Mueller Industries Inc.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 21 October 2025: press release. The quarter’s numbers.

Key takeaways

Net sales rose on higher prices: Net sales were $1.08 billion against $997.8 million. The release attributes the rise mainly to higher selling prices from raw material costs, along with better sales in some businesses. Source
Piping Systems led growth: Piping Systems net sales were $718.4 million against $653.9 million; operating income was $216.2 million against $163.6 million. Second-quarter operating income was $250.3 million. Source
Copper averaged $4.83 per pound: COMEX copper averaged $4.83 per pound in the quarter, against $4.72 in the second quarter. The release describes this as a 14.3 percent increase over the prior period. Source
Residential softness and imports weighed: Management cited softness in residential construction and an influx of imported products ahead of escalating tariffs as pressure on unit volumes in several businesses. Source
Operating cash flow was $310.1 million: Net cash generated from operations was $310.1 million, against $190.6 million in the second quarter. Nine-month operating cash flow was $614.2 million against $505.8 million. Source
Cash balance $1.3 billion, no debt: The cash balance was $1.3 billion at quarter end and the company has no debt. The current ratio was 4.8 to 1, against 4.9 to 1 in the second quarter. Source
Accelerated U.S. onshoring plans: Management said it has accelerated plans to increase U.S. manufacturing capability and onshore some of its own manufacturing. The second-quarter release did not mention onshoring. Source

“Amidst these challenges, our team once again delivered an excellent quarter.”
Greg Christopher, Mueller’s CEO

Guidance

Area	Period	Figure	Against last quarter
Effective income tax rate Source	fiscal year 2025 (annualized)	25 percent

What changed from last quarter

New: Accelerated plans to increase U.S. manufacturing capability and onshore some own manufacturing. The second-quarter release did not mention onshoring. Source

Results and growth drivers

Net sales rose on higher prices: Net sales were $1.08 billion against $997.8 million. The release attributes the rise mainly to higher selling prices from raw material costs, along with better sales in some businesses. Source
Operating and net income increased: Operating income was $276.1 million against $206.7 million. Net income attributable to Mueller Industries was $208.1 million against $168.7 million. Source
Diluted EPS rose to $1.88: Diluted EPS was $1.88 against $1.48. Nine-month net sales were $3.22 billion against $2.85 billion, and nine-month diluted EPS was $5.48 against $4.10. Source
Sales and operating income eased: Compared with second-quarter 2025 net sales of $1.14 billion and operating income of $304.2 million, both were lower. Second-quarter operating income included a $36.3 million insurance gain.

Segments and operating income

Piping Systems led growth: Piping Systems net sales were $718.4 million against $653.9 million; operating income was $216.2 million against $163.6 million. Second-quarter operating income was $250.3 million. Source
Industrial Metals sales and profit higher: Industrial Metals net sales were $248.9 million against $238.0 million, and operating income was $30.9 million against $24.2 million. Second-quarter net sales were $270.6 million. Source
Climate sales and profit were lower: Climate net sales were $126.7 million against $128.5 million, and operating income was $38.9 million against $40.8 million. Second-quarter operating income was $42.6 million. Source
Unallocated costs were lower: Unallocated expenses were $9.9 million against $21.9 million. Intersegment sales eliminations were $16.2 million against $22.5 million, reducing reported net sales. Source

“Looking forward, we are highly optimistic about our business.”
Greg Christopher, Mueller’s CEO

Copper, costs and margins

Copper averaged $4.83 per pound: COMEX copper averaged $4.83 per pound in the quarter, against $4.72 in the second quarter. The release describes this as a 14.3 percent increase over the prior period. Source
Depreciation and amortization rose: Depreciation and amortization was $16.6 million against $11.7 million. Cost of goods sold was $738.1 million against $722.5 million, and selling, general and administrative expense was $61.7 million against $59.6 million. Source
Effective tax rate rose to 26 percent: The effective income tax rate was 26 percent against 23 percent in the prior-year quarter. Income tax expense was $73.9 million against $49.2 million. Source
Interest income and investment results: Interest income was $10.8 million against $11.1 million. Realized and unrealized short-term investment results were a $2.3 million loss, against a $0.2 million gain a year earlier. Source

Demand and unit volumes

Residential softness and imports weighed: Management cited softness in residential construction and an influx of imported products ahead of escalating tariffs as pressure on unit volumes in several businesses. Source
Plants run best when fully loaded: Management said its plants run most effectively when fully loaded, and expects greater production efficiencies from its extra capacity when demand rebounds. Source
Demand-rebound statement not repeated: The second-quarter release said demand would increase when interest rates are reduced. The third-quarter release does not repeat that statement.

“We have an excellent balance sheet and solid cash generating businesses.”
Greg Christopher, Mueller’s CEO

Insurance gains and one-time items

Insurance gain on ongoing claim: The release records a $4.9 million gain tied to an ongoing insurance claim. Nine-month insurance gains total $41.1 million, which includes the second-quarter tornado-related gain. Source
Asset disposal gains increased: Gains on disposal of assets were $11.9 million against $2.7 million, and $26.7 million for the nine months against $4.0 million. Source
Pension plan withdrawal expense recorded: Management said the withdrawal from a multiemployer pension plan produced a $4.8 million expense, shown on the income statement as pension plan termination expense. Source
Asset impairment charges recorded: The company recorded $2.0 million of asset impairment charges in the quarter; the prior-year quarter had none. Source

Cash, balance sheet and capital

Operating cash flow was $310.1 million: Net cash generated from operations was $310.1 million, against $190.6 million in the second quarter. Nine-month operating cash flow was $614.2 million against $505.8 million. Source
Cash balance $1.3 billion, no debt: The cash balance was $1.3 billion at quarter end and the company has no debt. The current ratio was 4.8 to 1, against 4.9 to 1 in the second quarter. Source
Capital spending lower, no acquisitions: Nine-month capital expenditures were $49.0 million against $51.3 million. No businesses were acquired in the nine months of 2025, against $602.7 million a year earlier. Source
Receivables fell from second quarter: Accounts receivable were $556.6 million at quarter end, against $592.6 million at second-quarter end. Inventories were $510.0 million against $511.7 million. Source

Shareholder returns

Dividends per share higher year on year: Dividends per share were $0.25 against $0.20 a year earlier, unchanged from the second quarter. Nine-month dividends paid to stockholders were $81.7 million against $66.8 million. Source
Nine-month repurchases unchanged from six months: Repurchases of common stock were $243.6 million for the nine months, the same figure as the six-month total in the second-quarter release. The prior nine-month figure was $48.7 million. Source
Diluted share count lower: Adjusted weighted average diluted shares were 110.9 million against 113.8 million a year earlier. Source

Tariffs, onshoring and strategy

Accelerated U.S. onshoring plans: Management said it has accelerated plans to increase U.S. manufacturing capability and onshore some of its own manufacturing. The second-quarter release did not mention onshoring. Source
Management believes tariffs will benefit: Management said heightened tariffs will ultimately benefit the business, since a small percentage of its products are manufactured overseas for U.S. import. Source
Second-quarter growth platform not restated: The second-quarter release named water infrastructure, HVAC/R and electrical transmission as three growth areas. The third-quarter release does not repeat that statement.

Coming up, as management said on 21 October 2025

Long-term focus with care and patience: The CEO said the company will keep a long-term focus and pursue growth and expansion with care and patience. Source

Risks management discussed

Demand: Management said residential softness and imports pressured unit volumes in several businesses. The release does not give a timetable for recovery. Source
Regulatory: Tariffs were raised as a factor in the quarter, and imports were brought in ahead of their escalation. Source
Financial: Management described the multiemployer pension plan withdrawal as a $4.8 million expense; the release gives no further detail. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Mueller Industries, Inc. Reports Third Quarter 2025 Earnings

COLLIERVILLE, Tenn., October 21, 2025 -- Mueller Industries, Inc. (NYSE: MLI) announces results for the third quarter of 2025. Comparisons are to the third quarter of 2024.

Net Income of $208.1 million versus $168.7 million
Operating Income of $276.1 million versus $206.7 million
Net Sales of $1.08 billion versus $997.8 million
Diluted EPS of $1.88 versus $1.48

Third Quarter Financial and Operating Highlights:

COMEX copper averaged $4.83 per pound during the quarter, which represents a 14.3 percent increase over the prior period.
The quarter over quarter increase in net sales was primarily attributable to higher selling prices related to a rise in raw material costs, as well as improved sales performance in certain of our businesses.
Earnings before taxes included an $11.9 million gain on the sale of assets, and a $4.9 million gain in connection with an ongoing insurance claim. These gains were offset by a $4.8 million expense related to our withdrawal from a multiemployer pension plan, and $2.0 million of impairment charges.
The effective income tax rate was 26 percent compared to 23 percent in the prior year period. The annualized effective tax rate for fiscal year 2025 is expected to be consistent with the prior year rate of 25 percent.
Net cash generated from operations was $310.1 million.
Our cash balance was $1.3 billion at quarter end, and we have no debt. Our current ratio remains strong at 4.8 to 1.

Regarding the quarter performance and outlook, Greg Christopher, Mueller’s CEO said, “Softness in residential construction, combined with an influx of imported products ahead of escalating tariffs, exerted downward pressure on unit volumes in several of our businesses. Amidst these challenges, our team once again delivered an excellent quarter.

Looking forward, we are highly optimistic about our business. Our plants operate most effectively when fully loaded. Given our additional capacity, we therefore expect to benefit from even greater production efficiencies when demand rebounds. As for heightened tariffs, we maintain our belief that they will ultimately benefit our business as we manufacture just a small percentage of our products overseas for importation into the U.S. market. Nonetheless, we have accelerated plans to increase our manufacturing capabilities in the U.S., onshore some of our own manufacturing and otherwise enhance our ability to respond to growing calls for domestically produced products.”

He added, “We have an excellent balance sheet and solid cash generating businesses. We will continue to operate with a long-term focus, and to pursue growth and expansion opportunities with care and patience.”

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; electrical transmission; medical; aerospace; and automotive. It includes a network of companies and brands throughout North America, Europe, Asia, and the Middle East.

*********************

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.

CONTACT Jeffrey A. Martin (901) 753-3226

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	For the Quarter Ended				For the Nine Months Ended
(In thousands, except per share data)	September 27, 2025		September 28, 2024		September 27, 2025		September 28, 2024
Net sales	$1,077,824		$997,831		$3,216,162		$2,845,230
Cost of goods sold		738,148		722,469		2,251,527		2,056,162
Depreciation and amortization		16,607		11,710		51,635		30,897
Selling, general, and administrative expense		61,657		59,619		192,238		161,993
Gain on disposal of assets, net	(11,852)		(2,667)		(26,654)		(3,953)
Asset impairments	2,018		-		2,018		-
Gain on insurance proceeds	(4,869)		-		(41,147)		-
Operating income		276,115		206,700		786,545		600,131
Interest expense	(6)		(113)		(48)		(335)
Interest income	10,822		11,145		28,945		42,773
Realized and unrealized (losses) gains on short-term investments	(2,277)		164		5,925		529
Pension plan termination expense	(4,830)		-		(4,830)		-
Other income (expense), net	627		(122)		(423)		(848)
Income before income taxes		280,451	217,774			816,114	642,250
Income tax expense	(73,904)		(49,188)		(204,236)		(159,406)
Income (loss) from unconsolidated affiliates, net of foreign tax	3,701		3,197		6,140		(5,905)
Consolidated net income	210,248		171,783		618,018		476,939
Net income attributable to noncontrolling interests	(2,125)		(3,084)		(6,539)		(9,712)
Net income attributable to Mueller Industries, Inc.	$208,123		$168,699		$611,479		$467,227
Weighted average shares for basic earnings per share		109,114		111,363		109,533		111,332
Effect of dilutive stock-based awards		1,816		2,412		2,115		2,635
Adjusted weighted average shares for diluted earnings per share		110,930		113,775		111,648		113,967
Basic earnings per share	$1.91		$1.51		$5.58		$4.20
Diluted earnings per share	$1.88		$1.48		$5.48		$4.10
Dividends per share	$0.25		$0.20		$0.75		$0.60

	For the Quarter Ended				For the Nine Months Ended
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED
(Unaudited)
(In thousands)	September 27, 2025		September 28, 2024		September 27, 2025		September 28, 2024
Summary Segment Data:
Net sales:
Piping Systems Segment	$718,404		$653,884		$2,101,562		$1,932,521
Industrial Metals Segment		248,939		238,014		771,450		589,422
Climate Segment		126,665		128,482		387,287		375,824
Elimination of intersegment sales	(16,184)		(22,549)		(44,137)		(52,537)
Net sales	$1,077,824		$997,831		$3,216,162		$2,845,230
Operating income:
Piping Systems Segment	$216,159		$163,601		$624,619		$468,539
Industrial Metals Segment		30,928		24,197		91,622		78,161
Climate Segment		38,900		40,768		117,152		112,336
Unallocated income (expenses)	(9,872)		(21,866)		(46,848)		(58,905)
Operating income	$276,115		$206,700		$786,545		$600,131

CONDENSED CONSOLIDATED BALANCE SHEETS

	(Unaudited)
(In thousands)	September 27, 2025		December 28, 2024
ASSETS
Cash and cash equivalents	$1,261,130		$1,037,229
Short-term investments		54,432		21,874
Accounts receivable, net		556,632		450,113
Inventories		510,012		462,279
Other current assets		45,938		40,734
Total current assets		2,428,144		2,012,229
Property, plant, and equipment, net		530,702		515,131
Operating lease right-of-use assets		28,616	32,702
Other assets		708,861		730,844
Total assets	$3,696,323		$3,290,906
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of debt	$ -		$1,094
Accounts payable		187,561		173,743
Current portion of operating lease liabilities	8,387		8,117
Other current liabilities		307,298		215,033
Total current liabilities		503,246		397,987
Pension and postretirement liabilities		8,789		11,199
Environmental reserves		15,147		15,423
Deferred income taxes		37,878		25,742
Noncurrent operating lease liabilities		20,555	24,547
Other noncurrent liabilities		15,126		11,600
Total liabilities		600,741		486,498
Total Mueller Industries, Inc. stockholders’ equity	3,069,931			2,773,165
Noncontrolling interests	25,651			31,243
Total equity	3,095,582			2,804,408
Total liabilities and equity	$3,696,323		$3,290,906

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Nine Months Ended
(In thousands)	September 27, 2025	September 28, 2024
Cash flows from operating activities
Consolidated net income	$618,018	$476,939
Reconciliation of consolidated net income to net cash provided by operating activities:
Depreciation and amortization	51,635	31,140
Stock-based compensation expense	20,328	19,956
Provision for doubtful accounts receivable	67	(262)
(Income) loss from unconsolidated affiliates	(6,140)	5,905
Dividends from unconsolidated affiliates	5,440	4,130
Insurance proceeds - noncapital related	15,469	15,000
Gain on disposals of properties	(26,654)	(3,953)
Unrealized gains on short-term investments	(5,925)	(164)
Gain on sales of securities	-	(365)
Impairment charges	2,018	-
Gain on insurance proceeds	(41,147)	-
Deferred income tax expense	10,627	1,837
Changes in assets and liabilities, net of effects of businesses acquired:
Receivables	(100,830)	(99,281)
Inventories	(40,669)	34,027
Other assets	(8,756)	(3,175)
Current liabilities	120,796	25,303
Other liabilities	286	(2,467)
Other, net	(330)	1,217
Net cash provided by operating activities	$614,233	$505,787
Cash flows from investing activities
Capital expenditures	$(48,982)	$(51,288)
Acquisition of businesses, net of cash acquired	-	(602,692)
Investments in unconsolidated affiliates	-	(8,700)
Insurance proceeds - capital related	4,531	-
Purchase of short-term investments	(26,633)	(4,285)
Purchase of long-term investments	(781)	(7,976)
Proceeds from the sale of securities	-	98,465
Issuance of notes receivable with unconsolidated affiliates	-	(3,800)
Proceeds from sales of properties	38,478	9,026
Investment received from noncontrolling interests	600	-
Net cash used in investing activities	$(32,787)	$(571,250)

	For the Nine Months Ended
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)	September 27, 2025	September 28, 2024
Cash flows from financing activities
Dividends paid to stockholders of Mueller Industries, Inc.	$(81,723)	$(66,796)
Repurchase of common stock	(243,615)	(48,681)
Repayments of debt	(185)	(167)
Issuance of debt by consolidated joint ventures, net	-	144
Net cash used to settle stock-based awards	(29,528)	(22,946)
Dividends paid to noncontrolling interests	(12,240)	-
Net cash used in financing activities	$(367,291)	$(138,446)
Effect of exchange rate changes on cash	9,836	(4,709)
Increase (decrease) in cash, cash equivalents, and restricted cash	223,991	(208,618)
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	$1,262,886	$965,605