Mueller Industries, Inc. Reports Fiscal 2024 Fourth Quarter and Full Year Results
Mueller Industries, Inc. (NYSE:MLI) today reported 2024 fourth quarter and full year results.
For the Fourth Quarter 2024 versus Fourth Quarter 2023:
• Net sales: |
$923.5 million vs. $732.4 million, up 26.1%. |
|||
• Operating income: |
$170.3 million vs. $135.2 million, up 26.0%. |
|||
• Net income: |
$137.7 million vs. $119.2 million, up 15.4%. |
|||
• Diluted EPS: |
$1.21 vs. $1.05, up 15.2%. |
For the Full Year 2024 versus the Full Year 2023:
• Net sales: |
$3.8 billion vs. $3.4 billion, up 10.2%. |
|||
• Operating income: |
$770.4 million vs. $756.1 million, up 1.9%. |
|||
• Net income: |
$604.9 million vs. $602.9 million, up 0.3%. |
|||
• Diluted EPS: |
$5.31 vs. $5.30, up 0.2%. |
Financial and Operating Commentary:
- The quarter over quarter increase in net sales of $191.2 million was primarily attributable to sales recorded by businesses acquired during the second half of 2024 and improved unit volume in our U.S. construction related products. Higher net selling prices also contributed to the increase in net sales, as COMEX copper averaged $4.22 per pound during the quarter, 13% higher than the prior year period.
- The fourth quarter results include $10.7 million of non-cash expense related to purchase accounting adjustments for the acquisitions.
- The Company generated $140.1 million of cash from operations in the fourth quarter, and $645.9 million for the year.
- Year-end cash and short-term investments totaled $1.06 billion, and our current ratio is 5.1 to 1.
Regarding the results, Greg Christopher, Mueller's CEO said, "We ended 2024 on a very positive note, and in terms of quarter over quarter operating income performance, the fourth quarter was our strongest of the year. Despite subdued conditions, 2024 was a very solid year, as evidenced by our strong operational cash generation. Moreover, by year end, we successfully completed the integration of our Nehring Electrical Works and Elkhart Products acquisitions. Although they did not contribute to our fourth quarter operating income, we are excited about their progress and market position, and expect they will be important contributors in 2025."
He added, "We enter 2025 with a number of promising initiatives underway, and are committed to reinvesting to strengthen and improve our core operations. In addition, we continue to search for acquisitions that will expand our infrastructure products platforms and provide opportunities to increase our capabilities, particularly in nonferrous metals manufacturing.
We believe that while the impact of the new administration's trade and regulatory policies will take time, they will ultimately prove beneficial to our business. Our concentration in the U.S. and status as a leading manufacturer position us well, as the U.S. remains one of the most secure end markets. All in all, we maintain a positive outlook for our Company in 2025 and beyond."
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; energy 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 |
|
For the Year Ended |
||||||||||||
(In thousands, except per share data) |
December 28, 2024 |
|
December 30, 2023 |
|
December 28, 2024 |
|
December 30, 2023 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Net sales |
$ |
923,536 |
|
|
$ |
732,377 |
|
|
$ |
3,768,766 |
|
|
$ |
3,420,345 |
|
|
|
|
|
|
|
|
|
||||||||
Cost of goods sold |
|
668,166 |
|
|
|
536,383 |
|
|
|
2,724,328 |
|
|
|
2,433,511 |
|
Depreciation and amortization |
|
22,236 |
|
|
|
9,250 |
|
|
|
53,133 |
|
|
|
39,954 |
|
Selling, general, and administrative expense |
|
64,703 |
|
|
|
51,184 |
|
|
|
226,696 |
|
|
|
208,172 |
|
Gain on sale of businesses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,137 |
) |
Gain on sale of assets, net |
|
(1,827 |
) |
|
|
— |
|
|
|
(5,780 |
) |
|
|
— |
|
Impairment charges |
|
— |
|
|
|
324 |
|
|
|
— |
|
|
|
6,258 |
|
Gain on insurance settlement |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(19,466 |
) |
|
|
|
|
|
|
|
|
||||||||
Operating income |
|
170,258 |
|
|
|
135,236 |
|
|
|
770,389 |
|
|
|
756,053 |
|
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
(75 |
) |
|
|
(713 |
) |
|
|
(410 |
) |
|
|
(1,221 |
) |
Interest income |
|
10,695 |
|
|
|
13,642 |
|
|
|
53,468 |
|
|
|
38,208 |
|
Realized and unrealized gains on short-term investments |
|
385 |
|
|
|
21,503 |
|
|
|
914 |
|
|
|
41,865 |
|
Gain on extinguishment of NMTC liability |
|
1,265 |
|
|
|
7,534 |
|
|
|
1,265 |
|
|
|
7,534 |
|
Environmental (expense) income |
|
(542 |
) |
|
|
202 |
|
|
|
(2,218 |
) |
|
|
(825 |
) |
Other (expense) income, net |
|
(3,774 |
) |
|
|
471 |
|
|
|
(2,946 |
) |
|
|
3,618 |
|
|
|
|
|
|
|
|
|
||||||||
Income before income taxes |
|
178,212 |
|
|
|
177,875 |
|
|
|
820,462 |
|
|
|
845,232 |
|
|
|
|
|
|
|
|
|
||||||||
Income tax expense |
|
(45,670 |
) |
|
|
(46,440 |
) |
|
|
(205,076 |
) |
|
|
(220,762 |
) |
Income (loss) from unconsolidated affiliates, net of foreign tax |
|
8,061 |
|
|
|
(12,139 |
) |
|
|
2,156 |
|
|
|
(14,821 |
) |
|
|
|
|
|
|
|
|
||||||||
Consolidated net income |
|
140,603 |
|
|
|
119,296 |
|
|
|
617,542 |
|
|
|
609,649 |
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to noncontrolling interests |
|
(2,951 |
) |
|
|
(58 |
) |
|
|
(12,663 |
) |
|
|
(6,752 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Mueller Industries, Inc. |
$ |
137,652 |
|
|
$ |
119,238 |
|
|
$ |
604,879 |
|
|
$ |
602,897 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares for basic earnings per share |
|
111,545 |
|
|
|
111,556 |
|
|
|
111,385 |
|
|
|
111,420 |
|
Effect of dilutive stock-based awards |
|
2,415 |
|
|
|
2,425 |
|
|
|
2,580 |
|
|
|
2,242 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted weighted average shares for diluted earnings per share |
|
113,960 |
|
|
|
113,981 |
|
|
|
113,965 |
|
|
|
113,662 |
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share |
$ |
1.23 |
|
|
$ |
1.07 |
|
|
$ |
5.43 |
|
|
$ |
5.41 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share |
$ |
1.21 |
|
|
$ |
1.05 |
|
|
$ |
5.31 |
|
|
$ |
5.30 |
|
|
|
|
|
|
|
|
|
||||||||
Dividends per share |
$ |
0.20 |
|
|
$ |
0.15 |
|
|
$ |
0.80 |
|
|
$ |
0.60 |
|
|
|
|
|
|
|
|
|
||||||||
MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED (Unaudited) |
|||||||||||||||
|
For the Quarter Ended |
|
For the Year Ended |
||||||||||||
(In thousands) |
December 28, 2024 |
|
December 30, 2023 |
|
December 28, 2024 |
|
December 30, 2023 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Summary Segment Data: |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net sales: |
|
|
|
|
|
|
|
||||||||
Piping Systems Segment |
$ |
592,834 |
|
|
$ |
513,938 |
|
|
$ |
2,514,096 |
|
|
$ |
2,382,573 |
|
Industrial Metals Segment |
|
229,017 |
|
|
|
125,363 |
|
|
|
818,439 |
|
|
|
577,875 |
|
Climate Segment |
|
112,622 |
|
|
|
103,933 |
|
|
|
488,446 |
|
|
|
500,790 |
|
Elimination of intersegment sales |
|
(10,937 |
) |
|
|
(10,857 |
) |
|
|
(52,215 |
) |
|
|
(40,893 |
) |
|
|
|
|
|
|
|
|
||||||||
Net sales |
$ |
923,536 |
|
|
$ |
732,377 |
|
|
$ |
3,768,766 |
|
|
$ |
3,420,345 |
|
|
|
|
|
|
|
|
|
||||||||
Operating income: |
|
|
|
|
|
|
|
||||||||
Piping Systems Segment |
$ |
148,912 |
|
|
$ |
113,634 |
|
|
$ |
617,451 |
|
|
$ |
569,239 |
|
Industrial Metals Segment |
|
14,399 |
|
|
|
14,972 |
|
|
|
92,560 |
|
|
|
76,379 |
|
Climate Segment |
|
33,718 |
|
|
|
25,963 |
|
|
|
146,054 |
|
|
|
171,864 |
|
Unallocated expenses |
|
(26,771 |
) |
|
|
(19,333 |
) |
|
|
(85,676 |
) |
|
|
(61,429 |
) |
|
|
|
|
|
|
|
|
||||||||
Operating income |
$ |
170,258 |
|
|
$ |
135,236 |
|
|
$ |
770,389 |
|
|
$ |
756,053 |
|
MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
|||||
(In thousands) |
December 28, 2024 |
|
December 30, 2023 |
||
ASSETS |
|
|
|
||
Cash and cash equivalents |
$ |
1,037,229 |
|
$ |
1,170,893 |
Short-term investments |
|
21,874 |
|
|
98,146 |
Accounts receivable, net |
|
450,113 |
|
|
351,561 |
Inventories |
|
462,279 |
|
|
380,248 |
Other current assets |
|
40,734 |
|
|
39,173 |
|
|
|
|
||
Total current assets |
|
2,012,229 |
|
|
2,040,021 |
|
|
|
|
||
Property, plant, and equipment, net |
|
515,131 |
|
|
385,165 |
Operating lease right-of-use assets |
|
32,702 |
|
|
35,170 |
Other assets |
|
730,844 |
|
|
298,945 |
|
|
|
|
||
|
$ |
3,290,906 |
|
$ |
2,759,301 |
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
||
Current portion of debt |
$ |
1,094 |
|
$ |
796 |
Accounts payable |
|
173,743 |
|
|
120,485 |
Current portion of operating lease liabilities |
|
8,117 |
|
|
7,893 |
Other current liabilities |
|
215,033 |
|
|
187,964 |
|
|
|
|
||
Total current liabilities |
|
397,987 |
|
|
317,138 |
|
|
|
|
||
Long-term debt |
|
— |
|
|
185 |
Pension and postretirement liabilities |
|
11,199 |
|
|
12,062 |
Environmental reserves |
|
15,423 |
|
|
15,030 |
Deferred income taxes |
|
25,742 |
|
|
19,134 |
Noncurrent operating lease liabilities |
|
24,547 |
|
|
26,683 |
Other noncurrent liabilities |
|
11,600 |
|
|
10,353 |
|
|
|
|
||
Total liabilities |
|
486,498 |
|
|
400,585 |
|
|
|
|
||
Total Mueller Industries, Inc. stockholders' equity |
|
2,773,165 |
|
|
2,337,445 |
Noncontrolling interests |
|
31,243 |
|
|
21,271 |
|
|
|
|
||
Total equity |
|
2,804,408 |
|
|
2,358,716 |
|
|
|
|
||
|
$ |
3,290,906 |
|
$ |
2,759,301 |
MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
|||||||
|
For the Year Ended |
||||||
(In thousands) |
December 28, 2024 |
|
December 30, 2023 |
||||
|
|
|
|
||||
Cash flows from operating activities |
|
|
|
||||
Consolidated net income |
$ |
617,542 |
|
|
$ |
609,649 |
|
Reconciliation of consolidated net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
53,376 |
|
|
|
40,824 |
|
Stock-based compensation expense |
|
26,787 |
|
|
|
23,131 |
|
Provision for doubtful accounts receivable |
|
1,147 |
|
|
|
(84 |
) |
(Income) loss from unconsolidated affiliates |
|
(2,156 |
) |
|
|
14,821 |
|
Dividends from unconsolidated affiliates |
|
4,769 |
|
|
|
— |
|
Gain on sale of businesses |
|
— |
|
|
|
(4,137 |
) |
Unrealized gain on short-term investments |
|
(549 |
) |
|
|
(24,765 |
) |
Gain on disposals of assets |
|
(5,780 |
) |
|
|
(1 |
) |
Insurance proceeds - noncapital related |
|
18,900 |
|
|
|
9,854 |
|
Gain on sale of securities |
|
(365 |
) |
|
|
(17,100 |
) |
Gain on insurance settlement |
|
— |
|
|
|
(19,466 |
) |
Impairment charges |
|
— |
|
|
|
6,258 |
|
Gain on extinguishment of NMTC liability |
|
(1,265 |
) |
|
|
(7,534 |
) |
Deferred income tax (benefit) expense |
|
(867 |
) |
|
|
4,790 |
|
Changes in assets and liabilities, net of effects of businesses acquired: |
|
|
|
||||
Receivables |
|
(56,565 |
) |
|
|
30,915 |
|
Inventories |
|
(32,768 |
) |
|
|
67,903 |
|
Other assets |
|
(1,046 |
) |
|
|
(20,700 |
) |
Current liabilities |
|
24,360 |
|
|
|
(40,606 |
) |
Other liabilities |
|
(1,145 |
) |
|
|
(3,497 |
) |
Other, net |
|
1,533 |
|
|
|
2,511 |
|
|
|
|
|
||||
Net cash provided by operating activities |
|
645,908 |
|
|
|
672,766 |
|
|
|
|
|
||||
Cash flows from investing activities |
|
|
|
||||
Proceeds from sale of assets, net of cash transferred |
|
12,005 |
|
|
|
279 |
|
Purchase of short-term investments |
|
(21,325 |
) |
|
|
(106,231 |
) |
Purchase of long-term investments |
|
(6,785 |
) |
|
|
— |
|
Proceeds from the sale of securities |
|
98,465 |
|
|
|
55,454 |
|
Proceeds from the maturity of short-term investments |
|
— |
|
|
|
217,863 |
|
Acquisition of businesses, net of cash acquired |
|
(602,692 |
) |
|
|
— |
|
Capital expenditures |
|
(80,203 |
) |
|
|
(54,025 |
) |
Insurance proceeds - capital related |
|
6,100 |
|
|
|
24,646 |
|
Dividends from unconsolidated affiliates |
|
— |
|
|
|
1,093 |
|
Issuance of notes receivable |
|
(3,800 |
) |
|
|
— |
|
Investments in unconsolidated affiliates |
|
(8,700 |
) |
|
|
(3,999 |
) |
|
|
|
|
||||
Net cash (used in) provided by investing activities |
|
(606,935 |
) |
|
|
135,080 |
|
|
|
|
|
||||
MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED (Unaudited) |
|||||||
|
For the Year Ended |
||||||
(In thousands) |
December 28, 2024 |
|
December 30, 2023 |
||||
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
||||
Dividends paid to stockholders of Mueller Industries, Inc. |
|
(89,107 |
) |
|
|
(66,868 |
) |
Dividends paid to noncontrolling interests |
|
— |
|
|
|
(9,312 |
) |
Repayments of long-term debt |
|
(222 |
) |
|
|
(241 |
) |
Issuance (repayment) of debt by consolidated joint ventures, net |
|
397 |
|
|
|
(30 |
) |
Repurchase of common stock |
|
(48,681 |
) |
|
|
(19,303 |
) |
Net cash used to settle stock-based awards |
|
(22,865 |
) |
|
|
(8,755 |
) |
|
|
|
|
||||
Net cash used in financing activities |
|
(160,478 |
) |
|
|
(104,509 |
) |
|
|
|
|
||||
Effect of exchange rate changes on cash |
|
(13,823 |
) |
|
|
5,590 |
|
|
|
|
|
||||
(Decrease) increase in cash, cash equivalents, and restricted cash |
|
(135,328 |
) |
|
|
708,927 |
|
Cash, cash equivalents, and restricted cash at the beginning of the year |
|
1,174,223 |
|
|
|
465,296 |
|
|
|
|
|
||||
Cash, cash equivalents, and restricted cash at the end of the year |
$ |
1,038,895 |
|
|
$ |
1,174,223 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250203510446/en/
Jeffrey A. Martin
(901) 753-3226