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1. Company Snapshot

1.a. Company Description

Mueller Water Products Inc.manufactures and markets products and services used in the transmission, distribution, and measurement of water in North America and internationally.Its products and services are used by municipalities, and the residential and non-residential construction industries.


It operates through two segments, Infrastructure and Technologies.The company's Infrastructure segment manufactures and sells valves for water and gas systems, including iron gate, butterfly, tapping, check, knife, plug, automatic control, and ball valves; and dry-barrel and wet-barrel fire hydrants and service brass products, as well as a line of pipe repair products, such as clamps and couplings used to repair leaks.This segment offers its products under Canada Valve, Centurion, Ez-Max, Hydro Gate, Hydro-Guard, HYMAX, HYMAX VERSA, Jones, Krausz, Milliken, Mueller, Pratt, Pratt Industrial, Repamax, Repaflex, and Singer brands.


Its Technologies segment offers residential and commercial water metering, water leak detection and pipe condition assessment products, systems, and services.It offers products under Echologics, Echoshore, ePulse, Hersey, LeakFinderRT, LeakFinderST, LeakListener, LeakTuner, Mi.Echo, Mi.Data, Mi.Hydrant, Mi.Net, Mueller Systems, and Sentryx brands.The company was founded in 1857 and is headquartered in Atlanta, Georgia.

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1.b. Last Insights on MWA

Mueller Water Products' recent performance was driven by strong Q3 earnings, with net sales increasing 6.6% to $380.3 million and adjusted net income per diluted share growing 6.3% to $0.34. The company's operating margin expanded to 19.4%, and adjusted EBITDA margin remained stable at 22.7%. A quarterly dividend of $0.067 per share was declared, and the company repurchased $10.0 million of common stock during the quarter, reducing outstanding shares and increasing shareholder value. (Source: company reports)

1.c. Company Highlights

2. Mueller Water Products' Strong Q4 and Fiscal 2025 Results Drive Growth Expectations

Mueller Water Products reported a robust fourth quarter and fiscal 2025, with net sales growing 9.4% to $380.8 million and adjusted EBITDA exceeding the high end of expectations. The company's gross margin expanded 500 basis points to 36.8%, driven by its transformation over the past two years, as noted by CEO Marietta Zakas. Adjusted net income per share grew 73% year-over-year to $0.38, beating estimates of $0.34. For the full year, net sales increased 8.7% to over $1.4 billion, with adjusted EBITDA growing 14.6% to $326 million and adjusted net income per share increasing 37% to $1.31.

Publication Date: Nov -15

📋 Highlights
  • Strong Q4 Net Sales Growth:: Mueller Water Products reported 9.4% net sales growth in Q4, reaching $380.8 million, with gross margin expanding to 36.8% (500 bps increase).
  • Adjusted EBITDA Outpaces Expectations:: Fiscal 2025 adjusted EBITDA reached $326 million, up 14.6%, with Q4 adjusted EPS surging 73% to $0.38.
  • Leadership Transition and Strategic Momentum:: CEO Marietta Zakas retires in 2026; successor Paul McAndrew highlights 600 bps gross margin expansion since 2023 and confidence in future growth.
  • 2026 Guidance and Margin Expansion:: Full-year sales growth projected at 1.4–2.8%, with adjusted EBITDA targeting $345–$350 million (5.8–7.3% growth) and margin expansion prioritized in H2.
  • Capital Investments and Market Focus:: $1.4–$1.47 billion sales target for 2026 hinges on municipal repair growth, foundry upgrades, and acquisitions in water infrastructure, offsetting residential construction declines.

Outlook and Guidance

The company expects consolidated net sales between $1.45 billion and $1.47 billion in fiscal 2026, representing year-over-year growth between 1.4% and 2.8%. Adjusted EBITDA is expected to range from $345 million to $350 million, reflecting year-over-year growth of 5.8% to 7.3%. The company's outlook assumes slightly positive volumes, with residential construction expected to be down in the high single-digit range and muni repair and replacement growth expected to be in the low single-digit to mid-single-digit range.

Valuation and Growth Expectations

With a P/E Ratio of 18.88 and an EV/EBITDA ratio of 11.99, the market appears to be pricing in moderate growth expectations. Analysts estimate next year's revenue growth at 4.4%, which is slightly higher than the company's guided range. The company's strong financial position, with a Net Debt / EBITDA ratio of 0.06, and its focus on water infrastructure and municipal markets, position it for long-term growth and margin expansion.

Strategic Initiatives and Investments

Mueller is deploying capital in its 50-year-old iron foundries to add capacity and upgrade facilities, which will position the company for future growth and margin expansion. The company is also looking for acquisitions that can expand or deepen its product portfolio, particularly in water infrastructure, and is focused on drinking water and wastewater. These investments are expected to drive top-line growth and margin expansion, creating long-term value for shareholders.

Leadership Transition and Future Plans

The company's CEO, Marietta Zakas, announced her retirement effective February 9, 2026, and will be succeeded by Paul McAndrew. McAndrew expressed confidence in the company's ability to build on its success and unlock greater opportunities ahead, emphasizing the company's priorities, including capital investments in core iron foundries and broader commercial and operational investments to drive top-line growth and margin expansion.

3. NewsRoom

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Edgestream Partners L.P. Invests $5.70 Million in Mueller Water Products $MWA

Dec -03

Source: defenseworld.net

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Mueller Water Products: Continued Growth And A Thirsty Valuation

Dec -02

Source: seekingalpha.com

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Mueller Water Products Is Making Me Thirstier (Upgrade)

Dec -01

Source: seekingalpha.com

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Mueller Water Products $MWA Shares Purchased by Commonwealth of Pennsylvania Public School Empls Retrmt SYS

Nov -24

Source: defenseworld.net

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Mueller Water Products, Inc. (MWA) Q4 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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Mueller Water Products to Participate in the Baird 2025 Global Industrial Conference

Nov -07

Source: globenewswire.com

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Mueller Water Products (MWA) Reports Q4 Earnings: What Key Metrics Have to Say

Nov -07

Source: zacks.com

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Mueller Water Products (MWA) Beats Q4 Earnings and Revenue Estimates

Nov -07

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.00%)

6. Segments

Water Management Solutions

Expected Growth: 3.5%

Mueller Water Products' Water Management Solutions segment growth of 3.5% is driven by increasing demand for infrastructure upgrades, replacement of aging pipes, and adoption of smart water technologies. Additionally, growing concerns over water scarcity and conservation, as well as government investments in water infrastructure projects, contribute to the segment's growth.

Water Flow Solutions

Expected Growth: 4.5%

Mueller Water Products' Water Flow Solutions segment growth of 4.5% is driven by increasing demand for water infrastructure upgrades, replacement of aging pipes, and adoption of smart water technologies. Additionally, growing concerns about water conservation and efficiency, as well as government investments in water infrastructure projects, contribute to the segment's growth.

7. Detailed Products

Valves

Mueller Water Products offers a wide range of valves for water and wastewater applications, including gate valves, butterfly valves, and check valves.

Hydrants

Mueller Water Products provides a variety of hydrants for fire protection and flushing applications, including dry barrel hydrants and wet barrel hydrants.

Meters

Mueller Water Products offers a range of water meters, including mechanical and ultrasonic meters, for accurate measurement of water usage.

Service Brass Fittings

Mueller Water Products provides a variety of service brass fittings, including adapters, couplings, and elbows, for connecting and repairing water distribution systems.

Curb Boxes and Valve Boxes

Mueller Water Products offers curb boxes and valve boxes for accessing and operating valves in water distribution systems.

Water Infrastructure Products

Mueller Water Products provides a range of products for water infrastructure, including pipe fittings, couplings, and adapters.

8. Mueller Water Products, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Mueller Water Products, Inc. faces moderate threat from substitutes due to the availability of alternative materials and technologies in the water infrastructure industry.

Bargaining Power Of Customers

Mueller Water Products, Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

Mueller Water Products, Inc. relies on a few large suppliers for raw materials, giving them some bargaining power, but the company's size and scale also provide it with negotiating leverage.

Threat Of New Entrants

The water infrastructure industry has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new entrants to challenge Mueller Water Products, Inc.'s market position.

Intensity Of Rivalry

The water infrastructure industry is highly competitive, with several established players competing for market share, leading to a high intensity of rivalry that Mueller Water Products, Inc. must navigate.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.61%
Debt Cost 4.19%
Equity Weight 61.39%
Equity Cost 10.57%
WACC 8.11%
Leverage 62.88%

11. Quality Control: Mueller Water Products, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Graco

A-Score: 5.3/10

Value: 2.2

Growth: 5.2

Quality: 8.5

Yield: 2.0

Momentum: 4.0

Volatility: 10.0

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Mueller Water Products

A-Score: 5.3/10

Value: 3.1

Growth: 6.2

Quality: 6.8

Yield: 2.0

Momentum: 6.5

Volatility: 7.0

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A-Score: 5.1/10

Value: 3.0

Growth: 6.8

Quality: 6.6

Yield: 2.0

Momentum: 3.0

Volatility: 9.0

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Middleby

A-Score: 4.7/10

Value: 6.0

Growth: 6.1

Quality: 6.1

Yield: 0.0

Momentum: 4.5

Volatility: 5.7

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Gates Industrial

A-Score: 4.7/10

Value: 3.4

Growth: 4.7

Quality: 5.2

Yield: 0.0

Momentum: 8.5

Volatility: 6.3

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Kadant

A-Score: 4.2/10

Value: 2.4

Growth: 6.4

Quality: 7.0

Yield: 0.0

Momentum: 3.5

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

24.69$

Current Price

24.7$

Potential

-0.00%

Expected Cash-Flows