# Mueller Water Products, Inc. (MWA)

Informational only - not investment advice.

CIK: 0001350593
SIC: 3490 Miscellaneous Fabricated Metal Products
SIC breadcrumb: [Manufacturing](/division/D/) > [SIC Major Group 34](/major-group/34/) > [SIC 3490 Miscellaneous Fabricated Metal Products](/industry/3490/)
Latest 10-K filed: 2025-11-19
SEC page: https://www.sec.gov/edgar/browse/?CIK=1350593
Filing source: https://www.sec.gov/Archives/edgar/data/1350593/000135059325000066/mwa-20250930.htm

## At a glance

FY2025 · period end 2025-09-30 · filed 2025-11-19 · accession 0001350593-25-000066 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001350593.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 1,429,700,000 USD | 2025 | verified |
| Net income | 191,700,000 USD | 2025 | verified |
| Assets | 1,838,900,000 USD | 2025 | verified |
| Free cash flow | 172,000,000 USD | 2025 | computed |
| Net margin | 13.41% | 2025 | computed |
| Operating margin | 18.23% | 2025 | computed |
| Revenue YoY | +8.75% | 2025 | computed |
| ROE | 19.53% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | MWA | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 13.4% | 6.1% | 76 | 35 |
| Operating margin | 18.2% | 9.3% | 84 | 32 |
| Revenue growth | 8.7% | 4.5% | 77 | 36 |
| FCF margin | 12.0% | 10.7% | 62 | 35 |
| ROE | 19.5% | 11.6% | 85 | 35 |
| ROA | 10.4% | 4.4% | 74 | 36 |
| Liabilities / equity | 0.87 | 0.89 | 47 | 35 |
| Current ratio | 3.54 | 2.59 | 74 | 36 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 34 SIC Major Group 34, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 1429700000 | USD | 2025 | 2025-11-19 |
| Net income | 191700000 | USD | 2025 | 2025-11-19 |
| Assets | 1838900000 | USD | 2025 | 2025-11-19 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-11-19. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001350593.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2010 | 2011 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  |  |  | 800,600,000 | 826,000,000 | 916,000,000 | 968,000,000 | 964,100,000 | 1,111,000,000 | 1,247,400,000 | 1,275,700,000 | 1,314,700,000 | 1,429,700,000 |
| Net income |  |  |  | 63,900,000 | 123,300,000 | 105,600,000 | 63,800,000 | 72,000,000 | 70,400,000 | 76,600,000 | 85,500,000 | 115,900,000 | 191,700,000 |
| Operating income |  |  |  | 112,200,000 | 102,100,000 | 121,700,000 | 124,300,000 | 116,800,000 | 131,700,000 | 111,600,000 | 127,400,000 | 181,700,000 | 260,600,000 |
| Gross profit |  |  |  | 268,900,000 | 267,900,000 | 289,900,000 | 320,900,000 | 328,200,000 | 358,500,000 | 364,300,000 | 379,500,000 | 459,000,000 | 516,700,000 |
| Diluted EPS |  |  | 0.19 | 0.39 | 0.76 | 0.66 | 0.40 |  | 0.44 | 0.48 | 0.55 | 0.74 | 1.22 |
| Operating cash flow | 63,000,000 | 40,100,000 |  |  |  | 133,100,000 | 92,500,000 | 140,300,000 | 156,700,000 | 52,300,000 | 109,000,000 | 238,800,000 | 219,300,000 |
| Capital expenditures |  |  |  | 31,500,000 | 40,600,000 | 55,700,000 | 86,600,000 | 67,700,000 | 62,700,000 | 54,700,000 | 47,600,000 | 47,400,000 | 47,300,000 |
| Dividends paid |  |  |  | 16,100,000 | 24,000,000 | 30,100,000 | 32,000,000 | 33,100,000 | 34,800,000 | 36,500,000 | 38,100,000 | 39,900,000 | 41,900,000 |
| Share buybacks |  |  |  | 0.00 | 55,000,000 | 30,000,000 | 10,000,000 | 5,000,000 | 10,000,000 | 35,000,000 | 10,000,000 | 10,000,000 | 15,000,000 |
| Assets |  |  |  | 1,280,600,000 | 1,258,300,000 | 1,291,900,000 | 1,337,300,000 | 1,395,000,000 | 1,518,000,000 | 1,498,100,000 | 1,505,000,000 | 1,635,900,000 | 1,838,900,000 |
| Liabilities |  |  |  | 861,100,000 | 768,800,000 | 727,100,000 | 745,000,000 | 754,300,000 | 823,100,000 | 828,800,000 | 793,500,000 | 825,800,000 | 857,200,000 |
| Stockholders' equity |  |  |  | 418,300,000 | 488,400,000 | 563,300,000 | 590,100,000 | 640,700,000 | 694,900,000 | 669,300,000 | 711,500,000 | 810,100,000 | 981,700,000 |
| Free cash flow |  |  |  |  |  | 77,400,000 | 5,900,000 | 72,600,000 | 94,000,000 | -2,400,000 | 61,400,000 | 191,400,000 | 172,000,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2010 | 2011 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  |  |  | 7.98% | 14.93% | 11.53% | 6.59% | 7.47% | 6.34% | 6.14% | 6.70% | 8.82% | 13.41% |
| Operating margin |  |  |  | 14.01% | 12.36% | 13.29% | 12.84% | 12.11% | 11.85% | 8.95% | 9.99% | 13.82% | 18.23% |
| Return on equity |  |  |  | 15.28% | 25.25% | 18.75% | 10.81% | 11.24% | 10.13% | 11.44% | 12.02% | 14.31% | 19.53% |
| Return on assets |  |  |  | 4.99% | 9.80% | 8.17% | 4.77% | 5.16% | 4.64% | 5.11% | 5.68% | 7.08% | 10.42% |
| Liabilities / equity |  |  |  | 2.06 | 1.57 | 1.29 | 1.26 | 1.18 | 1.18 | 1.24 | 1.12 | 1.02 | 0.87 |
| Current ratio |  |  |  | 3.30 | 4.73 | 4.10 | 3.18 | 3.75 | 2.97 | 2.82 | 3.23 | 3.33 | 3.54 |

## As-reported value updates

4 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/MWA/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001350593.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2023-Q1 | 2022-12-31 |  |  | 0.14 | reported discrete quarter |
| 2023-Q2 | 2023-03-31 |  |  | 0.14 | reported discrete quarter |
| 2023-Q3 | 2023-03-31 |  | 21,300,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-06-30 | 326,600,000 |  | 0.16 | reported discrete quarter |
| 2024-Q1 | 2023-12-31 | 256,400,000 | 14,300,000 | 0.09 | reported discrete quarter |
| 2024-Q2 | 2023-12-31 |  | 14,300,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-03-31 | 353,400,000 |  | 0.28 | reported discrete quarter |
| 2024-Q3 | 2024-03-31 |  | 44,300,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-06-30 | 356,700,000 |  | 0.30 | reported discrete quarter |
| 2024-Q4 | 2024-09-30 | 348,200,000 | 10,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2024-12-31 | 304,300,000 | 35,300,000 | 0.22 | reported discrete quarter |
| 2025-Q2 | 2024-12-31 |  | 35,300,000 |  | reported discrete quarter |
| 2025-Q2 | 2025-03-31 | 364,300,000 |  | 0.33 | reported discrete quarter |
| 2025-Q3 | 2025-03-31 |  | 51,300,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-06-30 | 380,300,000 |  | 0.33 | reported discrete quarter |
| 2025-Q4 | 2025-09-30 | 380,800,000 | 52,600,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2025-12-31 | 318,200,000 | 43,200,000 | 0.27 | reported discrete quarter |
| 2026-Q2 | 2025-12-31 |  | 43,200,000 |  | reported discrete quarter |
| 2026-Q2 | 2026-03-31 | 384,400,000 |  | 0.38 | reported discrete quarter |
| 2026-Q3 | 2026-03-31 |  | 59,100,000 |  | reported discrete quarter |
| 2026-Q3 | 2026-06-30 | 395,900,000 |  | 0.43 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from MWA's latest 10-K: [/company/MWA/business/](/company/MWA/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from MWA's latest 10-K: [/company/MWA/risk-factors/](/company/MWA/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1350593/000135059326000036/mwa-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-06
Report date: 2026-06-30

Item 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and related notes thereto that appear elsewhere in this report. This report contains certain statements that may be deemed “forward-looking statements” within the meaning of the federal securities laws. All statements that address activities, events or developments that the Company intends, expects, plans, projects, believes or anticipates will or may occur in the future are forward-looking statements, including, without limitation, statements regarding outlooks, projections, forecasts, expectations, commitments, trend descriptions, and the ability to capitalize on trends, value creation, long-term strategies, and the execution or acceleration thereof, operational improvements, inventory positions, the benefits of capital investments, financial or operating performance, including driving increased margins, operational and commercial initiatives, capital allocation and growth strategy plans, and the demand for the Company’s products. Forward-looking statements are based on certain assumptions and assessments made by the Company in light of the Company’s experience and perception of historical trends, current conditions, and expected future developments.

Actual results and the timing of events may differ materially from those contemplated by the forward-looking statements due to a number of factors, including, without limitation, changing regulatory, trade and tariff conditions, including the impact of the Section 232 tariffs on the products produced by our Krausz business; logistical challenges and supply chain disruptions, geopolitical conditions, public health crises, or other events; inventory and in-stock positions of our distributors and end customers; an inability to realize the anticipated benefits from our operational initiatives, including our large capital investments, plant closures, and reorganization and related strategic realignment activities; an inability to attract or retain a skilled and diverse workforce, increased competition related to the workforce, and labor markets; an inability to protect the Company’s information systems against service interruption; risks resulting from possible future cybersecurity incidents; misappropriation of data or breaches of security; failure to comply with personal data protection and privacy laws; cyclical and changing demand in core markets such as municipal spending, residential construction and natural gas distribution; government monetary or fiscal policies; the impact of adverse weather conditions; the impact of manufacturing and product performance; the impact of wage, commodity and materials price inflation; foreign exchange rate fluctuations; the impact of higher interest rates; the impact of warranty charges and claims, and related accommodations; the strength of our brands and reputation; an inability to successfully resolve significant legal proceedings or government investigations; compliance with environmental, trade and anti-corruption laws and regulations; climate change and legal or regulatory responses thereto; the failure to integrate and/or realize any of the anticipated benefits of acquisitions or divestitures; an inability to achieve our goals and commitments in environmental and sustainability programs; and other factors that are described in the section entitled “RISK FACTORS” in Item 1A. of the Company’s most recent Annual Report on Form 10-K and later filings on Form 10-Q, as applicable.

Forward-looking statements do not guarantee future performance and are only as of the date they are made. The Company undertakes no duty to update its forward-looking statements except as required by law. Undue reliance should not be placed on any forward-looking statements. You are advised to review any further disclosures the Company makes on related subjects in subsequent Forms 10-K, 10-Q, 8-K, and other reports filed with the United States Securities and Exchange Commission.

Overview

Business

We operate our business through two segments: Water Flow Solutions and Water Management Solutions. Water Flow Solutions’ portfolio includes iron gate valves, specialty valves, and service brass products. Water Flow Solutions represented approximately 58% of our fiscal 2025 net sales. Water Management Solutions’ portfolio includes fire hydrants, repair and installation, natural gas, metering, leak detection, as well as pressure management and control products and solutions. Water Management Solutions represented approximately 42% of our fiscal 2025 net sales.

We estimate approximately 60% to 65% of our fiscal 2025 net sales were associated with the repair and replacement of municipal water infrastructure, approximately 25% to 30% were related to residential construction activity and approximately 10% were related to natural gas utilities and industrial applications.

In October 2023, the Israel-Hamas war caused a temporary shutdown in our facility in Ariel, Israel. We reopened the facility in November 2023, but the war caused supply chain challenges that reduced the manufacturing efficiencies for our products produced in Israel. While the facility was adversely impacted by this event, we have mitigated operational risk by adding suppliers and improving throughput in order to increase production levels and to meet customer delivery times. While net sales

25

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levels have returned to pre-war levels, margin expansion has been hindered by tariffs on products manufactured in Israel and imported into the United States (“U.S.”).

While tariffs are adversely impacting several product lines, Repair and Specialty Valve product lines are bearing most of the higher costs. In 2025, the U.S. government announced significant changes to its trade policy, including tariff increases on imported steel and aluminum from 25% to 50% under Section 232 of the Trade Expansion Act (“Section 232”). The increase in Section 232 tariffs to 50% has resulted in material, upward pressure on certain purchased components and raw material costs, including the Repair products we import to the U.S. that are produced by our Krausz business, which have borne most of the higher costs. As previously disclosed, we have taken, and intend to continue to take, actions to mitigate these increases through, among other things, pricing and supply chain actions. Despite these actions, Section 232 tariffs are likely to continue to negatively impact the Company’s business, results of operations, and financial condition during the remainder of fiscal 2026. The ultimate impact of Section 232 tariffs remains to be determined and will depend on several factors, including our ability to successfully mitigate their impact and whether additional or incremental U.S. tariffs or other changes to trade policies are announced or imposed.

In January 2025, we ceased melting and casting operations at our legacy brass foundry and transitioned production to our new state-of-the-art foundry. We expect this transition will improve operational efficiency and enable us to better serve our service brass customers. As part of our overall strategy, we will continue investing in our foundries to expand capacity, increase manufacturing efficiencies, and position ourselves to respond to the expected increase in demand for domestic product given the uncertainty in the current geopolitical and tariff environment. The Company expects to incur certain costs related to the decommissioning and demolition of its legacy foundry, the amount of which is not estimable at this time.

For fiscal year 2026, we anticipate that consolidated net sales will increase between 2.8% and 3.5% as compared with fiscal 2025. The external operating environment remains uncertain as we face changes in government policies, including possible disruptions to global supply chains resulting from such changes, the interest rate and tariff environment, as well as geopolitical conditions and increased labor and material costs, and constraints of labor and material availability. We expect these challenges to continue during the remainder of fiscal 2026. We continue to anticipate resilient demand associated with the municipal repair and replacement end market driven by the aging water infrastructure and increasing water rates, moderated by budgetary and operational pressures on municipalities. We anticipate that new residential construction activity and new lot and land development will be relatively constrained by the uncertainty in the economy, affordability concerns, and interest rate environment, depending on the geographic region.

We typically experience quarterly seasonality with consolidated net sales highest in the third quarter and lowest in the first quarter, with a sequential increase in the second quarter as construction activity ramps up in the Spring. For the remainder of fiscal 2026, we anticipate that inflation will continue to modestly impact manufacturing costs, primarily due to wage inflation, as well as raw materials and purchased parts. In addition, we expect higher direct tariff costs of approximately 3% of costs of sales to continue to contribute to inflationary pressures during the remainder of fiscal 2026. While pricing actions were taken in fiscal 2025 in response to new tariffs, we will continue to monitor the market and economic conditions impacting our business and take appropriate actions to mitigate inflationary and other cost pressures, including by implementing price increases, cost containment measures and supplier management measures, among other actions.

26

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Results of Operations

Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025

[[GREPCENT_TABLE]]
[["","Three months ended June 30, 2026"],["","Water Flow Solutions","","Water Management Solutions","","Corporate","","Total"],["","(in millions)"],["Net sales","$","215.3","","","$","180.6","","","$","\u2014","","","$","395.9"],["Gross profit","89.5","","","66.3","","","\u2014","","","155.8"],["Operating expenses:"],["Selling, general and administrative","23.5","","","23.8","","","16.7","","","64.0"],["Strategic reorganization and other charges","\u2014","","","6.6","","","4.6","","","11.2"],["Total operating expenses","23.5","","","30.4","","","21.3","","","75.2"],["Operating income (loss)","$","66.0","","","$","35.9","","","$","(21.3)","","","80.6"],["Non-operating expenses:"],["Pension expense other than service","","","","","","","0.1"],["Interest expense, net","","","","","","","0.7"],["Income before income taxes","","","","","","","79.8"],["Income tax expense","","","","","","","12.5"],["Net income","","","","","","","$","67.3"],["","Three months ended June 30, 2025"],["","Water Flow Solutions","","Water Management Solutions","","Corporate","","Total"],["","(in millions)"],["Net sales","$","216.6","","","$","163.7","","","$","\u2014","","","$","380.3"],["Gross profit","83.8","","","61.9","","","\u2014","","","145.7"],["Operating expenses:"],["Selling, general and administrative","23.3","","","31.6","","","16.1","","","71.0"],["Strategic reorganization and other charges","\u2014","","","0.2","","","0.8","","","1.0"],["Total operating expenses","23.3","","","31.8","","","16.9","","","72.0"],["Operating income (loss)","$","60.5","","","$","30.1","","","$","(16.9)","","","73.7"],["Non-operating expenses:"],["Interest expense, net","","","","","","","1.7"],["Income before income taxes","","","","","","","72.0"],["Income tax expense","","","","","","","19.5"],["Net income","","","","","","","$","52.5"]]
[[/GREPCENT_TABLE]]

Consolidated Analysis

Net sales for the three months ended June 30, 2026 were $395.9 million as compared with $380.3 million in the prior year period, an increase of $15.6 million or 4.1%, primarily as a result of higher pricing across most product lin

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1350593/000135059325000066/mwa-20250930.htm
Complete FY 2025 MD&A: /company/MWA/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2025-11-19
Report date: 2025-09-30

Item 7.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the consolidated financial statements and related notes included in Item 8. “Financial Statements and Supplementary Data” of this Annual Report. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and other factors that may cause actual results to differ materially from those projected in any forward-looking statements, as discussed in “Disclosure Regarding Forward-Looking Statements.” These risks and uncertainties include but are not limited to those set forth in “Item 1A. RISK FACTORS”. This section of this Form 10-K generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024. Discussion of year-to-year comparisons between 2024 and 2023 that are not included in this Form 10-K can be found in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7. of our Annual Report on Form 10-K for the year ended September 30, 2024.

Overview

Business

We operate our business through two segments, Water Flow Solutions and Water Management Solutions. Water Flow Solutions’ portfolio includes iron gate valves, specialty valves and service brass products. Water Management Solutions’ portfolio includes fire hydrants, repair and installation, natural gas, metering, leak detection, as well as pressure management and control products and solutions.

In January 2025, we announced the appointment of Ms. Melissa Rasmussen as Senior Vice President and Chief Financial Officer effective March 3, 2025. On March 1, 2025, Mr. Steven S. Heinrichs transitioned from his roles as Chief Financial Officer and Chief Legal Officer to Senior Advisor and remained an advisor until September 30, 2025. In August 2025, we announced the appointment of Ms. Richelle R. Feyerherm as Chief Accounting Officer effective August 15, 2025. Ms. Feyerherm also serves as the Company’s principal accounting officer. On November 6, 2025, we announced that Ms. Marietta Edmunds Zakas will retire as the Company’s Chief Executive Officer and as a member of the Company’s Board of Directors, effective as of February 9, 2026. In connection with Ms. Zakas’ retirement, the Company’s Board of Directors appointed Mr. Paul McAndrew as President and Chief Executive Officer, effective as of the Transition Date.

We estimate approximately 60% to 65% of the Company’s 2025 net sales were associated with the repair and replacement of municipal water infrastructure, approximately 25% to 30% were related to residential construction activity and approximately 10% were related to natural gas utilities and industrial applications.

After experiencing challenges resulting from the COVID-19 pandemic and subsequent supply disruptions in years 2020 through 2023, the seasonality of our business has since returned to more normalized levels, supported by municipal spending on repair and replacement projects and new residential construction activity. According to the United States Department of Labor, the trailing twelve-month average consumer price index for water and sewerage rates as of September 30, 2025 increased 4.6%. Total housing starts in fiscal 2025 decreased 1.1% as compared with fiscal 2024, according to the United States Census Bureau, which included a 5.2% decrease in single family housing starts as compared with fiscal 2024.

Recent Developments

In October 2023, the Israel-Hamas war caused a temporary shutdown in our facility in Ariel, Israel. While we reopened the facility in November 2023, the war caused supply chain challenges that hindered our ability to most efficiently manufacture our products produced in Israel. While the facility was adversely impacted by this event, we have mitigated operational risk by expanding our suppliers and improving throughput in order to increase production levels and to meet customer delivery times. While net sales levels have returned to pre-war levels, margin expansion was further hindered by newly implemented tariffs on products manufactured in Israel and imported into the United States.

While newly implemented tariffs are adversely impacting several product lines, Repair and Specialty Valve product lines are bearing most of the higher costs. In response to tariffs that went into effect in the second half of fiscal 2025, we implemented additional pricing actions, which are expected to mostly offset tariff costs in dollar terms but will result in tariff-related impacts being dilutive to margins. As the tariffs remain uncertain and volatile, we will continue to monitor the situation and take appropriate actions to address inflationary and other cost pressures.

At the end of the first quarter, we ceased melting and casting operations at our legacy brass foundry and transitioned production to our state-of-the-art foundry. We expect this transition will improve operational efficiency and enable us to better serve our service brass customers. As part of Mueller’s overall strategy, we will continue investing in our foundries to expand

28

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Index to Financial Statements

capacity, increase manufacturing efficiencies and strategically position ourselves as the demand for domestic product is expected to increase given the uncertainty in the current geopolitical and tariff environment.

Outlook

For fiscal year 2026, we anticipate that consolidated net sales will increase between 1.4% and 2.8% as compared with fiscal 2025. The external operating environment remains uncertain as we face changes in government policies, including possible disruptions to global supply chains resulting from such changes, the interest rate and tariff environment, as well as geopolitical conditions and labor and material inflation and availability. We expect these challenges to continue into fiscal 2026. We continue to anticipate resilient demand associated with the municipal repair and replacement end market driven by the aging water infrastructure and increasing water rates, moderated by budgetary and operational pressures on municipalities. We anticipate that new residential construction activity and new lot and land development will be relatively constrained by the uncertainty in the economy, affordability concerns and interest rate environment, depending on the geographic region.

Our orders and shipments in 2025 reflected a more typical operating environment compared with the high backlog environment we experienced during and after the COVID-19 pandemic. For fiscal 2026, we assume that we will continue to experience a more normalized operating environment leading to normalized seasonality for consolidated net sales. Therefore, we anticipate quarterly consolidated net sales as a percentage of fiscal year 2026 consolidated net sales to be the highest in the third quarter and lowest in the first quarter, with a sequential increase in consolidated net sales in the second quarter as the construction season ramps up for the Spring. For fiscal 2026, we anticipate that inflation will continue to modestly impact manufacturing costs, primarily due to wage inflation, as well as raw materials and purchased parts. In addition, higher direct tariff costs of approximately 3% of costs of goods sold are expected to continue to contribute to inflationary pressures in 2026. While pricing actions were taken in 2025 in response to new tariffs, we will continue to monitor the market and economic conditions impacting our business and take appropriate actions to address inflationary and other cost pressures by implementing price increases, cost containment measures and supplier management measures, among other actions.

29

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Index to Financial Statements

Results of Operations

Year Ended September 30, 2025 Compared to Year Ended September 30, 2024

[[GREPCENT_TABLE]]
[["","Year ended September 30, 2025"],["","Water Flow Solutions","","Water Management Solutions","","Corporate","","Consolidated"],["","(in millions)"],["Net sales","$","824.9","","","$","604.8","","","$","\u2014","","","$","1,429.7"],["Gross profit","296.3","","","220.4","","","\u2014","","","516.7"],["Operating expenses:"],["Selling, general and administrative","90.3","","","96.9","","","60.1","","","247.3"],["Strategic reorganization and other charges","1.0","","","0.7","","","7.1","","","8.8"],["Total operating expenses","91.3","","","97.6","","","67.2","","","256.1"],["Operating income (loss)","$","205.0","","","$","122.8","","","$","(67.2)","","","260.6"],["Pension benefit other than service","","","","","","","(0.2)"],["Interest expense, net","","","","","","","6.6"],["Income before income taxes","","","","","","","254.2"],["Income tax expense","","","","","","","62.5"],["Net income","","","","","","","$","191.7"],["","Year ended September 30, 2024"],["","Water Flow Solutions","","Water Management Solutions","","Corporate","","Consolidated"],["","(in millions)"],["Net sales","$","755.5","","","$","559.2","","","$","\u2014","","","$","1,314.7"],["Gross profit","271.9","","","187.1","","","\u2014","","","459.0"],["Operating expenses:"],["Selling, general and administrative","92.5","","","95.0","","","57.7","","","245.2"],["Strategic reorganization and other charges","0.2","","","1.8","","","13.8","","","15.8"],["Goodwill impairment","\u2014","","","16.3","","","\u2014","","","16.3"],["Total operating expenses","92.7","","","113.1","","","71.5","","","277.3"],["Operating income (loss)","$","179.2","","","$","74.0","","","$","(71.5)","","","181.7"],["Pension expense other than service","","","","","","","4.0"],["Interest expense, net","","","","","","","12.7"],["Other expense","","","","","","","1.6"],["Income before income taxes","","","","","","","163.4"],["Income tax expense","","","","","","","47.5"],["Net income","","","","","","","$","115.9"]]
[[/GREPCENT_TABLE]]

Consolidated Analysis

Net sales for 2025 were $1,429.7 million as compared with $1,314.7 million in the prior year, an increase of $115.0 million or 8.7%, primarily as a result of higher sales volumes and higher prices across most product lines.

Gross profit for 2025 was $516.7 million as compared with $459.0 million in the prior year, an increase of $57.7 million or 12.6%, primarily a result of higher volumes across most product lines, favorable pricing, and benefits from manufacturing performance efficiencies, partially offset by approximately 3% inflation and increased tariffs. Manufacturing performance was negatively impacted by a $4.1 million write-down of inventory and other assets associated with our legacy brass foundry in Decatur, Illinois. Gross margin increased to 36.1% in 2025 as compared with 34.9% in the prior year.

30

Table of Contents

Index to Financial Statements

Selling, general and administrative expenses (“SG&A”) for 2025 were $247.3 million as compared with $245.2 million in the prior year, an increase of $2.1 million or 0.9%, primarily due to inflation of approximately 3%, unfavorable foreign currency fluctuations, higher personnel-related expenses, including incentive-based compensation, and increased third-party fees. These increases were largely offset by lower intangible amortization, engineering costs, and bad debt expense. As a percentage of net sales, SG&A decreased 140 basis points to 17.3% of net sales from 18.7% in the prior year.

Strategic reorganization and other charges for 2025 of $8.8 million primarily consisted of expenses associated with our leadership transition, certain transaction-related expenses, severance and $1.0 million related to non-cash asset impairment. Strategic reorganization and other charges for 2024 of $15.8 million primarily consisted of expenses associated with our leadership transition, certain transaction-related expenses, $1.8 million related to non-cash asset impairment, expenses associated with the cybersecurity incidents and severance.

During the

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/MWA/mda/fy2025/
All MD&A years: /company/MWA/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/MWA/mda/fy2024/): filed 2024-11-20; accession 0001350593-24-000079 (https://www.sec.gov/Archives/edgar/data/1350593/000135059324000079/mwa-20240930.htm)
- [FY 2023 MD&A](/company/MWA/mda/fy2023/): filed 2023-12-14; accession 0001350593-23-000060 (https://www.sec.gov/Archives/edgar/data/1350593/000135059323000060/mwa-20230930.htm)
- [FY 2022 MD&A](/company/MWA/mda/fy2022/): filed 2022-11-18; accession 0001350593-22-000061 (https://www.sec.gov/Archives/edgar/data/1350593/000135059322000061/mwa-20220930.htm)
- [FY 2021 MD&A](/company/MWA/mda/fy2021/): filed 2021-11-19; accession 0001350593-21-000061 (https://www.sec.gov/Archives/edgar/data/1350593/000135059321000061/mwa-20210930.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3490 Miscellaneous Fabricated Metal Products) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/MWA.md · JSON record: /company/MWA.json · verified financials: /company/MWA/financials.json / /company/MWA/financials.csv · machine TOC for the whole site: /llms.txt