Mueller Water Products, Inc. (MWA) Q4 2025 Earnings Call Transcript
Net Sales (Q4) $380.8 million, a 9.4% increase year-over-year. This growth was driven by increased volumes and higher pricing across most product lines.
Net Sales (Full Year) Over $1.4 billion, an 8.7% increase year-over-year. This reflects strong demand and effective execution.
Gross Margin (Q4) 36.8%, a 500 basis points expansion year-over-year. This improvement was driven by manufacturing efficiencies, volume growth, and favorable price/cost dynamics.
Gross Margin (Full Year) 36.1%, a 120 basis points increase year-over-year. This was driven by manufacturing efficiencies and increased volumes, offsetting higher tariffs.
Adjusted EBITDA (Q4) $91.8 million, a 26.6% increase year-over-year. Adjusted EBITDA margin expanded 330 basis points to 24.1%.
Adjusted EBITDA (Full Year) $326.2 million, a 14.6% increase year-over-year. Adjusted EBITDA margin expanded 110 basis points to 22.8%.
Adjusted Net Income Per Share (Q4) $0.38 per share, a 72.7% increase year-over-year. This exceeded the record level from the previous quarter.
Adjusted Net Income Per Share (Full Year) $1.31 per share, a 36.5% increase year-over-year. This reflects strong operational performance.
Free Cash Flow (Full Year) $172 million, representing 84% of adjusted net income. This was driven by strong operational cash generation.
WFS Segment Net Sales (Q4) $217.5 million, an 8.6% increase year-over-year. Growth was driven by volume growth in iron gate and specialty valves and higher pricing.
WMS Segment Net Sales (Q4) $163.3 million, a 10.4% increase year-over-year. Growth was led by volume growth of hydrants and repair products as well as higher pricing.
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Mueller Water Products Nominates Gregg Sengstack to Board of Directors
- Board Changes: Mueller Water Products has nominated Gregg C. Sengstack to join the Board at the Annual Meeting on February 9, 2026, while Thomas Hansen will retire, increasing the Board to nine members, with eight independent directors enhancing corporate governance.
- Experienced Leadership: Sengstack brings over 30 years of experience in manufacturing leadership, international market development, and financial stewardship, having previously served as CEO of Franklin Electric, where he drove significant shareholder value creation, which is expected to provide strategic insights for Mueller.
- Strategic Focus: Board Chair Stephen C. Van Arsdell emphasized that this change aims to introduce fresh perspectives while retaining experienced directors, indicating the company's commitment to creating value in a changing market and enhancing operational efficiency.
- Future Outlook: With the renewal of Board members, Mueller Water Products will continue to pursue its strategic objectives to enhance value for all stakeholders, which is expected to further drive the company's long-term growth and market competitiveness.
Mueller Water Products Nominates Gregg Sengstack to Board, Thomas Hansen to Retire
- Board Changes: Mueller Water Products has nominated Gregg C. Sengstack to join the Board, with the formal appointment set for the Annual Meeting on February 9, 2026, aiming to introduce fresh perspectives to enhance the company's strategic focus and operational capabilities.
- Experienced Leadership: Sengstack brings over 30 years of manufacturing leadership experience, having served as CEO at Franklin Electric where he drove strategic transformation and shareholder value creation, which is expected to provide valuable industry insights to Mueller.
- Board Structure Optimization: Following this change, the Board will consist of nine members, eight of whom are independent directors, ensuring diversity and professionalism in corporate governance, which will enhance decision-making quality and company transparency.
- Hansen's Contributions: Current Board member Thomas Hansen will retire at the Annual Meeting, with the Board Chair expressing gratitude for his significant contributions to the company's strategic objectives, highlighting the importance of continually introducing fresh perspectives.
