Mueller Water Products (MWA) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 and fiscal 2024 results, with net sales and adjusted EBITDA exceeding expectations, driven by strong end-market demand and operational execution.

• Double-digit Q4 net sales growth and significant improvements in gross and adjusted EBITDA margins, with record free cash flow.

• Strategic investments in manufacturing, supply chain, and customer experience supported performance and margin expansion.

• Published fourth ESG report, reinforcing commitment to sustainability and innovation in water infrastructure solutions.

Financial highlights

• Q4 consolidated net sales rose 15.5% year-over-year to $348.2M; full-year net sales reached $1.315B, up 3.1%.

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

• Q4 adjusted EBITDA grew 30.9% to $72.5M; full-year adjusted EBITDA up 40.9% to $284.7M, with a record margin of 21.7%.

• Adjusted net income per share for the year was $0.96, up 52.4% year-over-year.

• Free cash flow for the year was $191.4M, a $130M increase.

Outlook and guidance

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

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

• SG&A expenses 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 be over 80%.

• Second-half 2025 adjusted EBITDA margin expected to exceed first half, driven by seasonality and manufacturing improvements.