Mueller Water Products (JT5) Risk Analysis
Risk Overview Q2, 2026
Source: the company's latest filing for the period ended Jun 30, 2026, filed Aug 06, 2026
Risk Change Over Time
- Capital Markets - Risk 1Tariffs and trade restrictions, including Section 232 tariffs on steel and aluminum, have adversely impacted and may continue to adversely impact our business, results of operations, and financial condition.
The Company is subject to significant tariffs and trade restrictions imposed by the U.S. on foreign imports, including on specific commodities used in our operations, such as steel, aluminum, and copper, as well as retaliatory measures by impacted foreign countries. In 2025, the U.S. government increased tariffs on imported steel and aluminum from 25% to 50% under Section 232 of the Trade Expansion Act ("Section 232"). The Section 232 tariff increase has resulted in material, upward pressure on certain purchased components and raw material costs, particularly with respect to Repair products imported to the U.S. that are produced by our Krausz business. While we have taken, and intend to continue to take, actions to mitigate these cost increases, including pricing actions and supplier diversification, there can be no assurance that such measures will be sufficient to offset the impact of current or future tariffs on our business, financial condition, or results of operations. If further tariffs are imposed on a broader range of imports, or if further retaliatory trade measures are taken by China or other countries in response to additional tariffs, we may be required to raise our prices or incur additional expenses, which may result in the loss of customers and harm our operating performance, sales, and earnings.
Risk Highlights Q2, 2026
Risk Word Cloud
Risk Factors Full Breakdown - Total Risks 37
- Manufacturing - Risk 1Our products and services may be affected from time to time by design and manufacturing defects that could materially adversely affect the business and result in harm to our reputation.
We offer several technologically enhanced, complex hardware and software products, services and solutions that can be negatively impacted by design and manufacturing defects. Defects can also exist in components and products we purchase from third parties. Component defects could make our products unsafe and create a risk of environmental or property damage and personal injury. In addition, our products, services and solutions can have quality issues and from time-to-time experience outages, disruptions, slowdowns or errors. As a result, our products and services may not perform as anticipated and may not meet customer expectations. There can be no assurance we will be able to detect and fix all issues and defects in products, services and solutions we offer. Failure to do so can result in widespread technical and performance issues negatively impacting our products, services and solutions. In addition, we can be exposed to product liability claims, recalls, product replacements or modifications, write-offs of inventory, property, plant and equipment, and/or intangible assets, and significant warranty and other expenses, including litigation costs. Quality problems can also adversely affect the experience for our customers and result in harm to our reputation, loss of competitive advantage, poor market acceptance, reduced demand for products, services and solutions, new products, services and solutions introduction delays and lost sales.
- Manufacturing - Risk 2Normal operations at our key manufacturing facilities may be interrupted.
Some of our key products, including fire hydrants, iron gate valves, service brass products, specialty valves and repair products are manufactured at a single facility or a few facilities, which depend on critical pieces of heavy equipment that cannot be moved economically to other locations or sourced quickly. We are therefore limited in our ability to shift production among locations. The operations at our manufacturing facilities may be interrupted or impaired by various operating risks, including, but not limited to: - Catastrophic events, such as fires, floods, explosions, natural disasters, new and ongoing public health crises, severe weather or other similar occurrences,- Terrorist attacks, governmental instability, national emergencies, wars, mass shootings or other acts of violence,- Interruptions in the delivery of raw materials or purchased parts, shortages of equipment or spare parts or other manufacturing inputs,- Adverse government regulations, including trade protection measures and import or export duties or licensing requirements,- Equipment or information systems breakdowns or failures,- Maintenance outages to conduct maintenance activities that cannot be performed safely during operations,- Prolonged power failures or reductions,- Violations of our permit requirements or revocation of permits,- Release of pollutants and hazardous substances to air, soil, surface water or ground water,- Labor disputes, and - Cyberattacks and events. The occurrence of any of these events may impair our production capabilities and adversely affect our sales, profitability and cash flows.
See a full breakdown of risk according to category and subcategory. The list starts with the category with the most risk. Click on subcategories to read relevant extracts from the most recent report.