Mueller Industries, Inc. Reports Second Quarter 2025 Earnings
MWN-AI** Summary
Mueller Industries, Inc. (NYSE: MLI) reported robust second-quarter earnings for 2025, showcasing substantial growth compared to the same period in 2024. The company's net income increased to $245.9 million, up from $160.2 million, while operating income rose to $304.2 million from $210.0 million. Overall net sales hit $1.14 billion, compared to $997.7 million in the previous year, aided by successful acquisitions and rising selling prices in response to increased raw material costs. This performance translated to a diluted earnings per share (EPS) of $2.22, up from $1.41.
Included in this quarter's results was a significant $36.3 million gain related to an insurance claim from a tornado that struck their Covington, Tennessee operations in March 2023. Mueller has received $50 million in insurance proceeds to date, with expectations for future recoveries as the claim is not yet fully settled. Excluding this one-time gain, adjusted net income was recorded at $217.9 million and diluted EPS at $1.96.
The quarter's financial highlights also reflected solid cash generation, with $190.6 million produced from operations, pushing the company's cash position (net of debt) to $1.0 billion and affirming a strong current ratio of 4.9:1. CEO Greg Christopher emphasized the company's exceptional operational execution amidst challenging market conditions and the anticipated growth in demand, particularly in residential construction as interest rates fluctuate.
Looking ahead, Mueller Industries aims to enhance efficiency and continue pursuing strategic acquisitions while navigating uncertainties such as tariff policies and evolving market demands. The company maintains a positive outlook, focusing on critical areas including water infrastructure and HVAC/R markets.
MWN-AI** Analysis
Mueller Industries, Inc. (NYSE: MLI) has reported robust second-quarter earnings for 2025, showcasing significant year-over-year improvements. The company achieved a net income of $245.9 million, up from $160.2 million in Q2 2024, translating to a diluted earnings per share (EPS) rise from $1.41 to $2.22. This performance is bolstered by a gain from an insurance claim related to a tornado in early 2023, which contributed an additional $36.3 million to earnings. Excluding this one-time benefit, the company still reported healthy net income of $217.9 million.
Key highlights include an increase in net sales to $1.14 billion, up from $997.7 million, driven primarily by higher prices due to raw material costs and contributions from acquisitions made in 2024. Furthermore, net cash generated from operations stood at $190.6 million, while the company's strong current ratio of 4.9 indicates solid liquidity and operational stability.
However, it's essential to note the broader economic landscape. CEO Greg Christopher pointed out challenges in residential construction demand, attributing this to prevailing interest rates and tariff policies, which may introduce volatility. Nevertheless, he expressed optimism regarding future demand recovery once interest rates decline.
From an investment perspective, while Mueller Industries appears to be performing well operationally with solid revenue growth and a strong balance sheet, potential investors should consider broader market risks and economic fluctuations. The company's focus on essential markets such as water infrastructure and HVAC/R offers resilience. Additionally, ongoing acquisitions may enhance growth avenues. Given the promising outlook and current valuation metrics, MLI could be a worthwhile addition for long-term investors, though due diligence concerning macroeconomic conditions is recommended.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Mueller Industries, Inc. (NYSE: MLI) announces results for the second quarter of 2025. Comparisons are to the second quarter of 2024.
- Net Income of $245.9 million versus $160.2 million
- Operating Income of $304.2 million versus $210.0 million
- Net Sales of $1.14 billion versus $997.7 million
- Diluted EPS of $2.22 versus $1.41
The results above include a $36.3 million gain ($28.1 million net of tax) in connection with an insurance claim related to the March 2023 tornado that impacted our operations in Covington, Tennessee. To date since the event, $50.0 million of insurance proceeds have been received, including $15.0 million received in 2025. The claim is not yet fully settled, and additional insurance recovery amounts are expected to be recorded in the future. Exclusive of the proceeds, second quarter results are as follows:
- Net Income of $217.9 million versus $160.2 million
- Operating Income of $267.9 million versus $210.0 million
- Diluted EPS of $1.96 versus $1.41
Second Quarter Financial and Operating Highlights:
- COMEX copper averaged $4.72 per pound during the quarter, which represents a 3.7% increase over the prior period.
- The quarter over quarter increase in net sales was largely attributable to sales from the two businesses acquired in 2024, and to higher selling prices related to a rise in raw material costs across all businesses.
- Net cash generated from operations was $190.6 million.
- Our cash balance net of debt was $1.0 billion at quarter end, and our current ratio continues to be strong at 4.9 to 1.
Regarding the quarter performance and outlook, Greg Christopher, Mueller’s CEO said, “Excluding the recovery reported thus far on our tornado related insurance claim, we delivered a record quarter. Tremendous credit goes to our manufacturing operations and commercial teams for their outstanding execution and focus amidst complex market conditions. We are particularly pleased to see the positive progress and contributions made by Nehring and EPC, our 2024 acquisitions, and look forward to their continued improvement.
Business conditions have been unsettled and increasingly challenged for quite some time. Residential construction in the U.S. remains subdued and below levels generally deemed necessary to meet growing pent up demand. We anticipate that demand will increase when interest rates are reduced. Tariff policies are another source of uncertainty, but as a general matter, we believe that the imposition of trade protections will ultimately benefit most of our portfolio companies.”
He added, “We are optimistic about the future of our business. We have an excellent growth platform focused in three essential areas: water infrastructure, HVAC/R and electrical transmission. Moreover, we have a proven track record of taking advantage of opportunities coming out of periods of disruption like the present. As such, we continue to invest to increase our efficiency and capabilities, and to actively seek acquisitions that complement our portfolio and support our strategic growth plans.”
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.
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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 Six Months Ended | |||||||||||||||
(In thousands, except per share data) | June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | ||||||||||||
Net sales | $ | 1,138,173 | $ | 997,745 | $ | 2,138,338 | $ | 1,847,399 | ||||||||
Cost of goods sold | 785,194 | 724,990 | 1,513,379 | 1,333,693 | ||||||||||||
Depreciation and amortization | 17,905 | 10,018 | 35,028 | 19,187 | ||||||||||||
Selling, general, and administrative expense | 67,521 | 52,731 | 130,581 | 101,088 | ||||||||||||
Gain on disposal of assets, net | (337 | ) | — | (14,802 | ) | — | ||||||||||
Gain on insurance proceeds | (36,278 | ) | — | (36,278 | ) | — | ||||||||||
Operating income | 304,168 | 210,006 | 510,430 | 393,431 | ||||||||||||
Interest expense | (17 | ) | (107 | ) | (42 | ) | (222 | ) | ||||||||
Interest income | 8,222 | 14,383 | 18,123 | 31,628 | ||||||||||||
Realized and unrealized gains on short-term investments | 13,212 | — | 8,202 | 365 | ||||||||||||
Other expense, net | (1,142 | ) | (1,356 | ) | (1,050 | ) | (726 | ) | ||||||||
Income before income taxes | 324,443 | 222,926 | 535,663 | 424,476 | ||||||||||||
Income tax expense | (78,857 | ) | (58,384 | ) | (130,332 | ) | (110,218 | ) | ||||||||
Income (loss) from unconsolidated affiliates, net of foreign tax | 2,897 | (1,095 | ) | 2,439 | (9,102 | ) | ||||||||||
Consolidated net income | 248,483 | 163,447 | 407,770 | 305,156 | ||||||||||||
Net income attributable to noncontrolling interests | (2,559 | ) | (3,282 | ) | (4,414 | ) | (6,628 | ) | ||||||||
Net income attributable to Mueller Industries, Inc. | $ | 245,924 | $ | 160,165 | $ | 403,356 | $ | 298,528 | ||||||||
Weighted average shares for basic earnings per share | 108,746 | 111,216 | 109,742 | 111,316 | ||||||||||||
Effect of dilutive stock-based awards | 2,196 | 2,763 | 2,265 | 2,746 | ||||||||||||
Adjusted weighted average shares for diluted earnings per share | 110,942 | 113,979 | 112,007 | 114,062 | ||||||||||||
Basic earnings per share | $ | 2.26 | $ | 1.44 | $ | 3.68 | $ | 2.68 | ||||||||
Diluted earnings per share | $ | 2.22 | $ | 1.41 | $ | 3.60 | $ | 2.62 | ||||||||
Dividends per share | $ | 0.25 | $ | 0.20 | $ | 0.50 | $ | 0.40 | ||||||||
MUELLER INDUSTRIES, INC. | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED | ||||||||||||||||
(Unaudited) | ||||||||||||||||
For the Quarter Ended | For the Six Months Ended | |||||||||||||||
(In thousands) | June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | ||||||||||||
Summary Segment Data: | ||||||||||||||||
Net sales: | ||||||||||||||||
Piping Systems Segment | $ | 743,475 | $ | 688,469 | $ | 1,383,158 | $ | 1,278,637 | ||||||||
Industrial Metals Segment | 270,598 | 195,341 | 522,511 | 351,408 | ||||||||||||
Climate Segment | 137,515 | 130,532 | 260,622 | 247,342 | ||||||||||||
Elimination of intersegment sales | (13,415 | ) | (16,597 | ) | (27,953 | ) | (29,988 | ) | ||||||||
Net sales | $ | 1,138,173 | $ | 997,745 | $ | 2,138,338 | $ | 1,847,399 | ||||||||
Operating income: | ||||||||||||||||
Piping Systems Segment | $ | 250,296 | $ | 162,258 | $ | 408,460 | $ | 304,938 | ||||||||
Industrial Metals Segment | 30,610 | 29,693 | 60,694 | 53,964 | ||||||||||||
Climate Segment | 42,628 | 38,993 | 78,252 | 71,568 | ||||||||||||
Unallocated income (expenses) | (19,366 | ) | (20,938 | ) | (36,976 | ) | (37,039 | ) | ||||||||
Operating income | $ | 304,168 | $ | 210,006 | $ | 510,430 | $ | 393,431 |
MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(Unaudited) | ||||||
(In thousands) | June 28, | December 28, | ||||
ASSETS | ||||||
Cash and cash equivalents | $ | 1,001,769 | $ | 1,037,229 | ||
Short-term investments | 56,709 | 21,874 | ||||
Accounts receivable, net | 592,564 | 450,113 | ||||
Inventories | 511,725 | 462,279 | ||||
Other current assets | 51,367 | 40,734 | ||||
Total current assets | 2,214,134 | 2,012,229 | ||||
Property, plant, and equipment, net | 532,970 | 515,131 | ||||
Operating lease right-of-use assets | 30,522 | 32,702 | ||||
Other assets | 709,816 | 730,844 | ||||
Total assets | $ | 3,487,442 | $ | 3,290,906 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Current portion of debt | $ | 74 | $ | 1,094 | ||
Accounts payable | 212,476 | 173,743 | ||||
Current portion of operating lease liabilities | 8,393 | 8,117 | ||||
Other current liabilities | 235,022 | 215,033 | ||||
Total current liabilities | 455,965 | 397,987 | ||||
Pension and postretirement liabilities | 8,739 | 11,199 | ||||
Environmental reserves | 15,156 | 15,423 | ||||
Deferred income taxes | 32,212 | 25,742 | ||||
Noncurrent operating lease liabilities | 22,461 | 24,547 | ||||
Other noncurrent liabilities | 12,286 | 11,600 | ||||
Total liabilities | 546,819 | 486,498 | ||||
Total Mueller Industries, Inc. stockholders’ equity | 2,916,560 | 2,773,165 | ||||
Noncontrolling interests | 24,063 | 31,243 | ||||
Total equity | 2,940,623 | 2,804,408 | ||||
Total liabilities and equity | $ | 3,487,442 | $ | 3,290,906 |
MUELLER INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||
For the Six Months Ended | ||||||||
(In thousands) | June 28, 2025 | June 29, 2024 | ||||||
Cash flows from operating activities | ||||||||
Consolidated net income | $ | 407,770 | $ | 305,156 | ||||
Reconciliation of consolidated net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 35,028 | 19,349 | ||||||
Stock-based compensation expense | 13,940 | 13,476 | ||||||
Provision for doubtful accounts receivable | 73 | (67 | ) | |||||
(Income) loss from unconsolidated affiliates | (2,439 | ) | 9,102 | |||||
Dividends from unconsolidated affiliates | 2,812 | 3,541 | ||||||
Insurance proceeds - noncapital related | 12,345 | 15,000 | ||||||
Gain on disposals of properties | (14,802 | ) | (1,286 | ) | ||||
Unrealized gains on short-term investments | (8,202 | ) | — | |||||
Gain on sales of securities | — | (365 | ) | |||||
Gain on insurance proceeds | (36,278 | ) | — | |||||
Deferred income tax expense (benefit) | 4,420 | (1,509 | ) | |||||
Changes in assets and liabilities, net of effects of businesses acquired: | ||||||||
Receivables | (134,535 | ) | (132,012 | ) | ||||
Inventories | (41,190 | ) | 6,706 | |||||
Other assets | (4,371 | ) | 8,511 | |||||
Current liabilities | 72,259 | 30,276 | ||||||
Other liabilities | (2,420 | ) | (2,375 | ) | ||||
Other, net | (249 | ) | 872 | |||||
Net cash provided by operating activities | $ | 304,161 | $ | 274,375 | ||||
Cash flows from investing activities | ||||||||
Capital expenditures | $ | (30,691 | ) | $ | (25,603 | ) | ||
Acquisition of businesses, net of cash acquired | — | (566,577 | ) | |||||
Investments in unconsolidated affiliates | — | (8,700 | ) | |||||
Insurance proceeds - capital related | 2,655 | — | ||||||
Purchase of short-term investments | (26,633 | ) | — | |||||
Purchase of long-term investments | (552 | ) | (7,976 | ) | ||||
Proceeds from the sale of securities | — | 96,465 | ||||||
Issuance of notes receivable with unconsolidated affiliates | — | (3,800 | ) | |||||
Proceeds from sales of properties | 21,135 | 3,976 | ||||||
Investment received from noncontrolling interests | 600 | — | ||||||
Net cash used in investing activities | $ | (33,486 | ) | $ | (512,215 | ) | ||
MUELLER INDUSTRIES, INC. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
For the Six Months Ended | ||||||||
(In thousands) | June 28, 2025 | June 29, 2024 | ||||||
Cash flows from financing activities | ||||||||
Dividends paid to stockholders of Mueller Industries, Inc. | $ | (54,398 | ) | $ | (44,488 | ) | ||
Repurchase of common stock | (243,615 | ) | (42,994 | ) | ||||
Repayments of debt | (111 | ) | (111 | ) | ||||
Issuance of debt by consolidated joint ventures, net | — | 11 | ||||||
Net cash used to settle stock-based awards | (4,189 | ) | (2,002 | ) | ||||
Dividends paid to noncontrolling interests | (12,240 | ) | — | |||||
Net cash used in financing activities | $ | (314,553 | ) | $ | (89,584 | ) | ||
Effect of exchange rate changes on cash | 11,718 | (4,784 | ) | |||||
Decrease in cash, cash equivalents, and restricted cash | (32,160 | ) | (332,208 | ) | ||||
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 | $ | 1,006,735 | $ | 842,015 |
MUELLER INDUSTRIES, INC. Reconciliation of Net Income as Reported to Non-GAAP Financial Measures Without Gain on Insurance Proceeds (Unaudited) Earnings attributable to normal operations without the impact of the gain on insurance proceeds is a measurement not derived in accordance with generally accepted accounting principles (GAAP). Excluding the gain is useful as it measures the operating results that are the outcome of daily operating decisions made in the normal course of business. Reconciliation of earnings attributable to normal operations without the gain to net income as reported is as follows: | ||||||||||||
(In thousands, except per share data) | For the Quarter Ended June 28, 2025 | |||||||||||
As Reported | Gain on Insurance | As Adjusted | ||||||||||
Operating income | $ | 304,168 | $ | (36,278 | ) | $ | 267,890 | |||||
Interest expense | (17 | ) | — | (17 | ) | |||||||
Interest income | 8,222 | — | 8,222 | |||||||||
Realized and unrealized gains on short-term investments | 13,212 | — | 13,212 | |||||||||
Other expense, net | (1,142 | ) | — | (1,142 | ) | |||||||
Income before income taxes | 324,443 | (36,278 | ) | 288,165 | ||||||||
Income tax expense | (78,857 | ) | 8,213 | (70,644 | ) | |||||||
Income (loss) from unconsolidated affiliates, net of foreign tax | 2,897 | — | 2,897 | |||||||||
Consolidated net income | 248,483 | (28,065 | ) | 220,418 | ||||||||
Net income attributable to noncontrolling interests | (2,559 | ) | — | (2,559 | ) | |||||||
Net income attributable to Mueller Industries, Inc. | $ | 245,924 | $ | (28,065 | ) | $ | 217,859 | |||||
Diluted earnings per share | $ | 2.22 | $ | 1.96 | ||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250721383742/en/
Jeffrey A. Martin
(901) 753-3226
FAQ**
How did the increase in net sales from $997.7 million to $1.billion for Mueller Industries Inc. (MLI) in Q2 2025 impact their overall market position and competitive advantage in the industrial sector?
Considering the $36.3 million gain from an insurance claim related to the March 20tornado, what is Mueller Industries Inc. (MLI) planning regarding future insurance recoveries and their influence on operational forecasts?
With a strong current ratio of 4.9 to 1, how does Mueller Industries Inc. (MLI) intend to utilize its cash balance net of debt to support growth initiatives and manage economic uncertainties going forward?
Given the subdued residential construction market in the U.S., how does Mueller Industries Inc. (MLI) anticipate demand changes, especially with potential interest rate reductions impacting their strategic growth plans?
**MWN-AI FAQ is based on asking OpenAI questions about Mueller Industries Inc. (NYSE: MLI).
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