Mueller Water Products delivered third-quarter results that were well received by the market, as revenue slightly exceeded Wall Street’s expectations despite a modest year-on-year decline. Management attributed the quarter’s performance to strong execution in specialty valves, operational productivity improvements, and disciplined cost management. CEO Paul McAndrew highlighted advances in the company’s commercial strategy and manufacturing efficiency as key contributors to margin expansion. The exit from the metering business was also announced as a move to simplify operations and improve overall profitability.
Is now the time to buy MWA? Find out in our full research report (it’s free for active Edge members).
Mueller Water Products (MWA) Q3 CY2026 highlights:
- Revenue $376.5 million vs S&P analysts’ estimates of $374.3 million (1.1% year-on-year decline, 0.6% beat)
- Adjusted EPS $0.38 vs S&P analysts’ estimates of $0.38 (in line)
- Adjusted EBITDA $95.5 million vs analyst estimates of $91.84 million (25.4% margin, 4% beat)
- EBITDA guidance $383 million at the midpoint for fiscal 2027, in line with analyst expectations
- Operating margin 19.4%, up from 18.3% in the same quarter last year
- Market capitalization $3.83 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our top 5 analyst questions from Mueller Water Products’s Q3 earnings call
- Keith Strother (Goldman Sachs) pressed management to clarify assumptions around residential construction and municipal demand in the sales outlook. CEO Paul McAndrew confirmed expectations for ongoing weakness in residential and muted municipal repair activity, while emphasizing specialty valve growth.
- Keith Strother (Goldman Sachs) also asked about the ability to offset inflation and tariffs with pricing. Executive Vice President Mike Morgan responded that price increases should keep the company price-cost neutral, supported by strong brand positioning.
- Jeffrey Hammond (RBC Capital Markets) questioned the rationale for embedding unannounced price increases in guidance. CEO Paul McAndrew explained their confidence comes from historical execution and ongoing customer relationships, with any new pricing planned for later in the year.
- Jeffrey Hammond (RBC Capital Markets) sought details on the economics of the metering business transition. McAndrew described it as a necessary exit from a subscale, loss-making segment, with most of the charge related to warranties and transition support for customers.
- Bryan Blair (Oppenheimer) inquired about the impact of hydrant backlog normalization and medium-term margin aspirations. McAndrew indicated backlog normalization will be a modest sales headwind, and that medium-term focus will be on leveraging flow control expertise and expanding in industrial applications.
Catalysts in upcoming quarters
In the coming quarters, the StockStory team will be closely watching (1) the pace of specialty valve growth and new customer wins, (2) the successful execution of the metering business transition to ZENNER USA and realization of associated margin improvement, and (3) continued progress in cost management and SG&A productivity. Execution on operational priorities and the ability to maintain pricing discipline in a volatile market will also be key markers of success.
Mueller Water Products currently trades at $24.39, up from $24.04 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
Our favorite stocks right now
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
