Mueller Water Products Posts Record Fiscal 2026 Profitability, Plans Metering Business Transition

The Tip Desk · November 10, 2026 · 3 min read

Fourth-quarter net sales were $376.5 million as the company introduced fiscal 2027 adjusted EBITDA of $378 million to $388 million.

Mueller Water Products, Inc. (MWA), a manufacturer of products used in the transmission, distribution and measurement of water in North America, closed fiscal 2026 with record profitability even as fourth-quarter sales reversed a year-over-year gain.

Net sales in the quarter ended September 30, 2026, were $376.5 million, down 1.1% from $380.8 million a year earlier, after a 4.1% year-over-year increase to $395.9 million in the third quarter. The company said the decline was primarily due to lower volumes, partially offset by higher pricing across most product lines.

Adjusted EBITDA rose 4.0% to $95.5 million from $91.8 million in the prior-year quarter, with the margin expanding to 25.4% from 24.1%. That followed a 24.3% year-over-year increase to $107.4 million and a 27.1% margin in the third quarter. Net income was $52.3 million, or $0.33 a share. Adjusted net income per diluted share was $0.38.

Gross margin increased 20 basis points to 37.0% from 36.8%, which the company attributed to higher pricing and manufacturing performance, partially offset by inflation, lower volumes, product mix, tariffs and $0.6 million of Decatur legacy brass foundry closure costs. Selling, general and administrative expenses fell 14.1% to $57.3 million from $66.7 million, primarily on lower incentive-based compensation, favorable personnel-related costs and reduced foreign currency headwinds. The company incurred $8.9 million of strategic reorganization and other charges, primarily related to the closure of its legacy brass foundry in Decatur, Illinois, and severance. Those charges and the Decatur closure costs in gross profit were excluded from adjusted results.

Water Flow Solutions, the larger reportable segment, posted net sales of $210.9 million, down 3.0% from $217.5 million, primarily on lower volumes, partially offset by higher pricing. Adjusted operating income increased 7.8% and adjusted EBITDA rose 7.0% to $67.1 million, with adjusted EBITDA margin improving to 31.8% from 28.8%. The company said manufacturing performance, higher pricing and lower SG&A more than offset lower volumes, product mix, inflation and tariffs.

Water Management Solutions net sales increased 1.4% to $165.6 million from $163.3 million, primarily on higher pricing, partially offset by lower volumes. Adjusted operating income decreased 9.5% and adjusted EBITDA fell 8.4% to $41.2 million, with adjusted EBITDA margin declining to 24.9% from 27.6%. The company said lower volumes, tariffs and inflation were partially offset by higher pricing and lower SG&A, including reduced foreign currency headwinds.

For the full fiscal year, net sales increased 3.2% to $1,475.0 million from $1,429.7 million. Adjusted EBITDA rose 14.1% to $372.2 million, with the margin expanding to 25.2% from 22.8%. Adjusted net income per diluted share increased 19.8% to $1.57 from $1.31. Net cash provided by operating activities was $262.9 million and free cash flow was $207.3 million. The company returned $74.3 million to shareholders through dividends and repurchases.

On October 22, the board approved a $300.0 million increase to the common stock repurchase authorization, bringing the total to $334.5 million, and declared a quarterly dividend of $0.08 a share, a 14.3% increase from $0.07. The company also announced an agreement to transition its metering business, operated via Mueller Systems, to ZENNER USA.

Mueller Water Products introduced fiscal 2027 consolidated net sales guidance of $1,440 million to $1,470 million, excluding metering-related results that were about $40 million in fiscal 2026. It anticipates fiscal 2027 adjusted EBITDA of $378 million to $388 million, or a 26.3% margin at the midpoint, a 110 basis point year-over-year improvement. The company said second-half adjusted EBITDA margin is expected to be higher than the first half, driven primarily by seasonality, portfolio optimization and operational improvements, and expects free cash flow as a percentage of adjusted net income to be more than 80%.