Mueller Water Products (NYSE:MWA) Exceeds Q1 CY2026 Expectations

Water infrastructure products manufacturer Mueller Water Products reported Q1 CY2026 results beating Wall Street’s revenue expectations, with sales up 5.5% year on year to $384.4 million. The company expects the full year’s revenue to be around $1.48 billion, close to analysts’ estimates. Its non-GAAP profit of $0.40 per share was 7.5% above analysts’ consensus estimates.

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“We are pleased with our strong second quarter results, which were achieved through disciplined execution and resilient end-market demand. We set new quarterly records for net sales, adjusted EBITDA and adjusted net income per diluted share, demonstrating the strength of our brands and impact of our ongoing commitment to operational excellence and cost management. I want to thank our employees for their continued dedication and effort in supporting our customers and delivering value for all our stakeholders,” said Paul McAndrew, President and Chief Executive Officer of Mueller Water Products.

Company Overview

As one of the oldest companies in the water infrastructure industry, Mueller (NYSE:MWA) is a provider of water infrastructure products and flow control systems for various sectors.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. Thankfully, Mueller Water Products’s 7.9% annualized revenue growth over the last five years was decent. Its growth was slightly above the average industrials company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Mueller Water Products’s annualized revenue growth of 8.7% over the last two years aligns with its five-year trend, suggesting its demand was stable.

This quarter, Mueller Water Products reported year-on-year revenue growth of 5.5%, and its $384.4 million of revenue exceeded Wall Street’s estimates by 0.8%.

Looking ahead, sell-side analysts expect revenue to grow 3.1% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and indicates its products and services will face some demand challenges. At least the company is tracking well in other measures of financial health.

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Operating Margin

Mueller Water Products has been an efficient company over the last five years. It was one of the more profitable businesses in the industrials sector, boasting an average operating margin of 13.5%. This result isn’t too surprising as its gross margin gives it a favorable starting point.

Analyzing the trend in its profitability, Mueller Water Products’s operating margin rose by 7.9 percentage points over the last five years, as its sales growth gave it immense operating leverage.

This quarter, Mueller Water Products generated an operating margin profit margin of 20.9%, up 1.7 percentage points year on year. Since its gross margin expanded more than its operating margin, we can infer that leverage on its cost of sales was the primary driver behind the recently higher efficiency.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Mueller Water Products’s EPS grew at 21.6% compounded annual growth rate over the last five years, higher than its 7.9% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Diving into Mueller Water Products’s quality of earnings can give us a better understanding of its performance. As we mentioned earlier, Mueller Water Products’s operating margin expanded by 7.9 percentage points over the last five years. On top of that, its share count shrank by 1.1%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For Mueller Water Products, its two-year annual EPS growth of 32.8% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base.

In Q1, Mueller Water Products reported adjusted EPS of $0.40, up from $0.34 in the same quarter last year. This print beat analysts’ estimates by 7.5%. Over the next 12 months, Wall Street expects Mueller Water Products’s full-year EPS of $1.41 to grow 6.5%.

Key Takeaways from Mueller Water Products’s Q1 Results

We enjoyed seeing Mueller Water Products beat analysts’ EBITDA expectations this quarter. We were also glad its full-year EBITDA guidance exceeded Wall Street’s estimates. Overall, this print had some key positives. The stock remained flat at $27.55 immediately after reporting.

Is Mueller Water Products an attractive investment opportunity at the current price? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).