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Mar 31, 2024
Mueller Q2 2024 Earnings Report
Reported a strong second quarter with increased net sales and record adjusted earnings per share.
Key Takeaways
Mueller Water Products reported a 6.2% increase in net sales to $353.4 million for the second quarter of 2024. The company's net income increased to $44.3 million, with adjusted net income per diluted share reaching a record $0.30. Improved manufacturing and supply chain efficiencies drove margin improvements, leading to the highest quarterly gross margin in over seven years.
Net sales increased by 6.2% to $353.4 million compared to the prior year quarter.
Operating income increased by 93.0% to $63.5 million.
Net income rose to $44.3 million, a 108.0% increase from the prior year quarter.
Adjusted EBITDA increased by 70.9% to $82.2 million.
Mueller
Mueller
Mueller Revenue by Segment
Revenue by Segment
Water Flow Solutions Revenue
CapyFin.comWater Management Solutions Revenue
CapyFin.com Forward Guidance
The Company is increasing expectations for fiscal 2024 consolidated net sales to be between flat and down 2 percent as compared with the prior fiscal year. The Company is also increasing its expectations for fiscal 2024 adjusted EBITDA to increase between 23 and 27 percent as compared with the prior fiscal year. The Company expects free cash flow as a percentage of adjusted net income to be more than 75 percent in fiscal 2024.
Positive Outlook
- Net sales expected to be between flat and down 2 percent compared to the prior fiscal year.
- Adjusted EBITDA is expected to increase between 23 and 27 percent compared to the prior fiscal year.
- Free cash flow as a percentage of adjusted net income expected to be more than 75 percent.
- Total SG&A expenses between $248 million and $252 million.
- Effective income tax rate between 22 percent and 24 percent.
Challenges Ahead
- Logistical challenges and supply chain disruptions.
- Geopolitical conditions, including the Israel-Hamas war, public health crises, or other events.
- Inventory and in-stock positions of our distributors and end customers.
- An inability to realize the anticipated benefits from our operational initiatives.
- An inability to attract or retain a skilled and diverse workforce, including executive officers, increased competition related to the workforce and labor markets.
Revenue & Expenses
Visualization of income flow from segment revenue to net income