Mueller Industries, Inc. (NYSE: MLI) announces results for the first quarter of 2025. Comparisons are to the first quarter of 2024.
- Net Income of $157.4 million versus $138.4 million
- Operating Income of $206.3 million versus $183.4 million
- Net Sales of $1.0 billion versus $849.7 million
- Diluted EPS of $1.39 versus $1.21
First Quarter Financial and Operating Highlights:
- COMEX copper averaged $4.57 per pound during the quarter, 18.4% higher than the average price of $3.86 per pound during the first quarter of 2024.
- The increase in net sales was attributable to the inclusion of sales from two recently acquired businesses, and to higher selling prices related to the rise in raw material costs and tariffs. Modestly lower shipments in our Piping Systems segment, which largely stemmed from production challenges early in the quarter, combined with softer demand in some of our Industrial Metals businesses, partially offset the overall increase in net sales.
- The results included a $14.5 million gain on the sale of an idle property, as well as a $5.0 million unrealized loss on short-term investments.
- Net cash generated from operations was $113.6 million. We utilized $243.6 million during the period to repurchase just over 3 million shares of our common stock.
- Our cash balance was $830.1 million at quarter end, and our current ratio remains strong at 4.3 to 1.
Regarding the quarter performance, Greg Christopher, Mueller’s CEO said, “We delivered very good results in the first quarter despite certain manufacturing disruptions, which have since been resolved, and the general economic landscape. We were particularly pleased with the positive contributions that our Nehring Electrical Works and Elkhart Products acquisitions made to our business, and we look forward to their continued improvement.”
Regarding the outlook, Mr. Christopher continued, “While markets and demand are in line with our year end comments and outlook, the tariff and trade policies have presented new challenges. Although we largely manufacture our products in the countries where they are consumed, we are not immune to the effects of tariffs. Where required, our teams are proactively and diligently taking appropriate price actions, and will continue to do so as necessary. As we have consistently demonstrated resilience during past periods of disruption, we are confident in our ability to effectively navigate the current environment.”
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 | ||||||||
(In thousands, except per share data) |
March 29,
|
March 30,
| ||||||
Net sales | $ | 1,000,165 | $ | 849,654 | ||||
Cost of goods sold | 728,185 | 608,703 | ||||||
Depreciation and amortization | 17,123 | 9,169 | ||||||
Selling, general, and administrative expense | 63,060 | 48,357 | ||||||
Gain on sale of assets | (14,465 | ) | — | |||||
Operating income | 206,262 | 183,425 | ||||||
Interest expense | (25 | ) | (115 | ) | ||||
Interest income | 9,901 | 17,245 | ||||||
Realized and unrealized (losses) gains on short-term investments | (5,010 | ) | 365 | |||||
Other income, net | 92 | 630 | ||||||
Income before income taxes | 211,220 | 201,550 | ||||||
Income tax expense | (51,475 | ) | (51,834 | ) | ||||
Loss from unconsolidated affiliates, net of foreign tax | (458 | ) | (8,007 | ) | ||||
Consolidated net income | 159,287 | 141,709 | ||||||
Net income attributable to noncontrolling interests | (1,855 | ) | (3,346 | ) | ||||
Net income attributable to Mueller Industries, Inc. | $ | 157,432 | $ | 138,363 | ||||
Weighted average shares for basic earnings per share | 110,739 | 111,416 | ||||||
Effect of dilutive stock-based awards | 2,333 | 2,729 | ||||||
Adjusted weighted average shares for diluted earnings per share | 113,072 | 114,145 | ||||||
Basic earnings per share | $ | 1.42 | $ | 1.24 | ||||
Diluted earnings per share | $ | 1.39 | $ | 1.21 | ||||
Dividends per share | $ | 0.25 | $ | 0.20 | ||||
MUELLER INDUSTRIES, INC. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED | ||||||||
(Unaudited) | ||||||||
For the Quarter Ended | ||||||||
(In thousands) | March 29, 2025 | March 30, 2024 | ||||||
Summary Segment Data: | ||||||||
Net sales: | ||||||||
Piping Systems Segment | $ | 639,683 | $ | 590,168 | ||||
Industrial Metals Segment | 251,913 | 156,067 | ||||||
Climate Segment | 123,107 | 116,810 | ||||||
Elimination of intersegment sales | (14,538 | ) | (13,391 | ) | ||||
Net sales | $ | 1,000,165 | $ | 849,654 | ||||
Operating income: | ||||||||
Piping Systems Segment | $ | 158,164 | $ | 142,680 | ||||
Industrial Metals Segment | 30,084 | 24,271 | ||||||
Climate Segment | 35,624 | 32,575 | ||||||
Unallocated income (expenses) | (17,610 | ) | (16,101 | ) | ||||
Operating income | $ | 206,262 | $ | 183,425 | ||||
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) | ||||||
(In thousands) |
March 29,
|
December 28,
| ||||
ASSETS | ||||||
Cash and cash equivalents | $ | 830,100 | $ | 1,037,229 | ||
Short-term investments | 43,497 | 21,874 | ||||
Accounts receivable, net | 553,106 | 450,113 | ||||
Inventories | 482,155 | 462,279 | ||||
Other current assets | 51,202 | 40,734 | ||||
Total current assets | 1,960,060 | 2,012,229 | ||||
Property, plant, and equipment, net | 515,208 | 515,131 | ||||
Operating lease right-of-use assets | 32,677 | 32,702 | ||||
Other assets | 723,359 | 730,844 | ||||
Total assets | $ | 3,231,304 | $ | 3,290,906 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Current portion of debt | $ | 128 | $ | 1,094 | ||
Accounts payable | 223,609 | 173,743 | ||||
Current portion of operating lease liabilities | 8,358 | 8,117 | ||||
Other current liabilities | 224,276 | 215,033 | ||||
Total current liabilities | 456,371 | 397,987 | ||||
Pension and postretirement liabilities | 8,425 | 11,199 | ||||
Environmental reserves | 15,374 | 15,423 | ||||
Deferred income taxes | 27,736 | 25,742 | ||||
Noncurrent operating lease liabilities | 24,430 | 24,547 | ||||
Other noncurrent liabilities | 11,869 | 11,600 | ||||
Total liabilities | 544,205 | 486,498 | ||||
Total Mueller Industries, Inc. stockholders’ equity | 2,666,437 | 2,773,165 | ||||
Noncontrolling interests | 20,662 | 31,243 | ||||
Total equity | 2,687,099 | 2,804,408 | ||||
Total liabilities and equity | $ | 3,231,304 | $ | 3,290,906 | ||
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Quarter Ended | ||||||||
(In thousands) |
March 29,
|
March 30,
| ||||||
Cash flows from operating activities | ||||||||
Consolidated net income | $ | 159,287 | $ | 141,709 | ||||
Reconciliation of consolidated net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 17,123 | 9,250 | ||||||
Stock-based compensation expense | 6,150 | 6,231 | ||||||
Provision for doubtful accounts receivable | 99 | 1 | ||||||
Loss from unconsolidated affiliates | 458 | 8,007 | ||||||
Dividends from unconsolidated affiliates | 2,812 | 2,024 | ||||||
Insurance proceeds - noncapital related | — | 15,000 | ||||||
Gain on disposals of properties | (14,465 | ) | (1,567 | ) | ||||
Unrealized loss on short-term investments | 5,010 | — | ||||||
Gain on sales of securities | — | (365 | ) | |||||
Deferred income tax expense | 1,651 | 940 | ||||||
Changes in assets and liabilities: | ||||||||
Receivables | (101,524 | ) | (75,200 | ) | ||||
Inventories | (18,542 | ) | 22,502 | |||||
Other assets | 410 | 11,984 | ||||||
Current liabilities | 57,702 | 33,948 | ||||||
Other liabilities | (2,598 | ) | (907 | ) | ||||
Other, net | (14 | ) | 68 | |||||
Net cash provided by operating activities | $ | 113,559 | $ | 173,625 | ||||
Cash flows from investing activities | ||||||||
Capital expenditures | $ | (16,592 | ) | $ | (16,406 | ) | ||
Purchase of short-term investments | (26,633 | ) | — | |||||
Purchase of long-term investments | (552 | ) | — | |||||
Proceeds from the sale of securities | — | 96,465 | ||||||
Issuance of notes receivable with unconsolidated affiliates | — | (12,500 | ) | |||||
Proceeds from sales of properties | 19,737 | 2,878 | ||||||
Investment received from noncontrolling interests | 600 | — | ||||||
Net cash (used in) provided by investing activities | $ | (23,440 | ) | $ | 70,437 | |||
MUELLER INDUSTRIES, INC. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
For the Quarter Ended | ||||||||
(In thousands) |
March 29,
|
March 30,
| ||||||
Cash flows from financing activities | ||||||||
Dividends paid to stockholders of Mueller Industries, Inc. | $ | (27,262 | ) | $ | (22,255 | ) | ||
Repurchase of common stock | (243,615 | ) | (27,930 | ) | ||||
Repayments of debt | (56 | ) | (56 | ) | ||||
Repayment of debt by consolidated joint ventures, net | — | (77 | ) | |||||
Net cash used to settle stock-based awards | (4,494 | ) | (2,489 | ) | ||||
Dividends paid to noncontrolling interests | (12,240 | ) | — | |||||
Net cash used in financing activities | $ | (287,667 | ) | $ | (52,807 | ) | ||
Effect of exchange rate changes on cash | 392 | (670 | ) | |||||
(Decrease) increase in cash, cash equivalents, and restricted cash | (197,156 | ) | 190,585 | |||||
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 | $ | 841,739 | $ | 1,364,808 | ||||
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