Mueller Water Products · NYSE:MWA
Mueller Water Products — Q2 2025 Earnings Presentation
23 slides from Mueller Water Products's earnings presentation, May 6, 2025
Slide 1: Where Intelligence Meets Infrastructure®
Where Intelligence Meets Infrastructure® Earnings Conference Call 2025 Second Quarter March 31, 2025 May 6, 2025 These slides are not intended to be a stand-alone presentation, but are for use in conjunction with the earnings call
Slide 2: Non-GAAP Measures
Non-GAAP Measures In an effort to provide investors with additional information regarding the Company’s results as determined by accounting principles generally accepted in the United States (“GAAP”), the Company also provides non-GAAP information that management believes is useful to investors. The
Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain statements that may be deemed “forward-looking statements” within the meaning of the federal securities laws. All statements that address activities, events or developments that the Company intends, expects, plans, projects, believes or a
Slide 4: Second Quarter Highlights
Second Quarter Highlights • Delivered solid performance, achieving new Q2 records for consolidated Fiscal 2025 (1) net sales, adjusted EBITDA and adjusted net income per share (y/y or bps. vs. Fiscal 2024) • Taking appropriate steps to mitigate the higher costs expected from Q2 YTD newly enacted tar
Slide 5: Taking Steps to Mitigate Potential Tariff Impacts with Targeted Price Actions, and Supply Chain
Taking Steps to Mitigate Potential Tariff Impacts with Targeted Price Actions, and Supply Chain and Operational Initiatives Summary of Currently Enacted Tariff Impacts (As of May 5, 2025) Geography (5) (% of Consolidated Net Sales) Flow of Goods Products Tariff Exposure Mitigation Actions United Sta
Slide 6: Consolidated GAAP Results (Q2 FY2025)
Consolidated GAAP Results (Q2 FY2025) Net Sales ($M) Gross Profit ($M) SG&A ($M) Operating Income ($M) % of Net Sales % of Net Sales % of Net Sales -1.8% y/y -12.6% y/y +10.1% y/y +3.1% y/y -180 bps. -270 bps. +120 bps. $353.4 $364.3 $130.4 $128.0 $63.7 $55.7 $69.9 $63.5 36.9% 35.1% 18.0% 15.3% 19.2
Slide 7: Consolidated Non-GAAP Results (Q2 FY2025)
Consolidated Non-GAAP Results (Q2 FY2025) (1) Adj. Operating Income ($M) Adj. EBITDA ($M) Adj. Net Income per Diluted Share % of Net Sales % of Net Sales +9.6% y/y +2.8% y/y +13.3% y/y +120 bps. -10 bps. $82.2 $84.5 $0.34 $73.1 $66.7 23.3% 23.2% 20.1% 18.9% $0.30 Q2 FY2024 Q2 FY2025 Q2 FY2024 Q2 FY2
Slide 8: Water Flow Solutions (WFS) Segment Results (Q2 FY2025)
Water Flow Solutions (WFS) Segment Results (Q2 FY2025) Net Sales ($M) Adj. Operating Income ($M) (1) Adj. EBITDA ($M) (1) % of Net Sales % of Net Sales +6.3% y/y -0.3% y/y +5.1% y/y +30 bps. -150 bps. $205.8 $216.2 $62.4 $62.2 $55.9 30.3% $52.6 28.8% 25.9% 25.6% Q2 FY2024 Q2 FY2025 Q2 FY2024 Q2 FY20
Slide 9: Water Management Solutions (WMS) Segment Results (Q2 FY2025)
Water Management Solutions (WMS) Segment Results (Q2 FY2025) Net Sales ($M) Adj. Operating Income ($M) (1) Adj. EBITDA ($M) (1) % of Net Sales % of Net Sales +8.3% y/y +2.0% y/y +0.3% y/y +160 bps. +40 bps. $147.6 $148.1 21.2% 24.2% 24.6% 19.6% $35.7 $36.4 $31.4 $29.0 24.6% 24.2% 19.6% 21.2% Q2 FY20
Slide 10: Free Cash Flow (YTD Q2 FY2025)
Free Cash Flow (YTD Q2 FY2025) • Increased net cash provided by operating activities by $6.2M to $68.4M for six-month period compared with prior year $46.4 $47.3 − Increase primarily driven by higher net income partially offset $68.4 $62.2 by changes in working capital, including decreases in other
Slide 11: Strong Balance Sheet and Liquidity
Strong Balance Sheet and Liquidity Ample capacity, liquidity and flexibility to support our strategic priorities, including acquisitions • Moody’s: Ba1 Corporate and Notes Ratings, Stable Outlook Debt Maturities Credit Rating • S&P: BB Corporate and Notes Ratings, Positive Outlook $500 • $450M of 4.
Slide 12: FY2025 Outlook
FY2025 Outlook (1) • Increasing net sales expectations to be between $1,390M and Fiscal 2025 Metrics (1) $1,400M (+5.7% to +6.5% y/y) Consolidated Net Sales $1,390M to $1,400M − $15M increase vs. prior guidance at the midpoint of the range reflects Q2 (y/y Growth) (+5.7% to +6.5%) performance, expec
Slide 13: Strategic Priorities to Drive Growth and Margin Improvement Supported by Purpose-driven Organization
Strategic Priorities to Drive Growth and Margin Improvement Supported by Purpose-driven Organization IMPROVE ACCELERATE FOSTER CULTURE INCREASE MARGINS STRATEGIC OPERATIONAL SALES GROWTH THROUGH PURPOSE, AND FREE CASH FLOW PRIORITIES EXCELLENCE THROUGH CUSTOMER COLLABORATION, TO SUPPORT FUTURE AND E
Slide 14: Q&A
Q&A
Slide 15: Supplemental Data
Supplemental Data
Slide 16: Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (UNAUDITED) Three months ended March 31, 2025 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 216.2 $ 148.1 $ — $ 364.3 Gross profit (1) $ 77
Slide 17: Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (UNAUDITED) Three months ended March 31, 2025 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 51.3 Income tax expense (4) 16.4 Interest expe
Slide 18: Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (UNAUDITED) Three months ended March 31, 2024 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 205.8 $ 147.6 $ — $ 353.4 Gross profit $ 77.2 $
Slide 19: Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (UNAUDITED) Three months ended March 31, 2024 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 44.3 Income tax expense (3) 14.6 Interest expe
Slide 20: Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (UNAUDITED) Six months ended March 31, 2025 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 390.8 $ 277.8 $ — $ 668.6 Gross profit (1) $ 132.
Slide 21: Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (UNAUDITED) Six months ended March 31, 2025 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 86.6 Income tax expense (4) 26.9 Interest expens
Slide 22: Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (UNAUDITED) Six months ended March 31, 2024 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 347.1 $ 262.7 $ — $ 609.8 Gross profit $ 123.8 $
Slide 23: Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures
Segment Results and Reconciliation of Non-GAAP to GAAP Performance Measures (UNAUDITED) Six months ended March 31, 2024 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 58.6 Income tax expense (3) 17.2 Other expense 1
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