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Investing.com -- Mueller Industries, Inc. (NYSE:MLI) reported second quarter earnings that significantly exceeded analyst expectations, sending shares up 4.2% as investors responded positively to the company’s strong performance.
The industrial manufacturer posted adjusted earnings per share of $1.96, handily beating the analyst consensus of $1.62 by $0.34. Revenue came in at $1.14 billion, modestly surpassing the $1.11 billion estimate and representing a 14.3% increase from $997.7 million in the same quarter last year.
Excluding a $36.3 million gain related to an insurance claim for a March 2023 tornado that impacted operations in Covington, Tennessee, Mueller’s net income reached $217.9 million, up 36% from $160.2 million in the second quarter of 2024. Operating income rose to $267.9 million from $210.0 million in the prior-year period.
"Excluding the recovery reported thus far on our tornado related insurance claim, we delivered a record quarter," said Greg Christopher, Mueller’s CEO. "Tremendous credit goes to our manufacturing operations and commercial teams for their outstanding execution and focus amidst complex market conditions."
The company noted that the quarter-over-quarter increase in net sales was largely attributable to contributions from two businesses acquired in 2024, as well as higher selling prices related to rising raw material costs. COMEX copper averaged $4.72 per pound during the quarter, representing a 3.7% increase over the prior period.
Mueller ended the quarter with a strong financial position, reporting $1.0 billion in cash net of debt and a current ratio of 4.9 to 1. The company generated $190.6 million in net cash from operations during the period.
Despite challenging market conditions, including subdued residential construction in the U.S., Mueller remains optimistic about future growth opportunities, particularly when interest rates are reduced. The company continues to focus on its three core areas: water infrastructure, HVAC/R, and electrical transmission.
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