Mueller Water Products delivered a positive second quarter, with management attributing results to volume growth across core product lines, higher pricing, and improved manufacturing efficiencies. CEO Marietta Edmunds Zakas specifically highlighted resilient demand for repair products and the successful transition away from the legacy brass foundry, both of which supported gross margin expansion. The team also noted that new tariffs posed headwinds, but these were partially offset by targeted price increases and supply chain improvements.
Is now the time to buy MWA? Find out in our full research report (it’s free).
Mueller Water Products (MWA) Q2 CY2025 Highlights:
- Revenue: $380.3 million vs analyst estimates of $367.7 million (6.6% year-on-year growth, 3.4% beat)
- Adjusted EPS: $0.34 vs analyst estimates of $0.34 (in line)
- Adjusted EBITDA: $86.4 million vs analyst estimates of $88.4 million (22.7% margin, 2.3% miss)
- The company lifted its revenue guidance for the full year to $1.41 billion at the midpoint from $1.40 billion, a 1.1% increase
- EBITDA guidance for the full year is $320 million at the midpoint, above analyst estimates of $313.3 million
- Operating Margin: 19.4%, in line with the same quarter last year
- Organic Revenue rose 6.6% year on year vs analyst estimates of 3.5% growth (315.8 basis point beat)
- Market Capitalization: $4.21 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Mueller Water Products’s Q2 Earnings Call
- Michael Patrick Halloran (Baird) asked about stability and visibility in end markets, especially utilities and residential. CEO Marietta Edmunds Zakas noted continued municipal strength but flagged caution in residential due to slower housing starts and high mortgage rates, potentially extending into next year.
- Nicklaus Marin Cash (Goldman Sachs) inquired about the margin impact of the legacy brass foundry closure versus tariffs. CFO Melissa Rasmussen separated the expected 80-100 basis point margin benefit from the foundry exit and said tariffs primarily impacted specialty valves.
- Bryan Francis Blair (Oppenheimer) requested detail on segment growth and margin expectations for Q4 and into 2026. Rasmussen said slower WFS growth would be offset by improvements in repair and installation, with carryover benefits from recent price actions.
- Deane Michael Dray (RBC Capital Markets) sought clarification on the realization of price increases and the risk of demand “prebuy” ahead of tariff-induced price hikes. COO Paul McAndrew confirmed no significant prebuy was detected and that pricing was adjusted as tariffs changed.
- Joseph Craig Giordano (TD Cowen) questioned the timing and impact of federal infrastructure funding. Zakas acknowledged allocations have been slower than expected and may not impact results for several years, but sees long-term support for water infrastructure needs.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will focus on (1) whether targeted pricing actions fully offset ongoing tariff pressures on specialty and repair products, (2) the pace of gross margin improvement as foundry investments deliver further cost savings, and (3) end-market demand trends in both municipal and residential segments. We will also monitor updates on federal infrastructure funding as a potential long-term growth driver.
Mueller Water Products currently trades at $26.92, up from $23.95 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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