Mueller Water Products (MWA) Oppenheimer 21st Annual Industrial Growth Virtual Conference summary

Recent performance and market positioning

• Achieved record Q2 results in sales, adjusted EBITDA, and EPS, reflecting strong commercial and operational investments over the past three years.

• Highly vertically integrated with three foundries, well-positioned for Buy America, Build America requirements and infrastructure bill opportunities.

• Core business includes fire hydrants, gate valves, and service brass, with ongoing diversification into specialty valves and engineered products.

• Residential market remains soft, but pent-up demand is expected to drive future growth as housing affordability improves.

Financial outlook and guidance

• Maintained revenue guidance due to continued residential softness, now expecting high single-digit to low double-digit declines in resi, offset by growth in municipal repair and specialty valves.

• Price realization was higher in Q2 due to effective commercial execution, with mid-single digit price gains expected in Q3 and low single digit in Q4.

• Positive price-cost dynamics are expected to continue, with margin accretion anticipated in the second half as tariff headwinds are lapped.

• Margin expansion remains a focus, targeting an additional 170 basis points of EBITDA margin this year, building on 600 basis points over the last two years.

Strategic initiatives and growth opportunities

• The Mueller Operating System is driving organizational focus and simplification, including the exit from the i2O business to improve margins by 20–30 basis points.

• Organic growth initiatives include new product launches like Hydrant Renewal and U.S. Pipe-branded hydrants and valves, targeting untapped markets and leveraging leak detection technology.

• Inorganic growth is a priority, with a strengthened corporate development team and a focus on acquiring businesses that expand the addressable market, especially in valves and adjacent segments.

• Specialty valve business and adjacent markets in industrial water and wastewater offer significant headroom for organic expansion.