Mueller Water Products Reports 2026 First Quarter Results

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]