Mueller Water Products Stock Earnings Reports

Mueller Water Products reported a strong Q3 2025: consolidated net sales rose 6.6% to $380.3M, gross margin expanded to 38.3% (sequential improvement of ~320 bps), and adjusted EBITDA reached a quarterly record of $86.4M. The company generated $56M of free cash flow in the quarter and continues a balanced capital allocation strategy (dividend + buybacks). Management closed a legacy brass foundry and is realizing manufacturing efficiencies; they raised full-year 2025 guidance for net sales and adjusted EBITDA and expect record annual results for the second consecutive year. Tariffs remain a headwind but the company’s updated estimate of the annualized tariff impact has come down (management cites 3–4% of cost of sales), and targeted price actions plus supply‑chain initiatives are being used to mitigate effects. Foreign currency (notably USD vs. Israeli shekel) produced an unusual ~$7.7M headwind in Q3; excluding that, margins were stronger. Segment detail: WFS sales up modestly with specialty valves and iron gate strength but lower service brass volumes; WMS grew double digits driven by repair products and hydrants. Balance sheet remains strong (net leverage <1x, no debt maturities until 2029) with $372M cash and $535M total liquidity. CapEx guidance increased to $50–$52M for 2025 as the company invests in iron foundries and operational improvements. Management expects continued margin benefits from the brass foundry transition and targeted pricing, but notes macro and tariff uncertainty when guiding into 2026.