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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' Q1 Earnings: A Strong Start to the Year

Mueller Water Products reported a solid first quarter, with net sales growth of 4.6% driven by resilient end markets and a focus on delivering outstanding customer service. The company's gross margin expanded year-over-year, thanks to manufacturing efficiencies that more than offset the impact of higher tariffs and inflationary pressures. Earnings per share (EPS) came in at $0.29, beating analyst estimates of $0.27. The company's adjusted EBITDA margin is expected to expand by more than 100 basis points year-over-year, driven by strategic capital investments and improving commercial and operational execution.

Publication Date: Feb -10

📋 Highlights
  • Net Sales Growth: Achieved 4.6% growth driven by resilient end markets and customer service focus.
  • Free Cash Flow: Generated $44 million, allocating $17 million in capex and returning $16 million to shareholders via dividends and buybacks.
  • EBITDA Guidance Raised: Increased full-year adjusted EBITDA guidance to $355–$360 million, reflecting a 100+ basis point margin improvement YoY.
  • Price Increase Impact: Recent price hikes expected to drive growth, with primary benefits materializing in Q3.
  • Capital Expenditure Plan: Will spend 4–5% of net sales on iron foundry investments to boost capacity and margins over the next couple of years.

Operational Highlights

The company's operations and supply chain teams executed well, driving year-over-year gross margin expansion. The transition to the new brass foundry is expected to drive further efficiencies, and the company is investing in iron foundries to drive capacity and margin expansion. As Paul McAndrew noted, "We'll continue our commercial and operational initiatives, drive capacity and margin expansion with capital investments, and leverage our specialty valve portfolio to capture project work."

Outlook and Guidance

The company is raising its full-year guidance for consolidated net sales by $20 million at the midpoint of the range, reflecting its strong first-quarter performance and current expectations for end-market demand. Adjusted EBITDA guidance is also being increased by $10 million at the midpoint to a new range of $355 million to $360 million. Analysts estimate next year's revenue growth at 4.2%, indicating a continued uptrend.

Valuation

Mueller Water Products trades at a P/E ratio of 23.23, EV/EBITDA of 14.31, and a dividend yield of 0.91%. The company's return on equity (ROE) stands at 21.0%, indicating strong profitability. With its solid earnings growth and improving operational execution, the stock appears reasonably valued, but its growth prospects and margin expansion potential could support further upside.

Capital Deployment

The company is prioritizing acquisitions, focusing on drinking water and wastewater infrastructure exposure where synergies can be driven with operations and commercial teams. Mueller Water Products is also investing in capital expenditures, with plans to spend 4-5% of net sales in the next couple of years to drive efficiencies and increase capacity.

3. NewsRoom

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Oppenheimer & Co. Inc. Sells 30,544 Shares of Mueller Water Products $MWA

Feb -19

Source: defenseworld.net

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3 Reasons Growth Investors Will Love Mueller Water Products (MWA)

Feb -10

Source: zacks.com

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New York State Common Retirement Fund Cuts Stock Holdings in Mueller Water Products $MWA

Feb -08

Source: defenseworld.net

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Mueller Water Products (NYSE:MWA) Reaches New 12-Month High on Strong Earnings

Feb -06

Source: defenseworld.net

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Mueller Water Products, Inc. (MWA) Q1 2026 Earnings Call Transcript

Feb -05

Source: seekingalpha.com

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Mueller Water Products (MWA) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates

Feb -05

Source: zacks.com

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Mueller Water Products (MWA) Beats Q1 Earnings and Revenue Estimates

Feb -04

Source: zacks.com

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Mueller Water Products Reports 2026 First Quarter Results

Feb -04

Source: globenewswire.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: 5.4/10

Value: 2.1

Growth: 5.2

Quality: 8.5

Yield: 2.0

Momentum: 4.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Mueller Water Products

A-Score: 5.4/10

Value: 4.0

Growth: 6.9

Quality: 7.3

Yield: 2.0

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

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Franklin Electric Co

A-Score: 5.3/10

Value: 3.3

Growth: 6.8

Quality: 6.6

Yield: 2.0

Momentum: 4.0

Volatility: 9.0

1-Year Total Return ->

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Gates Industrial

A-Score: 4.9/10

Value: 5.5

Growth: 4.7

Quality: 6.6

Yield: 0.0

Momentum: 6.0

Volatility: 6.3

1-Year Total Return ->

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Kadant

A-Score: 4.0/10

Value: 2.7

Growth: 6.4

Quality: 7.0

Yield: 0.0

Momentum: 1.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Middleby

A-Score: 3.8/10

Value: 5.0

Growth: 6.1

Quality: 2.8

Yield: 0.0

Momentum: 3.5

Volatility: 5.7

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

29.97$

Current Price

29.97$

Potential

-0.00%

Expected Cash-Flows