The strong beat and guidance raise should drive positive momentum. Monitor the free cash flow trajectory closely—the lowered FCF guide (from >85% to >70% of adjusted net income) due to working capital build and higher capex is a potential headwind. The earnings call on May 6 may provide more color on demand trends and tariff impacts.
Price Chart
Executive Summary
Mueller Water Products reported strong Q2 fiscal 2026 results with net sales up 5.5% to $384.4M and GAAP EPS of $0.38, beating consensus estimates of $0.37. Adjusted EBITDA margin expanded 210bps to 25.3%, and management raised full-year adjusted EBITDA guidance to $360-$365M, signaling continued operational momentum.
Key Financial Metrics
Key Facts
- Q2 net sales $384.4M, +5.5% YoY, beat consensus of $380.8M
- Reported diluted EPS $0.38, +15.2% YoY, beat consensus of $0.37
- Adjusted diluted EPS $0.40, +17.6% YoY
- Adjusted EBITDA $97.2M, +15.0% YoY, margin 25.3% vs 23.2%
- Raised fiscal 2026 adjusted EBITDA guidance to $360-$365M (previous $355-$360M)
- Free cash flow for six months $16.5M, down from $47.3M; FCF/adjusted net income guidance lowered to >70%
- Operating margin 20.9%, adjusted operating margin 22.1%
Financial Impact
Revenue beat by $3.6M (0.9%), EPS beat by $0.01 (2.7%). Guidance raise implies ~$5M incremental EBITDA at midpoint.
Risk Factors
- Free cash flow conversion declining; working capital build may persist
- Tariffs and inflationary pressures could pressure margins in H2
- Anticipated slowdown in new residential construction may impact Water Management Solutions segment
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001350593-26-000022 |
| Document: mwa-20260505.htm | 0001350593-26-000022 |
| Document: 0001350593-26-000022-index-headers.html | 0001350593-26-000022 |
| Document: 0001350593-26-000022-index.html | 0001350593-26-000022 |
| Document: 0001350593-26-000022.txt | 0001350593-26-000022 |
| 8-K Data (Synthetic) | 0001350593-26-000022 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 3, 2026 28d ago | Insider Cluster | $23.95 $23.08 | ▼ −3.63% | ▼ −2.42% | $21.88 (−8.66%) |
Aug 31, 2026 4w ago | Insider Cluster | $23.57 $23.99 | ▲ +1.78% | ▲ +1.70% | $21.88 (−7.19%) |
Jul 27, 2026 9w ago | Press Release | $25.91 $25.79 | ▼ −0.46% | ▼ −2.73% | $21.88 (−15.57%) |
May 28, 2026 18w ago | 144 | $25.21 $25.33 | ▲ +0.48% | ▲ +3.00% | $21.88 (−13.23%) |
May 5, 2026 21w ago | 8-K | $27.07 $25.36 | ▼ −6.31% | ▼ −7.44% | $21.88 (−19.19%) |
Apr 22, 2026 23w ago | Press Release | $28.02 $27.70 | ▲ +1.13% | ▲ +2.60% | $21.88 (+21.92%) |
US Market Status
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