Mueller Water Q2 profit beat estimates; raises annual adj EBITDA outlook

Mueller Water Products

05/05/2026 21:31

Overview

U.S. water infrastructure maker's fiscal Q2 sales rose 5.5%, slightly beating analyst expectations

Adjusted EPS for fiscal Q2 beat analyst expectations

Company raised fiscal 2026 adjusted EBITDA guidance after strong Q2 performance

Outlook

Mueller Water Products raises fiscal 2026 adjusted EBITDA outlook to $360 mln-$365 mln

Company reiterates fiscal 2026 net sales guidance of $1,470 mln-$1,490 mln

Company expects free cash flow as percentage of adjusted net income to exceed 70% in 2026

Result Drivers

HIGHER PRICING - Co said sales growth and margin expansion were primarily due to higher pricing across most product lines

MANUFACTURING EFFICIENCIES - Co attributed gross margin improvement to manufacturing efficiencies, partially offset by tariffs and inflation

INCREASED VOLUMES - Volume growth contributed to higher net sales, especially in Water Management Solutions segment

Company press release: ID:nGNX20r0Nl

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Slight Beat*
$384.40 mln
$380.77 mln (5 Analysts)
Q2 Adjusted EPS
Beat
$0.40
$0.37 (5 Analysts)
Q2 Net Income
$59.10 mln
Q2 Adjusted EBITDA
Beat
$97.20 mln
$92.43 mln (5 Analysts)
Q2 Adjusted Operating Income
Beat
$84.80 mln
$80.41 mln (5 Analysts)

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "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 $32.00, about 17.5% above its May 4 closing price of $27.23

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)