Q1 2026 Mueller Water Products Inc Earnings Call Transcript
Key Points
- Mueller Water Products Inc (MWA) reported a net sales growth of 4.6% in the first quarter, supported by resilient end markets and strong customer service.
- The company achieved first-quarter records for net sales, gross margin, adjusted EBITDA, and adjusted EBITDA margin.
- Mueller Water Products Inc (MWA) generated $44 million of free cash flow and maintained a balanced approach to cash allocation, including capital expenditures and shareholder returns.
- The company raised its fiscal 2026 guidance, reflecting strong first-quarter results and positive market expectations.
- Mueller Water Products Inc (MWA) is benefiting from strategic capital investments and operational improvements, leading to sustained margin expansion and long-term value creation.
- The company faced higher tariffs and ongoing inflationary pressures, particularly related to brass, which impacted costs.
- Total SG&A expenses increased by $5.9 million compared to the prior year, driven by higher personnel costs, inflationary pressures, and unfavorable foreign currency impacts.
- Net sales for the WFS segment decreased by 0.9%, primarily due to lower volumes of service brass products.
- Adjusted operating income for the WMS segment decreased by 11.2%, reflecting increased tariffs, manufacturing inefficiencies, and higher SG&A expenses.
- The company anticipates a high single-digit decrease in residential construction activity, which could impact future sales growth.
Good morning, and thank you for standing by. (Operator Instructions) Today's conference is being recorded. If you have any objections, you may disconnect at this time.
It is now my pleasure to turn the call over to Whit Kincaid.
Good morning, everyone. Thank you for joining us for Mueller Water Products first-quarter conference call. Yesterday afternoon, we issued our press release reporting results of operations for the quarter ended December 31, 2025. A copy of the press release is available on our website, muellerwaterproducts.com. I have joined this morning by Martie Zakas, our Chief Executive Officer; Paul McAndrew, our President and Chief Operating Officer; and Melissa Rasmussen, our Chief Financial Officer.
Following our prepared remarks, we will address questions related to the information covered on the call. As a reminder, please keep to one question and a follow-up and then return to the queue. This morning's call is being recorded and
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