Company: MWA
Filing Date: 2025-11-19
Form Type: 10-K
Source: 0001350593-25-000066
Chunk: 280

Company: Mueller Water Products, Inc.
Filing Date: 2025-11-19
Form: 10-K
Item: Item 1A
Chunk 280
---
 quickly as we expect, partially as a result of the substantial investment related to installation of AMI systems.  The strong market positions of our primary competitors may also slow the adoption of our products.  Similarly, the adoption of our pressure monitoring, leak detection and pipe condition assessment products and services depends on the willingness of our customers to invest in new product and service offerings, and the pace of adoption may be slower than we expect.  The markets for our technology-enabled products and services have developed more slowly than we expected and may continue to do so.  If these products and services fail to gain market acceptance, our opportunity to grow these businesses will be limited.

Risks related to our business strategy

We may not be able to adequately manage the risks associated with our products, systems and solutions, including increased warranty costs.

The success of our products and systems depends on our ability to manage the risks associated with their introduction and continued maintenance and management, including the risk that our products and systems may have quality or other defects or deficiencies that result in their failure to satisfy performance or reliability requirements.  Our success depends in part on our ability to manage these risks, including costs associated with design, manufacturing, installation, maintenance and warranties.  Managing these risks can be costly and technologically challenging, and we cannot determine the ultimate effect they may 

 11

Table of ContentsIndex to Financial Statements

have.  The estimation of warranty liabilities involves considerable judgment due to the complex nature of these exposures and the unique circumstances of various claims.  Furthermore, once customers assert claims for an alleged product defect, determining the potential exposure or liability related to such allegation or the extent to which the assertion of these claims may expand geographically may be difficult.  Although we maintain insurance for certain product related claims, such policies may not be available to us or adequately cover the liability for damages, the cost of repairs and/or the expense of litigation.  Current and future claims may arise out of events or circumstances not covered by insurance and not subject to comprehensive indemnification agreements with our subcontractors.  Failure to successfully manage these challenges could result in lost sales, significant expense and harm to our reputation.

Our products and services may be affected from time to time by design and manufacturing defects that could materially adversely affect the business and result in harm to our reputation.

We offer several technologically enhanced, complex hardware and software products, services and solutions that can be negatively impacted by design and manufacturing defects.  Defects can also exist in components and products we purchase from third parties.  Component defects