Mueller Water Products(US:MWA)2023-05-12 18:26Financial Performance - Consolidated net sales increased by 7.2% year-over-year to $332.9 million[21], driven by higher pricing and increased volumes at Water Management Solutions[21][44] - Gross margin decreased by 50 bps to 29.4%[21], due to decreased volumes at Water Flow Solutions and higher costs associated with inflation[21] - Adjusted EBITDA decreased by 4.9% year-over-year to $48.1 million[22], with adjusted EBITDA margin decreasing by 190 bps to 14.4%[22] - Water Management Solutions achieved an adjusted EBITDA margin of over 22% for the quarter[17][53] - Water Flow Solutions net sales decreased 14.5% year-over-year to $157.2 million[26], with adjusted EBITDA margin decreasing 870 bps to 14.6%[26] ESG Initiatives - The company's 2022 ESG Report demonstrates progress against key targets and commitment to environmental, social, and governance factors[15] - Achieved a 51% reduction in Scope 1 and 2 emissions intensity against a 2015 baseline[20] - Used approximately 86% recycled material for products, making the company a net negative producer of waste[20] - EchoShore® leak detection technology helped clients save approximately 2.8 billion gallons of water loss since 2020[20] Outlook and Strategy - Reaffirming fiscal year 2023 guidance for consolidated net sales increase between 6% and 8% and adjusted EBITDA increase between 10% and 14%[17][65] - Expects benefits from the infrastructure bill to focus on products used in larger projects, accounting for approximately 75% of consolidated net sales[59] - Anticipates free cash flow will improve based on the seasonality of operating cash flows[50]