Mueller Industries Inc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 3 February 2026: press release. The quarter’s numbers.

Key takeaways

Full-year operating income up 24.4%: Full-year operating income was $958.5 million against $770.4 million, up 24.4%. Source
Full-year diluted EPS rose to $6.86: Full-year net income was $765.2 million, up 26.5%, and diluted EPS was $6.86 against $5.31, up 29.2%. Source
Copper averaged $5.13 per pound: COMEX copper averaged $5.13 per pound in the quarter, 22% above the prior-year period. Source
No abrupt rebound expected in 2026: Management does not expect market conditions to rebound abruptly in 2026. Source
Hedge loss reduced fourth-quarter gross margin: An $18.2 million unrealized loss on open hedge contracts reduced gross margin. Management ties it to a rapid copper price rise in the last two weeks of the quarter. Source
Fourth-quarter operating cash of $141.2 million: Fourth-quarter cash from operations was $141.2 million. Full-year net cash provided by operating activities was $755.4 million. Source

“Our fourth quarter capped a year in which every quarter marked an improvement over the prior year period.”
Greg Christopher, Chief Executive Officer

What changed from last quarter

New: Management says the company has absorbed the impact of tariff and trade policy changes and will keep adapting as those policies evolve. The prior-quarter release had cited tariff-related imports as pressure on unit volumes. Source

Full-year and fourth-quarter results

Full-year operating income up 24.4%: Full-year operating income was $958.5 million against $770.4 million, up 24.4%. Source
Full-year diluted EPS rose to $6.86: Full-year net income was $765.2 million, up 26.5%, and diluted EPS was $6.86 against $5.31, up 29.2%. Source
Full-year net sales up 10.5%: Full-year net sales were $4.2 billion against $3.8 billion, up 10.5%. Source
Fourth-quarter sales and operating income rose: Fourth-quarter net sales were $962.4 million, up 4.2%, and operating income was $172.0 million, up 1.0%. Source
Fourth-quarter net income and EPS rose: Fourth-quarter net income was $153.7 million, up 11.6%, and diluted EPS was $1.38 against $1.21, up 14.0%. Source

Segment results

Piping Systems full-year profit higher: Piping Systems full-year operating income was $772.3 million against $617.5 million. Fourth-quarter operating income was $147.7 million against $148.9 million. Source
Industrial Metals sales and profit higher: Industrial Metals net sales were $252.2 million in the quarter against $229.0 million, and $1,023.6 million for the year against $818.4 million. Full-year operating income was $105.0 million against $92.6 million. Source
Climate operating income lower: Climate net sales were $110.6 million in the quarter against $112.6 million, and operating income was $27.9 million against $33.7 million. Full-year operating income was $145.1 million against $146.1 million. Source
Unallocated expenses declined: Unallocated expenses were $17.0 million in the quarter against $26.8 million, and $63.9 million for the year against $85.7 million. Source

“Those results culminated in the highest annual operating and net income in our Company’s history”
Greg Christopher, Chief Executive Officer

Copper prices, volumes and demand

Copper averaged $5.13 per pound: COMEX copper averaged $5.13 per pound in the quarter, 22% above the prior-year period. Source
Higher prices offset lower volumes: Fourth-quarter net sales rose $38.9 million on higher net selling prices tied to raw material costs. Unit volumes were lower, mainly in core copper and brass products. Source
Market conditions worsened versus 2024: Management said market conditions in 2025 worsened compared with 2024. Source
No abrupt rebound expected in 2026: Management does not expect market conditions to rebound abruptly in 2026. Source

Costs, margins and hedging

Hedge loss reduced fourth-quarter gross margin: An $18.2 million unrealized loss on open hedge contracts reduced gross margin. Management ties it to a rapid copper price rise in the last two weeks of the quarter. Source
Selling and D&A costs lower in quarter: Fourth-quarter SG&A was $56.4 million against $64.7 million, and depreciation and amortization was $16.9 million against $22.2 million. Source
Full-year insurance gain recorded: Full-year results include a $41.1 million gain on insurance proceeds. Source
Income tax expense higher for year: Full-year income tax expense was $247.4 million against $205.1 million. Fourth-quarter expense was $43.1 million against $45.7 million. Source

“We have a strong balance sheet, no debt and the necessary capital not only to support these priorities, but also to pursue strategic acquisition opportunities when they arise.”
Greg Christopher, Chief Executive Officer

Cash, capital and shareholder returns

Fourth-quarter operating cash of $141.2 million: Fourth-quarter cash from operations was $141.2 million. Full-year net cash provided by operating activities was $755.4 million. Source
Year-end cash near $1.39 billion: Year-end cash and short-term investments totaled $1.39 billion, with a current ratio of 5.9 to 1. Source
Share repurchases rose to $243.6 million: Repurchases of common stock were $243.6 million for the year, against $48.7 million a year earlier. Source
Dividends per share raised: Dividends per share were $0.25 in the fourth quarter against $0.20, and $1.00 for the year against $0.80. Source

Investment and capital spending

Capital expenditures lower for year: Full-year capital expenditures were $68.8 million against $80.2 million. Source
No acquisitions in 2025: No businesses were acquired in 2025. The 2024 figure was $602.7 million of acquisitions, net of cash acquired. Source
Investments in affiliates higher: Investments in unconsolidated affiliates were $17.9 million for the year, against $8.7 million. Source

Coming up, as management said on 3 February 2026

Improvement expected as 2026 progresses: Management anticipates considerable improvements as 2026 progresses. Source

Risks management discussed

Regulatory: Management cites disruption and costs from tariffs imposed on several of its businesses. Source
Financial: Open hedge contracts carried an unrealized loss when copper prices rose quickly in the final weeks of the quarter. Source

Earlier plans management reported on

Met: Management says it completed several operational improvement initiatives this past year, expected to deliver benefits in 2026. 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 Fiscal 2025 Fourth Quarter and Full Year Results

COLLIERVILLE, Tenn., February 3, 2026 -- Mueller Industries, Inc. (NYSE: MLI) today reported fourth quarter and full year results for 2025.

For the Fourth Quarter 2025 versus Fourth Quarter 2024:

Net sales: $962.4 million vs. $923.5 million, up 4.2%.
Operating income: $172.0 million vs. $170.3 million, up 1.0%.
Net income: $153.7 million vs. $137.7 million, up 11.6%.
Diluted EPS: $1.38 vs. $1.21, up 14.0%.

For the Full Year 2025 versus the Full Year 2024:

Net sales: $4.2 billion vs. $3.8 billion, up 10.5%.
Operating income: $958.5 million vs. $770.4 million, up 24.4%.
Net income: $765.2 million vs. $604.9 million, up 26.5%.
Diluted EPS: $6.86 vs. $5.31, up 29.2%.

Financial and Operating Commentary for the Fourth Quarter of 2025:

COMEX copper averaged $5.13 per pound during the quarter, 22% higher than the prior year period.
Net sales increased by $38.9 million. The increase was attributable to higher net selling prices due to rising raw material costs, but offset by lower unit volumes, primarily in our core copper and brass products.
Gross margin was impacted by an $18.2 million unrealized loss recorded on open hedge contracts, which resulted from the rapid rise in copper prices during the last two weeks of the quarter.
The Company generated $141.2 million of cash from operations during the fourth quarter.
Year-end cash and short-term investments totaled $1.39 billion, and our current ratio is 5.9 to 1.

Regarding the results, Greg Christopher, Mueller’s CEO said, “Our fourth quarter capped a year in which every quarter marked an improvement over the prior year period. Those results culminated in the highest annual operating and net income in our Company’s history, a particularly noteworthy achievement given that market conditions worsened compared to 2024, not to mention the disruption and costs that tariffs imposed on several of our businesses.”

He added, “We remain excited about our Company’s future. Although we do not expect market conditions to abruptly rebound in 2026, we nonetheless anticipate considerable improvements as the year progresses. This past year, we completed several operational improvement initiatives that will deliver financial benefits in 2026. We have absorbed the impact of changes in tariff and trade policies, and will continue to adapt as such policies evolve. Moreover, we continue to have opportunities to invest in and improve each of our business platforms. We have a strong balance sheet, no debt and the necessary capital not only to support these priorities, but also to pursue strategic acquisition opportunities when they arise.”

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.

CONTACT Jeffrey A. Martin (901) 753-3226

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	For the Quarter Ended				For the Year Ended
(In thousands, except per share data)	December 27, 2025		December 28, 2024		December 27, 2025		December 28, 2024
Net sales	$962,385		$923,536		$4,178,547		$3,768,766
Cost of goods sold		714,556		668,166		2,966,083		2,724,328
Depreciation and amortization		16,926		22,236		68,561		53,133
Selling, general, and administrative expense		56,413		64,703		248,651		226,696
Loss (gain) on disposal of assets, net	776		(1,827)		(25,878)		(5,780)
Impairment charges	1,717		-		3,735		-
Gain on insurance proceeds	-		-		(41,147)		-
Operating income		171,997		170,258		958,542		770,389
Interest expense	(60)		(75)		(108)		(410)
Interest income	12,123		10,695		41,068		53,468
Realized and unrealized gains on short-term investments	12,622		385		18,547		914
Gain on extinguishment of NMTC liability	-		1,265		-		1,265
Environmental expense	(847)		(542)		(2,151)		(2,218)
Pension plan termination expense	-		-		(4,830)		-
Other income (expense), net	413		(3,774)		1,294		(2,946)
Income before income taxes		196,248	178,212			1,012,362	820,462
Income tax expense	(43,115)		(45,670)		(247,351)		(205,076)
Income from unconsolidated affiliates, net of foreign tax	2,439		8,061		8,579		2,156
Consolidated net income	155,572		140,603		773,590		617,542
Net income attributable to noncontrolling interests	(1,860)		(2,951)		(8,399)		(12,663)
Net income attributable to Mueller Industries, Inc.	$153,712		$137,652		$765,191		$604,879
Weighted average shares for basic earnings per share		109,302		111,545		109,475		111,385
Effect of dilutive stock-based awards		1,721		2,415		2,017		2,580
Adjusted weighted average shares for diluted earnings per share		111,023		113,960		111,492		113,965
Basic earnings per share	$1.41		$1.23		$6.99		$5.43
Diluted earnings per share	$1.38		$1.21		$6.86		$5.31
Dividends per share	$0.25		$0.20		$1.00		$0.80

CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED

(Unaudited)

	For the Quarter Ended				For the Year Ended
(In thousands)	December 27, 2025		December 28, 2024		December 27, 2025		December 28, 2024
Summary Segment Data:
Net sales:
Piping Systems Segment	$607,165		$592,834		$2,708,727		$2,514,096
Industrial Metals Segment		252,179		229,017		1,023,629		818,439
Climate Segment		110,642		112,622		497,929		488,446
Elimination of intersegment sales	(7,601)		(10,937)		(51,738)		(52,215)
Net sales	$962,385		$923,536		$4,178,547		$3,768,766
Operating income:
Piping Systems Segment	$147,697		$148,912		$772,316		$617,451
Industrial Metals Segment		13,426		14,399		105,048		92,560
Climate Segment		27,901		33,718		145,053		146,054
Unallocated expenses	(17,027)		(26,771)		(63,875)		(85,676)
Operating income	$171,997		$170,258		$958,542		$770,389

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)	December 27, 2025		December 28, 2024
ASSETS
Cash and cash equivalents	$1,367,003		$1,037,229
Short-term investments		22,733		21,874
Accounts receivable, net		475,566		450,113
Inventories		510,463		462,279
Other current assets		69,980		40,734
Total current assets		2,445,745		2,012,229
Property, plant, and equipment, net		536,466		515,131
Operating lease right-of-use assets		27,211	32,702
Other assets		723,607		730,844
	$3,733,029		$3,290,906
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of debt	$ -		$1,094
Accounts payable		180,577		173,743
Current portion of operating lease liabilities		8,520	8,117
Other current liabilities		224,037		215,033
Total current liabilities		413,134		397,987
Pension and postretirement liabilities		8,393		11,199
Environmental reserves		15,684		15,423
Deferred income taxes		31,640		25,742
Noncurrent operating lease liabilities		18,970	24,547
Other noncurrent liabilities		9,302		11,600
Total liabilities		497,123		486,498
Total Mueller Industries, Inc. stockholders’ equity	3,209,966			2,773,165
Noncontrolling interests	25,940			31,243
Total equity	3,235,906			2,804,408
	$3,733,029		$3,290,906

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Year Ended
(In thousands)	December 27, 2025	December 28, 2024
Cash flows from operating activities
Consolidated net income	$773,590	$617,542
Reconciliation of consolidated net income to net cash provided by operating activities:
Depreciation and amortization	68,561	53,376
Stock-based compensation expense	26,764	26,787
Provision for doubtful accounts receivable	143	1,147
Income from unconsolidated affiliates	(8,579)	(2,156)
Dividends from unconsolidated affiliates	6,824	4,769
Unrealized gains on short-term investments	(1,852)	(549)
Gain on disposals of assets, net	(25,878)	(5,780)
Insurance proceeds - noncapital related	15,469	18,900
Gain on sale of securities	(16,695)	(365)
Gain on insurance proceeds	(41,147)	-
Impairment charges	3,735	-
Gain on extinguishment of NMTC liability	-	(1,265)
Deferred income tax expense (benefit)	6,565	(867)
Change in fair value of contingent consideration	(4,636)	-
Changes in assets and liabilities, net of effects of businesses acquired:
Receivables	(19,093)	(56,565)
Inventories	(40,428)	(32,768)
Other assets	(16,377)	(1,046)
Current liabilities	35,078	24,360
Other liabilities	(5,363)	(1,145)
Other, net	(1,237)	1,533
Net cash provided by operating activities	$755,444	$645,908
Cash flows from investing activities
Proceeds from sale of assets, net of cash transferred	$38,508	$12,005
Purchase of short-term investments	(70,748)	(21,325)
Purchase of long-term investments	(781)	(6,785)
Proceeds from the sale of securities	88,436	98,465
Acquisition of businesses, net of cash acquired	-	(602,692)
Capital expenditures	(68,805)	(80,203)
Insurance proceeds - capital related	4,531	6,100
Payment received for (issuance of) notes receivable with unconsolidated affiliates	1,250	(3,800)
Investment received from noncontrolling interests	600	-
Investments in unconsolidated affiliates	(17,902)	(8,700)
Net cash used in investing activities	$(24,911)	$(606,935)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED

(Unaudited)

	For the Year Ended
(In thousands)	December 27, 2025	December 28, 2024
Cash flows from financing activities
Dividends paid to stockholders of Mueller Industries, Inc.	$(109,050)	$(89,107)
Dividends paid to noncontrolling interests	(12,240)	-
Repayments of long-term debt	(185)	(222)
Issuance of debt by consolidated joint ventures, net	-	397
Repurchase of common stock	(243,615)	(48,681)
Net cash used to settle stock-based awards	(29,528)	(22,865)
Net cash used in financing activities	$(394,618)	$(160,478)
Effect of exchange rate changes on cash	10,347	(13,823)
Increase (decrease) in cash, cash equivalents, and restricted cash	346,262	(135,328)
Cash, cash equivalents, and restricted cash at the beginning of the year	1,038,895	1,174,223
Cash, cash equivalents, and restricted cash at the end of the year	$1,385,157	$1,038,895