Company: MWA
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001350593-25-000012
Chunk: 121

Company: Mueller Water Products, Inc.
Filing Date: 2025-02-05
Form: 10-Q
Item: Part I, Item 2
Chunk 121
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 experience a more normalized operating environment leading to normalized seasonality for consolidated net sales. Therefore, we anticipate quarterly consolidated net sales as a percentage of fiscal year 2025 consolidated net sales to be the highest in the third quarter and lowest in the first quarter, with a sequential increase in consolidated net sales in the second quarter as the construction season ramps up for the spring season.  In January 2025, Blue Chip Economic Indicators forecasted a 0.7% increase in housing starts for the calendar year 2025 as compared to the calendar year 2024.  We anticipate resilient demand in the municipal repair and replacement end market driven by the aging water infrastructure albeit moderated by budgetary and operational pressures on municipalities.  

Additionally, we anticipate that new residential construction activity and new lot and land development will be relatively constrained by the interest rate environment, depending on the geographic region. For the remainder of fiscal 2025, we anticipate that inflation will continue to modestly impact manufacturing costs, primarily due to wage inflation, as well as raw materials and purchased parts.  We will continue to monitor the market and economic conditions impacting our business and take appropriate actions to address inflationary and other cost pressures, including new tariffs, by implementing price increases, cost containment measures and supplier management measures, among other mitigating actions.

24

Results of Operations

Three Months Ended December 31, 2024 Compared to Three Months Ended December 31, 2023 

 Three months ended December 31, 2024 Water Flow SolutionsWater Management SolutionsCorporate  Total     (in millions)Net sales$174.6 $129.7 $— $304.3 Gross profit$55.1 $47.9 $— $103.0 Operating expenses:Selling, general and administrative19.8 20.3 13.8 53.9 Strategic reorganization and other charges— 0.3 1.4 1.7 Total operating expenses19.8 20.6 15.2 55.6 Operating income (loss)$35.3 $27.3 $(15.2)47.4 Non-operating expenses:Interest expense, net1.6 Income before income taxes45.8 Income tax expense10.5 Net income$35.3  Three months ended December 31, 2023  Water Flow SolutionsWater Management SolutionsCorporateTotal (in millions)Net sales$141