Mueller Water Products Reports 2025 First Quarter Results
Mueller Water Products (NYSE: MWA) reported strong fiscal 2025 first quarter results with significant growth across key metrics. Net sales increased 18.7% to $304.3 million, while net income surged 146.9% to $35.3 million compared to the prior year quarter.
The company demonstrated substantial margin improvements, with operating margin rising to 15.6% from 8.9% and adjusted EBITDA margin increasing to 20.9% from 17.5%. Earnings per diluted share reached $0.22, up from $0.09 in the prior year quarter.
Based on strong Q1 performance and expected benefits from recent price actions, Mueller has raised its fiscal 2025 guidance, projecting net sales between $1,370-1,390 million (4.2-5.7% growth) and adjusted EBITDA between $310-315 million (8.9-10.6% growth). The company maintains a strong financial position with $338.2 million in cash and a net debt leverage ratio of 0.4 times.
Mueller Water Products (NYSE: MWA) ha riportato risultati solidi per il primo trimestre dell'esercizio fiscale 2025, con una significativa crescita in tutti i principali indicatori. Le vendite nette sono aumentate del 18,7%, raggiungendo 304,3 milioni di dollari, mentre l'utile netto è cresciuto del 146,9%, arrivando a 35,3 milioni di dollari rispetto allo stesso trimestre dell'anno precedente.
L'azienda ha mostrato sostanziali miglioramenti nei margini, con il margine operativo che è aumentato al 15,6% dall'8,9% e il margine dell'EBITDA rettificato che è passato dal 17,5% al 20,9%. Gli utili per azione diluita hanno raggiunto i 0,22 dollari, in aumento rispetto allo 0,09 dollari dello stesso trimestre dell'anno scorso.
In base alle solide performance del primo trimestre e ai benefici attesi dalle recenti azioni sui prezzi, Mueller ha rivisto al rialzo le sue previsioni per il 2025, prevedendo vendite nette tra 1.370 e 1.390 milioni di dollari (crescita del 4,2-5,7%) e un EBITDA rettificato tra 310 e 315 milioni di dollari (crescita dell'8,9-10,6%). L'azienda mantiene una forte posizione finanziaria con 338,2 milioni di dollari in contante e un rapporto di indebitamento netto di 0,4 volte.
Mueller Water Products (NYSE: MWA) reportó resultados sólidos en el primer trimestre del ejercicio fiscal 2025, con un crecimiento significativo en métricas clave. Las ventas netas aumentaron un 18,7% hasta 304,3 millones de dólares, mientras que el ingreso neto se disparó un 146,9% a 35,3 millones de dólares en comparación con el trimestre del año anterior.
La empresa demostró importantes mejoras en los márgenes, con el margen operativo aumentando al 15,6% desde el 8,9% y el margen EBITDA ajustado incrementándose al 20,9% desde el 17,5%. Las ganancias por acción diluida llegaron a 0,22 dólares, un aumento desde los 0,09 dólares del trimestre del año pasado.
Con base en el sólido desempeño del Q1 y los beneficios esperados de las recientes acciones de precios, Mueller ha revisado al alza su guía fiscal 2025, proyectando ventas netas entre 1.370-1.390 millones de dólares (crecimiento del 4,2-5,7%) y un EBITDA ajustado entre 310-315 millones de dólares (crecimiento del 8,9-10,6%). La empresa mantiene una fuerte posición financiera con 338,2 millones de dólares en efectivo y un ratio de apalancamiento de deuda neta de 0,4 veces.
Mueller Water Products (NYSE: MWA)는 2025 회계연도 첫 분기 실적을 발표했습니다. 주요 지표에서 상당한 성장을 기록하였고, 순매출은 3억 430만 달러로 18.7% 증가하였으며, 순이익은 전년 동기 대비 146.9% 증가한 3530만 달러에 달했습니다.
회사는 운영 마진이 8.9%에서 15.6%로 상승하고, 조정된 EBITDA 마진이 17.5%에서 20.9%로 증가하는 등 상당한 마진 개선을 보여주었습니다. 희석 주당 순이익은 전년 동기 0.09달러에서 0.22달러로 증가했습니다.
1분기의 강력한 실적과 최근 가격 조정의 예상 이점을 바탕으로, Mueller는 2025 회계연도 가이던스를 상향 조정하였으며, 순매출을 13억 7000만 달러에서 13억 9000만 달러(4.2-5.7% 성장), 조정된 EBITDA를 3억 1000만 달러에서 3억 1500만 달러(8.9-10.6% 성장)로 제시하였습니다. 이 회사는 3억 3820만 달러의 현금과 0.4배의 순부채 비율로 강력한 재무 상태를 유지하고 있습니다.
Mueller Water Products (NYSE: MWA) a annoncé de solides résultats pour le premier trimestre de l'exercice fiscal 2025, avec une croissance significative dans toutes les principales métriques. Les ventes nettes ont augmenté de 18,7% pour atteindre 304,3 millions de dollars, tandis que le bénéfice net a grimpé de 146,9% pour atteindre 35,3 millions de dollars par rapport au trimestre de l'année précédente.
L'entreprise a démontré des améliorations substantielles des marges, le marge opérationnelle passant de 8,9% à 15,6% et le marge EBITDA ajusté augmentant de 17,5% à 20,9%. Le bénéfice par action diluée a atteint 0,22 dollar, contre 0,09 dollar au trimestre de l'année précédente.
Basé sur la performance solide du premier trimestre et les avantages attendus des récentes hausses de prix, Mueller a relevé ses prévisions pour l'exercice fiscal 2025, projetant des ventes nettes entre 1,370 et 1,390 millions de dollars (croissance de 4,2-5,7%) et un EBITDA ajusté entre 310 et 315 millions de dollars (croissance de 8,9-10,6%). L'entreprise maintient une position financière solide avec 338,2 millions de dollars en liquidités et un ratio d'endettement net de 0,4 fois.
Mueller Water Products (NYSE: MWA) hat im ersten Quartal des Geschäftsjahres 2025 starke Ergebnisse gemeldet, mit signifikantem Wachstum in allen wichtigen Kennzahlen. Der Nettoumsatz stieg um 18,7% auf 304,3 Millionen Dollar, während der Nettogewinn um 146,9% auf 35,3 Millionen Dollar im Vergleich zum Vorjahresquartal anstieg.
Das Unternehmen wies erhebliche Verbesserungen der Margen auf, mit einer Betriebs-marge, die von 8,9% auf 15,6% anstieg, und einer adjustierten EBITDA-Marge, die von 17,5% auf 20,9% zunahm. Der Gewinn pro verwässerter Aktie erreichte 0,22 Dollar, nach 0,09 Dollar im Vorjahresquartal.
Basierend auf der starken Performance im ersten Quartal und den erwarteten Vorteilen aus den jüngsten Preisanpassungen hat Mueller seine Prognose für das Geschäftsjahr 2025 angehoben und prognostiziert einen Nettoumsatz zwischen 1,370 und 1,390 Millionen Dollar (Wachstum von 4,2-5,7%) und ein adjustiertes EBITDA zwischen 310 und 315 Millionen Dollar (Wachstum von 8,9-10,6%). Das Unternehmen behält eine starke Finanzlage mit 338,2 Millionen Dollar in bar und einem Verhältnis der Nettoverschuldung von 0,4.
- Net sales increased 18.7% to $304.3 million
- Net income surged 146.9% to $35.3 million
- Adjusted EBITDA grew 41.7% to $63.5 million
- Operating margin improved to 15.6% from 8.9%
- Strong cash position with $338.2 million in cash
- Low net debt leverage ratio of 0.4x
- Raised fiscal 2025 guidance for sales and EBITDA
- Free cash flow decreased by $20.0 million to $42.2 million
- Capital expenditures increased to $11.9 million from $5.7 million
- Impact from Israel-Hamas war affected Water Management Solutions performance
Insights
Mueller Water Products' Q1 2025 results reflect exceptional operational execution and strategic positioning in the water infrastructure market. The standout
Several key operational achievements deserve attention:
- The dramatic improvement in adjusted operating margin to
17.2% from11.5% showcases successful cost management and operational efficiency initiatives - The closure of the legacy brass foundry in Decatur and transition to a new facility indicates strategic modernization of manufacturing capabilities
- Working capital management remains solid, though free cash flow decreased to
$42.2 million due to planned capital investments
The company's strong balance sheet, with
The reduction in annual amortization expense by
Increased Net Sales 18.7 percent to
Reported Net Income per Diluted Share of
Achieved Adjusted Net Income per Diluted Share of
Raises Annual Guidance for Fiscal 2025 Net Sales and Adjusted EBITDA
ATLANTA, Feb. 04, 2025 (GLOBE NEWSWIRE) -- Mueller Water Products, Inc. (NYSE: MWA), a leading manufacturer and marketer of products and solutions used in the transmission, distribution and measurement of water in North America, announced financial results for its fiscal 2025 first quarter ended December 31, 2024.
In the first quarter of 2025, the Company:
- Increased net sales 18.7 percent to
$304.3 million as compared with$256.4 million in the prior year quarter - Reported operating income of
$47.4 million as compared with$22.8 million in the prior year quarter and increased adjusted operating income 78.2 percent to$52.4 million as compared with$29.4 million in the prior year quarter - Reported operating margin of 15.6 percent as compared with 8.9 percent in the prior year quarter and increased adjusted operating margin to 17.2 percent as compared with 11.5 percent in the prior year quarter
- Reported net income of
$35.3 million as compared with$14.3 million in the prior year quarter, with net income margin of 11.6 percent as compared with 5.6 percent in the prior year quarter, and increased adjusted net income 97.0 percent to$39.2 million as compared with$19.9 million in the prior year quarter - Reported net income per diluted share of
$0.22 as compared with$0.09 in the prior year quarter and increased adjusted net income per diluted share 92.3 percent to$0.25 as compared with$0.13 in the prior year quarter - Increased adjusted EBITDA 41.7 percent to
$63.5 million as compared with$44.8 million in the prior year quarter and improved adjusted EBITDA margin to 20.9 percent as compared with 17.5 percent in the prior year quarter - Reported net cash provided by operating activities of
$54.1 million as compared with$67.9 million in the prior year quarter - Generated free cash flow of
$42.2 million as compared with$62.2 million in the prior year quarter
“We are pleased with the strong start to our fiscal year, with net sales growth exceeding our expectations as we experienced healthy order levels supported by resilient end-market demand and our focus on delivering outstanding customer service. Our disciplined execution on higher volumes led to a record first quarter adjusted EBITDA and more than a 300 basis point year-over-year improvement in our adjusted EBITDA margin,” said Martie Edmunds Zakas, Chief Executive Officer of Mueller Water Products.
“We are increasing our fiscal 2025 guidance to primarily reflect our first quarter results and the expected benefits from recent price actions. We expect to deliver gross and adjusted EBITDA margin gains this year supported by our operational and commercial initiatives, including the anticipated benefits from the recent closure of our legacy brass foundry.”
“With our continued focus on serving our customers and delivering on our key strategic priorities, we are well-positioned to capture the benefits from the investments needed to address the aging North American water infrastructure. We are confident we can execute our key strategies while managing external challenges as we further strengthen Mueller for the long term to benefit all our stakeholders,” Ms. Zakas concluded.
Consolidated Results
Net sales for the 2025 first quarter increased
Operating income for the first quarter increased
During the quarter, the Company incurred
Adjusted operating income increased
Net income increased
Adjusted EBITDA of
Segment Results
Water Flow Solutions
Net sales for the 2025 first quarter increased
Operating income and adjusted operating income were
Adjusted EBITDA of
Water Management Solutions
Net sales for the 2025 first quarter increased
Operating income and adjusted operating income were
Adjusted EBITDA of
Interest Expense, Net
Interest expense, net, for the 2025 first quarter decreased to
Income Taxes
For the 2025 first quarter, income tax expense was
Cash Flow and Balance Sheet
Net cash provided by operating activities for the quarter ended December 31, 2024, decreased by
During the quarter, the Company invested
Free cash flow (defined as net cash provided by operating activities less capital expenditures) for the quarter decreased by
As of December 31, 2024, Mueller Water Products had
Fiscal 2025 Outlook
The Company is increasing its guidance for fiscal 2025 consolidated net sales to be between
The Company’s expectations for certain additional financial metrics for fiscal 2025 are as follows:
- Total SG&A expenses between
$240 million and$244 million - Net interest expense between
$10.5 million and$11.5 million - Effective income tax rate between 25 percent and 27 percent
- Depreciation and amortization between
$43 million and$45 million (1) - Capital expenditures between
$45 million and$50 million - Pension benefit other than service of approximately
$0.2 million
(1) In 2025, annual amortization expense will decrease by approximately
Conference Call Webcast
Mueller Water Products’ quarterly earnings conference call will take place Wednesday, February 5, 2025, at 9:30 a.m. ET. Members of Mueller Water Products’ leadership team will discuss the Company’s recent financial performance and respond to questions from financial analysts. A live webcast of the call will be available on the Investor Relations section of the Company’s website. Please go to the website (www.muellerwaterproducts.com) at least 15 minutes prior to the start of the call to register, download and install any necessary software. A replay of the call will be available for 30 days and can be accessed by dialing 1-866-511-1891. An archive of the webcast will also be available for at least 90 days on the Investor Relations section of the Company’s website.
Use of Non-GAAP Measures
In an effort to provide investors with additional information regarding the Company’s results as determined by accounting principles generally accepted in the United States (“GAAP”), the Company also provides non-GAAP information that management believes is useful to investors. These non-GAAP measures have limitations as analytical tools, and securities analysts, investors and other interested parties should not consider any of these non-GAAP measures in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures used by other companies.
Adjusted net income, adjusted net income per diluted share, adjusted operating income, adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures that the Company presents as performance measures because management uses these measures to evaluate the Company’s underlying performance on a consistent basis across periods and to make decisions about operational strategies. Management also believes these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of the Company’s recurring performance.
Net debt and net debt leverage are non-GAAP measures that the Company presents as liquidity measures because management uses them to evaluate its capital management and financial position, and the investment community commonly uses them as measures of indebtedness. Free cash flow is a non-GAAP liquidity measure used to assist management and investors in analyzing the Company’s ability to generate liquidity from its operating activities.
The calculations of these non-GAAP measures and reconciliations to GAAP results are included as an attachment to this press release, which has been posted online at www.muellerwaterproducts.com. The Company does not reconcile forward-looking non-GAAP measures to the comparable GAAP measures, as permitted by Regulation S-K, as certain items, e.g., expenses related to corporate development activities, transactions, pension expenses/(benefits), corporate restructuring and non-cash asset impairment, may have not yet occurred, are out of the Company’s control or cannot be reasonably predicted without unreasonable efforts. Additionally, such reconciliation would imply a degree of precision and certainty regarding relevant items that may be confusing to investors. Such items could have a substantial impact on GAAP measures of the Company's financial performance.
Forward-Looking Statements
This press release contains certain statements that may be deemed “forward-looking statements” within the meaning of the federal securities laws. All statements that address activities, events or developments that the Company intends, expects, plans, projects, believes or anticipates will or may occur in the future are forward-looking statements, including, without limitation, statements regarding outlooks, projections, forecasts, expectations, commitments, trend descriptions and the ability to capitalize on trends, value creation, Board of Directors and committee composition plans, long-term strategies and the execution or acceleration thereof, operational improvements, inventory positions, the benefits of capital investments, financial or operating performance, including driving increased margins, operational and commercial initiatives, capital allocation and growth strategy plans, and the demand for the Company’s products. Forward-looking statements are based on certain assumptions and assessments made by the Company in light of the Company’s experience and perception of historical trends, current conditions and expected future developments.
Actual results and the timing of events may differ materially from those contemplated by the forward-looking statements due to a number of factors, including, without limitation, logistical challenges and supply chain disruptions, geopolitical conditions, including the Israel-Hamas war, public health crises, or other events; inventory and in-stock positions of our distributors and end customers; an inability to realize the anticipated benefits from our operational initiatives, including our large capital investments in Decatur, Illinois, plant closures, and reorganization and related strategic realignment activities; an inability to attract or retain a skilled and diverse workforce, including executive officers, increased competition related to the workforce and labor markets; an inability to protect the Company’s information systems against further service interruption, risks resulting from possible future cybersecurity incidents, misappropriation of data or breaches of security; failure to comply with personal data protection and privacy laws; cyclical and changing demand in core markets such as municipal spending, residential construction, and natural gas distribution; government monetary or fiscal policies; the impact of adverse weather conditions; the impact of manufacturing and product performance; the impact of wage, commodity and materials price inflation; foreign exchange rate fluctuations; the impact of higher interest rates; the impact of warranty charges and claims, and related accommodations; the strength of our brands and reputation; an inability to successfully resolve significant legal proceedings or government investigations; compliance with environmental, trade and anti-corruption laws and regulations; climate change and legal or regulatory responses thereto; changing regulatory, trade and tariff conditions; the failure to integrate and/or realize any of the anticipated benefits of acquisitions or divestitures; an inability to achieve some or all of our goals and commitments in environmental and sustainability programs; and other factors that are described in the section entitled “RISK FACTORS” in Item 1A of the Company’s most recent Annual Report on Form 10-K and later filings on Form 10-Q, as applicable.
Forward-looking statements do not guarantee future performance and are only as of the date they are made. The Company undertakes no duty to update its forward-looking statements except as required by law. Undue reliance should not be placed on any forward-looking statements. You are advised to review any further disclosures the Company makes on related subjects in subsequent Forms 10-K, 10-Q, 8-K and other reports filed with the U.S. Securities and Exchange Commission.
About Mueller Water Products, Inc.
Mueller Water Products, Inc. is a leading manufacturer and marketer of products and solutions used in the transmission, distribution and measurement of water in North America. Our broad portfolio includes engineered valves, fire hydrants, pipe connection and repair products, metering products, leak detection, pipe condition assessment, pressure management products, and software that provides critical water system data. We help municipalities increase operational efficiencies, improve customer service and prioritize capital spending, demonstrating why Mueller Water Products is Where Intelligence Meets Infrastructure®. Visit us at www.muellerwaterproducts.com.
Mueller refers to one or more of Mueller Water Products, Inc. (MWP), a Delaware corporation, and its subsidiaries. MWP and each of its subsidiaries are legally separate and independent entities when providing products and services. MWP does not provide products or services to third parties. MWP and each of its subsidiaries are liable only for their own acts and omissions and not those of each other.
Investor Relations Contact: Whit Kincaid
770-206-4116
wkincaid@muellerwp.com
Media Contact: Jenny Barabas
470-806-5771
jbarabas@muellerwp.com
| MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||
| December 31, | September 30, | ||||||
| 2024 | 2024 | ||||||
| (in millions, except share amounts) | |||||||
| Assets: | |||||||
| Cash and cash equivalents | $ | 338.2 | $ | 309.9 | |||
| Receivables, net of allowance for credit losses of | 145.3 | 208.9 | |||||
| Inventories, net | 317.8 | 301.7 | |||||
| Other current assets | 41.4 | 37.9 | |||||
| Total current assets | 842.7 | 858.4 | |||||
| Property, plant and equipment, net | 320.7 | 318.8 | |||||
| Intangible assets, net | 307.9 | 309.7 | |||||
| Goodwill, net | 81.5 | 80.7 | |||||
| Other noncurrent assets | 66.4 | 68.3 | |||||
| Total assets | $ | 1,619.2 | $ | 1,635.9 | |||
| Liabilities and stockholders’ equity: | |||||||
| Current portion of long-term debt | $ | 0.8 | $ | 0.8 | |||
| Accounts payable | 98.9 | 109.9 | |||||
| Other current liabilities | 120.6 | 147.3 | |||||
| Total current liabilities | 220.3 | 258.0 | |||||
| Long-term debt | 448.7 | 448.7 | |||||
| Deferred income taxes | 55.1 | 55.4 | |||||
| Other noncurrent liabilities | 61.0 | 63.7 | |||||
| Total liabilities | 785.1 | 825.8 | |||||
| Commitments and contingencies | |||||||
| Preferred stock: par value outstanding at December 31, 2024, and September 30, 2024 | — | — | |||||
| Common stock: par value 156,563,285 and 156,227,170 shares outstanding at December 31, 2024, and September 30, 2024, respectively | 1.6 | 1.6 | |||||
| Additional paid-in capital | 1,194.8 | 1,205.2 | |||||
| Accumulated deficit | (330.6 | ) | (365.9 | ) | |||
| Accumulated other comprehensive loss | (31.7 | ) | (30.8 | ) | |||
| Total stockholders' equity | 834.1 | 810.1 | |||||
| Total liabilities and stockholders' equity | $ | 1,619.2 | $ | 1,635.9 | |||
| MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||
| Three months ended | |||||
| December 31, | |||||
| 2024 | 2023 | ||||
| (in millions, except per share amounts) | |||||
| Net sales | $ | 304.3 | $ | 256.4 | |
| Cost of sales (1) | 201.3 | 170.1 | |||
| Gross profit | 103.0 | 86.3 | |||
| Operating expenses: | |||||
| Selling, general and administrative | 53.9 | 56.9 | |||
| Strategic reorganization and other charges (2) | 1.7 | 6.6 | |||
| Total operating expenses | 55.6 | 63.5 | |||
| Operating income | 47.4 | 22.8 | |||
| Pension expense other than service | — | 1.0 | |||
| Interest expense, net | 1.6 | 3.3 | |||
| Other expense | — | 1.6 | |||
| Income before income taxes | 45.8 | 16.9 | |||
| Income tax expense | 10.5 | 2.6 | |||
| Net income | $ | 35.3 | $ | 14.3 | |
| Net income per basic share | $ | 0.23 | $ | 0.09 | |
| Net income per diluted share | $ | 0.22 | $ | 0.09 | |
| Weighted average shares outstanding: | |||||
| Basic | 156.3 | 156.0 | |||
| Diluted | 157.5 | 156.7 | |||
| Dividends declared per share | $ | 0.067 | $ | 0.064 | |
| (1) For the three-month period ended December 31, 2024, Cost of sales included | |||||
| (2) For the three-month period ended December 31, 2024, Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition and severance. For the three-month period ended December 31, 2023, Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition, transaction-related expenses, as well as cybersecurity incidents expense. | |||||
| MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||
| Three months ended | |||||||
| December 31, | |||||||
| 2024 | 2023 | ||||||
| (in millions) | |||||||
| Operating activities: | |||||||
| Net income | $ | 35.3 | $ | 14.3 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation | 9.3 | 9.5 | |||||
| Amortization | 1.8 | 6.9 | |||||
| Gain on sale of assets | — | (0.1 | ) | ||||
| Stock-based compensation | 2.5 | 2.6 | |||||
| Pension cost | 0.2 | 1.2 | |||||
| Deferred income taxes | (0.6 | ) | (3.4 | ) | |||
| Inventory reserve provision | 4.0 | 2.1 | |||||
| Other, net | 0.3 | 0.3 | |||||
| Changes in assets and liabilities: | |||||||
| Receivables, net | 62.9 | 49.7 | |||||
| Inventories | (20.8 | ) | (14.6 | ) | |||
| Other assets | (1.3 | ) | (6.1 | ) | |||
| Accounts payable | (10.8 | ) | 5.7 | ||||
| Other current liabilities | (26.2 | ) | (3.6 | ) | |||
| Other noncurrent liabilities | (2.5 | ) | 3.4 | ||||
| Net cash provided by operating activities | 54.1 | 67.9 | |||||
| Investing activities: | |||||||
| Capital expenditures | (11.9 | ) | (5.7 | ) | |||
| Proceeds from sale of assets | — | 0.1 | |||||
| Net cash used in investing activities | (11.9 | ) | (5.6 | ) | |||
| Financing activities: | |||||||
| Dividends paid | (10.5 | ) | (10.0 | ) | |||
| Employee taxes related to stock-based compensation | (4.0 | ) | (1.5 | ) | |||
| Common stock issued | 1.6 | 0.4 | |||||
| Payments for finance lease obligations | (0.2 | ) | (0.2 | ) | |||
| Net cash used in financing activities | (13.1 | ) | (11.3 | ) | |||
| Effect of currency exchange rate changes on cash | (0.8 | ) | 5.4 | ||||
| Net change in cash and cash equivalents | 28.3 | 56.4 | |||||
| Cash and cash equivalents at beginning of period | 309.9 | 160.3 | |||||
| Cash and cash equivalents at end of period | $ | 338.2 | $ | 216.7 | |||
| MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP TO GAAP PERFORMANCE MEASURES (UNAUDITED) | |||||||||||||||
| Three months ended December 31, 2024 | |||||||||||||||
| Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||
| (dollars in millions, except per share amounts) | |||||||||||||||
| Net sales | $ | 174.6 | $ | 129.7 | $ | — | $ | 304.3 | |||||||
| Gross profit (1) | $ | 55.1 | $ | 47.9 | $ | — | $ | 103.0 | |||||||
| Selling, general and administrative expenses | 19.8 | 20.3 | 13.8 | 53.9 | |||||||||||
| Strategic reorganization and other charges (2) | — | 0.3 | 1.4 | 1.7 | |||||||||||
| Operating income (loss) | $ | 35.3 | $ | 27.3 | $ | (15.2 | ) | $ | 47.4 | ||||||
| Operating margin | 20.2 | % | 21.0 | % | 15.6 | % | |||||||||
| Capital expenditures | $ | 5.7 | $ | 6.2 | $ | — | $ | 11.9 | |||||||
| Net income | $ | 35.3 | |||||||||||||
| Net income margin | 11.6 | % | |||||||||||||
| Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||
| Net income | $ | 35.3 | |||||||||||||
| Strategic reorganization and other charges (2) | 1.7 | ||||||||||||||
| Inventory and other asset restructuring write-down | 3.3 | ||||||||||||||
| Income tax expense of adjusting items (3) | (1.1 | ) | |||||||||||||
| Adjusted net income | $ | 39.2 | |||||||||||||
| Weighted average diluted shares outstanding | 157.5 | ||||||||||||||
| Net income per diluted share | $ | 0.22 | |||||||||||||
| Strategic reorganization and other charges per diluted share | 0.01 | ||||||||||||||
| Inventory and other asset restructuring write-down per diluted share | 0.02 | ||||||||||||||
| Income tax expense of adjusting items per diluted share (3) | — | ||||||||||||||
| Adjusted net income per diluted share | $ | 0.25 | |||||||||||||
| Net income | $ | 35.3 | |||||||||||||
| Income tax expense (4) | 10.5 | ||||||||||||||
| Interest expense, net (4) | 1.6 | ||||||||||||||
| Operating income (loss) | $ | 35.3 | $ | 27.3 | $ | (15.2 | ) | 47.4 | |||||||
| Strategic reorganization and other charges (2) | — | 0.3 | 1.4 | 1.7 | |||||||||||
| Inventory and other asset restructuring write-down | 3.3 | — | — | 3.3 | |||||||||||
| Adjusted operating income (loss) | 38.6 | 27.6 | (13.8 | ) | 52.4 | ||||||||||
| Depreciation and amortization | 6.1 | 5.0 | — | 11.1 | |||||||||||
| Adjusted EBITDA | $ | 44.7 | $ | 32.6 | $ | (13.8 | ) | $ | 63.5 | ||||||
| Adjusted operating margin | 22.1 | % | 21.3 | % | 17.2 | % | |||||||||
| Adjusted EBITDA margin | 25.6 | % | 25.1 | % | 20.9 | % | |||||||||
| Adjusted EBITDA | $ | 44.7 | $ | 32.6 | $ | (13.8 | ) | $ | 63.5 | ||||||
| Three prior quarters' adjusted EBITDA | 181.0 | 106.4 | (47.5 | ) | 239.9 | ||||||||||
| Trailing twelve months' adjusted EBITDA | $ | 225.7 | $ | 139.0 | $ | (61.3 | ) | $ | 303.4 | ||||||
| Reconciliation of net debt to total debt (end of period): | |||||||||||||||
| Current portion of long-term debt | $ | 0.8 | |||||||||||||
| Long-term debt | 448.7 | ||||||||||||||
| Total debt | 449.5 | ||||||||||||||
| Less cash and cash equivalents | 338.2 | ||||||||||||||
| Net debt | $ | 111.3 | |||||||||||||
| Debt leverage (debt divided by trailing twelve months' adjusted EBITDA) | 1.5x | ||||||||||||||
| Net debt leverage (net debt divided by trailing twelve months' adjusted EBITDA) | 0.4x | ||||||||||||||
| Reconciliation of free cash flow to net cash provided by operating activities: | |||||||||||||||
| Net cash provided by operating activities | $ | 54.1 | |||||||||||||
| Less capital expenditures | 11.9 | ||||||||||||||
| Free cash flow | $ | 42.2 | |||||||||||||
| (1) Gross profit includes | |||||||||||||||
| (2) Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition and severance. | |||||||||||||||
| (3) The income tax expense of adjusting items reflects an effective tax rate of | |||||||||||||||
| (4) The Company does not allocate interest or income taxes to its segments. | |||||||||||||||
| MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP TO GAAP PERFORMANCE MEASURES (UNAUDITED) | |||||||||||||||
| Three months ended December 31, 2023 | |||||||||||||||
| Water Flow Solutions | Water Management Solutions | Corporate | Consolidated | ||||||||||||
| (dollars in millions, except per share amounts) | |||||||||||||||
| Net sales | $ | 141.3 | $ | 115.1 | $ | — | $ | 256.4 | |||||||
| Gross profit | $ | 46.6 | $ | 39.7 | $ | — | $ | 86.3 | |||||||
| Selling, general and administrative expenses | 19.2 | 24.6 | 13.1 | 56.9 | |||||||||||
| Strategic reorganization and other charges (1) | 0.2 | — | 6.4 | 6.6 | |||||||||||
| Operating income (loss) | $ | 27.2 | $ | 15.1 | $ | (19.5 | ) | $ | 22.8 | ||||||
| Operating margin | 19.2 | % | 13.1 | % | 8.9 | % | |||||||||
| Capital expenditures | $ | 3.9 | $ | 1.8 | $ | — | $ | 5.7 | |||||||
| Net income | $ | 14.3 | |||||||||||||
| Net income margin | 5.6 | % | |||||||||||||
| Reconciliation of non-GAAP to GAAP performance measures: | |||||||||||||||
| Net income | $ | 14.3 | |||||||||||||
| Strategic reorganization and other charges (1) | 6.6 | ||||||||||||||
| Income tax expense of adjusting items (2) | (1.0 | ) | |||||||||||||
| Adjusted net income | $ | 19.9 | |||||||||||||
| Weighted average diluted shares outstanding | 156.7 | ||||||||||||||
| Net income per diluted share | $ | 0.09 | |||||||||||||
| Strategic reorganization and other charges per diluted share | 0.04 | ||||||||||||||
| Income tax expense of adjusting items per diluted share (2) | — | ||||||||||||||
| Adjusted net income per diluted share | $ | 0.13 | |||||||||||||
| Net income | $ | 14.3 | |||||||||||||
| Income tax expense (3) | 2.6 | ||||||||||||||
| Other expense | 1.6 | ||||||||||||||
| Interest expense, net (3) | 3.3 | ||||||||||||||
| Pension expense other than service (3) | 1.0 | ||||||||||||||
| Operating income (loss) | $ | 27.2 | $ | 15.1 | $ | (19.5 | ) | 22.8 | |||||||
| Strategic reorganization and other charges (1) | 0.2 | — | 6.4 | 6.6 | |||||||||||
| Adjusted operating income (loss) | 27.4 | 15.1 | (13.1 | ) | 29.4 | ||||||||||
| Pension expense other than service (3) | — | — | (1.0 | ) | (1.0 | ) | |||||||||
| Depreciation and amortization | 9.3 | 7.0 | 0.1 | 16.4 | |||||||||||
| Adjusted EBITDA | $ | 36.7 | $ | 22.1 | $ | (14.0 | ) | $ | 44.8 | ||||||
| Adjusted operating margin | 19.4 | % | 13.1 | % | 11.5 | % | |||||||||
| Adjusted EBITDA margin | 26.0 | % | 19.2 | % | 17.5 | % | |||||||||
| Adjusted EBITDA | $ | 36.7 | $ | 22.1 | $ | (14.0 | ) | $ | 44.8 | ||||||
| Three prior quarters' adjusted EBITDA | 80.5 | 116.3 | (38.9 | ) | 157.9 | ||||||||||
| Trailing twelve months' adjusted EBITDA | $ | 117.2 | $ | 138.4 | $ | (52.9 | ) | $ | 202.7 | ||||||
| Reconciliation of net debt to total debt (end of period): | |||||||||||||||
| Current portion of long-term debt | $ | 0.6 | |||||||||||||
| Long-term debt | 446.8 | ||||||||||||||
| Total debt | 447.4 | ||||||||||||||
| Less cash and cash equivalents | 216.7 | ||||||||||||||
| Net debt | $ | 230.7 | |||||||||||||
| Debt leverage (debt divided by trailing twelve months' adjusted EBITDA) | 2.2x | ||||||||||||||
| Net debt leverage (net debt divided by trailing twelve months' adjusted EBITDA) | 1.1x | ||||||||||||||
| Reconciliation of free cash flow to net cash provided by operating activities: | |||||||||||||||
| Net cash provided by operating activities | $ | 67.9 | |||||||||||||
| Less capital expenditures | 5.7 | ||||||||||||||
| Free cash flow | $ | 62.2 | |||||||||||||
| (1) Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition, transaction-related expenses, as well as cybersecurity incidents expense. | |||||||||||||||
| (2) The income tax expense of adjusting items reflects an effective tax rate of | |||||||||||||||
| (3) The Company does not allocate interest, income taxes or pension amounts other than service to its segments. | |||||||||||||||
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