Mueller Water reports Q1 EPS 13c, consensus 8c

Reports Q1 revenue $ $256.4M, consensus $250.64M…”I am proud of the work our team has done to deliver outstanding customer service and drive efficiencies within our operations and supply chain, while working tirelessly to address the October 2023 cybersecurity incident. We had a solid start to the year reflecting expanded margins on the expected lower volumes compared with the first quarter of last year,” said Martie Edmunds Zakas, Chief Executive Officer of Mueller Water Products. “We believe that channel and customer inventory levels were largely normalized by the end of our first quarter. Our municipal end market remains resilient with new residential construction stabilizing. While we still expect to face volume headwinds this year related to lapping the elevated short cycle backlog, mainly for iron gate valves and hydrants, our initial fiscal 2024 guidance for adjusted EBITDA reflects higher margins versus the prior year on lower volumes driven by improved execution by our commercial, operations and supply chain teams. “While the external environment remains uncertain, our teams are focused on delivering value to our customers, while also driving further efficiencies in our operations and supply chain. I am confident that we have the products and capabilities to play a vital role in addressing the challenges facing the water infrastructure industry. Our capital investments have positioned us to benefit from increased federal infrastructure funding beyond 2024 which will help increase volumes and margins,” Ms. Zakas concluded.