Mueller Industries Q4 net sales rise on higher pricing

Overview

• Industrial goods maker's fiscal Q4 net sales rose 4.2% yr/yr

• Diluted EPS for fiscal Q4 increased 14% yr/yr

• Company achieved record annual operating and net income despite market challenges

Outlook

• Mueller Industries anticipates improvements in market conditions throughout 2026

• Company plans to leverage operational improvements for financial benefits in 2026

• Mueller Industries aims to pursue strategic acquisitions with strong balance sheet

Result Drivers

• HIGHER SELLING PRICES - Net sales increase attributed to higher selling prices due to rising raw material costs, offset by lower unit volumes in core products

• HEDGE CONTRACT LOSS - Gross margin impacted by $18.2 mln unrealized loss on open hedge contracts due to rapid rise in copper prices

• STRONG CASH GENERATION - Generated $141.2 mln of cash from operations in Q4, ending the year with $1.39 bln in cash and short-term investments

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

• Wall Street's median 12-month price target for Mueller Industries Inc is $135.50, about 2.6% below its February 2 closing price of $139.18

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nBw3pwMNYa

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