Mueller Water Products · NYSE:MWA
Mueller Water Products — Q1 2025 Earnings Presentation
19 slides from Mueller Water Products's earnings presentation, Feb 5, 2025
Slide 1: Where Intelligence Meets Infrastructure - Earnings Conference Call
Where Intelligence Meets Infrastructure® Earnings Conference Call 2025 First Quarter December 31, 2024 February 5, 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: First Quarter Highlights
First Quarter Highlights • Pleased with strong start to the year where we achieved record first Fiscal 2025 (1) quarter results for Adj. EBITDA and Adj. Net Income per Diluted Share (y/y or bps. vs. Fiscal 2024) − Exceeded net sales growth expectations (+18.7% y/y) as we experienced healthy order Q1
Slide 5: Commercial and Operational Insights
Commercial and Operational Insights • Order levels exceeded expectations, mainly for short-cycle iron gate valves and hydrants − Strong execution of commercial and operations teams enabled us to do a great job fulfilling orders • Achieved milestone for Mueller and transitioned production to our stat
Slide 6: Consolidated GAAP Results (Q1 FY2025)
Consolidated GAAP Results (Q1 FY2025) Net Sales ($M) Gross Profit ($M) SG&A ($M) Operating Income ($M) % of Net Sales % of Net Sales % of Net Sales +19.4% y/y -5.3% y/y +107.9% y/y +18.7% y/y +10 bps. -450 bps. +670 bps. $103.0 $56.9 $53.9 $47.4 $304.3 $256.4 $86.3 22.2% 15.6% 33.8% 17.7% 33.7% $22.
Slide 7: Consolidated Non-GAAP Results (Q1 FY2025)
Consolidated Non-GAAP Results (Q1 FY2025) (1) Adj. Operating Income ($M) Adj. EBITDA ($M) Adj. Net Income per Diluted Share % of Net Sales % of Net Sales +78.2% y/y +41.7% y/y +570 bps. +340 bps. +92.3% y/y $52.4 $63.5 $0.25 17.2% $44.8 20.9% $29.4 $0.13 17.5% 11.5% Q1 FY2024 Q1 FY2025 Q1 FY2024 Q1
Slide 8: Water Flow Solutions (WFS) Segment Results (Q1 FY2025)
Water Flow Solutions (WFS) Segment Results (Q1 FY2025) Net Sales ($M) Adj. Operating Income ($M) (1) Adj. EBITDA ($M) (1) % of Net Sales % of Net Sales +40.9% y/y +21.8% y/y +23.6% y/y +270 bps. -40 bps. $174.6 $38.6 $44.7 $141.3 $36.7 $27.4 22.1% 25.6% 26.0% 19.4% Q1 FY2024 Q1 FY2025 Q1 FY2024 Q1 F
Slide 9: Water Management Solutions (WMS) Segment Results (Q1 FY2025)
Water Management Solutions (WMS) Segment Results (Q1 FY2025) Net Sales ($M) Adj. Operating Income ($M) (1) Adj. EBITDA ($M) (1) % of Net Sales % of Net Sales +82.8% y/y +47.5% y/y +12.7% y/y +820 bps. +590 bps. $129.7 $27.6 $32.6 $115.1 21.3% 25.1% $22.1 $15.1 19.2% 13.1% Q1 FY2024 Q1 FY2025 Q1 FY20
Slide 10: Free Cash Flow (Q1 Fiscal 2025)
Free Cash Flow (Q1 Fiscal 2025) • Delivered $54.1M of net cash provided by operating activities in Q1 compared with $67.9M in prior year $80.0 $67.9 − Decrease primarily driven by changes in working capital, $5.7 including other current liabilities such as incentive $60.0 $54.1 compensation, partial
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: Fiscal 2025 Outlook
Fiscal 2025 Outlook (1) • Increasing net sales expectations to be between $1,370M and Fiscal 2025 Metrics (1) $1,390M (+4.2% to +5.7% y/y) Consolidated Net Sales $1,370M to $1,390M − $30M increase vs. prior guidance at the midpoint of the range reflects Q1 (y/y Growth) (+4.2% to +5.7%) performance,
Slide 13: Closing Comments
Closing Comments • Thank you to all our employees around the world for their focused execution to start the year, and their continued dedication and passion for helping our customers and communities is the engine for our future success • Pleased to be increasing annual guidance for 2025; however, mi
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 December 31, 2024 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 174.6 $ 129.7 $ — $ 304.3 Gross profit (1) $
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 December 31, 2024 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 35.3 Income tax expense (4) 10.5 Interest e
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 December 31, 2023 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net sales $ 141.3 $ 115.1 $ — $ 256.4 Gross profit $ 46.
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 December 31, 2023 Water Water Flow Management Solutions Solutions Corporate Consolidated (dollars in millions, except per share amounts) Net income $ 14.3 Income tax expense (3) 2.6 Other expen
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