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Mar 31, 2021
Mueller Q2 2021 Earnings Report
Net sales increased and solid second quarter performance delivered.
Key Takeaways
Mueller Water Products reported a 3.8% increase in net sales to $267.5 million for the second quarter of 2021. Net income was $20.9 million, with adjusted net income at $22.2 million. The company is raising its annual guidance for consolidated net sales and adjusted EBITDA growth based on strong first half performance and expectations for end markets.
Net sales increased 3.8 percent to $267.5 million compared to the prior year quarter.
Operating income was $33.4 million, with adjusted operating income at $35.2 million.
Net income reached $20.9 million, and adjusted net income was $22.2 million.
Adjusted EBITDA was $50.7 million.
Mueller
Mueller
Forward Guidance
Mueller Water Products anticipates consolidated net sales will increase between 8 and 10 percent as compared with the prior year and adjusted EBITDA growth will be between 9 and 12 percent as compared with the prior year.
Positive Outlook
- Consolidated net sales are expected to increase between 8 and 10 percent.
- Adjusted EBITDA growth is anticipated to be between 9 and 12 percent.
- Company expects to generate healthy free cash flow for the rest of the year.
- End market demand will support further growth this year.
- Additional price increases implemented for the majority of products
Challenges Ahead
- Ongoing operational challenges from the pandemic
- Accelerating inflation
- Global supply chain disruptions
- Temporary delays in the project-related portions of the municipal market caused by the pandemic.
- Accelerating raw material inflation during the quarter