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Investing.com -- Mueller Water Products, Inc. (NYSE:MWA) reported third-quarter adjusted earnings that met Wall Street expectations while revenue surpassed estimates, prompting the water infrastructure company to raise its full-year outlook despite tariff challenges.
The company reported adjusted earnings of $0.34 per share for its fiscal third quarter ended June 30, matching analyst estimates. Revenue climbed 6.6% to $380.3 million, exceeding the consensus estimate of $367.45 million and setting a new quarterly record. The growth was primarily driven by increased volumes across most product lines and higher pricing.
Mueller Water Products shares jumped 6.5% following the announcement, as investors responded positively to the company’s raised guidance and strong operational performance despite macroeconomic headwinds.
"We achieved an impressive third quarter, setting new records for consolidated net sales, gross margin and adjusted EBITDA, even amidst heightened macroeconomic and geopolitical uncertainty," said Martie Edmunds Zakas, Chief Executive Officer of Mueller Water Products.
The company raised its fiscal 2025 revenue guidance to between $1.405 billion and $1.415 billion, up from previous expectations and above the analyst consensus of $1.394 billion. Mueller also increased its adjusted EBITDA forecast to between $318 million and $322 million, representing growth of 11.7% to 13.1% YoY.
Gross margin improved to 38.3%, up 150 basis points from 36.8% in the prior year quarter, driven by manufacturing efficiencies and increased volumes, which helped offset the impact of higher tariffs. The company’s Water Flow Solutions segment saw sales increase 4.1% to $216.6 million, while Water Management Solutions sales rose 10.2% to $163.7 million.
For the nine-month period, Mueller generated $103.0 million in free cash flow compared with $121.5 million in the prior year period. The company maintained a strong balance sheet with $372.0 million in cash and cash equivalents against $450.8 million in total debt.
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