Mueller Water Products Inc

Latest Results (18.05.2026):

Mueller Water Products Inc.'s fiscal 2026 second quarter (ended March 31, 2026) delivered record net sales and margin expansion: net sales rose 5.5% to $384.4 million, adjusted EBITDA and adjusted diluted EPS reached quarterly records, and the company raised its fiscal 2026 adjusted EBITDA outlook.

Net sales and gross margin

Net sales were $384.4 million, up 5.5% from $364.3 million a year earlier. Gross profit rose to $144.5 million and gross margin expanded 250 basis points to 37.6%, driven by higher pricing, manufacturing efficiencies and increased volumes (partially offset by tariffs and inflation).

Operating performance

Operating income was $80.4 million (vs. $69.9 million prior year); operating margin was 20.9% (vs. 19.2%). Adjusted operating income increased 16.0% to $84.8 million, and adjusted operating margin widened to 22.1% (up 200 bps).

Net income and EPS

Reported net income was $59.1 million (up 15.2%) with net income margin of 15.4%. Reported diluted EPS was $0.38 (vs. $0.33 prior year). Adjusted net income rose 16.2% to $62.4 million and adjusted diluted EPS increased 17.6% to $0.40 (from $0.34).

Adjusted EBITDA and guidance

Adjusted EBITDA was $97.2 million (up 15.0%) with an expanded adjusted EBITDA margin of 25.3% (up 210 bps). The company raised its fiscal 2026 adjusted EBITDA guidance to $360–$365 million and reiterated consolidated net sales guidance of $1,470–$1,490 million; it now expects free cash flow to exceed 70% of adjusted net income for FY2026.

Segment results

Water Flow Solutions: sales $218.3M (+1.0%), adjusted operating income $65.2M, adjusted operating margin 29.9%, adjusted EBITDA $72.4M (33.2% margin). Water Management Solutions: sales $166.1M (+12.2%), adjusted operating income $35.5M (21.4% adjusted margin), adjusted EBITDA $40.6M (24.4% margin).

Cash flow, capex and balance sheet

For the six months, net cash provided by operations was $48.4M (down from $68.4M) and free cash flow was $16.5M (down from $47.3M), due to working capital changes and higher capex. YTD capex was $31.9M (vs. $21.1M prior year). Total debt was $452.4M, cash and equivalents $421.0M, and total liquidity $584.7M with $163.7M available under the ABL and no borrowings.

Other notable items

SG&A rose to $59.7M (up $4.0M) partly from unfavorable FX and inflation. The quarter included $4.4M of strategic reorganization and other charges excluded from adjusted results. Net interest expense decreased to $1.6M; GAAP income tax rate was 25.0%. Fiscal 2026 metric expectations include SG&A $243–$247M, net interest $5–$6M, D&A $49–$50M, and capex $60–$65M.