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Sep 30, 2024
Mueller Q4 2024 Earnings Report
Mueller Water Products reported an increase in net sales and adjusted EBITDA, exceeding expectations and expanding margins through increased volumes and operational execution.
Key Takeaways
Mueller Water Products reported a 15.5% increase in net sales to $348.2 million for the fourth quarter of 2024, with adjusted EBITDA increasing by 30.9% to $72.5 million. The company's performance was driven by higher volumes and pricing across most product lines, as well as improved manufacturing performance and disciplined SG&A spending. The company is introducing its fiscal 2025 consolidated net sales guidance to be between $1,340 million and $1,360 million, or an increase of 1.9 to 3.4 percent compared with the prior year.
Net sales increased 15.5 percent to $348.2 million compared to the prior year quarter.
Adjusted EBITDA increased 30.9 percent to $72.5 million compared to the prior year quarter.
Operating income increased to $28.4 million, while adjusted operating income increased 41.6 percent to $56.5 million.
The company expects to deliver continued net sales growth and margin improvement in fiscal 2025.
Revenue by Segment
Forward Guidance
The Company is introducing its fiscal 2025 consolidated net sales guidance to be between $1,340 million and $1,360 million, or an increase of 1.9 to 3.4 percent compared with the prior year. Consolidated net sales seasonality is anticipated to be normalized with quarterly consolidated net sales highest in the third quarter and lowest in the first quarter, with a sequential increase in consolidated net sales in the second quarter as the construction season ramps up in the Spring. The Company anticipates its fiscal 2025 adjusted EBITDA to be between $300 million and $305 million, or an increase of 5.4 to 7.1 percent compared with fiscal 2024.
Positive Outlook
- Consolidated net sales guidance to be between $1,340 million and $1,360 million, or an increase of 1.9 to 3.4 percent compared with the prior year.
- Consolidated net sales seasonality is anticipated to be normalized with quarterly consolidated net sales highest in the third quarter and lowest in the first quarter, with a sequential increase in consolidated net sales in the second quarter as the construction season ramps up in the Spring.
- The Company anticipates its fiscal 2025 adjusted EBITDA to be between $300 million and $305 million, or an increase of 5.4 to 7.1 percent compared with fiscal 2024.
- The Company expects total SG&A expenses to be between $236 million and $240 million, which is below the prior year, due to benefits from lower amortization expense and incentive compensation, partially offset by strategic investments and expected inflation.
- The Company expects free cash flow as a percentage of adjusted net income to be more than 80 percent in fiscal 2025.
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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