Summary of Mueller Water Products Conference Call Company Overview - **Company**: Mueller Water Products (NYSE: MWA) - **Industry**: Water Infrastructure - **CEO Transition**: Marty Zakas will step down as CEO on February 9, 2026, with Paul McAndrew taking over [8][18] Key Financial Highlights - **Fiscal Year 2025 Performance**: - Record-breaking year with over 8% net sales growth, all organic [9][10] - EBITDA margin of 22.8% [10] - Free cash flow was approximately 84% of adjusted net income [15] Market Position and Products - **Core Products**: - Underground water infrastructure components including iron gate valves, fire hydrants, and specialty valves [9][12] - Focus on water and wastewater treatment facilities [9] - **Market Segments**: - Predominantly serves the U.S. market (92% of net sales), with a small portion from Canada [10] - Strong presence in municipal water utilities and residential construction markets [12][13] Strategic Initiatives - **Infrastructure Investment**: - $55 billion allocated for water infrastructure by the federal government [13] - Emphasis on the need for continued investment in aging water infrastructure [30][28] - **Product Innovations**: - Introduction of hydrant renewal technology to reduce replacement costs and time [30][31] - Development of EcoBrass, a more sustainable brass material [11][39] Operational Improvements - **Manufacturing Enhancements**: - Consolidation of five manufacturing sites into a new facility in Kimball, Tennessee [37] - New brass foundry opened, replacing an older facility [38] - **Capacity and Productivity**: - Plans to modernize aged equipment in iron foundries to increase capacity and productivity [40] Leadership Vision - **Future Growth**: - Focus on fewer, larger opportunities for growth rather than spreading resources too thin [22] - Commitment to enhancing customer experience through digital interfaces and operational improvements [16][23] - **Cultural Shift**: - Transition towards a performance-driven culture to support growth and margin expansion [23] Financial Strategy - **Capital Allocation**: - Balanced approach between returning capital to shareholders and investing in growth opportunities [52][54] - Ongoing share repurchase program with $65 million remaining [52] - **Margin Improvement**: - Expectation of 100 basis points year-over-year margin expansion [42] Conclusion - **Outlook**: - Positive outlook for continued growth driven by infrastructure investment and operational improvements [15][17] - Strong focus on innovation and customer relationships to enhance market position [16][30]