Mueller Water Products Stock Earnings Reports

Mueller Water Products reported a strong start to fiscal 2026, with consolidated net sales up 4.6% to $318.2 million and first-quarter records for net sales, gross profit, adjusted EBITDA ($72.1M) and adjusted EBITDA margin (22.7%). Gross margin expanded 380 basis points to 37.6%, driven by pricing and manufacturing efficiencies (notably benefits from the closure of the legacy brass foundry), partially offset by higher tariffs and inflation. The company generated $44 million of free cash flow, ended the quarter with $460 million of cash and $452 million of debt, and maintained ample liquidity (total liquidity ~$623M). Management raised fiscal 2026 guidance: net sales growth now expected +2.8% to +4.2% and adjusted EBITDA raised to $355M–$360M (implying >24% adjusted EBITDA margin at midpoint). Capex is reaffirmed at $60M–$65M, and free cash flow is expected to exceed 85% of adjusted net income. Segment performance was mixed: WFS delivered margin expansion and record adjusted EBITDA margin (32.7%) driven by efficiencies and pricing, while WMS saw sales growth but margin pressure from tariffs, inefficiencies and FX. Management emphasized that the guidance uplift is predominantly price-driven, they expect to be price/cost positive for the year despite tariff headwinds (tariff impact incorporated at ~3%), and they remain focused on operational improvements, capacity investments (iron foundries) and targeted M&A in water infrastructure areas. CEO Marietta Zakas is transitioning out this week, with Paul McAndrew succeeding her and remaining as a senior adviser through year-end.