Company: MWA
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001350593-25-000012
Chunk: 38

Company: Mueller Water Products, Inc.
Filing Date: 2025-02-05
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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 tax (benefit) deficit related to stock-based compensation(3.5)0.8 Tax credits(1.3)(2.7)Global Intangible Low-Taxed Income0.6 1.3 Foreign income tax rate differential(0.7)(1.8)Nondeductible compensation1.1 1.4 Uncertain tax positions0.7 (8.8)Valuation allowances— 0.4 Other1.1 0.8 Effective income tax rate22.9 %15.4 %

Segment Analysis 

Water Flow Solutions

Net sales for the three months ended December 31, 2024 were $174.6 million as compared with $141.3 million in the prior year period, an increase of $33.3 million or 23.6%, primarily as a result of higher volumes predominately in iron gate valves and specialty valves as well as higher pricing across most product lines.

Gross profit for the three months ended December 31, 2024 was $55.1 million as compared with $46.6 million in the prior year period, an increase of $8.5 million or 18.2%.  This increase was primarily a result of higher volumes and favorable price/cost, partially offset by the $3.3 million write-down of inventory and other assets associated with our legacy brass foundry in Decatur, Illinois, which ceased production in January 2025.  Gross margin was 31.6% in the three months ended December 31, 2024 and 33.0% in the prior year period.   

SG&A for the three months ended December 31, 2024 was $19.8 million as compared with $19.2 million in the prior year period, an increase of $0.6 million or 3.1%, primarily as a result of higher personnel-related expense, including commissions, third-party fees, and inflation of approximately 3%, partially offset by lower amortization.  SG&A as a percentage of net sales was 11.3% and 13.6% in the three months ended December 31, 2024 and 2023, respectively. 

Water Management Solutions

Net sales for the three months ended December 31, 2024 were $129.7 million as compared with $115.1 million in the prior year period, an increase of $14.6 million or 12.7%, primarily as a result