Mueller Water Q4 sales slightly miss

Overview

• U.S. water infrastructure supplier's Q4 sales slightly missed analyst expectations, adjusted EPS matched consensus

• Adjusted EBITDA and adjusted operating income for Q4 beat analyst expectations

• Company increased share repurchase authorization by $300 mln and raised quarterly dividend

Outlook

• Mueller Water Products sees fiscal 2027 net sales of $1.44 bln to $1.47 bln

• Company expects fiscal 2027 adjusted EBITDA of $378 mln to $388 mln

• Company expects higher adjusted EBITDA margin in 2H fiscal 2027

Result Drivers

• LOWER VOLUMES - Co said Q4 net sales declined 1.1% year-over-year, primarily due to lower volumes, partially offset by higher pricing across most product lines

• HIGHER PRICING - Co said higher pricing across most product lines contributed to improved margins and partially offset lower volumes

• LOWER SG&A EXPENSES - Co attributed improved operating income and margins to lower selling, general and administrative expenses, including reduced incentive-based compensation and personnel costs

Company press release:

Key Details

*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 "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and 2 "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 $27.00, about 14.6% above its November 3 closing price of $23.57

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads

• Nov 3 - Essential Utilities Q3 revenue rises on regulatory recoveries, higher gas costs

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• Nov 4 - Eagle Materials Q2 revenue beats estimates, helped by public infrastructure demand

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.)