q2 2025 vs Q2 2024) | Segment (in thousands) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--------------------- | :-------- | :-------- | :--------- | :--------- | | Piping Systems Segment | $743,475 | $688,469 | $1,383,158 | $1,278,637 | | Industrial Metals Segment | $270,598 | $195,341 | $522,511 | $351,408 | | Climate Segment | $137,515 | $130,532 | $260,622 | $247,342 | | Total Net Sales | $1,138,173 | $997,745 | $2,138,338 | $1,847,399 | Operating Income by Segment (Q2 2025 vs Q2 2024) | Segment (in thousands) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--------------------- | :-------- | :-------- | :--------- | :--------- | | Piping Systems Segment | $250,296 | $162,258 | $408,460 | $304,938 | | Industrial Metals Segment | $30,610 | $29,693 | $60,694 | $53,964 | | Climate Segment | $42,628 | $38,993 | $78,252 | $71,568 | | Total Operating Income | $304,168 | $210,006 | $510,430 | $393,431 | Condensed Consolidated Balance Sheets As of June 28, 2025, total assets increased due to higher accounts receivable and inventories, while total liabilities and stockholders' equity also saw healthy rises Condensed Consolidated Balance Sheets (as of June 28, 2025 vs Dec 28, 2024) | Metric (in thousands) | June 28, 2025 | December 28, 2024 | | :-------------------------- | :-------------- | :---------------- | | Total current assets | $2,214,134 | $2,012,229 | | Total assets | $3,487,442 | $3,290,906 | | Total current liabilities | $455,965 | $397,987 | | Total liabilities | $546,819 | $486,498 | | Total Mueller Industries, Inc. stockholders' equity | $2,916,560 | $2,773,165 | - Cash and cash equivalents decreased slightly from