Mueller Water Products recently released its 10-Q report. The company makes and sells products and services used to move, control, measure, and protect water systems, with operations split between Water Flow Solutions and Water Management Solutions. Water Flow Solutions supplied valves and service brass products, while Water Management Solutions supplied fire hydrants, repair products, metering systems, leak detection, pressure management, gas valves, and related tools and services. The company said Water Flow Solutions accounted for about 58% of fiscal 2025 net sales and Water Management Solutions for about 42%.
In Item 2, management said fiscal 2026 is being shaped by tariffs, inflation, supply chain conditions, and municipal and residential demand trends. It said Section 232 tariffs on imported steel and aluminum rose from 25% to 50% in 2025, creating material cost pressure, especially on repair products from its Krausz business, and that tariffs on products manufactured in Israel and imported into the U.S. have also weighed on margins. The company said it took pricing actions and added suppliers, but still expects tariffs to continue affecting fiscal 2026 results and financial condition.
Management also said it closed melting and casting operations at its legacy brass foundry in January 2025 and shifted production to a new foundry, which it expects to improve efficiency and service levels. For fiscal 2026, the company expects consolidated net sales to rise 2.8% to 4.2% versus fiscal 2025. It said about 60% to 65% of fiscal 2025 net sales were tied to municipal repair and replacement, 25% to 30% to residential construction, and about 10% to natural gas utilities and industrial applications.
For the quarter ended March 31, 2026, net sales were $384.4 million, up 5.5% from $364.3 million a year earlier. Gross profit rose to $144.5 million from $128.0 million, and gross margin improved to 37.6% from 35.1%. SG&A increased to $59.7 million from $55.7 million, and strategic reorganization and other charges rose to $4.4 million from $2.4 million. Net income was $59.1 million, up from $51.3 million.
By segment, Water Flow Solutions posted sales of $218.3 million, up 1.0%, with gross profit of $87.1 million and gross margin of 39.9%. Water Management Solutions posted sales of $166.1 million, up 12.2%, with gross profit of $57.4 million and gross margin of 34.6%. Corporate SG&A and charges pushed operating loss at the corporate level to $20.1 million, compared with $15.5 million a year earlier. Following these announcements, the company's shares moved -2.07%, and are now trading at a price of $26.98. Check out the company's full 10-Q submission here.
