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Jun 29, 2024

Mueller Industries Q2 2024 Earnings Report

Mueller Industries reported increased net sales and solid financial performance despite persistent inflation and restrained construction activity.

Key Takeaways

Mueller Industries reported a net sales increase to $997.7 million compared to $897.0 million in the second quarter of 2023. Operating income was $210.0 million, slightly below the $210.7 million reported in the same period last year. Net income reached $160.2 million, compared to $177.7 million in Q2 2023, with diluted EPS at $1.41 versus $1.56.

Net sales increased due to higher unit shipments, price increases tied to higher copper prices, and the inclusion of Nehring business sales.

Operating income performance improved by 9.8% over the prior year period, adjusting for the insurance settlement gain in 2023.

Net cash from operations was $100.8 million, with a cash balance of $825.7 million at quarter end.

Cash deployment included $566.6 million for acquisitions and $15.1 million in stock repurchases.

Total Revenue
$998M
Previous year: $897M
+11.2%
EPS
$1.41
Previous year: $1.56
-9.6%
Gross Profit
$273M
Previous year: $258M
+5.8%
Cash and Equivalents
$826M
Previous year: $771M
+7.0%
Free Cash Flow
$91.6M
Total Assets
$3.07B
Previous year: $2.58B
+19.0%

Mueller Industries

Mueller Industries

Mueller Industries Revenue by Segment

Forward Guidance

Mueller Industries maintains a positive long-term outlook, expecting internal investments and the Nehring Electrical Works acquisition to yield greater benefits as market conditions improve.

Positive Outlook

  • Internal investments are expected to yield greater benefits as market conditions improve.
  • Acquisition of Nehring Electrical Works provides a substantial platform for expansion in the energy infrastructure space.
  • Businesses continue to perform well despite persistent heightened inflation.
  • Businesses continue to perform well despite restrained construction activity.
  • Current ratio remains solid at 4.7 to 1.

Challenges Ahead

  • Persistent heightened inflation.
  • Restrained construction activity.
  • Economic conditions.
  • Currency conditions.
  • Continued availability of raw materials and energy.

Revenue & Expenses

Visualization of income flow from segment revenue to net income