Mueller Industries, Inc. (NYSE:MLI) announces results for the first quarter of 2026. Comparisons are to the first quarter of 2025.
- Net Sales increased to $1.19 billion versus $1.00 billion.
- Net Income increased to $239.0 million versus $157.4 million.
- Operating Income increased to $312.2 million versus $206.3 million.
- Diluted EPS increased to $2.16 versus $1.39.
- Dividends per share increased to $.35 versus $.25.
First Quarter Financial and Operating Highlights:
- COMEX copper averaged $5.80 per pound during the quarter, a 26.8 percent increase.
- Improved sales in our industrial, electrical, commercial and mechanical markets, combined with higher selling prices stemming from the rise in raw material costs, contributed to the overall increase in net sales.
- Our reported operating income includes a gain of $41.4 million on the sale of our Sherwood Valve business. The prior year period included a gain of $14.5 million on the sale of assets. Adjusting for these gains, our operating income increased 41 percent.
- Net cash generated from operations was $79.7 million. We utilized $75.0 million during the quarter to repurchase 650,000 shares of our common stock.
- Our cash balance at quarter end was $1.38 billion, with no debt, and our current ratio remains strong at 5.4 to 1.
Regarding the results, Greg Christopher, Mueller's CEO said, "Solid operational execution, including effective raw material and price management and prudent cost controls, along with our diverse end market portfolio, all contributed to the best first quarter earnings in our Company's history. In addition, our continued strong cash generation supported components of our overall capital allocation strategy, including the stock buyback and a 40 percent increase in our quarterly dividend, our sixth consecutive annual double-digit increase.
We also were excited to complete the acquisition of Bison Metals Technologies on March 30th, and to welcome Bison's experienced and talented leadership team. The acquisition will immediately provide important synergies that will benefit our entire North American copper tube products platform and enable us to increase our collective copper tube manufacturing capacities. Out of the gate, the integration has been seamless and successful."
Regarding the outlook he added, "Business conditions and our outlook remain consistent with those described in our recently published annual report. Shifts in patterns of construction and market effects from tariffs have strengthened demand for higher margin products, and as we adjust to the changes in mix, we expect our production and shipments to further improve. We also look forward to an improvement in economic conditions abroad, and particularly, an improvement in the residential and commercial construction markets in the U.S. Once those markets recover, we are exceedingly well positioned to benefit."
Mueller Industries, Inc. (NYSE:MLI) is an industrial corporation whose holdings manufacture vital goods for important markets such as air, water, oil and gas distribution; climate comfort; food preservation; electrical transmission; medical; aerospace; and automotive. It includes a network of companies and brands throughout North America, Europe, Asia, and the Middle East.
Statements in this release that are not strictly historical may be "forward-looking" statements, which involve risks and uncertainties. These include economic and currency conditions, continued availability of raw materials and energy, market demand, pricing, competitive and technological factors, and the availability of financing, among others, as set forth in the Company's SEC filings. The words "outlook," "estimate," "project," "intend," "expect," "believe," "target," "encourage," "anticipate," "appear," and similar expressions are intended to identify forward-looking statements. The reader should not place undue reliance on forward-looking statements, which speak only as of the date of this report. The Company has no obligation to publicly update or revise any forward-looking statements to reflect events after the date of this report.
MUELLER INDUSTRIES, INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||||
(Unaudited) |
||||||||
|
|
For the Quarter Ended |
||||||
(In thousands, except per share data) |
|
March 28,
|
|
March 29,
|
||||
|
|
|
|
|
||||
Net sales |
|
$ |
1,193,005 |
|
|
$ |
1,000,165 |
|
|
|
|
|
|
||||
Cost of goods sold |
|
|
834,561 |
|
|
|
728,185 |
|
Depreciation and amortization |
|
|
16,652 |
|
|
|
17,123 |
|
Selling, general, and administrative expense |
|
|
66,785 |
|
|
|
63,060 |
|
Loss (gain) on disposal of assets, net |
|
|
1,533 |
|
|
|
(14,465 |
) |
Gain on sale of business |
|
|
(41,407 |
) |
|
|
— |
|
Asset impairments |
|
|
2,653 |
|
|
|
— |
|
|
|
|
|
|
||||
Operating income |
|
|
312,228 |
|
|
|
206,262 |
|
|
|
|
|
|
||||
Interest expense |
|
|
— |
|
|
|
(25 |
) |
Interest income |
|
|
11,870 |
|
|
|
9,901 |
|
Unrealized losses on short-term investments |
|
|
(2,037 |
) |
|
|
(5,010 |
) |
Other (expense) income, net |
|
|
(1,232 |
) |
|
|
92 |
|
|
|
|
|
|
||||
Income before income taxes |
|
|
320,829 |
|
|
|
211,220 |
|
|
|
|
|
|
||||
Income tax expense |
|
|
(79,555 |
) |
|
|
(51,475 |
) |
Income (loss) from unconsolidated affiliates, net of foreign tax |
|
|
115 |
|
|
|
(458 |
) |
|
|
|
|
|
||||
Consolidated net income |
|
|
241,389 |
|
|
|
159,287 |
|
|
|
|
|
|
||||
Net income attributable to noncontrolling interests |
|
|
(2,371 |
) |
|
|
(1,855 |
) |
|
|
|
|
|
||||
Net income attributable to Mueller Industries, Inc. |
|
$ |
239,018 |
|
|
$ |
157,432 |
|
|
|
|
|
|
||||
Weighted average shares for basic earnings per share |
|
|
109,094 |
|
|
|
110,739 |
|
Effect of dilutive stock-based awards |
|
|
1,815 |
|
|
|
2,333 |
|
|
|
|
|
|
||||
Adjusted weighted average shares for diluted earnings per share |
|
|
110,909 |
|
|
|
113,072 |
|
|
|
|
|
|
||||
Basic earnings per share |
|
$ |
2.19 |
|
|
$ |
1.42 |
|
|
|
|
|
|
||||
Diluted earnings per share |
|
$ |
2.16 |
|
|
$ |
1.39 |
|
|
|
|
|
|
||||
Dividends per share |
|
$ |
0.35 |
|
|
$ |
0.25 |
|
|
|
|
|
|
||||
|
|
|
|
|
||||
MUELLER INDUSTRIES, INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
||||
|
|
For the Quarter Ended |
||||||
(In thousands) |
|
March 28,
|
|
March 29,
|
||||
|
|
|
|
|
||||
Summary Segment Data: |
|
|
|
|
||||
|
|
|
|
|
||||
Net sales: |
|
|
|
|
||||
Piping Systems Segment |
|
$ |
760,528 |
|
|
$ |
639,683 |
|
Industrial Metals Segment |
|
|
321,277 |
|
|
|
251,913 |
|
Climate Segment |
|
|
123,765 |
|
|
|
123,107 |
|
Elimination of intersegment sales |
|
|
(12,565 |
) |
|
|
(14,538 |
) |
|
|
|
|
|
||||
Net sales |
|
$ |
1,193,005 |
|
|
$ |
1,000,165 |
|
|
|
|
|
|
||||
Operating income: |
|
|
|
|
||||
Piping Systems Segment |
|
$ |
217,010 |
|
|
$ |
158,164 |
|
Industrial Metals Segment |
|
|
44,271 |
|
|
|
30,084 |
|
Climate Segment |
|
|
33,379 |
|
|
|
35,624 |
|
Unallocated income (expenses) |
|
|
17,568 |
|
|
|
(17,610 |
) |
|
|
|
|
|
||||
Operating income |
|
$ |
312,228 |
|
|
$ |
206,262 |
|
MUELLER INDUSTRIES, INC. |
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
|
|
(Unaudited) |
|
|
||
(In thousands) |
|
March 28,
|
|
December 27,
|
||
ASSETS |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
1,382,345 |
|
$ |
1,367,003 |
Short-term investments |
|
|
20,696 |
|
|
22,733 |
Accounts receivable, net |
|
|
670,511 |
|
|
475,566 |
Inventories |
|
|
545,451 |
|
|
510,463 |
Other current assets |
|
|
53,037 |
|
|
69,980 |
|
|
|
|
|
||
Total current assets |
|
|
2,672,040 |
|
|
2,445,745 |
|
|
|
|
|
||
Property, plant, and equipment, net |
|
|
530,300 |
|
|
536,466 |
Operating lease right-of-use assets |
|
|
22,868 |
|
|
27,211 |
Other assets |
|
|
717,155 |
|
|
723,607 |
|
|
|
|
|
||
Total assets |
|
$ |
3,942,363 |
|
$ |
3,733,029 |
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
||
Accounts payable |
|
$ |
243,539 |
|
$ |
180,577 |
Current portion of operating lease liabilities |
|
|
7,907 |
|
|
8,520 |
Other current liabilities |
|
|
247,835 |
|
|
224,037 |
|
|
|
|
|
||
Total current liabilities |
|
|
499,281 |
|
|
413,134 |
|
|
|
|
|
||
Pension and postretirement liabilities |
|
|
8,373 |
|
|
8,393 |
Environmental reserves |
|
|
15,501 |
|
|
15,684 |
Deferred income taxes |
|
|
32,499 |
|
|
31,640 |
Noncurrent operating lease liabilities |
|
|
14,917 |
|
|
18,970 |
Other noncurrent liabilities |
|
|
10,960 |
|
|
9,302 |
|
|
|
|
|
||
Total liabilities |
|
|
581,531 |
|
|
497,123 |
|
|
|
|
|
||
Total Mueller Industries, Inc. stockholders' equity |
|
|
3,334,451 |
|
|
3,209,966 |
Noncontrolling interests |
|
|
26,381 |
|
|
25,940 |
|
|
|
|
|
||
Total equity |
|
|
3,360,832 |
|
|
3,235,906 |
|
|
|
|
|
||
Total liabilities and equity |
|
$ |
3,942,363 |
|
$ |
3,733,029 |
MUELLER INDUSTRIES, INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(Unaudited) |
||||||||
|
|
For the Quarter Ended |
||||||
(In thousands) |
|
March 28,
|
|
March 29,
|
||||
|
|
|
|
|
||||
Cash flows from operating activities |
|
|
|
|
||||
Consolidated net income |
|
$ |
241,389 |
|
|
$ |
159,287 |
|
Reconciliation of consolidated net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
16,652 |
|
|
|
17,123 |
|
Stock-based compensation expense |
|
|
7,332 |
|
|
|
6,150 |
|
Provision for credit losses |
|
|
861 |
|
|
|
99 |
|
(Income) loss from unconsolidated affiliates |
|
|
(115 |
) |
|
|
458 |
|
Dividends from unconsolidated affiliates |
|
|
1,724 |
|
|
|
2,812 |
|
Loss (gain) on disposals of assets, net |
|
|
1,533 |
|
|
|
(14,465 |
) |
Gain on sale of business |
|
|
(41,407 |
) |
|
|
— |
|
Unrealized losses on short-term investments |
|
|
2,037 |
|
|
|
5,010 |
|
Impairment charges |
|
|
2,653 |
|
|
|
— |
|
Deferred income tax expense |
|
|
2,036 |
|
|
|
1,651 |
|
Changes in assets and liabilities, net of effects of business sold: |
|
|
|
|
||||
Receivables |
|
|
(200,192 |
) |
|
|
(101,524 |
) |
Inventories |
|
|
(43,936 |
) |
|
|
(18,542 |
) |
Other assets |
|
|
(612 |
) |
|
|
410 |
|
Current liabilities |
|
|
88,912 |
|
|
|
57,702 |
|
Other liabilities |
|
|
1,509 |
|
|
|
(2,598 |
) |
Other, net |
|
|
(635 |
) |
|
|
(14 |
) |
|
|
|
|
|
||||
Net cash provided by operating activities |
|
$ |
79,741 |
|
|
$ |
113,559 |
|
|
|
|
|
|
||||
Cash flows from investing activities |
|
|
|
|
||||
Capital expenditures |
|
$ |
(17,236 |
) |
|
$ |
(16,592 |
) |
Proceeds from sale of business, net of cash sold |
|
|
57,004 |
|
|
|
— |
|
Purchase of short-term investments |
|
|
— |
|
|
|
(26,633 |
) |
Purchase of long-term investments |
|
|
(834 |
) |
|
|
(552 |
) |
Proceeds from sales of assets |
|
|
5 |
|
|
|
19,737 |
|
Other |
|
|
— |
|
|
|
600 |
|
|
|
|
|
|
||||
Net cash provided by (used in) investing activities |
|
$ |
38,939 |
|
|
$ |
(23,440 |
) |
|
|
|
|
|
||||
|
|
|
|
|
||||
MUELLER INDUSTRIES, INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
||||
|
|
For the Quarter Ended |
||||||
(In thousands) |
|
March 28,
|
|
March 29,
|
||||
|
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
|
||||
Dividends paid to stockholders of Mueller Industries, Inc. |
|
$ |
(38,043 |
) |
|
$ |
(27,262 |
) |
Repurchase of common stock |
|
|
(74,981 |
) |
|
|
(243,615 |
) |
Repayments of debt |
|
|
— |
|
|
|
(56 |
) |
Net cash used to settle stock-based awards |
|
|
(535 |
) |
|
|
(4,494 |
) |
Dividends paid to noncontrolling interests |
|
|
(4,766 |
) |
|
|
(12,240 |
) |
Other |
|
|
3,100 |
|
|
|
— |
|
|
|
|
|
|
||||
Net cash used in financing activities |
|
$ |
(115,225 |
) |
|
$ |
(287,667 |
) |
|
|
|
|
|
||||
Effect of exchange rate changes on cash |
|
|
(1,810 |
) |
|
|
392 |
|
|
|
|
|
|
||||
Increase (decrease) in cash, cash equivalents, and restricted cash |
|
|
1,645 |
|
|
|
(197,156 |
) |
Cash, cash equivalents, and restricted cash at the beginning of the period |
|
|
1,385,157 |
|
|
|
1,038,895 |
|
|
|
|
|
|
||||
Cash, cash equivalents, and restricted cash at the end of the period |
|
$ |
1,386,802 |
|
|
$ |
841,739 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20260420297101/en/
Jeffrey A. Martin
(901) 753-3226