MLI - Mueller Industries, Inc. Reports Third Quarter 2025 Earnings
Mueller Industries, Inc. (NYSE: MLI) announces results for the third quarter of 2025. Comparisons are to the third quarter of 2024.
- Net Income of $208.1 million versus $168.7 million
- Operating Income of $276.1 million versus $206.7 million
- Net Sales of $1.08 billion versus $997.8 million
- Diluted EPS of $1.88 versus $1.48
Third Quarter Financial and Operating Highlights:
- COMEX copper averaged $4.83 per pound during the quarter, which represents a 14.3 percent increase over the prior period.
- The quarter over quarter increase in net sales was primarily attributable to higher selling prices related to a rise in raw material costs, as well as improved sales performance in certain of our businesses.
- Earnings before taxes included an $11.9 million gain on the sale of assets, and a $4.9 million gain in connection with an ongoing insurance claim. These gains were offset by a $4.8 million expense related to our withdrawal from a multiemployer pension plan, and $2.0 million of impairment charges.
- The effective income tax rate was 26 percent compared to 23 percent in the prior year period. The annualized effective tax rate for fiscal year 2025 is expected to be consistent with the prior year rate of 25 percent.
- Net cash generated from operations was $310.1 million.
- Our cash balance was $1.3 billion at quarter end, and we have no debt. Our current ratio remains strong at 4.8 to 1.
Regarding the quarter performance and outlook, Greg Christopher, Mueller’s CEO said, “Softness in residential construction, combined with an influx of imported products ahead of escalating tariffs, exerted downward pressure on unit volumes in several of our businesses. Amidst these challenges, our team once again delivered an excellent quarter.
Looking forward, we are highly optimistic about our business. Our plants operate most effectively when fully loaded. Given our additional capacity, we therefore expect to benefit from even greater production efficiencies when demand rebounds. As for heightened tariffs, we maintain our belief that they will ultimately benefit our business as we manufacture just a small percentage of our products overseas for importation into the U.S. market. Nonetheless, we have accelerated plans to increase our manufacturing capabilities in the U.S., onshore some of our own manufacturing and otherwise enhance our ability to respond to growing calls for domestically produced products.”
He added, “We have an excellent balance sheet and solid cash generating businesses. We will continue to operate with a long-term focus, and to pursue growth and expansion opportunities with care and patience.”
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.
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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 Nine Months Ended |
(In thousands, except per share data) |
September 27, 2025 |
September 28, 2024 |
September 27, 2025 |
September 28, 2024 |
Net sales |
$ |
1,077,824 |
$ |
997,831 |
$ |
3,216,162 |
$ |
2,845,230 |
Cost of goods sold |
738,148 |
722,469 |
2,251,527 |
2,056,162 |
Depreciation and amortization |
16,607 |
11,710 |
51,635 |
30,897 |
Selling, general, and administrative expense |
61,657 |
59,619 |
192,238 |
161,993 |
Gain on disposal of assets, net |
(11,852 |
) |
(2,667 |
) |
(26,654 |
) |
(3,953 |
) |
Asset impairments |
2,018 |
— |
2,018 |
— |
Gain on insurance proceeds |
(4,869 |
) |
— |
(41,147 |
) |
— |
Operating income |
276,115 |
206,700 |
786,545 |
600,131 |
Interest expense |
(6 |
) |
(113 |
) |
(48 |
) |
(335 |
) |
Interest income |
10,822 |
11,145 |
28,945 |
42,773 |
Realized and unrealized (losses) gains on short-term investments |
(2,277 |
) |
164 |
5,925 |
529 |
Pension plan termination expense |
(4,830 |
) |
— |
(4,830 |
) |
— |
Other income (expense), net |
627 |
(122 |
) |
(423 |
) |
(848 |
) |
Income before income taxes |
280,451 |
217,774 |
816,114 |
642,250 |
Income tax expense |
(73,904 |
) |
(49,188 |
) |
(204,236 |
) |
(159,406 |
) |
Income (loss) from unconsolidated affiliates, net of foreign tax |
3,701 |
3,197 |
6,140 |
(5,905 |
) |
Consolidated net income |
210,248 |
171,783 |
618,018 |
476,939 |
Net income attributable to noncontrolling interests |
(2,125 |
) |
(3,084 |
) |
(6,539 |
) |
(9,712 |
) |
Net income attributable to Mueller Industries, Inc. |
$ |
208,123 |
$ |
168,699 |
$ |
611,479 |
$ |
467,227 |
Weighted average shares for basic earnings per share |
109,114 |
111,363 |
109,533 |
111,332 |
Effect of dilutive stock-based awards |
1,816 |
2,412 |
2,115 |
2,635 |
Adjusted weighted average shares for diluted earnings per share |
110,930 |
113,775 |
111,648 |
113,967 |
Basic earnings per share |
$ |
1.91 |
$ |
1.51 |
$ |
5.58 |
$ |
4.20 |
Diluted earnings per share |
$ |
1.88 |
$ |
1.48 |
$ |
5.48 |
$ |
4.10 |
Dividends per share |
$ |
0.25 |
$ |
0.20 |
$ |
0.75 |
$ |
0.60 |
MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED (Unaudited) |
For the Quarter Ended |
For the Nine Months Ended |
(In thousands) |
September 27, 2025 |
September 28, 2024 |
September 27, 2025 |
September 28, 2024 |
Summary Segment Data: |
Net sales: |
Piping Systems Segment |
$ |
718,404 |
$ |
653,884 |
$ |
2,101,562 |
$ |
1,932,521 |
Industrial Metals Segment |
248,939 |
238,014 |
771,450 |
589,422 |
Climate Segment |
126,665 |
128,482 |
387,287 |
375,824 |
Elimination of intersegment sales |
(16,184 |
) |
(22,549 |
) |
(44,137 |
) |
(52,537 |
) |
Net sales |
$ |
1,077,824 |
$ |
997,831 |
$ |
3,216,162 |
$ |
2,845,230 |
Operating income: |
Piping Systems Segment |
$ |
216,159 |
$ |
163,601 |
$ |
624,619 |
$ |
468,539 |
Industrial Metals Segment |
30,928 |
24,197 |
91,622 |
78,161 |
Climate Segment |
38,900 |
40,768 |
117,152 |
112,336 |
Unallocated income (expenses) |
(9,872 |
) |
(21,866 |
) |
(46,848 |
) |
(58,905 |
) |
Operating income |
$ |
276,115 |
$ |
206,700 |
$ |
786,545 |
$ |
600,131 |
MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
(In thousands) |
September 27, |
December 28, 2024 |
ASSETS |
Cash and cash equivalents |
$ |
1,261,130 |
$ |
1,037,229 |
Short-term investments |
54,432 |
21,874 |
Accounts receivable, net |
556,632 |
450,113 |
Inventories |
510,012 |
462,279 |
Other current assets |
45,938 |
40,734 |
Total current assets |
2,428,144 |
2,012,229 |
Property, plant, and equipment, net |
530,702 |
515,131 |
Operating lease right-of-use assets |
28,616 |
32,702 |
Other assets |
708,861 |
730,844 |
Total assets |
$ |
3,696,323 |
$ |
3,290,906 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |
Current portion of debt |
$ |
— |
$ |
1,094 |
Accounts payable |
187,561 |
173,743 |
Current portion of operating lease liabilities |
8,387 |
8,117 |
Other current liabilities |
307,298 |
215,033 |
Total current liabilities |
503,246 |
397,987 |
Pension and postretirement liabilities |
8,789 |
11,199 |
Environmental reserves |
15,147 |
15,423 |
Deferred income taxes |
37,878 |
25,742 |
Noncurrent operating lease liabilities |
20,555 |
24,547 |
Other noncurrent liabilities |
15,126 |
11,600 |
Total liabilities |
600,741 |
486,498 |
Total Mueller Industries, Inc. stockholders’ equity |
3,069,931 |
2,773,165 |
Noncontrolling interests |
25,651 |
31,243 |
Total equity |
3,095,582 |
2,804,408 |
Total liabilities and equity |
$ |
3,696,323 |
$ |
3,290,906 |
MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
For the Nine Months Ended |
(In thousands) |
September 27, 2025 |
September 28, 2024 |
Cash flows from operating activities |
Consolidated net income |
$ |
618,018 |
$ |
476,939 |
Reconciliation of consolidated net income to net cash provided by operating activities: |
Depreciation and amortization |
51,635 |
31,140 |
Stock-based compensation expense |
20,328 |
19,956 |
Provision for doubtful accounts receivable |
67 |
(262 |
) |
(Income) loss from unconsolidated affiliates |
(6,140 |
) |
5,905 |
Dividends from unconsolidated affiliates |
5,440 |
4,130 |
Insurance proceeds - noncapital related |
15,469 |
15,000 |
Gain on disposals of properties |
(26,654 |
) |
(3,953 |
) |
Unrealized gains on short-term investments |
(5,925 |
) |
(164 |
) |
Gain on sales of securities |
— |
(365 |
) |
Impairment charges |
2,018 |
— |
Gain on insurance proceeds |
(41,147 |
) |
— |
Deferred income tax expense |
10,627 |
1,837 |
Changes in assets and liabilities, net of effects of businesses acquired: |
Receivables |
(100,830 |
) |
(99,281 |
) |
Inventories |
(40,669 |
) |
34,027 |
Other assets |
(8,756 |
) |
(3,175 |
) |
Current liabilities |
120,796 |
25,303 |
Other liabilities |
286 |
(2,467 |
) |
Other, net |
(330 |
) |
1,217 |
Net cash provided by operating activities |
$ |
614,233 |
$ |
505,787 |
Cash flows from investing activities |
Capital expenditures |
$ |
(48,982 |
) |
$ |
(51,288 |
) |
Acquisition of businesses, net of cash acquired |
— |
(602,692 |
) |
Investments in unconsolidated affiliates |
— |
(8,700 |
) |
Insurance proceeds - capital related |
4,531 |
— |
Purchase of short-term investments |
(26,633 |
) |
(4,285 |
) |
Purchase of long-term investments |
(781 |
) |
(7,976 |
) |
Proceeds from the sale of securities |
— |
98,465 |
Issuance of notes receivable with unconsolidated affiliates |
— |
(3,800 |
) |
Proceeds from sales of properties |
38,478 |
9,026 |
Investment received from noncontrolling interests |
600 |
— |
Net cash used in investing activities |
$ |
(32,787 |
) |
$ |
(571,250 |
) |
MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
For the Nine Months Ended |
(In thousands) |
September 27, 2025 |
September 28, 2024 |
Cash flows from financing activities |
Dividends paid to stockholders of Mueller Industries, Inc. |
$ |
(81,723 |
) |
$ |
(66,796 |
) |
Repurchase of common stock |
(243,615 |
) |
(48,681 |
) |
Repayments of debt |
(185 |
) |
(167 |
) |
Issuance of debt by consolidated joint ventures, net |
— |
144 |
Net cash used to settle stock-based awards |
(29,528 |
) |
(22,946 |
) |
Dividends paid to noncontrolling interests |
(12,240 |
) |
— |
Net cash used in financing activities |
$ |
(367,291 |
) |
$ |
(138,446 |
) |
Effect of exchange rate changes on cash |
9,836 |
(4,709 |
) |
Increase (decrease) in cash, cash equivalents, and restricted cash |
223,991 |
(208,618 |
) |
Cash, cash equivalents, and restricted cash at the beginning of the period |
1,038,895 |
1,174,223 |
Cash, cash equivalents, and restricted cash at the end of the period |
$ |
1,262,886 |
$ |
965,605 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20251021387049/en/
Jeffrey A. Martin
(901) 753-3226