Mueller Water Products (MWA) Q4 2024 earnings summary

Executive summary

• Achieved record fiscal 2024 results, with Q4 net sales up 15.5% year-over-year to $348.2M and adjusted EBITDA up 30.9% to $72.5M, driven by strong end-market demand, operational execution, and strategic investments in manufacturing and supply chain.

• Full-year net sales reached $1.315B, up 3.1%, with adjusted EBITDA up 40.9% to $284.7M and adjusted net income per diluted share up 52.4% to $0.96.

• Gross margin and adjusted EBITDA margin reached record levels, reflecting manufacturing improvements and disciplined SG&A spending.

• Free cash flow for the year was $191.4M, up $130M from the prior year, with $49.9M returned to shareholders via dividends and buybacks.

• Continued focus on sustainability, innovation, and supporting aging water infrastructure through targeted products and solutions.

Financial highlights

• Q4 consolidated net sales rose 15.5% year-over-year to $348.2M; full-year consolidated net sales increased 3.1% to over $1.3B.

• Q4 gross margin improved 250 basis points to 31.8%; full-year gross margin reached 34.9%, up 520 basis points year-over-year.

• Q4 adjusted EBITDA grew 30.9% to $72.5M; full-year adjusted EBITDA rose 40.9% to $284.7M, with margin up 590 basis points to 21.7%.

• Adjusted net income per share for the year was $0.96, up 52.4% year-over-year; adjusted net income was $150.2M, up 53.3%.

• Free cash flow for the year was $191.4M, up from $61.4M prior year.

Outlook and guidance

• Fiscal 2025 net sales expected between $1.34B and $1.36B, a 1.9% to 3.4% year-over-year increase.

• Adjusted EBITDA guidance of $300M–$305M, reflecting 5.4% to 7.1% growth.

• SG&A forecasted at $236M–$240M, below prior year due to lower amortization and incentive costs.

• Free cash flow as a percentage of adjusted net income projected to exceed 80%.

• Second-half 2025 adjusted EBITDA margin expected to be higher than first half, benefiting from foundry closure and operational improvements.