Mueller Water Products (MWA) Investor presentation summary

Financial performance and outlook

• Achieved record net sales of $1,397M (LTM Q3FY25), with Q3 FY2025 net sales up 6.6% year-over-year to $380.3M and gross margin exceeding 38% (+150 bps y/y).

• Adjusted EBITDA reached $306.9M (LTM Q3FY25), with a margin of 22.0% of net sales; Q3 FY2025 adjusted EBITDA was $86.4M (+1.4% y/y).

• Free cash flow for the nine months ended Q3 FY2025 was $103.0M, with 71% free cash flow as a percentage of adjusted net income.

• Raised FY2025 guidance: net sales expected between $1,405M and $1,415M (+6.9% to +7.6% y/y), adjusted EBITDA between $318M and $322M (+11.7% to +13.1% y/y), and free cash flow >80% of adjusted net income.

• Maintained strong balance sheet with $78.8M net debt, 0.3x net debt to adjusted EBITDA, and $535M total liquidity as of June 30, 2025.

Strategic priorities and operational initiatives

• Focused on operational excellence, digital transformation, and expanding capabilities to drive growth and margin improvement.

• Large capital investments include a new state-of-the-art brass foundry in Decatur, IL, and consolidation of facilities to enhance capacity and support "Build America, Buy America" requirements.

• Mitigated tariff impacts through targeted price actions, supply chain initiatives, and ongoing operational improvements.

• Balanced capital allocation with disciplined investments, targeted acquisitions, and consistent return of cash to shareholders via dividends and share repurchases.

Market position and growth drivers

• Over 90% of net sales are water-focused, with leading brands and a large installed base in municipal and residential markets.

• Approximately two-thirds of net sales are tied to repair and replacement activities, benefiting from aging water infrastructure and regulatory drivers such as lead service line replacement.

• Comprehensive distribution network and strong end-user relationships support growth and recurring revenue.

• Digital water solutions and asset management technologies, such as EchoShore® and Sentryx™, address critical utility needs and support sustainability goals.