Mueller Water Products Reports 3.1% Net Sales Increase to $364.3 Million for Q1 2025

Mueller Water Products, Inc. reported a net sales increase of 3.1% for the three months ended March 31, 2025, reaching $364.3 million, compared to $353.4 million in the same period last year. The company's gross profit for the quarter was $128.0 million, a slight decrease from $130.4 million in the prior year, attributed to manufacturing inefficiencies and inflationary pressures. Operating income rose to $69.9 million from $63.5 million, driven by a reduction in selling, general, and administrative expenses, which fell by 12.6% to $55.7 million.

For the six months ending March 31, 2025, Mueller's net sales increased by 9.6% to $668.6 million, up from $609.8 million in the previous year. Gross profit for this period was $231.0 million, compared to $216.7 million, reflecting higher volumes and favorable pricing across product lines. The company reported a net income of $86.6 million for the six-month period, significantly higher than the $58.6 million recorded in the same timeframe last year.

Strategically, Mueller Water Products has focused on enhancing its operational efficiency and reducing costs. The company incurred $4.1 million in strategic reorganization and other charges during the first half of fiscal 2025, down from $9.8 million in the prior year, indicating a shift towards stabilizing its operations. Additionally, the company has made investments in cybersecurity infrastructure and has appointed a new Chief Financial Officer, Melissa Rasmussen, effective March 3, 2025.

Operationally, Mueller's Water Flow Solutions segment reported net sales of $216.2 million for the three months ended March 31, 2025, a 5.1% increase from the previous year, while the Water Management Solutions segment saw a modest increase of 0.3% to $148.1 million. The company continues to face challenges related to inflation and supply chain disruptions, particularly due to geopolitical factors affecting its operations in Israel.

Looking ahead, Mueller Water Products anticipates a consolidated net sales increase of 5.7% to 6.5% for fiscal 2025, despite ongoing uncertainties in the external operating environment. The company expects resilient demand in municipal repair and replacement markets, although new residential construction activity may be constrained by economic conditions. Mueller plans to continue monitoring inflationary pressures and implement necessary price adjustments to maintain profitability.