Mueller Water Products (MWA) Q3 2026 earnings summary

Executive summary

• Achieved record quarterly net sales of $395.9 million, adjusted EBITDA of $107.4 million (up 24.3%), and adjusted net income per diluted share of $0.50 (up 47.1%), driven by strong execution, higher pricing, and resilient municipal demand.

• Operational discipline, cost management, and portfolio optimization contributed to margin gains and record profitability.

• Completed exit of i2O business outside North America and facility migration for AirCore Systems, incurring one-time costs but expecting future savings.

• Published 2025 sustainability report, achieving lowest incident rate and reducing emissions intensity by 13% year-over-year.

• Free cash flow for the quarter was $94.1 million and $110.6 million for the nine months, supporting continued investment and $21 million in shareholder returns.

Financial highlights

• Gross profit increased 6.9% to $155.8 million; gross margin expanded 110 basis points to 39.4%.

• Adjusted EBITDA margin expanded 440 basis points to 27.1%; operating income for the quarter was $80.6 million, up from $73.7 million.

• Adjusted net income per diluted share increased 47.1% to $0.50, aided by a one-time tax benefit; net income for the quarter was $67.3 million.

• Free cash flow for the nine months was $110.6 million, up $7.6 million year-over-year; cash flow from operations was $154.2 million.

• SG&A expenses decreased 9.9% to $64.0 million for the quarter, mainly due to lower FX impact and incentive compensation.

Outlook and guidance

• Fiscal 2026 net sales guidance narrowed to $1,470–$1,480 million, up 2.8%–3.5% year-over-year.

• Adjusted EBITDA guidance raised to $367–$372 million, with a midpoint margin of 25.1%.

• SG&A expenses expected at $241–$245 million; effective tax rate guided to 21%–23%.

• Capital expenditures reaffirmed at $60–$65 million, focused on foundry capacity and efficiency.

• Free cash flow as a percentage of adjusted net income expected to exceed 70%.