Mueller Water Products (MWA) Q2 2026 earnings summary

Executive summary

• Achieved record second quarter net sales, adjusted EBITDA, and adjusted net income per diluted share, driven by disciplined execution and resilient end-market demand.

• Raised annual guidance for fiscal 2026 adjusted EBITDA based on strong first-half performance and current expectations.

• Focused on operational excellence, cost management, and strategic investments to support long-term value creation.

Financial highlights

• Net sales increased 5.5% year-over-year to $384.4 million in Q2 2026.

• Operating income rose 15.0% to $80.4 million; adjusted operating income up 16.0% to $84.8 million.

• Net income grew 15.2% to $59.1 million; adjusted net income up 16.2% to $62.4 million.

• Adjusted EBITDA increased 15.0% to $97.2 million; adjusted EBITDA margin expanded to 25.3%.

• Net income per diluted share was $0.38; adjusted net income per diluted share was $0.40, up 17.6% year-over-year.

• Free cash flow for the six-month period was $16.5 million, down from $47.3 million year-over-year.

Outlook and guidance

• Fiscal 2026 consolidated net sales expected between $1,470 million and $1,490 million, up 2.8% to 4.2% year-over-year.

• Fiscal 2026 adjusted EBITDA guidance raised to $360–$365 million, up 10.4% to 11.9% year-over-year.

• Free cash flow as a percentage of adjusted net income expected to exceed 70% in fiscal 2026.

• SG&A expenses projected at $243–$247 million; net interest expense $5–$6 million; effective tax rate 24–25%.

• Capital expenditures expected between $60 million and $65 million; depreciation and amortization $49–$50 million.