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Sep 30, 2022
Mueller Q4 2022 Earnings Report
Mueller Water Products reported mixed results in Q4 2022, with sales growth offset by manufacturing inefficiencies and higher costs.
Key Takeaways
Mueller Water Products reported a 12.1% increase in net sales to $331.4 million for Q4 2022, driven by higher pricing. However, operating income decreased to $11.6 million due to higher costs and manufacturing inefficiencies. Net income was $7.1 million, or $0.05 per diluted share, while adjusted net income was $15.6 million, or $0.10 per diluted share. The company anticipates continued net sales growth and double-digit adjusted EBITDA growth in fiscal 2023.
Net sales increased by 12.1% to $331.4 million due to higher pricing.
Operating income decreased to $11.6 million due to higher costs and manufacturing inefficiencies.
Net income was $7.1 million, or $0.05 per diluted share.
Adjusted EBITDA decreased to $38.6 million, with a margin of 11.6%.
Revenue by Segment
Forward Guidance
The Company currently anticipates that consolidated net sales will increase between 6 percent and 8 percent as compared with the prior year. As a result of higher sales and improved execution, the Company expects that adjusted EBITDA will increase between 10 percent and 14 percent as compared with adjusted EBITDA of $194.5 million for 2022.
Positive Outlook
- Record backlog at the end of 2022
- Anticipated benefits from higher pricing
- Current end market expectations
- Higher sales
- Improved execution
Challenges Ahead
- Higher pension expense in 2023 of approximately $3.8 million compared with a benefit of $3.9 million in the prior year primarily due to the stock market’s performance.
- Challenges associated with higher inflation
- Labor availability
- Supply chain disruptions will continue in 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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