Mueller Water Products Hits Record Sales, Announces CEO Transition

Ticker: MWA · Form: DEF 14A · Filed: Dec 19, 2025 · CIK: 1350593

Sentiment: bullish

Topics: Water Infrastructure, Earnings Growth, CEO Succession, Dividend Increase, Operational Excellence, ESG Initiatives, Share Repurchase

Related Tickers: MWA

TL;DR

**MWA is crushing it with record financials and a smooth CEO handoff, signaling continued growth in the essential water infrastructure market – buy the dip if you can find one!**

AI Summary

Mueller Water Products, Inc. (MWA) reported a strong fiscal year 2025, achieving record net sales of $1,429.7 million, operating income of $260.6 million, and net income of $191.7 million. The company also saw a significant increase in its adjusted EBITDA margin by over 100 basis points and expanded its gross margin by more than 600 basis points over the past two years. Adjusted EBITDA reached $326.2 million, and adjusted net income per diluted share was $1.31. MWA returned $41.9 million to stockholders through dividends, paying a quarterly dividend of $0.067 per share, a 4.7% increase from fiscal 2024, and repurchased $15 million of common stock. The company also completed the transition to its state-of-the-art brass foundry in Decatur, Illinois, and achieved its lowest total recordable incident rate in company history. Strategic leadership changes include Paul McAndrew succeeding Martie Edmunds Zakas as President and CEO, effective February 9, 2026, with McAndrew also nominated for election to the Board. The company also achieved its initial leak detection goal of identifying 7.7 billion gallons of water loss three years ahead of schedule and expanded this goal to 18 billion gallons by 2029.

Why It Matters

This DEF 14A filing signals strong operational performance and strategic leadership continuity for Mueller Water Products, a key player in North America's water infrastructure. Record net sales and margin expansion demonstrate MWA's ability to navigate complex environments, potentially boosting investor confidence in its long-term value creation. The CEO transition from Martie Edmunds Zakas to Paul McAndrew, an internal leader with a proven track record, suggests a smooth succession and continued focus on operational excellence, which is crucial for maintaining competitive edge against rivals in the water utility solutions market. For customers and employees, the company's commitment to innovation, sustainability, and safety, evidenced by its new brass foundry and reduced incident rates, reinforces its market leadership and responsible corporate practices.

Risk Assessment

Risk Level: low — The risk level is low due to the company's strong financial performance, including record net sales of $1,429.7 million and a 600 basis point gross margin expansion over two years. The planned CEO succession from Martie Edmunds Zakas to Paul McAndrew is internal and well-managed, with McAndrew having been an integral part of the leadership team for three years, ensuring continuity and stability.

Analyst Insight

Investors should consider MWA a stable long-term holding given its consistent financial performance, increased dividends, and strategic leadership transition. Monitor Paul McAndrew's initial strategic moves as CEO for further growth catalysts, especially regarding capital allocation and innovation in smart water solutions.

Financial Highlights

revenue
$1,429.7M
net Income
$191.7M
gross Margin
600+ basis points expansion over two years

Revenue Breakdown

SegmentRevenueGrowth
Water Flow Solutions
Water Management Solutions

Executive Compensation

NameTitleTotal Compensation
Martie Edmunds ZakasPresident and Chief Executive Officer
Paul McAndrewPresident and Chief Operating Officer
Stephen C. Van ArsdelNon-Executive Chair of the Board

Key Numbers

Key Players & Entities

FAQ

What were Mueller Water Products' key financial achievements in fiscal 2025?

Mueller Water Products achieved record net sales of $1,429.7 million, operating income of $260.6 million, and net income of $191.7 million in fiscal 2025. The company also reported a record adjusted EBITDA of $326.2 million and adjusted net income per diluted share of $1.31.

Who is the new CEO of Mueller Water Products and when is the transition effective?

Paul McAndrew, currently President and Chief Operating Officer, will succeed Martie Edmunds Zakas as President and Chief Executive Officer of Mueller Water Products. This transition is effective as of the Annual Meeting on February 9, 2026.

What is Mueller Water Products' dividend policy and share repurchase activity in fiscal 2025?

Mueller Water Products paid stockholders a quarterly dividend of $0.067 per share during fiscal 2025, representing an increase of approximately 4.7% from fiscal 2024. The company returned a total of $41.9 million to stockholders through dividends and repurchased $15 million of its outstanding Common Stock.

What are Mueller Water Products' sustainability achievements in fiscal 2025?

Mueller Water Products achieved its initial leak detection goal of identifying 7.7 billion gallons of water loss between 2022 and 2027, three years ahead of its target date. The company has since expanded its leak detection goal to identify 18 billion gallons of water loss by 2029.

How has Mueller Water Products' gross margin changed over the past two years?

Mueller Water Products has expanded its gross margin by more than 600 basis points over the past two years, demonstrating significant operational improvements and efficiency gains.

What is the Board's recommendation for the election of directors at the Annual Meeting?

The Board recommends a vote FOR each director nominee. Nine directors are proposed for election, including new nominee Gregg C. Sengstack and Paul McAndrew, who will join the Board if elected.

What is the record date for voting at Mueller Water Products' Annual Meeting?

The record date for voting at Mueller Water Products' Annual Meeting is December 12, 2025. Only stockholders at the close of business on this date are entitled to notice of and to vote at the Annual Meeting.

What operational improvements did Mueller Water Products complete in fiscal 2025?

In fiscal 2025, Mueller Water Products completed the transition to its state-of-the-art brass foundry in Decatur, Illinois. The company also achieved its lowest total recordable incident rate in Mueller history, highlighting its focus on safety and operational excellence.

How does Mueller Water Products engage with its stockholders?

Mueller Water Products engages with stockholders through various avenues, including its Annual Meeting, in-person and virtual meetings, quarterly earnings calls, and investor events. In 2025, this included over ten investor events and discussions on topics like sales growth drivers, inflationary impacts, and capital allocation strategy.

What are the key strategic priorities for Mueller Water Products under the new CEO?

Under Paul McAndrew's leadership, Mueller Water Products will sharpen its strategic priorities around commercial and operational excellence, accountability, disciplined capital allocation, innovation, and an unwavering commitment to its customers.

Risk Factors

Industry Context

Mueller Water Products operates in the essential water infrastructure market, serving municipal and industrial customers. The industry is characterized by a need for reliable, long-lasting products for water transmission, distribution, and measurement. Key trends include increasing investment in aging infrastructure, the adoption of smart water technologies for efficiency and leak detection, and a growing focus on sustainability and water conservation. Competition is present from both large diversified manufacturers and specialized providers.

Regulatory Implications

The company faces regulatory scrutiny related to environmental standards in its manufacturing processes and product compliance. Adherence to safety regulations for products like fire hydrants and valves is critical. Changes in environmental laws or product safety standards could necessitate costly upgrades or impact product design, requiring ongoing compliance efforts.

What Investors Should Do

  1. Vote FOR the election of the nine director nominees.
  2. Vote FOR the advisory resolution to approve executive compensation.
  3. Vote FOR the ratification of Ernst & Young LLP as the independent registered public accounting firm.
  4. Review the company's strategic priorities and leadership transition.
  5. Monitor progress on expanded leak detection goals.

Key Dates

Glossary

DEF 14A
A filing with the SEC that provides detailed information to shareholders about matters to be voted on at an annual meeting, including director nominations, executive compensation, and auditor ratification. (This document is the primary source of information for this analysis, outlining the company's governance and upcoming shareholder votes.)
Adjusted EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization, adjusted for certain non-recurring or non-cash items. It's a measure of operational profitability. (The company reported record Adjusted EBITDA of $326.2 million in fiscal 2025, highlighting strong operational performance.)
Adjusted EBITDA margin
Adjusted EBITDA divided by net sales, expressed as a percentage. It indicates the profitability of each sales dollar after accounting for operational costs. (The company achieved a margin increase of over 100 basis points in fiscal 2025, demonstrating improved efficiency.)
Gross Margin
Revenue minus the cost of goods sold, expressed as a percentage of revenue. It reflects the profitability of the company's core products before operating expenses. (Mueller Water Products expanded its gross margin by over 600 basis points in the past two years, indicating significant pricing power or cost efficiencies.)
Named Executive Officers (NEOs)
The top executive officers of a company, typically the CEO, CFO, and other key individuals, whose compensation is disclosed in detail in proxy statements. (The compensation of NEOs, including the outgoing CEO Martie Edmunds Zakas and incoming CEO Paul McAndrew, is subject to shareholder advisory approval.)
Record Date
A specific date set by a company to determine which shareholders are eligible to receive notice of and vote at a shareholder meeting. (The record date of December 12, 2025, determines eligibility to vote at the February 9, 2026 Annual Meeting.)
Basis Points
A unit of measure equal to one-hundredth of a percent (0.01%). Used to express small changes in percentages. (Used to quantify margin improvements, such as the 100+ basis points increase in Adjusted EBITDA margin and 600+ basis points expansion in gross margin.)
Total Recordable Incident Rate (TRIR)
A safety metric that measures the number of work-related injuries and illnesses per 100 full-time workers during a one-year period. (The company achieved its lowest TRIR in history, indicating strong progress in workplace safety.)

Year-Over-Year Comparison

This proxy statement reflects a period of strong performance for Mueller Water Products, with fiscal 2025 reporting record net sales and adjusted EBITDA, building on prior year improvements. Key metrics like gross margin have seen significant expansion over the past two years (over 600 basis points), and adjusted EBITDA margins have also improved (over 100 basis points). A notable change is the planned CEO transition, with Paul McAndrew set to succeed Martie Edmunds Zakas, indicating a continuation of strategic leadership focused on operational excellence and growth. No new significant risk factors appear to have emerged, but existing operational and regulatory risks remain relevant.

Filing Stats: 4,354 words · 17 min read · ~15 pages · Grade level 14.6 · Accepted 2025-12-19 17:02:31

Key Financial Figures

Filing Documents

From the Filing

mwa-20251218 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 14A Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 Filed by the Registrant Filed by a Party other than the Registrant Check the appropriate box: Preliminary Proxy Statement Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) Definitive Proxy Statement Definitive Additional Materials Soliciting Material Pursuant to 240.14a-12 Mueller Water Products, Inc. (Name of Registrant as Specified In Its Charter) (Name of Person(s) Filing Proxy Statement, if other than the Registrant) Payment of Filing Fee (Check the appropriate box): No fee required. Fee paid previously with preliminary materials. Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11. NOTICE OF ANNUAL MEETING WHEN WHERE RECORD DATE Monday, February 9, 2026; 10:00 A.M., Eastern Time The Annual Meeting will be held virtually via live webcast at: meetnow.global/MU9QMJT Only our stockholders at the close of business on December 12, 2025, the record date for voting at the Annual Meeting, are entitled to notice of and to vote at the Annual Meeting and any adjournments or postponements thereof. ITEMS OF BUSINESS Board Recommendation Proposal 1 To elect nine directors FOR each director nominee Proposal 2 To approve, on an advisory basis, the compensation of our named executive officers FOR Proposal 3 To ratify the appointment of Ernst & Young LLP as our independent registered public accounting firm for the fiscal year ending September 30, 2026 FOR Stockholders will also transact any other business properly brought before the Annual Meeting and any reconvened or rescheduled meeting following any adjournments or postponements thereof. We use United States Securities and Exchange Commission ("SEC") rules allowing issuers to furnish proxy materials to their stockholders over the Internet. A Notice of Internet Availability of Proxy Materials or this Proxy Statement will first be mailed to our stockholders on or about December 19, 2025. Please refer to the Notice of Internet Availability of Proxy Materials, proxy materials email or proxy card you received for information on how to vote your shares and to ensure your shares will be represented and voted at the Annual Meeting. By Order of the Board of Directors. CHASON A. CARROLL Corporate Secretary Atlanta, Georgia December 19, 2025 IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON February 9, 2026 This Proxy Statement and our 2025 Annual Report are available at www.proxyvote.com (for beneficial stockholders) and www.edocumentview.com/mwa (for registered stockholders). PROXY STATEMENT FOR 2026 ANNUAL MEETING 1 LETTER TO STOCKHOLDERS DEAR FELLOW STOCKHOLDERS, As we look ahead to our 2026 Annual Meeting of Stockholders ("Annual Meeting") of Mueller Water Products ("Mueller"), we can each take pride in our fiscal 2025 – keynoted by record setting financial results and an outstanding management team leading an entire organization committed to delivering long-term value to all of our stakeholders. Fiscal 2025 marked another year of exceptional performance for Mueller, including strong net sales growth and more than a 100 basis points increase in our adjusted EBITDA margin. Our achievements in transforming our business over the past two years have expanded our gross margin by more than 600 basis points. Our team's unwavering commitment and relentless focus on operational excellence and customer service enabled us to grow volumes and drive meaningful margin expansion, even as they navigated a complex external operating environment. These accomplishments demonstrate the soundness of our strategies – both long and near term, the strength and depth of our leadership team, and the dedication of our talented employees who drive our success every day – building on yesterday and looking forward to tomorrow. In keeping with the Board's thoughtful succession planning process, Mr. Thomas Hansen will retire from the Board at the conclusion of our Annual Meeting on February 9, 2026. Tom has been a Board member for almost 15 years, and, throughout his tenure, his valued insights, strategic guidance, and deep experience have been instrumental to Mueller's success. On behalf of the entire Board, I thank Tom for his dedicated service and his many contributions to Mueller and its stockholders. We are pleased to announce that Mr. Gregg Sengstack has been nominated for election to the Board at the upcoming Annual Meeting. Gregg joined us as a Board Observer in September of 2025, and has already brought valuable perspectives and expertise to our discussions. We look forward to his election and to benefiting from his deep leadership experience in industrial and manufacturing sectors as Mueller continues to

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