Company: MWA
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001350593-25-000029
Chunk: 138

Company: Mueller Water Products, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 138
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)Net sales$205.8 $147.6 $— $353.4 Gross profit$77.2 $53.2 $— $130.4 Operating expenses:Selling, general and administrative24.6 24.2 14.9 63.7 Strategic reorganization and other charges— — 3.2 3.2 Total operating expenses24.6 24.2 18.1 66.9 Operating income (loss)$52.6 $29.0 $(18.1)63.5 Non-operating expenses:Pension expense other than service1.0 Interest expense, net3.6 Income before income taxes58.9 Income tax expense14.6 Net income$44.3 

Consolidated Analysis

Net sales for the three months ended March 31, 2025 were $364.3 million as compared with $353.4 million in the prior year period, an increase of $10.9 million or 3.1%, primarily as a result of higher pricing across most product lines, as well as increased volumes.

26

Gross profit for the three months ended March 31, 2025 was $128.0 million as compared with $130.4 million in the prior year period, a decrease of $2.4 million or 1.8%, primarily as a result of manufacturing inefficiencies partially offset by higher volumes and favorable price/cost.  Included in the manufacturing inefficiencies was a $0.8 million write-down of other assets associated with our legacy brass foundry in Decatur, Illinois.  Inflation impacted Gross margin by approximately 3%.  As a result, Gross margin was 35.1% in the three months ended March 31, 2025 as compared with 36.9% in the prior year period.

Selling, general and administrative expenses (“SG&A”) for the three months ended March 31, 2025 were $55.7 million as compared with $63.7 million in the prior year period, a decrease of $8.0 million or 12.6%, primarily due to lower amortization, incentive and travel expenses as well as favorable foreign exchange impacts, partially offset by approximately 3% inflation.  SG&A as a percentage of net sales was 15.3% and 18.0% for the three months ended March 31, 202