NYSE$MWA

Mueller Water Products Inc · Q4 2024 earnings

Q4 2024 earnings · · Investor relations

Briefing

Mueller Water Products reported an increase in net sales and adjusted EBITDA, exceeding expectations and expanding margins through increased volumes and operational execution.

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.

Headline financials

Total Revenue

$348M

Previous: $301M+15.5%
EPS (adj)

$0.22

Previous: $0.19+15.8%
Gross Margin

31.8%

No prior period
Operating Margin

8.2%

No prior period
Adjusted Operating Margin

16.2%

No prior period
Net Income Margin

2.9%

No prior period
Adjusted EBITDA

$72.5M

Previous: $55.4M+30.9%
Adjusted EBITDA Margin

20.8%

Previous: 18.4%+13.0%
Capital Expenditures

-$19.4M

Previous: -$15.2M-27.6%
Net Income

$10M

Previous: $17.2M-41.9%
Operating Income

$28.4M

Previous: $24.9M+14.1%
Gross Profit

$111M

Previous: $88.4M+25.5%
Stock-Based Comp

$2M

Previous: $2.6M-23.1%

Revenue & EPS history

Mueller · Revenue · Quarterly

$348M

Q4 2024+15.5%vs Q4 2023
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Mueller · $301M total across 2 segments · Q4 2023

  • Water Flow Solutions
    $162M-10.0%
  • Water Management Solutions
    $140M-8.0%

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.

Tailwinds

  • 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.

Headwinds

  • Logistical challenges and supply chain disruptions
  • Geopolitical conditions, including the Israel-Hamas war, public health crises, or other events
  • Cyclical and changing demand in core markets such as municipal spending, residential construction, and natural gas distribution
  • The impact of adverse weather conditions
  • The impact of wage, commodity and materials price inflation

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+1.7%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+0.8%

Avg return

30 days after

63%

41 / 65 earnings

Positive

+16.7%

Q1 2025

Best reaction

-12.8%

Q1 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+1.8%-6.4%-8.1%
Q1 2026+1.5%+7.0%+1.5%
Q4 2025-4.4%-5.9%-1.8%
Q2 2025-6.3%-9.4%-9.9%
Q1 2025+16.7%+16.6%+8.5%
Q4 2024+6.2%+14.5%+11.5%
Q3 2024+2.2%+1.1%+2.8%
Q2 2024+11.0%+18.7%+9.5%
Q1 2024+10.8%+10.4%+14.5%
Q4 2023+7.4%+3.5%+0.9%
Q3 2023-10.8%-13.3%-11.0%
Q2 2023-6.4%-9.2%+3.5%
Q1 2023+7.5%+6.8%+8.2%
Q4 2022-1.7%-2.6%-0.3%
Q3 2022-9.3%-10.4%-15.6%
Q2 2022-3.0%+0.1%-0.2%
Q1 2022+0.4%+4.2%-2.3%
Q4 2021-8.5%-13.0%-15.3%
Q3 2021+2.7%+1.1%+7.4%
Q2 2021+1.9%+3.6%+0.5%
Q1 2021+2.4%+6.1%+8.6%
Q4 2020+7.7%+7.3%+13.4%
Q3 2020+6.9%+8.8%+5.0%
Q2 2020-4.6%-4.5%+3.7%
Q1 2020+3.5%+1.2%-4.6%
Q4 2019-5.1%-7.4%-2.1%
Q3 2019+3.8%+0.4%+2.0%
Q2 2019-12.8%-15.2%-12.0%
Q1 2019+6.5%+3.6%+3.9%
Q4 2018+7.3%+6.2%-4.4%
Q3 2018-5.4%-5.7%-7.5%
Q2 2018+15.4%+20.7%+23.7%
Q1 2018-2.4%-4.6%-5.5%
Q4 2017+3.7%+2.3%+3.4%
Q3 2017+6.7%+4.6%+5.0%
Q2 2017-11.9%-12.2%-12.6%
Q1 2017+0.3%-6.6%-9.2%
Q4 2016-11.8%-9.0%+9.9%
Q3 2016+4.9%+7.9%+7.7%
Q2 2016+6.1%
Q1 2016+5.9%
Q4 2015-2.1%
Q3 2015+5.8%
Q2 2015-5.5%
Q1 2015-12.8%
Q4 2014+9.7%
Q3 2014+14.8%
Q2 2014-3.0%
Q1 2014+10.0%
Q4 2013+4.4%
Q3 2013+6.2%
Q2 2013+11.4%
Q1 2013-1.3%
Q4 2012+9.7%
Q3 2012+3.1%
Q2 2012+3.1%
Q1 2012-1.4%
Q4 2009+10.3%
Q3 2010+2.9%
Q3 2011+2.9%
Q2 2011+1.7%
Q2 2010+1.7%
Q1 2011-1.5%
Q1 2010-1.5%
Q4 2010-1.5%

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