Company: MWA
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001350593-25-000029
Chunk: 42

Company: Mueller Water Products, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 42
---
.1 Total operating expenses42.7 40.3 30.7 113.7 Operating income (loss)$89.4 $58.6 $(30.7)117.3 Non-operating expenses:Pension benefit other than service(0.1)Interest expense, net3.9 Income before income taxes113.5 Income tax expense26.9 Net income$86.6  Six months ended March 31, 2024 Water Flow SolutionsWater Management SolutionsCorporateTotal (in millions)Net sales$347.1 $262.7 $— $609.8 Gross profit$123.8 $92.9 $— $216.7 Operating expenses:Selling, general and administrative43.8 48.8 28.0 120.6 Strategic reorganization and other charges0.2 — 9.6 9.8 Total operating expenses44.0 48.8 37.6 130.4 Operating income (loss)$79.8 $44.1 $(37.6)86.3 Non-operating expenses:Pension expense other than service2.0 Interest expense, net6.9 Other expense1.6 Income before income taxes75.8 Income tax expense17.2 Net income$58.6 

Consolidated Analysis

Net sales for the six months ended March 31, 2025 were $668.6 million as compared with $609.8 million in the prior year period, an increase of $58.8 million or 9.6%, primarily as a result of increased volumes as well as higher pricing across most product lines.

Gross profit for the six months ended March 31, 2025 was $231.0 million as compared with $216.7 million in the prior year period, an increase of $14.3 million or 6.6%, primarily as a result of higher volumes and favorable price/cost which more than offset the impact of manufacturing inefficiencies.  Included in the manufacturing inefficiencies was a $4.1 million write-down of 

29

inventory and other assets associated with our legacy brass foundry in Decatur, Illinois.  Inflation negatively impacted Gross profit by approximately 4%.  As a result, Gross margin was 34.5% in the six months ended March 31, 2025 as compared with