Mueller Water Products Reports 5.5% Revenue Growth in Q2 Fiscal 2026

Mueller Water Products, Inc. reported a solid financial performance for the second quarter of fiscal 2026, with net sales reaching $384.4 million, a 5.5% increase from $364.3 million in the same period last year. The company's gross profit also rose to $144.5 million, up 12.9% from $128.0 million, resulting in a gross margin of 37.6%, compared to 35.1% in the prior year. This improvement was attributed to higher pricing across most product lines and increased volumes, although it was partially offset by rising tariffs and inflationary pressures.

For the six months ending March 31, 2026, Mueller's net sales totaled $702.6 million, reflecting a 5.1% increase from $668.6 million in the previous year. Gross profit for this period was $264.3 million, a 14.4% increase from $231.0 million, with a gross margin improvement to 37.6% from 34.5%. The increase in gross profit was driven by higher pricing and manufacturing efficiencies, particularly following the closure of the legacy brass foundry in Decatur, Illinois. However, the company faced challenges from increased tariffs and inflation, which negatively impacted margins.

Strategically, Mueller Water Products underwent a leadership transition with the retirement of CEO Marietta Edmunds Zakas and the appointment of Paul McAndrew as the new CEO. The company also recorded $7.7 million in strategic reorganization and other charges during the first half of fiscal 2026, primarily related to leadership transition expenses and severance. Additionally, the company has been actively managing its supply chain and production capabilities in response to geopolitical events, including the Israel-Hamas conflict, which temporarily affected operations.

Operationally, Mueller's Water Flow Solutions segment generated $218.3 million in sales for the quarter, a slight increase from $216.2 million, while the Water Management Solutions segment saw a more significant rise to $166.1 million from $148.1 million. The company reported a total employee headcount of 2,200 as of March 31, 2026, reflecting ongoing efforts to enhance operational efficiency. The company also maintained a strong liquidity position with cash and cash equivalents of $421.0 million and $163.7 million in additional borrowing capacity under its asset-based lending agreement.

Looking ahead, Mueller Water Products anticipates a consolidated net sales increase of 2.8% to 4.2% for fiscal 2026 compared to the previous year. The company expects to face ongoing challenges from inflation, tariffs, and supply chain disruptions but remains optimistic about resilient demand in the municipal repair and replacement market. The company plans to continue investing in its facilities to enhance production capacity and operational capabilities, positioning itself to meet anticipated demand in a changing economic landscape.