Company: MWA
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001350593-25-000012
Chunk: 122

Company: Mueller Water Products, Inc.
Filing Date: 2025-02-05
Form: 10-Q
Item: Part I, Item 2
Chunk 122
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.3 $115.1 $— $256.4 Gross profit$46.6 $39.7 $— $86.3 Operating expenses:Selling, general and administrative19.2 24.6 13.1 56.9 Strategic reorganization and other charges0.2 — 6.4 6.6 Total operating expenses19.4 24.6 19.5 63.5 Operating income (loss)$27.2 $15.1 $(19.5)22.8 Non-operating expenses:Pension expense other than service1.0 Interest expense, net3.3 Other expense1.6 Income before income taxes16.9 Income tax expense2.6 Net income$14.3 

Consolidated Analysis

Net sales for the three months ended December 31, 2024 were $304.3 million as compared with $256.4 million in the prior year period, an increase of $47.9 million or 18.7%, primarily as a result of increased volumes at Water Flow Solutions and Water Management Solutions, as well as higher pricing across most product lines.

25

Gross profit for the three months ended December 31, 2024 was $103.0 million as compared with $86.3 million in the prior year period, an increase of $16.7 million or 19.4%, primarily as a result of higher volumes and favorable price/cost.  Offsetting the increase was a $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.  The Israel-Hamas war negatively impacted Gross profit by less than 5%.  As a result, Gross margin was 33.8% in the three months ended December 31, 2024 as compared with 33.7% in the prior year period.

Selling, general and administrative expenses (“SG&A”) for the three months ended December 31, 2024 were $53.9 million as compared with $56.9 million in the prior year period, a decrease of $3.0 million or 5.3%, primarily due to lower amortization and favorable foreign exchange impacts, partially offset by approximately 3% inflation, higher third-party fees and personnel-related expense.  SG&A as a percentage of net sales was