MWA Q2: Sales +5.5%, margin +250bp, but tariffs double to 50% and CEO transitions

Filed May 6, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 6, 2025 · ~2 min read

Key Changes

• high

  Section 232 tariffs on steel and aluminum doubled from 25% to 50% in 2025, creating material cost pressure on imported Repair products from the Krausz business. Direct tariff costs now run ~3% of cost of sales, and mitigation efforts may not fully offset the impact.

  MD&A: Section 232 tariffs verify on EDGAR →
• high

  Paul McAndrew became CEO on February 9, 2026, replacing retired CEO Marietta Edmunds Zakas. Strategic reorganization charges rose to $7.7M from $4.1M, driven by leadership transition and severance costs.

  MD&A: CEO transition verify on EDGAR →
• high

  Gross margin expanded 250 basis points to 37.6% in Q2 on favorable pricing, manufacturing efficiencies from the legacy brass foundry closure, and higher volumes, partially offset by tariffs and ~4% inflation.

  MD&A: Q2 gross margin expansion verify on EDGAR →