Mueller Water Q3 FY26: Net income +28.2% to $67.3M on tariff headwinds, foundry gains

Filed August 6, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 5, 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 estimated at ~3% of cost of sales for remainder of FY2026.

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

  Net income rose 28.2% to $67.3M (diluted EPS $0.43, +28.4.1%) despite revenue growth of only 4.1% to $395.9M, driven by gross margin expansion to 39.4% (+110 bp) and a lower effective tax rate (15.7% vs 27.1%) from a tax benefit on a foreign subsidiary investment loss.

  MD&A: Q3 results verify on EDGAR →
• high

  Legacy brass foundry closure completed in January 2025, transitioning production to new state-of-the-art facility. Nine-month gross margin expanded 230 bp to 38.2%, driven by pricing, foundry performance gains, and absence of prior year's $4.1M foundry write-down.

  MD&A: Legacy foundry closure verify on EDGAR →