Company: MWA
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001350593-25-000029
Chunk: 117

Company: Mueller Water Products, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part II, Item 8
Chunk 117
---
 region.  In April 2025, Blue Chip Economic Indicators forecasted relative consistency in housing starts for the calendar year 2025 as compared to calendar year 2024.  

After our short-cycle channel and customer inventory levels largely normalized during the first quarter of 2024, our orders and shipments reflected a more typical demand environment compared with the high backlog environment we experienced during and after the COVID-19 pandemic. For the remainder of fiscal 2025, we assume that we will continue to experience a more normalized demand environment leading to more 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. 

Inventory costs for the first six months of 2025 experienced approximately 1.4% inflation.  For the remainder of fiscal 2025, we anticipate that inflation will rise, particularly for purchased parts due to new tariffs enacted after January 2025.  At this time, excluding the impact of tariffs, we expect inflation to modestly impact manufacturing and transportation costs.  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.

25

Results of Operations

Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024 

 Three months ended March 31, 2025 Water Flow SolutionsWater Management SolutionsCorporate  Total     (in millions)Net sales$216.2 $148.1 $— $364.3 Gross profit$77.0 $51.0 $— $128.0 Operating expenses:Selling, general and administrative21.9 19.6 14.2 55.7 Strategic reorganization and other charges1.0 0.1 1.3 2.4 Total operating expenses22.9 19.7 15.5 58.1 Operating income (loss)$54.1 $31.3 $(15.5)69.9 Non-operating expenses:Pension benefit other than service(0.1)Interest expense, net2.3 Income