Company: MWA
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001350593-25-000029
Chunk: 45

Company: Mueller Water Products, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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%, primarily as a result of higher volumes and higher pricing across most product lines.

Gross profit for the six months ended March 31, 2025 was $98.9 million as compared with $92.9 million in the prior year period, an increase of $6.0 million or 6.5%.  The increase was primarily driven by higher volume across most product lines and favorable price/cost, partially offset by manufacturing inefficiencies.  Inflation impacted Gross profit by approximately 2%.  Gross margin was 35.6% in the six months ended March 31, 2025 as compared with 35.4% in the prior year period.

SG&A for the six months ended March 31, 2025 was $39.9 million as compared with $48.8 million in the prior year period, a decrease of $8.9 million or 18.2%, primarily due to lower amortization, favorable foreign exchange impacts, lower bad debt and personnel-related expenses.  The decrease was partially offset by approximately 3% inflation as well as higher consulting and professional fees.  SG&A as a percentage of net sales was 14.4% and 18.6% in the six months ended March 31, 2025 and 2024, respectively.

31

Corporate

SG&A for the six months ended March 31, 2025 and 2024 was $28.0 million.  Inflation of 3% and higher insurance expense were offset by decreases in incentives, favorable foreign exchange impacts and lower consulting and professional fees.     

Liquidity and Capital Resources

We had cash and cash equivalents on hand of $329.2 million at March 31, 2025 and $163.0 million of additional borrowing capacity under our ABL based on March 31, 2025 data. At March 31, 2025, cash and cash equivalents included $72.3 million, $7.5 million and $6.5 million in Israel, Canada and China, respectively.

We declared a quarterly dividend of $0.067 per share on April 30, 2025, payable on or about May 21, 2025 to stockholders of record as of May 12, 2025, which will result in an estimated $10.5 million cash outlay.

We repurchased $5.0 million of our outstanding common stock during the six months ended March 31, 2025 under our publicly announced share rep