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Jun 30, 2021
Mueller Q3 2021 Earnings Report
Achieved record net sales and increased adjusted EBITDA.
Key Takeaways
Mueller Water Products reported strong Q3 2021 results with record net sales of $310.5 million, a 35.9% increase year-over-year. Adjusted EBITDA increased by 42.9% to $62.6 million, and the company raised its full-year guidance for net sales and adjusted EBITDA growth.
Net sales increased by 35.9% to $310.5 million compared to the prior year quarter.
Operating income increased to $42.7 million, up from $20.0 million in the prior year quarter.
Adjusted EBITDA increased by 42.9% to $62.6 million compared to the prior year quarter.
The company acquired i2O Water Ltd for approximately $20 million in cash.
Forward Guidance
The Company is increasing its expectations and currently anticipates that consolidated net sales will increase between 14 and 16 percent as compared with the prior year. Based on our third quarter performance, backlog, and current expectations for end markets, pricing and inflation, the Company anticipates that adjusted EBITDA growth will be between 13 and 15 percent as compared with the prior year.
Positive Outlook
- Consolidated net sales are expected to increase between 14 and 16 percent compared to the prior year.
- Adjusted EBITDA growth is anticipated to be between 13 and 15 percent compared to the prior year.
- The Company expects to continue to increase cash balances in the fourth quarter.
- Expects to realize annualized net interest expense savings of $6.9 million.
- Well-positioned to execute on strategic growth opportunities with bolt-on acquisitions and capital investments
Challenges Ahead
- Expects to see an improved price-cost relationship until fiscal 2022 due to the continuing impact of inflation.
- Ongoing operational challenges from the pandemic.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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