Mueller Water Products Reports Record Fourth Quarter and Full Year 2026 Results; Introduces Fiscal 2027 Guidance

(NYSE:MWA) Mueller Water Products, Inc. announced financial results for its fourth quarter and fiscal year ended September 30, 2026. In the fourth quarter of 2026, the company achieved net sales of $376.5 million, a 1.1% decrease compared to $380.8 million in the prior year quarter. Operating income was $73.1 million versus $69.6 million in the prior year quarter, and adjusted operating income increased 4.7% to $82.6 million from $78.9 million. Operating margin was 19.4% compared to 18.3% in the prior year quarter, and adjusted operating margin rose to 21.9% from 20.7%. Net income was $52.3 million compared to $52.6 million, with net income margin at 13.9% versus 13.8%, and adjusted net income was $59.2 million compared to $59.7 million. Net income per diluted share was $0.33, unchanged from the prior year quarter, and adjusted net income per diluted share was $0.38, also unchanged. Adjusted EBITDA increased 4.0% to $95.5 million from $91.8 million, and adjusted EBITDA margin expanded to 25.4% from 24.1%. For the full fiscal year 2026, net sales increased 3.2% to $1,475.0 million from $1,429.7 million. Operating income was $290.8 million versus $260.6 million, and adjusted operating income rose 15.5% to $322.3 million from $279.1 million. Operating margin was 19.7% compared to 18.2%, and adjusted operating margin increased to 21.9% from 19.5%. Net income was $221.9 million versus $191.7 million, with net income margin at 15.0% compared to 13.4%, and adjusted net income increased 19.7% to $246.2 million from $205.6 million. Net income per diluted share was $1.41 compared to $1.22, and adjusted net income per diluted share increased 19.8% to $1.57 from $1.31. Adjusted EBITDA increased 14.1% to $372.2 million from $326.2 million, and adjusted EBITDA margin expanded to 25.2% from 22.8%. Net cash provided by operating activities increased $43.6 million, or 19.9%, to $262.9 million from $219.3 million, and free cash flow increased $35.3 million, or 20.5%, to $207.3 million from $172.0 million. The company returned $74.3 million to shareholders through dividends and common stock repurchases. As of September 30, 2026, total debt outstanding was $453.8 million and cash and cash equivalents were $566.0 million. Total liquidity at quarter end was $730.7 million, including $164.7 million in availability under the ABL. On October 22, 2026, the Board approved a $300.0 million increase to the common stock repurchase authorization, bringing the total to $334.5 million. The Board also declared a quarterly dividend of $0.08 per share, a 14.3% increase over the prior quarterly dividend of $0.07 per share, payable on November 19, 2026, to stockholders of record as of November 9, 2026. During fiscal 2026, $43.8 million was paid in dividends and $30.5 million in common stock repurchases. The company incurred $8.9 million of strategic reorganization and other charges in the quarter, primarily related to the closure of the legacy brass foundry in Decatur, Illinois, and severance. Mueller Water Products entered into an agreement to transition its metering business, operated via its Mueller Systems subsidiary, to ZENNER USA, part of the Minol-ZENNER Group. Fiscal 2027 consolidated net sales guidance is $1,440 million to $1,470 million, excluding all metering-related financial results. In fiscal 2026, metering-related net sales were approximately $40 million. Fiscal 2027 adjusted EBITDA is anticipated to be between $378 million and $388 million, with an expected adjusted EBITDA margin of 26.3% at the midpoint, a 110 basis point year-over-year improvement. The company expects free cash flow as a percentage of adjusted net income to be more than 80% in fiscal 2027. Additional fiscal 2027 guidance includes total SG&A expenses between $228 million and $233 million, net interest expense between $3 million and $5 million, and an effective income tax rate between 24% and 26%.

Mueller Water Products Announces Agreement to Transition Metering Business to ZENNER USA

(NYSE:MWA) Mueller Water Products, Inc. announced it has entered into an agreement to transition its metering business, operated via its Mueller Systems subsidiary, to ZENNER USA, part of the Minol-ZENNER Group. This decision follows a comprehensive review by Mueller’s Board of Directors and management regarding the strategic fit and performance of the metering business within the company’s portfolio. Under the agreement, Mueller will exit the metering business and transition customers to ZENNER USA for replacement software and hardware to fulfill existing customer commitments. The transition is intended to simplify Mueller’s portfolio and allow the company to focus capital, talent, and management attention on areas with stronger competitive positions and clearer opportunities for profitable growth. Paul McAndrew, President and Chief Executive Officer of Mueller Water Products, stated that this step is designed to sharpen Mueller’s focus and strengthen the company for the future, emphasizing disciplined, fact-based decisions and customer-first execution. McAndrew also noted that the priority throughout the process is to protect customers and ensure continuity of products, service, and support, with ZENNER USA providing the necessary scale, technology investment, compatible products, and global manufacturing capabilities. Mueller expects the transition to support adjusted EBITDA margin expansion with a 100 to 140 basis point annualized benefit, primarily beginning in the second quarter of fiscal 2027. The transition process will begin immediately, with both companies working closely with customers and suppliers to ensure continuity of service and ongoing support. In connection with the agreement, Mueller expects to incur approximately $26 million of one-time expenses in fiscal 2027, primarily related to outstanding warranty liability, operating and customer service costs, transaction-related costs, severance, inventory, and other asset write-offs. The majority of these expenses will be incurred during the first quarter, with most of the remaining expenses incurred prior to the end of the year. The financial impacts and benefits of the transition will occur in the Water Management Solutions segment. The company believes the cash return on investment of completing the transition is very attractive relative to other opportunities. Mueller Water Products also announced its fourth quarter and full year 2026 financial results in a separate press release available on its investor relations website.

Mueller Water Products Announces Quarterly Dividend

Mueller Water Products, Inc. (NYSE: MWA) announced that its Board of Directors has declared a quarterly dividend of $0.070 per share. The dividend is payable on or about May 20, 2026, to stockholders of record as of the close of business on May 11, 2026. Mueller Water Products, Inc. is a leading manufacturer and marketer of products and solutions used in the transmission, distribution and measurement of water in North America. The announcement provides investors with information on the company's ongoing dividend payments and its operational focus.