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Get filing alertsMueller Water Products raises FY26 EBITDA guidance on record Q2 results, 15% margin growth
Filed May 5, 2026 · Period ending May 5, 2026 · ~1 min read
Key Changes
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high
Raised full-year adjusted EBITDA guidance to $360-365 million (10.4%-11.9% growth) while reiterating sales guidance of $1,470-1,490 million; now expects free cash flow to exceed 70% of adjusted net income.
Exhibit 99.1 view on EDGAR → -
high
Q2 net sales rose 5.5% to $384.4 million; adjusted EBITDA jumped 15.0% to $97.2 million with margin expansion of 210 basis points to 25.3%; adjusted EPS increased 17.6% to $0.40.
Exhibit 99.1 view on EDGAR → -
medium
Management cited increased uncertainty from anticipated slowdown in new residential construction, tariffs, and inflationary pressures; working closely with customers and suppliers to adapt to demand changes.
Exhibit 99.1 view on EDGAR → -
medium
Six-month free cash flow declined to $16.5 million from $47.3 million prior year due to working capital changes and higher capex ($31.9 million versus $21.1 million); company maintains $421 million cash and $584.7 million total liquidity.
Exhibit 99.1 view on EDGAR → -
low
Incurred $4.4 million in strategic reorganization charges during Q2, primarily for leadership transition expenses, transaction-related costs, and severance (excluded from adjusted results).
Exhibit 99.1 view on EDGAR →
Summary
Mueller Water Products reported strong second-quarter fiscal 2026 results and raised its full-year adjusted EBITDA guidance to $360-365 million, representing 10.4%-11.9% growth versus the prior year. The quarter delivered record performance with net sales up 5.5% to $384.4 million, adjusted EBITDA growing 15.0% to $97.2 million, and margin expansion of 210 basis points to 25.3%.
Adjusted earnings per share rose 17.6% to $0.40, driven by higher pricing, increased volumes, and operational efficiency. Despite the strong results, management flagged increased external uncertainty, particularly an anticipated slowdown in new residential construction activity alongside tariff and inflationary pressures. The company is actively working with customers and suppliers to adapt to these headwinds.
First-half free cash flow declined to $16.5 million from $47.3 million in the prior year, reflecting working capital changes and higher capital expenditures, though the company maintains a strong balance sheet with $421 million in cash. The raised EBITDA guidance and improved free cash flow outlook (now expected to exceed 70% of adjusted net income) suggest management confidence in navigating near-term challenges while sustaining margin gains.
Section-by-Section Diff
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
With increased uncertainty in the external operating environment, including the anticipated slowdown in new residential construction activity, the Company is working closely with customers and suppliers to adapt, as needed, to changes in demand, tariffs and inflationary pressures.
Management highlighted increased uncertainty in the external operating environment, specifically noting an anticipated slowdown in new residential construction activity. The company is actively working with customers and suppliers to adapt to changes in demand, tariffs, and inflationary pressures. Despite these headwinds, the company raised its adjusted EBITDA guidance based on strong first-half performance.
Added in current filing · view on EDGAR →
Net cash provided by operating activities for the six-month period ended March 31, 2026, decreased $20.0 million to $48.4 million as compared with $68.4 million in the prior year period. The decrease was primarily driven by changes in working capital and other assets and liabilities, partially offset by higher net income and non-cash adjustments compared with the prior year period. ... Free cash flow (defined as net cash provided by operating activities less capital expenditures) for the six-month period decreased $30.8 million to $16.5 million as compared with $47.3 million in the prior year period, due to the decrease in net cash provided by operating activities and higher capital expenditures.
Operating cash flow for the first six months of fiscal 2026 declined to $48.4 million from $68.4 million in the prior year, primarily due to working capital changes. Free cash flow decreased to $16.5 million from $47.3 million, reflecting both lower operating cash flow and higher capital expenditures ($31.9 million versus $21.1 million). The company maintained a strong balance sheet with $421.0 million in cash and $584.7 million in total liquidity.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 23, 2026 · How we verify