Mueller Water Products(MWA) - 2025 Q3 - Quarterly Results

Executive Summary & Highlights Mueller Water Products delivered strong Q3 2025 results, achieving record sales and profitability, and raising full-year guidance Q3 2025 Financial Highlights Mueller Water Products reported strong third-quarter fiscal 2025 results, with increased net sales, operating income, and net income per diluted share, also raising its annual guidance for fiscal 2025 net sales and adjusted EBITDA Q3 2025 Financial Performance | Metric | Q3 2025 | Q3 2024 | Change (%) | | :-------------------------------- | :------ | :------ | :--------- | | Net Sales | $380.3 million | $356.7 million | +6.6% | | Operating Income | $73.7 million | $67.0 million | +10.0% | | Adjusted Operating Income | $74.7 million | $69.9 million | +6.9% | | Net Income | $52.5 million | $47.3 million | +11.0% | | Adjusted Net Income | $53.2 million | $49.5 million | +7.5% | | Net Income per Diluted Share | $0.33 | $0.30 | +10.0% | | Adjusted Net Income per Diluted Share | $0.34 | $0.32 | +6.3% | | Adjusted EBITDA | $86.4 million | $85.2 million | +1.4% | | Operating Margin | 19.4% | 18.8% | +0.6 percentage points | | Adjusted Operating Margin | 19.6% | 19.6% | 0.0 percentage points | | Net Income Margin | 13.8% | 13.3% | +0.5 percentage points | | Adjusted EBITDA Margin | 22.7% | 23.9% | -1.2 percentage points | - The company repurchased $10.0 million of common stock during the third quarter[2] - For the nine-month period, net cash provided by operating activities decreased to $135.8 million from $149.5 million, and free cash flow decreased to $103.0 million from $121.5 million[2] CEO Commentary CEO Martie Edmunds Zakas highlighted record consolidated net sales, gross margin, and adjusted EBITDA for Q3 2025, attributing success to manufacturing efficiencies and higher order levels despite macroeconomic challenges and tariffs, also noting the positive impact of closing the legacy brass foundry and the company's commitment to sustainability and innovation, expressing confidence in achieving record annual results for the second consecutive year and raising fiscal 2025 guidance - Achieved new records for consolidated net sales, gross margin, and adjusted EBITDA in Q3 2025[3] - Gross margin exceeded 38% this quarter, a sequential improvement of 320 basis points[3] - Successfully capitalized on higher-than-expected order levels and drove manufacturing efficiencies, mitigating tariff challenges[3][4] - Published annual ESG Report, emphasizing ongoing progress in sustainability, innovation, and impact[4] - On track for record annual results for the second consecutive year and raised annual guidance for 2025 net sales and adjusted EBITDA[4] Consolidated Financial Results This section details Mueller Water Products' consolidated financial performance for Q3 2025, covering net sales, profitability, and expenses Net Sales Consolidated net sales for the third quarter of 2025 increased by 6.6% year-over-year, driven primarily by higher volumes across most product lines and increased pricing Consolidated Net Sales Performance | Metric | Q3 2025 | Q3 2024 | Change | | :------- | :------ | :------ | :----- | | Net Sales | $380.3 million | $356.7 million | +6.6% | - Increase primarily due to increased volumes across most product lines and higher pricing[5] Gross Profit & Margin Gross profit and gross margin both saw significant increases in Q3 2025, primarily due to manufacturing efficiencies and higher volumes, despite being partially offset by increased tariffs Consolidated Gross Profit and Margin | Metric | Q3 2025 | Q3 2024 | Change | | :--------- | :------ | :------ | :----- | | Gross Profit | $145.7 million | $131.4 million | +10.9% | | Gross Margin | 38.3% | 36.8% | +150 basis points | - Improvements were primarily due to manufacturing efficiencies and increased volumes, partially offset by higher tariffs[6] Selling, General & Administrative Expenses Selling, general and administrative (SG&A) expenses increased in Q3 2025, largely due to an unfavorable foreign currency impact and inflationary pressures, partially mitigated by lower amortization expense Consolidated SG&A Expenses | Metric | Q3 2025 | Q3 2024 | Change | | :-------------------------------- | :------ | :------ | :----- | | SG&A Expenses | $71.0 million | $61.5 million | +15.4% | | Unfavorable Foreign Currency Impact | $9.1 million | N/A | N/A | - The increase was primarily due to an unfavorable foreign currency impact of $9.1 million and inflationary pressures, partially offset by lower amortization expense[7] Operating Income & Margin Operating income and margin improved in Q3 2025, benefiting from manufacturing efficiencies, increased volumes, and lower amortization, despite headwinds from unfavorable foreign currency and higher tariffs; adjusted operating income also increased, with adjusted operating margin remaining flat Consolidated Operating Income and Margin | Metric | Q3 2025 | Q3 2024 | Change | | :------------------------ | :------ | :------ | :----- | | Operating Income | $73.7 million | $67.0 million | +10.0% | | Operating Margin | 19.4% | 18.8% | +0.6 percentage points | | Adjusted Operating Income | $74.7 million | $69.9 million | +6.9% | | Adjusted Operating Margin | 19.6% | 19.6% | 0.0 percentage points | - Benefits from manufacturing efficiencies, increased volumes, and lower amortization expense were partially offset by unfavorable foreign currency and higher tariffs[8] - Strategic reorganization and other charges of $1.0 million were incurred, primarily related to leadership transition, and excluded from adjusted results[9] Net Income & EPS Net income and net income per diluted share increased significantly in Q3 2025, with adjusted figures also showing healthy growth, reflecting overall improved profitability Consolidated Net Income and EPS | Metric | Q3 2025 | Q3 2024 | Change | | :-------------------------------- | :------ | :------ | :----- | | Net Income | $52.5 million | $47.3 million | +11.0% | | Net Income Margin | 13.8% | 13.3% | +0.5 percentage points | | Adjusted Net Income | $53.2 million | $49.5 million | +7.5% | | Net Income per Diluted Share | $0.33 | $0.30 | +10.0% | | Adjusted Net Income per Diluted Share | $0.34 | $0.32 | +6.3% | Adjusted EBITDA & Margin Adjusted EBITDA saw a modest increase in Q3 2025, though the adjusted EBITDA margin slightly declined compared to the prior year quarter, impacted by unfavorable currency fluctuations Consolidated Adjusted EBITDA and Margin | Metric | Q3 2025 | Q3 2024 | Change | | :------------------ | :------ | :------ | :----- | | Adjusted EBITDA | $86.4 million | $85.2 million | +1.4% | | Adjusted EBITDA Margin | 22.7% | 23.9% | -1.2 percentage points | - Adjusted EBITDA included a $7.7 million unfavorable currency impact during the quarter[11] Segment Results This section analyzes the financial performance of Mueller Water Products' Water Flow Solutions and Water Management Solutions segments Water Flow Solutions The Water Flow Solutions segment experienced growth in net sales and adjusted operating income in Q3 2025, driven by increased volumes and pricing, despite higher tariffs; adjusted EBITDA also saw a slight increase Water Flow Solutions Segment Performance (Q3 2025) | Metric | Q3 2025 | Q3 2024 | Change | | :------------------------ | :------ | :------ | :----- | | Net Sales | $216.6 million | $208.1 million | +4.1% | | Operating Income | $60.5 million | $57.8 million | +4.7% | | Adjusted Operating Income | $60.5 million | $57.8 million | +4.7% | | Adjusted EBITDA | $67.1 million | $66.9 million | +0.3% | | Operating Margin | 27.9% | 27.8% | +0.1 percentage points | | Adjusted Operating Margin | 27.9% | 27.8% | +0.1 percentage points | | Adjusted EBITDA Margin | 31.0% | 32.1% | -1.1 percentage points | - Net sales increase primarily due to increased volumes of iron gate and specialty valves and higher pricing, partially offset by lower volumes of service brass products[12] - Operating income benefits from increased volumes, manufacturing efficiencies, and lower amortization expense, more than offsetting higher tariffs[13] Water Management Solutions The Water Management Solutions segment demonstrated strong performance in Q3 2025, with double-digit growth in net sales and adjusted operating income, primarily due to increased volumes and manufacturing efficiencies, despite some foreign currency and tariff impacts Water Management Solutions Segment Performance (Q3 2025) | Metric | Q3 2025 | Q3 2024 | Change | | :------------------------ | :------ | :------ | :----- | | Net Sales | $163.7 million | $148.6 million | +10.2% | | Operating Income | $30.1 million | $25.5 million | +18.0% | | Adjusted Operating Income | $30.3 million | $26.9 million | +12.6% | | Adjusted EBITDA | $35.3 million | $34.0 million | +3.8% | | Operating Margin | 18.4% | 17.2% | +1.2 percentage points | | Adjusted Operating Margin | 18.5% | 18.1% | +0.4 percentage points | | Adjusted EBITDA Margin | 21.6% | 22.9% | -1.3 percentage points | - Net sales increase primarily due to increased volumes of repair products and hydrants and higher pricing, partially offset by lower volumes of natural gas distribution products[15] - Operating income benefits from manufacturing efficiencies, increased volumes, and lower amortization expense, more than offsetting unfavorable foreign currency and higher tariffs[16] Other Financial Details This section covers Mueller Water Products' interest expense and income tax details for the reporting period Interest Expense, Net Net interest expense decreased in Q3 2025, primarily due to higher interest income Net Interest Expense | Metric | Q3 2025 | Q3 2024 | Change | | :------------------ | :------ | :------ | :----- | | Interest Expense, Net | $1.7 million | $2.8 million | -39.3% | - Decrease primarily as a result of higher interest income[18] Income Taxes Income tax expense and the effective tax rate increased in Q3 2025 compared to the prior year quarter Income Tax Expense and Rate | Metric | Q3 2025 | Q3 2024 | Change | | :------------------ | :------ | :------ | :----- | | Income Tax Expense | $19.5 million | $15.9 million | +22.6% | | Effective Tax Rate | 27.1% | 25.2% | +1.9 percentage points | Cash Flow and Balance Sheet This section provides an overview of Mueller Water Products' cash flow activities, capital expenditures, and balance sheet position Operating Activities Net cash provided by operating activities for the nine-month period decreased year-over-year, primarily due to changes in working capital, partially offset by higher net income Net Cash Provided by Operating Activities (9 Months) | Metric | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | Change | | :-------------------------------- | :--------------------------- | :--------------------------- | :----- | | Net Cash Provided by Operating Activities | $135.8 million | $149.5 million | -$13.7 million | - The decrease was primarily driven by changes in working capital, including decreases in other current liabilities, partially offset by higher net income[20] Capital Expenditures Capital expenditures increased for the first nine months of fiscal 2025, mainly due to increased investments in iron foundries Capital Expenditures (9 Months) | Metric | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | Change | | :------------------ | :--------------------------- | :--------------------------- | :----- | | Capital Expenditures | $32.8 million | $28.0 million | +$4.8 million | - Primarily driven by increased expenditures in iron foundries[21] Free Cash Flow Free cash flow for the nine-month period decreased due to lower net cash from operating activities and higher capital expenditures Free Cash Flow (9 Months) | Metric | 9 Months Ended June 30, 2025 | 9 Months Ended June 30, 2024 | Change | | :------------ | :--------------------------- | :--------------------------- | :----- | | Free Cash Flow | $103.0 million | $121.5 million | -$18.5 million | - Decrease due to the decrease in net cash provided by operating activities and higher capital expenditures[22] Debt and Liquidity As of June 30, 2025, the company maintained a healthy liquidity position with significant cash and low leverage ratios, with no borrowings under its ABL Agreement Debt and Liquidity Position (June 30, 2025) | Metric | As of June 30, 2025 | | :-------------------------------- | :------------------ | | Total Debt Outstanding | $450.8 million | | Cash and Cash Equivalents | $372.0 million | | Debt Leverage Ratio | 1.5x | | Net Debt Leverage Ratio | 0.3x | - No borrowings under the ABL Agreement at the end of the quarter or during the quarter[23] - No maturities on the Company's debt financings until June 2029, and 4.0% Senior Notes have no financial maintenance covenants[23] Fiscal 2025 Outlook This section outlines Mueller Water Products' revised financial guidance and key metric expectations for fiscal year 2025 Revised Guidance Mueller Water Products increased its fiscal 2025 guidance for consolidated net sales and adjusted EBITDA, while maintaining its free cash flow as a percentage of adjusted net income expectation; this guidance incorporates anticipated impacts from recently enacted tariffs Revised Fiscal 2025 Guidance | Metric | Revised FY2025 Guidance | Prior Year Change | | :-------------------------------- | :---------------------- | :---------------- | | Consolidated Net Sales | $1,405 million - $1,415 million | +6.9% to +7.6% | | Adjusted EBITDA | $318 million - $322 million | +11.7% to +13.1% | | Free Cash Flow as % of Adjusted Net Income | >80% | Maintained | - Guidance reflects anticipated impacts from recently enacted tariffs[24] Additional Financial Metrics The company provided specific expectations for several key financial metrics for fiscal 2025, including SG&A expenses, net interest expense, effective income tax rate, depreciation and amortization, capital expenditures, and pension benefit Fiscal 2025 Financial Metric Expectations | Metric | FY2025 Expectation | | :-------------------------------- | :------------------ | | Total SG&A Expenses | $245 million - $247 million | | Net Interest Expense | $7.5 million - $8.0 million | | Effective Income Tax Rate | 25% - 26% | | Depreciation and Amortization | $45 million - $46 million | | Capital Expenditures | $50 million - $52 million | | Pension Benefit Other Than Service | ~$0.2 million | | Annual Amortization Expense Decrease | ~$18 million (due to fully amortized intangibles) | Corporate Information This section provides details on Mueller Water Products' investor communications, non-GAAP measures, forward-looking statements, and company overview Conference Call Webcast Mueller Water Products will host a quarterly earnings conference call and webcast on Tuesday, August 5, 2025, at 10:00 a.m. ET, with replay and archive options available - Quarterly earnings conference call scheduled for Tuesday, August 5, 2025, at 10:00 a.m. ET[26] - A live webcast will be available on the Investor Relations section of the Company's website (www.muellerwaterproducts.com)[26](index=26&type=chunk) - Replay available for 30 days by dialing 1-866-470-4775, and webcast archive for at least 90 days[26] Use of Non-GAAP Measures The company provides non-GAAP financial measures, such as adjusted net income, adjusted operating income, adjusted EBITDA, net debt, and free cash flow, to offer additional insights into its performance and liquidity, as these are used by management for evaluation and by investors for recurring performance analysis; reconciliations to GAAP are provided, but forward-looking non-GAAP measures are not reconciled due to inherent uncertainties - Non-GAAP measures (Adjusted net income, adjusted net income per diluted share, adjusted operating income, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin) are used by management to evaluate underlying performance and by investors for recurring performance[28] - Non-GAAP liquidity measures (Net debt, net debt leverage, free cash flow) are used to evaluate capital management, financial position, and ability to generate liquidity from operations[29] - Reconciliations of non-GAAP measures to GAAP results are included in the press release attachment, but forward-looking non-GAAP measures are not reconciled to GAAP due to the unpredictability of certain items[31] Forward-Looking Statements The report contains forward-looking statements regarding future activities, events, and financial performance, which are based on current assumptions but are subject to various risks and uncertainties; readers are cautioned against undue reliance and advised to review the company's SEC filings for detailed risk factors - Statements regarding outlooks, projections, forecasts, expectations, and future performance are considered forward-looking statements[32] - Actual results may differ materially due to factors such as logistical challenges, geopolitical conditions, supply chain disruptions, inability to realize operational benefits, workforce issues, cybersecurity risks, cyclical demand, and regulatory changes[33] - The company undertakes no duty to update forward-looking statements except as required by law, and advises reviewing risk factors in Forms 10-K and 10-Q[35] About Mueller Water Products, Inc. Mueller Water Products, Inc. is a leading North American manufacturer and marketer of products and solutions for water transmission, distribution, and measurement, offering a broad portfolio to help municipalities improve efficiency, customer service, and capital spending - Leading manufacturer and marketer of products and solutions for water transmission, distribution, and measurement in North America[36] - Portfolio includes engineered valves, fire hydrants, pipe connection and repair products, metering products, leak detection, pipe condition assessment, pressure management products, and software[36] - Aims to help municipalities increase operational efficiencies, improve customer service, and prioritize capital spending[36] Condensed Consolidated Financial Statements (Unaudited) This section presents Mueller Water Products' unaudited condensed consolidated balance sheets, statements of operations, and cash flows Condensed Consolidated Balance Sheets The condensed consolidated balance sheets provide a snapshot of the company's financial position at June 30, 2025, compared to September 30, 2024, showing increases in total assets, cash and cash equivalents, and total stockholders' equity, while total liabilities decreased Condensed Consolidated Balance Sheets (in millions) | Asset/Liability/Equity | June 30, 2025 (in millions) | September 30, 2024 (in millions) | | :-------------------------------- | :-------------------------- | :----------------------------- | | Cash and cash equivalents | $372.0 | $309.9 | | Total current assets | $937.8 | $858.4 | | Total assets | $1,730.4 | $1,635.9 | | Total current liabilities | $242.8 | $258.0 | | Total liabilities | $801.4 | $825.8 | | Total stockholders' equity | $929.0 | $810.1 | Condensed Consolidated Statements of Operations The condensed consolidated statements of operations detail the company's financial performance for the three and nine months ended June 30, 2025, compared to the prior year, highlighting growth in net sales, gross profit, operating income, and net income Condensed Consolidated Statements of Operations (in millions) | Metric | 3 Months Ended June 30, 2025 (in millions) | 3 Months Ended June 30, 2024 (in millions) | 9 Months Ended June 30, 2025 (in millions) | 9 Months Ended June 30, 2024 (in millions) | | :-------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net sales | $380.3 | $356.7 | $1,048.9 | $966.5 | | Gross profit | $145.7 | $131.4 | $376.7 | $348.1 | | Operating income | $73.7 | $67.0 | $191.0 | $153.3 | | Income before income taxes | $72.0 | $63.2 | $185.5 | $139.0 | | Net income | $52.5 | $47.3 | $139.1 | $105.9 | | Net income per diluted share | $0.33 | $0.30 | $0.88 | $0.68 | | Dividends declared per share | $0.067 | $0.064 | $0.201 | $0.192 | - For the nine-month period ended June 30, 2025, Cost of sales included $4.1 million in Inventory and other asset write-downs associated with the closure of the legacy brass foundry[41] Condensed Consolidated Statements of Cash Flows The condensed consolidated statements of cash flows illustrate the sources and uses of cash for the nine months ended June 30, 2025, showing a decrease in net cash provided by operating activities and free cash flow, alongside increased capital expenditures and common stock repurchases Condensed Consolidated Statements of Cash Flows (in millions) | Cash Flow Activity | 9 Months Ended June 30, 2025 (in millions) | 9 Months Ended June 30, 2024 (in millions) | | :-------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net cash provided by operating activities | $135.8 | $149.5 | | Net cash used in investing activities | ($32.7) | ($27.9) | | Net cash used in financing activities | ($47.2) | ($40.7) | | Net change in cash and cash equivalents | $62.1 | $83.0 | | Cash and cash equivalents at end of period | $372.0 | $243.3 | | Capital expenditures | $32.8 | $28.0 | | Common stock repurchased | $15.0 | $10.0 | Supplemental Cash Flow Information (in millions) | Supplemental Cash Flow Information | 9 Months Ended June 30, 2025 (in millions) | 9 Months Ended June 30, 2024 (in millions) | | :-------------------------------- | :--------------------------------------- | :--------------------------------------- | | Cash paid for interest, net | $9.1 | $13.1 | | Cash paid for income taxes, net | $49.8 | $47.3 | Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (Unaudited) This section provides detailed unaudited segment results and reconciliations of non-GAAP to GAAP financial measures for various periods Q3 2025 Segment Results and Reconciliations This section provides detailed financial results for the Water Flow Solutions and Water Management Solutions segments for the three months ended June 30, 2025, along with reconciliations of non-GAAP measures like adjusted net income, adjusted operating income, adjusted EBITDA, and free cash flow to their GAAP equivalents Q3 2025 Segment Performance and Reconciliations (in millions) | Metric (Q3 2025) | Water Flow Solutions (in millions) | Water Management Solutions (in millions) | Corporate (in millions) | Consolidated (in millions) | | :-------------------------------- | :------------------------------- | :----------------------------------- | :---------------------- | :------------------------- | | Net sales | $216.6 | $163.7 | — | $380.3 | | Gross profit | $83.8 | $61.9 | — | $145.7 | | Operating income (loss) | $60.5 | $30.1 | ($16.9) | $73.7 | | Adjusted operating income (loss) | $60.5 | $30.3 | ($16.1) | $74.7 | | Adjusted EBITDA | $67.1 | $35.3 | ($16.0) | $86.4 | | Net income | | | | $52.5 | | Adjusted net income | | | | $53.2 | | Free cash flow | | | | $55.7 | | Debt leverage | | | | 1.5x | | Net debt leverage | | | | 0.3x | - Strategic reorganization and other charges of $1.0 million were primarily related to leadership transition and certain transaction-related expenses[45][46] Q3 2024 Segment Results and Reconciliations This section presents the detailed financial performance of the Water Flow Solutions and Water Management Solutions segments for the three months ended June 30, 2024, including reconciliations of non-GAAP measures to GAAP, providing a comparative basis for the current quarter's results Q3 2024 Segment Performance and Reconciliations (in millions) | Metric (Q3 2024) | Water Flow Solutions (in millions) | Water Management Solutions (in millions) | Corporate (in millions) | Consolidated (in millions) | | :-------------------------------- | :------------------------------- | :----------------------------------- | :---------------------- | :------------------------- | | Net sales | $208.1 | $148.6 | — | $356.7 | | Gross profit | $81.9 | $49.5 | — | $131.4 | | Operating income (loss) | $57.8 | $25.5 | ($16.3) | $67.0 | | Adjusted operating income (loss) | $57.8 | $26.9 | ($14.8) | $69.9 | | Adjusted EBITDA | $66.9 | $34.0 | ($15.7) | $85.2 | | Net income | | | | $47.3 | | Adjusted net income | | | | $49.5 | | Free cash flow | | | | $75.1 | | Debt leverage | | | | 1.7x | | Net debt leverage | | | | 0.8x | - Strategic reorganization and other charges of $2.9 million primarily related to non-cash asset impairment, leadership transition, severance, and transaction-related expenses[47][48] YTD Q3 2025 Segment Results and Reconciliations This section details the year-to-date financial performance for the Water Flow Solutions and Water Management Solutions segments for the nine months ended June 30, 2025, including reconciliations of non-GAAP measures to GAAP, providing a comprehensive view of segment contributions YTD Q3 2025 Segment Performance and Reconciliations (in millions) | Metric (YTD Q3 2025) | Water Flow Solutions (in millions) | Water Management Solutions (in millions) | Corporate (in millions) | Consolidated (in millions) | | :-------------------------------- | :------------------------------- | :----------------------------------- | :---------------------- | :------------------------- | | Net sales | $607.4 | $441.5 | — | $1,048.9 | | Gross profit | $215.9 | $160.8 | — | $376.7 | | Operating income (loss) | $149.9 | $88.7 | ($47.6) | $191.0 | | Adjusted operating income (loss) | $155.0 | $89.3 | ($44.1) | $200.2 | | Adjusted EBITDA | $174.0 | $104.3 | ($43.9) | $234.4 | | Net income | | | | $139.1 | | Adjusted net income | | | | $146.0 | | Free cash flow | | | | $103.0 | - Gross profit includes $4.1 million in Inventory and other asset write-downs associated with the closure of the legacy brass foundry[49] - Strategic reorganization and other charges of $5.1 million primarily related to leadership transition, non-cash asset impairment, and transaction-related expenses[49] YTD Q3 2024 Segment Results and Reconciliations This section provides the year-to-date financial performance for the Water Flow Solutions and Water Management Solutions segments for the nine months ended June 30, 2024, including reconciliations of non-GAAP measures to GAAP, serving as a baseline for comparison YTD Q3 2024 Segment Performance and Reconciliations (in millions) | Metric (YTD Q3 2024) | Water Flow Solutions (in millions) | Water Management Solutions (in millions) | Corporate (in millions) | Consolidated (in millions) | | :-------------------------------- | :------------------------------- | :----------------------------------- | :---------------------- | :------------------------- | | Net sales | $555.2 | $411.3 | — | $966.5 | | Gross profit | $205.7 | $142.4 | — | $348.1 | | Operating income (loss) | $137.6 | $69.6 | ($53.9) | $153.3 | | Adjusted operating income (loss) | $137.8 | $71.0 | ($42.8) | $166.0 | | Adjusted EBITDA | $166.0 | $91.8 | ($45.6) | $212.2 | | Net income | | | | $105.9 | | Adjusted net income | | | | $115.6 | | Free cash flow | | | | $121.5 | - Strategic reorganization and other charges of $12.7 million primarily related to leadership transition, transaction-related expenses, cybersecurity incidents, non-cash asset impairment, and severance[50]