Mueller Water Products(MWA) - 2026 Q1 - Quarterly Results

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]