mwa-20241231

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-32892

MUELLER WATER PRODUCTS, INC.

(Exact name of registrant as specified in its charter)


Delaware						20-3547095
(State or other jurisdiction of						(I.R.S. Employer
incorporation or organization)						Identification No.)

1200 Abernathy Road N.E.

Suite 1200

Atlanta, GA 30328

(Address of principal executive offices)

(770) 206-4200

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.01	MWA	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer ☒ Accelerated filer ☐

Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

There were 156,599,544 shares of common stock of the registrant outstanding at January 31, 2025.

TABLE OF CONTENTS



ITEM		PAGE
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Unaudited Condensed Consolidated Balance Sheets - December 31, 2024 and September 30, 2024	3
	Unaudited Condensed Consolidated Statements of Operations - Three Months Ended December 3 1 , 2024 and 2023	4
	Unaudited Condensed Consolidated Statements of Comprehensive Income - Three Months Ended December 31 , 2024 and 2023	5
	Unaudited Condensed Consolidated Statements of Stockholders' Equity - Three Months Ended December 31 , 2024 and 2023	6
	Unaudited Condensed Consolidated Statements of Cash Flows - Three Months Ended December 31 , 2024 and 2023	7
	Notes to the Unaudited Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 4.	Controls and Procedures	30

PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 5.	Other Information	32
Item 6.	Exhibits	33
	Signatures	33


	December 31,		September 30,
	2024		2024
	(in millions, except share amounts)
Assets:
Cash and cash equivalents	$	338.2	$	309.9
Receivables, net of allowance for credit losses of $7.9 million and $8.3 million	145.3		208.9
Inventories, net	317.8		301.7
Other current assets	41.4		37.9
Total current assets	842.7		858.4
Property, plant and equipment, net	320.7		318.8
Intangible assets, net	307.9		309.7
Goodwill, net	81.5		80.7
Other noncurrent assets	66.4		68.3
Total assets	$	1,619.2	$	1,635.9

Liabilities and stockholders’ equity:
Current portion of long-term debt	$	0.8	$	0.8
Accounts payable	98.9		109.9
Other current liabilities	120.6		147.3
Total current liabilities	220.3		258.0
Long-term debt	448.7		448.7
Deferred income taxes	55.1		55.4
Other noncurrent liabilities	61.0		63.7
Total liabilities	785.1		825.8

Commitments and contingencies (Note 10.)

Preferred stock: par value $0.01 per share; 60,000,000 shares authorized; none outstanding at December 31, 2024, and September 30, 2024	—		—
Common stock: par value $0.01 per share; 600,000,000 shares authorized; 156,563,285 and 156,227,170 shares outstanding at December 31, 2024, and September 30, 2024, respectively	1.6		1.6
Additional paid-in capital	1,194.8		1,205.2
Accumulated deficit	(330.6)		(365.9)
Accumulated other comprehensive loss	(31.7)		(30.8)
Total stockholders' equity	834.1		810.1
Total liabilities and stockholders' equity	$	1,619.2	$	1,635.9


	Three months ended
	December 31,
	2024		2023

	(in millions, except per share amounts)
Net sales	$	304.3	$	256.4
Cost of sales	201.3		170.1
Gross profit	103.0		86.3
Operating expenses:
Selling, general and administrative	53.9		56.9
Strategic reorganization and other charges	1.7		6.6
Total operating expenses	55.6		63.5
Operating income	47.4		22.8
Other expenses:
Pension expense other than service	—		1.0
Interest expense, net	1.6		3.3
Other expense	—		1.6
Total other expenses, net	1.6		5.9
Income before income taxes	45.8		16.9
Income tax expense	10.5		2.6
Net income	$	35.3	$	14.3

Net income per share:
Basic	$	0.23	$	0.09
Diluted	$	0.22	$	0.09

Weighted average shares outstanding:
Basic	156.3		156.0
Diluted	157.5		156.7

Dividends declared per share	$	0.067	$	0.064


	Common stock		Additional paid-in capital		Accumulated deficit		Accumulated other comprehensive (loss) income		Total
	(in millions)
Balance at September 30, 2024	$	1.6	$	1,205.2	$	(365.9)	$	(30.8)	$	810.1
Net income	—		—		35.3		—		35.3
Dividends declared	—		(10.5)		—		—		(10.5)
Stock-based compensation	—		2.5		—		—		2.5
Shares retained for employee taxes	—		(4.0)		—		—		(4.0)
Common stock issued	—		1.6		—		—		1.6

Other comprehensive income, net of tax	—		—		—		(0.9)		(0.9)
Balance at December 31, 2024	$	1.6	$	1,194.8	$	(330.6)	$	(31.7)	$	834.1


	Number granted	Weighted average grant date fair value per instrument		Total grant date fair value (in millions)
Quarter ended December 31, 2024
MRSUs	64,044	$	38.25	$	2.4
PRSUs	64,044	25.58		1.6
Restricted stock units	87,344	25.58		2.2
Phantom Plan instruments	134,382	25.58		3.4
Non-qualified stock options	207,417	7.90		1.6
Employee stock purchase plan instruments	24,621	$	3.86	0.1

Total - Year-to-date ended December 31, 2024				$	11.3


						December 3, 2024
Variables used in determining grant date fair value:
Dividend yield						1.10%
Risk-free rate						4.10%
Expected term (in years)						2.80


Balance at September 30, 2024:
Goodwill	$	821.1
Accumulated impairment	(740.4)
Goodwill, net	80.7
Activity during the three months ended December 31, 2024:
Change in foreign currency exchange rates	0.8
Balance at December 31, 2024	$	81.5


	December 31,		September 30,
	2024		2024

	(in millions)
Billed receivables	$	148.0	$	212.7
Unbilled receivables	5.2		4.5
Gross customer receivables	153.2		217.2
Allowance for credit losses	(7.9)		(8.3)
Receivables, net	$	145.3	$	208.9

Deferred revenue	$	12.6	$	12.8


	Three months ended
	December 31,
	2024		2023
U.S. federal statutory income tax rate	21.0	%	21.0	%
Adjustments to reconcile to the effective tax rate:
State income taxes, net of federal benefit	3.9		3.0
Excess tax (benefit) deficit related to stock-based compensation	(3.5)		0.8
Tax credits	(1.3)		(2.7)
Global Intangible Low-Taxed Income	0.6		1.3
Foreign income tax rate differential	(0.7)		(1.8)
Nondeductible compensation	1.1		1.4
Uncertain tax positions	0.7		(8.8)
Valuation allowances	—		0.4
Other	1.1		0.8
Effective income tax rate	22.9	%	15.4	%


	December 31,		September 30,
	2024		2024

	(in millions)
Inventories, net:
Purchased components and raw materials	$	166.1	$	163.6
Work in process, net	66.9		65.8
Finished goods, net	84.8		72.3
Inventories, net	$	317.8	$	301.7

Other current assets:
Prepaid expenses	$	19.3	$	17.2
Non-trade receivables	2.9		3.4
Maintenance and repair supplies and tooling	5.1		5.4
Goods to be returned	4.0		4.2
Income taxes	0.8		0.8
Workers' compensation reimbursement receivable	2.4		2.4
Other current assets	6.9		4.5
Total other current assets	$	41.4	$	37.9

Property, plant and equipment:
Land	$	6.5	$	6.5
Buildings	127.9		126.6
Machinery and equipment	553.1		550.4
Construction in progress	51.7		45.2
Total property, plant and equipment	739.2		728.7
Accumulated depreciation	(418.5)		(409.9)
Property, plant and equipment, net	$	320.7	$	318.8

Other noncurrent assets:
Operating lease right-of-use assets	$	26.4	$	26.9
Maintenance and repair supplies and tooling	18.6		20.3
Workers' compensation reimbursement receivable	4.1		4.1
Pension asset	14.0		13.5
Note receivable	1.8		1.8
Deferred financing fees	1.2		1.3
Other noncurrent assets	0.3		0.4
Total other noncurrent assets	$	66.4	$	68.3


	December 31,		September 30,
	2024		2024

	(in millions)
Other current liabilities:
Compensation and benefits	$	29.6	$	58.3
Customer rebates	21.8		16.9
Income taxes payable	16.0		5.6
Warranty accrual	11.8		13.3
Deferred revenue	7.0		7.1
Returned goods accrual	6.4		7.3
Taxes other than income taxes	3.5		3.5
Operating lease liabilities	5.7		5.5
Workers' compensation accrual	4.5		4.6
Restructuring liabilities	3.6		3.4
Interest payable	0.8		5.3
Other current liabilities	9.9		16.5
Total other current liabilities	$	120.6	$	147.3

Other noncurrent liabilities:
Operating lease liabilities	$	22.0	$	22.5
Warranty accrual	9.2		10.3
Transition tax liability	1.7		1.7
Uncertain tax position liability	3.4		3.0
NMTC liability	3.9		3.9
Workers' compensation accrual	5.8		5.8
Asset retirement obligation	4.2		4.2
Deferred revenue	5.6		5.7
Deferred development grant	2.5		2.5
Other noncurrent liabilities	2.7		4.1
Total other noncurrent liabilities	$	61.0	$	63.7

SEC Form 10-Q filed by MUELLER WATER PRODUCTS