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Mueller Q2 2025 Earnings Report
Mueller Water Products reported increased net sales, net income, and EPS for the second quarter of fiscal year 2025, driven by higher pricing and increased volumes.
Key Takeaways
Mueller Water Products, Inc. announced strong financial results for its fiscal 2025 second quarter, achieving record consolidated net sales, adjusted EBITDA, and adjusted net income per share. The company reported a 3.1% increase in net sales to $364.3 million and a 15.8% increase in net income to $51.3 million, with adjusted diluted EPS reaching $0.34.
Net sales increased 3.1% to $364.3 million, primarily due to higher pricing and increased volumes.
Reported net income rose 15.8% to $51.3 million, with a net income margin of 14.1%.
Adjusted diluted EPS increased 13.3% to $0.34.
Adjusted EBITDA grew 2.8% to $84.5 million, with an adjusted EBITDA margin of 23.2%.
Mueller
Mueller
Mueller Revenue by Segment
Revenue by Segment
Water Flow Solutions Revenue
CapyFin.comWater Management Solutions Revenue
CapyFin.com Forward Guidance
Mueller Water Products is increasing its fiscal 2025 consolidated net sales guidance and reaffirming its adjusted EBITDA and free cash flow expectations, while anticipating increased costs from recently enacted tariffs.
Positive Outlook
- Total SG&A expenses are expected to be between $236 million and $240 million.
- Net interest expense is projected to be between $9 million and $10 million.
- Effective income tax rate is expected to be between 24% and 26%.
- Depreciation and amortization are estimated to be between $44 million and $45 million.
- Capital expenditures are anticipated to be between $45 million and $50 million.
Challenges Ahead
- The company expects an increase in costs due to recently enacted tariffs.
- Pension benefit other than service is estimated to be approximately $0.2 million.
- Annual amortization expense will decrease by approximately $18 million due to customer relationship intangibles from 2005 becoming fully amortized, which could impact reported figures.
- The guidance reflects anticipated impacts from tariffs, suggesting potential headwinds.
- While net sales guidance is raised, adjusted EBITDA guidance is maintained, implying some margin pressure.
Revenue & Expenses
Visualization of income flow from segment revenue to net income