Mueller Water Products Reports 6.6% Increase in Q3 Fiscal 2025 Net Sales

Mueller Water Products, Inc. reported a notable increase in financial performance for the third quarter of fiscal 2025, with net sales reaching $380.3 million, up 6.6% from $356.7 million in the same period last year. The company's gross profit also rose to $145.7 million, reflecting a 10.9% increase compared to $131.4 million in the prior year. This growth was attributed to higher volumes and increased pricing across most product lines, although gross profit margins were slightly impacted by inflation and tariffs, resulting in a gross margin of 38.3%, up from 36.8% a year earlier.

For the nine months ending June 30, 2025, Mueller's net sales totaled $1,048.9 million, an 8.5% increase from $966.5 million in the previous year. Gross profit for this period was $376.7 million, compared to $348.1 million in the prior year, marking an 8.2% increase. The company noted that while manufacturing efficiencies contributed positively, they were offset by a $4.1 million write-down related to its legacy brass foundry in Decatur, Illinois. Operating income for the nine-month period was $191.0 million, up from $153.3 million in the previous year.

Strategically, Mueller Water Products has been focusing on enhancing its operational capabilities and addressing challenges posed by external factors such as inflation and supply chain disruptions. The company has made investments in recruiting and training new employees, expanding supplier networks, and shifting some manufacturing to its Cleveland facility to mitigate production delays. Additionally, the company appointed Melissa Rasmussen as Senior Vice President and Chief Financial Officer, effective March 2025, as part of its leadership transition.

Operationally, Mueller reported a decrease in selling, general, and administrative expenses (SG&A) for the nine months ended June 30, 2025, totaling $180.6 million, down from $182.1 million in the prior year. This reduction was primarily due to lower intangible amortization, despite unfavorable foreign currency fluctuations and inflationary pressures. The company also repurchased $15.0 million of its common stock during the nine months, with $65.0 million remaining under its share repurchase authorization.

Looking ahead, Mueller Water Products anticipates a continued increase in consolidated net sales for fiscal 2025, projecting growth between 6.9% and 7.6% compared to fiscal 2024. However, the company acknowledges the uncertain external operating environment, including potential disruptions from geopolitical events and inflationary pressures. The company expects to maintain resilient demand in the municipal repair and replacement market, driven by aging infrastructure, while new residential construction activity may face constraints due to economic uncertainties.