Mueller Water Products Posts $1.43B Sales, Eyes Operational Boost

TL;DR

**MWA is a solid long-term play on aging water infrastructure, but watch for execution on new manufacturing investments to truly unlock margin expansion.**

AI Summary

Mueller Water Products, Inc. (MWA) reported consolidated net sales of $1,429.7 million in fiscal year 2025. The Water Flow Solutions segment, which includes iron gate and specialty valves, generated $824.9 million in net sales, representing approximately 58% of total sales. The Water Management Solutions segment, encompassing fire hydrants, leak detection, and natural gas products, contributed $604.8 million in net sales, approximately 42% of the total. The company is strategically focused on improving operational excellence through disciplined capital investments, including a new brass foundry in Decatur, Illinois, to drive margin expansion and expand domestic manufacturing capabilities. MWA also aims to accelerate sales growth by enhancing customer experience and investing in product development, while fostering a strong employee culture. Key leadership changes include the appointment of Melissa Rasmussen as CFO in March 2025 and Paul McAndrew as CEO, effective February 9, 2026, following Marietta Edmunds Zakas' retirement.

Why It Matters

Mueller Water Products' performance is critical for investors as its infrastructure products are essential for municipal water systems and construction, a stable yet evolving market. The company's strategic investments in operational excellence, like the new Decatur, Illinois brass foundry, could significantly improve margins and competitive positioning against private competitors. For employees, these investments signal job security and growth opportunities in advanced manufacturing. Customers benefit from enhanced product quality and expanded American-made offerings, crucial for reliable water infrastructure. The broader market sees MWA as a bellwether for water utility spending and construction trends, especially with its dominant position in iron gate valves and fire hydrants.

Risk Assessment

Risk Level: medium — The company faces medium risk due to its reliance on cyclical markets like municipal spending and residential construction, as noted in the 'Forward-Looking Statements' section. Additionally, the success of significant capital investments, such as the new brass foundry in Decatur, Illinois, is crucial for anticipated margin expansion, and an 'inability to realize the anticipated benefits' poses a financial risk.

Analyst Insight

Investors should monitor MWA's progress on its operational excellence initiatives, particularly the new Decatur, Illinois brass foundry, as successful execution could significantly boost margins. Consider MWA for long-term infrastructure exposure, but be aware of potential short-term volatility tied to municipal budget cycles and construction trends.

Revenue Breakdown

Executive Compensation

Key Numbers

• $1,429.7 million — Consolidated Net Sales (Reported for fiscal year 2025)
• $824.9 million — Water Flow Solutions Net Sales (Approximately 58% of fiscal 2025 consolidated net sales)
• $604.8 million — Water Management Solutions Net Sales (Approximately 42% of fiscal 2025 consolidated net sales)
• 156,349,160 — Shares of Common Stock Outstanding (As of November 14, 2025)
• $3,951.5 million — Market Value of Non-Affiliate Common Stock (As of March 31, 2025)
• 58% — Water Flow Solutions Sales Percentage (Proportion of fiscal 2025 consolidated net sales)
• 42% — Water Management Solutions Sales Percentage (Proportion of fiscal 2025 consolidated net sales)

Key Players & Entities

• Mueller Water Products, Inc. (company) — Registrant
• Melissa Rasmussen (person) — Senior Vice President and Chief Financial Officer
• Steven S. Heinrichs (person) — Former Chief Financial Officer and Chief Legal Officer
• Richelle R. Feyerherm (person) — Chief Accounting Officer and Principal Accounting Officer
• Marietta Edmunds Zakas (person) — Retiring Chief Executive Officer and Board Member
• Paul McAndrew (person) — Incoming President and Chief Executive Officer
• New York Stock Exchange (regulator) — Exchange for MWA Common Stock
• SEC (regulator) — Securities and Exchange Commission

FAQ

Risk Factors

• Supply Chain Disruptions [medium — operational]: The company relies on purchased components and raw materials. Disruptions in the supply chain, including availability and pricing of these materials, could materially impact the company's ability to manufacture and deliver products, affecting financial results.
• Environmental Regulations [medium — regulatory]: The company's operations are subject to various federal, state, and local environmental laws and regulations. Non-compliance or changes in these regulations could lead to increased costs, fines, or operational restrictions.
• Competition [medium — market]: The company operates in a competitive market with numerous players. Intense competition could lead to pricing pressures and reduced market share, impacting profitability.
• Cybersecurity Threats [high — operational]: The company is subject to cybersecurity risks, including unauthorized access to sensitive data and disruption of IT systems. A successful cyberattack could result in significant financial losses, reputational damage, and operational disruptions.
• Inflationary Pressures [medium — financial]: The company notes that inflation can affect costs of raw materials, labor, and transportation. While they aim to pass on costs, significant inflation could impact margins if not fully recovered.

Industry Context

Mueller Water Products operates in the North American water infrastructure market, serving municipalities and construction industries. The sector is characterized by established players and a focus on essential water transmission, distribution, and measurement products. Key trends include the need for aging infrastructure upgrades, increasing demand for water conservation technologies, and a growing emphasis on domestic manufacturing capabilities.

Regulatory Implications

The company faces regulatory scrutiny related to environmental compliance, particularly concerning manufacturing processes and emissions. Changes in environmental laws or stricter enforcement could lead to increased operational costs or require capital expenditures for compliance. Additionally, product safety and performance standards are critical for maintaining market access and customer trust.

What Investors Should Do

1. Monitor the impact of the new brass foundry in Decatur, Illinois.
2. Track the integration and performance of new leadership.
3. Assess the company's ability to pass on inflationary cost increases.

Key Dates

• 2025-03-03: Melissa Rasmussen appointed CFO — Key leadership change in finance function, impacting financial strategy and reporting.
• 2025-08-15: Richelle R. Feyerherm appointed Chief Accounting Officer — Strengthens accounting oversight and compliance.
• 2025-11-06: Announcement of Marietta Edmunds Zakas' retirement as CEO — Signals a significant leadership transition at the highest executive level.
• 2026-02-09: Paul McAndrew to become CEO — Marks the official commencement of new leadership, influencing future strategic direction.

Glossary

Water Flow Solutions

A business segment of Mueller Water Products that includes iron gate valves, specialty valves, and service brass products. (Represents a significant portion (58%) of the company's total net sales, indicating its importance to overall revenue generation.)

Water Management Solutions

A business segment of Mueller Water Products that encompasses fire hydrants, repair and installation, natural gas, metering, leak detection, and pressure management products. (Contributes a substantial portion (42%) of the company's net sales, highlighting its role in the company's diversified product offering.)

Consolidated Net Sales

The total revenue generated by the company and its subsidiaries after deducting returns, allowances, and discounts for the fiscal year. (The primary measure of the company's overall sales performance, reported at $1,429.7 million for fiscal year 2025.)

Operational Excellence

A business strategy focused on improving efficiency, quality, and productivity in all aspects of operations. (A stated strategic focus for MWA, aimed at driving margin expansion and enhancing manufacturing capabilities, such as through investments in new facilities.)

Year-Over-Year Comparison

The provided text focuses on fiscal year 2025 and does not contain comparative data from a previous filing. Therefore, a direct comparison of key metrics like revenue growth, margin changes, or new risks versus the prior year cannot be made based on this excerpt. Information regarding leadership changes in 2025 suggests a period of transition.

Key Financial Figures

• $0.01 M — ich Registered Common Stock, par value $0.01 MWA New York Stock Exchange Securities
• $1,429.7 million — oducts. Our consolidated net sales were $1,429.7 million in 2025. We operate our business throu
• $634.4 million — ed $ 824.9 million, $ 755.5 million and $634.4 million of net sales in our 2025, 2024 and 2023
• $641.3 million — ed $ 604.8 million, $ 559.2 million and $641.3 million of net sales in our 2025, 2024 and 2023

Filing Documents

• mwa-20250930.htm (10-K) — 2126KB
• exhibit211subsidiarieslist.htm (EX-21.1) — 36KB
• exhibit231consentofindepen.htm (EX-23.1) — 5KB
• exhibit311ceo302certificat.htm (EX-31.1) — 9KB
• exhibit312cfo302certificat.htm (EX-31.2) — 9KB
• exhibit321ceo906certificat.htm (EX-32.1) — 4KB
• exhibit322cfo906certificat.htm (EX-32.2) — 4KB
• mwa-20250930_g1.jpg (GRAPHIC) — 149KB
• 0001350593-25-000066.txt ( ) — 12464KB
• mwa-20250930.xsd (EX-101.SCH) — 68KB
• mwa-20250930_cal.xml (EX-101.CAL) — 112KB
• mwa-20250930_def.xml (EX-101.DEF) — 339KB
• mwa-20250930_lab.xml (EX-101.LAB) — 952KB
• mwa-20250930_pre.xml (EX-101.PRE) — 685KB
• mwa-20250930_htm.xml (XML) — 2099KB

Forward-Looking Statements

Forward-Looking Statements This report contains certain statements that may be deemed "forward-looking statements" within the meaning of the federal securities laws. All statements that address activities, events or developments that the Company intends, expects, plans, projects, believes or anticipates will or may occur in the future are forward-looking statements including, without limitation, statements regarding outlooks, projections, forecasts, expectations, commitments, trend descriptions and the ability to capitalize on trends, value creation, long-term strategies and the execution or acceleration thereof, operational improvements, inventory positions, the benefits of capital investments, financial or operating performance, including driving increased margins, operational and commercial initiatives, capital allocation and growth strategy plans, and the demand for the Company's products. Forward-looking statements are based on certain assumptions and assessments made by the Company in light of the Company's experience and perception of historical trends, current conditions and expected future developments. Actual results and the timing of events may differ materially from those contemplated by the forward-looking statements due to a number of factors, including, without limitation, changing regulatory, trade and tariff conditions; logistical challenges and supply chain disruptions, geopolitical conditions, including the Israel-Hamas war, public health crises, or other events; inventory and in-stock positions of our distributors and end customers; an inability to realize the anticipated benefits from our operational initiatives, including our large capital investments in Decatur, Illinois, plant closures, and reorganization and related strategic realignment activities; an inability to attract or retain a skilled and diverse workforce, increased competition related to the workforce and labor markets; an inability to protect the Company's information systems ag

BUSINESS

Item 1. BUSINESS 1 Our Company 1 Business Strategy 1 Description of Products and Services 2 Manufacturing 4 Purchased Components and Raw Materials 4 Patents, Licenses and Trademarks 4 Seasonality 5 Sales, Marketing and Distribution 5 Backlog 5 Competition 6 Research and Development 6 Regulatory and Environmental Matters 7 Human Capital 8 Securities Exchange Act Reports 9

RISK FACTORS

Item 1A. RISK FACTORS 10 Item 1C. CYBERSECURITY 21

PROPERTIES

Item 2. PROPERTIES 24

LEGAL PROCEEDINGS

Item 3. LEGAL PROCEEDINGS 25 PART II

MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Item 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 26 Equity Compensation Plan Information 26 Sale of Unregistered Securities 26 Issuer Purchases of Equity Securities 26 Stock Price Performance Graph 27

[RESERVED]

Item 6. [RESERVED] 27

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 28 Overview 28 Results of Operations 30 Liquidity and Capital Resources 32 Material Cash Requirements 34 Effect of Inflation 35 Seasonality 35 Critical Accounting Estimates 35

QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK 36

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 37

CONTROLS AND PROCEDURES

Item 9A. CONTROLS AND PROCEDURES 38

OTHER INFORMATION

Item 9B. OTHER INFORMATION 38

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Item 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 39 PART III

* DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Item 10* DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 40

* EXECUTIVE COMPENSATION

Item 11* EXECUTIVE COMPENSATION 43

* SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Item 12* SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 43

* CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Item 13* CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 44

* PRINCIPAL ACCOUNTANT FEES AND SERVICES

Item 14* PRINCIPAL ACCOUNTANT FEES AND SERVICES 44 PART IV

EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

Item 15 EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 45 * All or a portion of the referenced section is incorporated by reference from our definitive proxy statement that will be issued in connection with our upcoming 2026 Annual Meeting of Stockholders. Table of Contents Index to Financial Statements PART I

BUSINESS

Item 1. BUSINESS Our Company Mueller Water Products, Inc. ("Mueller," "we," "our," or the "Company") is a leading manufacturer and marketer of products and solutions used in the transmission, distribution and measurement of water in North America. Our products and solutions are used by municipalities and the residential and non-residential construction industries. Some of our products have leading positions as a result of their strong brand recognition and reputation for quality, service and innovation. We believe we have one of the largest installed bases of iron gate valves and fire hydrants in the United States. Our iron gate valve and hydrant products are specified for use in the largest 100 metropolitan areas in the United States. Our large installed base, broad product range and well-known brands have led to long-standing relationships with the key distributors and end users of our products. Our consolidated net sales were $1,429.7 million in 2025. We operate our business through two segments, Water Flow Solutions and Water Management Solutions. Segment sales, operating results and additional financial data and commentary are provided in the Segment Analysis section in Part II, Item 7. " MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS " and in Note 14. of the Notes to Consolidated Financial Statements in Part II, Item 8. " FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA " of this Annual Report. Organization Updates In January 2025, we announced the appointment of Ms. Melissa Rasmussen as Senior Vice President and Chief Financial Officer effective March 3, 2025. On March 1, 2025, Mr. Steven S. Heinrichs transitioned from his roles as Chief Financial Officer and Chief Legal Officer to Senior Advisor and remained an advisor until September 30, 2025. In August 2025, we announced the appointment of Ms. Richelle R. Feyerherm as Chief Accounting Officer effective August 15, 2025. Ms. Feyerherm also serves as the Company's princ

View Full Filing

View this 10-K filing on SEC EDGAR