Mueller Water Products(US:MWA)2025-11-06 21:20Financial Performance - Net sales increased 9.4% in Q4 2025 to $380.8 million, compared to $348.2 million in Q4 2024[2] - Adjusted EBITDA for Q4 2025 was $91.8 million, a 26.6% increase from $72.5 million in Q4 2024, with an adjusted EBITDA margin of 24.1%[10] - Net income for Q4 2025 rose to $52.6 million, a 426.0% increase from $10.0 million in Q4 2024, resulting in a net income margin of 13.8%[9] - The company reported adjusted net income per diluted share of $0.38 in Q4 2025, a 72.7% increase from $0.22 in Q4 2024[2] - Gross profit for the year ended September 30, 2025, was $516.7 million, representing a 12.5% increase from $459.0 million in 2024[40] - Net income for the year ended September 30, 2025, was $191.7 million, compared to $115.9 million in 2024, reflecting a 65.3% increase[40] - The company reported a net income per diluted share of $1.22 for the year ended September 30, 2025, compared to $0.74 in 2024[40] - The gross profit for 2025 was $516.7 million, with a gross profit margin of 36.2%, compared to $459.0 million and a margin of 34.9% in 2024[47][49] - Operating income for 2025 was $260.6 million, reflecting an operating margin of 18.2%, up from an operating income of $181.7 million and a margin of 13.8% in 2024[47][49] - The company reported a net income of $191.7 million for 2025, resulting in a net income margin of 13.4%, compared to a net income of $115.9 million and a margin of 8.8% in 2024[47][49] - Adjusted EBITDA for 2025 was $326.2 million, with an adjusted EBITDA margin of 22.8%, compared to $284.7 million and a margin of 21.7% in 2024[47][49] Guidance and Projections - Fiscal 2026 net sales guidance is projected between $1,450 million and $1,470 million, reflecting a 1.4% to 2.8% increase compared to the prior year[23] - Fiscal 2026 adjusted EBITDA is expected to be between $345 million and $350 million, representing a 5.8% to 7.3% increase year-over-year[24] Cash Flow and Capital Expenditures - Free cash flow for the fiscal year was $172.0 million, a decrease of $19.4 million compared to $191.4 million in the prior year[21] - Free cash flow for the quarter ended September 30, 2025, was $69.0 million, compared to $69.9 million in the same quarter of 2024, a slight decrease of 1.3%[44][45] - Capital expenditures for the quarter ended September 30, 2025, totaled $14.5 million, compared to $19.4 million in the same quarter of 2024, a decrease of 25.2%[44][45] - Capital expenditures for 2025 totaled $47.3 million, reflecting ongoing investments in operational capabilities[47][49] - The company plans to invest between $60 million and $65 million in capital expenditures for fiscal 2026[27] Balance Sheet and Debt - Total debt outstanding as of September 30, 2025, was $451.6 million, with a net debt leverage ratio of 0.1x[22] - Total assets as of September 30, 2025, were $1,838.9 million, an increase from $1,635.9 million as of September 30, 2024[38] - Total liabilities increased to $857.2 million as of September 30, 2025, compared to $825.8 million in 2024[38] - Cash and cash equivalents rose to $431.5 million as of September 30, 2025, up from $309.9 million in 2024[38] - The debt leverage ratio for 2025 was 1.4x, while the net debt leverage ratio was 0.1x, indicating a strong balance sheet position[48] Tax and Other Charges - Cash paid for income taxes, net, for the year ended September 30, 2025, was $69.1 million, down from $74.4 million in 2024, a decrease of 7.0%[43] - Strategic reorganization and other charges for the year ended September 30, 2025, amounted to $8.8 million, down from $15.8 million in 2024[40] - The effective tax rate for adjusting items was 24.6% in 2025, which may be subject to rounding[48]