Mueller Water Q1 sales and EPS beat estimates

Overview

• Water infrastructure firm's fiscal Q1 net sales rose, beating analyst expectations

• Adjusted EPS for fiscal Q1 beat analyst expectations

• Company repurchased $5.5 mln of common stock during the quarter

Outlook

• Mueller Water Products raises fiscal 2026 net sales guidance to $1,470 mln-$1,490 mln

• Company expects fiscal 2026 adjusted EBITDA to be $355 mln-$360 mln

• Mueller Water Products maintains fiscal 2026 free cash flow expectation to exceed 85% of adjusted net income

Result Drivers

• HIGHER PRICING - Co attributed net sales increase to higher pricing across most product lines, despite slightly lower volumes

• MANUFACTURING EFFICIENCIES - Gross profit increase driven by manufacturing efficiencies and absence of prior-year write-downs

• SEGMENT SALES GROWTH - Water Management Solutions segment sales rose 12% due to higher pricing and increased hydrant volumes

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "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 Water Products Inc is $27.50, about 0.2% below its February 3 closing price of $27.56

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nGNX9DWCbl

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