Mueller Industries Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 20 October 2026: press release. The quarter’s numbers.

Key takeaways

Net sales rose on volume and price: Net sales were $1.42 billion versus $1.08 billion, slightly below the second quarter's $1.43 billion. Management attributed the increase to unit volume growth and price adjustments. Source
Net income and diluted EPS higher: Net income attributable to Mueller was $221.2 million versus $208.1 million. Diluted EPS was $1.00 versus $0.94, adjusted for the June 30, 2026 two-for-one stock split. Source
Industrial Metals sales up 64 percent: Industrial Metals sales were $409.4 million versus $248.9 million, with operating income of $33.7 million versus $30.9 million. Second-quarter sales were $355.0 million. Source
Piping Systems sales and profit rose: Piping Systems sales were $890.6 million versus $718.4 million. Operating income was $225.3 million versus $216.2 million, below $248.3 million in the second quarter. Source
Copper averaged $6.48 per pound: COMEX copper averaged $6.48 per pound, up 34.2 percent from the prior-year period and from $6.16 per pound in the second quarter. Source
Gross margin narrowed year on year: Net sales less cost of goods sold was $361.4 million, about 25.5 percent of sales, versus $339.7 million or 31.5 percent a year earlier. Figures derived from reported lines. Source
Operating cash flow and cash balance: Operating cash generated in the quarter was $337.0 million. Cash and short-term investments reached $1.48 billion at quarter end, up from $1.42 billion. Source
Quarterly buybacks of 3.2 million shares: The company bought back 3.2 million shares for $201.9 million in the quarter. Year to date it has purchased 4.5 million shares. Source

“For the ninth consecutive quarter, we delivered year over year earnings growth driven by stronger performance across all three of our business segments.”
Greg Christopher, Mueller's CEO

What changed from last quarter

New: Quarterly share repurchases were reported: 3.2 million shares for $201.9 million. The second-quarter release gave no quarterly repurchase figure. Source

Results and growth drivers

Net sales rose on volume and price: Net sales were $1.42 billion versus $1.08 billion, slightly below the second quarter's $1.43 billion. Management attributed the increase to unit volume growth and price adjustments. Source
Net income and diluted EPS higher: Net income attributable to Mueller was $221.2 million versus $208.1 million. Diluted EPS was $1.00 versus $0.94, adjusted for the June 30, 2026 two-for-one stock split. Source
Operating income rose slightly: Operating income was $281.6 million versus $276.1 million, down from $310.0 million in the second quarter. Source
Nine-month sales and EPS higher: Nine-month net sales were $4.04 billion versus $3.22 billion, operating income $903.8 million versus $786.5 million, and diluted EPS $3.21 versus $2.74. Source
Nine-month gain on business sale: The nine-month figures include a $41.4 million gain on sale of business. No such gain appears in the third quarter. Source

Segment results

Industrial Metals sales up 64 percent: Industrial Metals sales were $409.4 million versus $248.9 million, with operating income of $33.7 million versus $30.9 million. Second-quarter sales were $355.0 million. Source
Piping Systems sales and profit rose: Piping Systems sales were $890.6 million versus $718.4 million. Operating income was $225.3 million versus $216.2 million, below $248.3 million in the second quarter. Source
Climate segment profit higher: Climate sales were $142.8 million versus $126.7 million. Operating income was $46.3 million versus $38.9 million. Source
Unallocated expenses more than doubled: Unallocated expenses were $23.7 million versus $9.9 million. The release does not give a reason for the increase. Source

“Throughout the quarter, demand remained healthy and backlogs grew in each segment, largely propelled by U.S. data center expansions and other commercial building activities.”
Greg Christopher, Mueller's CEO

Copper, costs and margins

Copper averaged $6.48 per pound: COMEX copper averaged $6.48 per pound, up 34.2 percent from the prior-year period and from $6.16 per pound in the second quarter. Source
Gross margin narrowed year on year: Net sales less cost of goods sold was $361.4 million, about 25.5 percent of sales, versus $339.7 million or 31.5 percent a year earlier. Figures derived from reported lines. Source
Acquisition accounting charges recorded: The company recorded $9.4 million of charges related to purchase accounting for recent acquisitions. Source
Prior-year disposal gain not repeated: The prior-year third quarter included an $11.9 million gain on disposal of assets. This quarter shows no gain of that kind. Source

Cash, capital and shareholder returns

Operating cash flow and cash balance: Operating cash generated in the quarter was $337.0 million. Cash and short-term investments reached $1.48 billion at quarter end, up from $1.42 billion. Source
Quarterly buybacks of 3.2 million shares: The company bought back 3.2 million shares for $201.9 million in the quarter. Year to date it has purchased 4.5 million shares. Source
Dividend per share $0.175: Dividends per share were $0.175, unchanged from the second quarter and up from $0.125 a year earlier. Source
Capital spending and acquisition cash: Nine-month capital expenditures were $60.8 million versus $49.0 million. Acquisitions used $135.8 million of cash net of cash acquired. Source
Current ratio 4.4 to 1: The current ratio was 4.4 to 1, down from 4.8 to 1 in the second quarter. Source
Diluted share count lower: Average diluted shares were 220.1 million for the quarter, versus 221.9 million a year earlier. Source

“These results are particularly noteworthy given the protracted decline in the residential construction market.”
Greg Christopher, Mueller's CEO

Strategy and investment

Reshoring and North American investment: Management listed investments in North American manufacturing to reduce costs and reshore production as strategic priorities. Source
Product and distribution initiatives: Management also cited initiatives to increase product offerings and expand distribution capabilities across multiple business segments. Source
Two metals acquisitions completed earlier: The second-quarter release said Bison Metals closed March 30, 2026 and Chicago Extruded Metals closed June 12, 2026, both in core metals businesses.

Management view and demand

Management remains optimistic: Management said it remains optimistic while executing its key strategic priorities as 2026 nears its end. Source
Second-quarter demand comment: The second-quarter release said demand continued to strengthen in commercial, industrial and electrical markets.
Iran conflict and energy costs: The second-quarter release said management looked forward to a resolution of the Iran conflict, which would lower energy costs and reduce inflationary pressures.

Coming up, as management said on 20 October 2026

Positioned for residential recovery: Management said the company is positioned to benefit when US residential construction and global economic conditions improve. Source

Figures management reported

Figure	Reported
COMEX copper average price Source	$6.48 per pound, up 34.2% from the prior-year period

Risks management discussed

Demand: Management described the residential construction market as in protracted decline, which it cited as a condition behind these results. Source
External: Material cost increases required price adjustments, which management said the company manages relative to cost escalation. Source
Operational: Management is investing in North American manufacturing to reshore production as demand shifts between products and markets. Source

Earlier plans management reported on

Not stated: The second-quarter release said Bison and Chicago Extruded Metals were expected to contribute meaningfully near term. The third-quarter release does not report their contribution.
Not stated: The second-quarter release said initiatives under the 2030 strategic plan were being carried out. The third-quarter release does not give a status.

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 2026 Earnings

COLLIERVILLE, Tenn., October 20, 2026 -- Mueller Industries, Inc. (NYSE: MLI) announces results for the third quarter of 2026. Comparisons are to the third quarter of 2025.

Net Sales increased to $1.42 billion versus $1.08 billion.
Net Income increased to $221.2 million versus $208.1 million.
Operating Income increased to $281.6 million versus $276.1 million.
Diluted EPS* increased to $1.00 versus $0.94.
Dividends per share* increased to $.175 versus $.125.

* Diluted EPS and dividends per share have been adjusted to reflect the two-for-one stock split that took effect on 6/30/2026.

Third Quarter Financial and Operating Highlights:

COMEX copper averaged $6.48 per pound during the quarter, a 34.2 percent increase over the prior year period.
Unit volume growth across most of our businesses, combined with price adjustments related to the rise in material costs, contributed to the increase in net sales.
The results include $9.4 million in charges related to purchase accounting for recent acquisitions.
Net cash generated from operations was $337.0 million, raising our cash and short-term investments at quarter end to $1.48 billion.
During the quarter, we purchased 3.2 million shares of our common stock for a total of $201.9 million. Year-to-date, we have purchased 4.5 million shares.
Our current ratio remains strong at 4.4 to 1.

Regarding the results, Greg Christopher, Mueller’s CEO said, “For the ninth consecutive quarter, we delivered year over year earnings growth driven by stronger performance across all three of our business segments. Throughout the quarter, demand remained healthy and backlogs grew in each segment, largely propelled by U.S. data center expansions and other commercial building activities. These results are particularly noteworthy given the protracted decline in the residential construction market. Our team has done an excellent job adjusting to shifts in demand and mix, as well as managing price relative to cost escalation.”

Regarding the outlook, he added “As we approach the finish line for 2026 and look ahead, we remain optimistic as we execute on our key strategic priorities. These include investments in our North American manufacturing operations to reduce costs and reshore production to support shifting demand, along with initiatives to increase our product offerings and expand distribution capabilities across multiple business segments. These actions will keep us well-positioned to capitalize on opportunities when residential building construction recovers in the U.S. and global economic conditions improve.”

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 26, 2026		September 27, 2025		September 26, 2026		September 27, 2025
Net sales	$1,418,598		$1,077,824		$4,039,526		$3,216,162
Cost of goods sold		1,057,156		738,148		2,924,294		2,251,527
Depreciation and amortization		21,173		16,607		55,160		51,635
Selling, general, and administrative expense		63,048		61,657		197,683		192,238
(Gain) loss on disposal of assets, net	-		(11,852)		1,720		(26,654)
Gain on sale of business	-		-		(41,407)		-
Asset impairments	-		2,018		2,653		2,018
Gain on insurance proceeds	(4,352)		(4,869)		(4,352)		(41,147)
Operating income		281,573		276,115		903,775		786,545
Interest expense	(136)		(6)		(270)		(48)
Interest income	12,002		10,822		34,850		28,945
Unrealized gains (losses) on short-term investments	5,859		(2,277)		10,367		5,925
Pension plan termination expense	-		(4,830)		-		(4,830)
Other (expense) income, net	(62)		627		(2,421)		(423)
Income before income taxes		299,236	280,451			946,301	816,114
Income tax expense	(76,607)		(73,904)		(239,031)		(204,236)
Income from unconsolidated affiliates, net of foreign tax	1,688		3,701		8,723		6,140
Consolidated net income	224,317		210,248		715,993		618,018
Net income attributable to noncontrolling interests	(3,117)		(2,125)		(6,120)		(6,539)
Net income attributable to Mueller Industries, Inc.	$221,200		$208,123		$709,873		$611,479
Weighted average shares for basic earnings per share		216,988		218,228		217,530		219,066
Effect of dilutive stock-based awards		3,129		3,632		3,513		4,230
Adjusted weighted average shares for diluted earnings per share		220,117		221,860		221,043		223,296
Basic earnings per share	$1.02		$0.95		$3.26		$2.79
Diluted earnings per share	$1.00		$0.94		$3.21		$2.74
Dividends per share	$0.175		$0.125		$0.525		$0.375
Adjusted retroactively to reflect the two-for-one stock split that occurred on June 30, 2026.

	For the Quarter Ended				For the Nine Months Ended
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED
(Unaudited)
(In thousands)	September 26, 2026		September 27, 2025		September 26, 2026		September 27, 2025
Summary Segment Data:
Net sales:
Piping Systems Segment	$890,610		$718,404		$2,597,713		$2,101,562
Industrial Metals Segment		409,377		248,939		1,085,652		771,450
Climate Segment		142,827		126,665		411,544		387,287
Elimination of intersegment sales	(24,216)		(16,184)		(55,383)		(44,137)
Net sales	$1,418,598		$1,077,824		$4,039,526		$3,216,162
Operating income:
Piping Systems Segment	$225,260		$216,159		$690,616		$624,619
Industrial Metals Segment		33,713		30,928		120,771		91,622
Climate Segment		46,270		38,900		122,232		117,152
Unallocated expenses	(23,670)		(9,872)		(29,844)		(46,848)
Operating income	$281,573		$276,115		$903,775		$786,545

CONDENSED CONSOLIDATED BALANCE SHEETS

	(Unaudited)
(In thousands)	September 26, 2026		December 27, 2025
ASSETS
Cash and cash equivalents	$1,447,799		$1,367,003
Short-term investments		33,100		22,733
Accounts receivable, net		723,993		475,566
Inventories		621,390		510,463
Other current assets		53,215		69,980
Total current assets		2,879,497		2,445,745
Property, plant, and equipment, net		602,787		536,466
Operating lease right-of-use assets		21,066	27,211
Other assets		794,244		723,607
Total assets	$4,297,594		$3,733,029
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable	$297,923		$180,577
Current portion of operating lease liabilities	8,181		8,520
Other current liabilities		349,488		224,037
Total current liabilities		655,592		413,134
Long-term debt		5,243		-
Pension and postretirement liabilities		8,748		8,393
Environmental reserves		15,758		15,684
Deferred income taxes		46,345		31,640
Noncurrent operating lease liabilities		13,097	18,970
Other noncurrent liabilities		10,493		9,302
Total liabilities		755,276		497,123
Total Mueller Industries, Inc. stockholders’ equity	3,511,451			3,209,966
Noncontrolling interests	30,867			25,940
Total equity	3,542,318			3,235,906
Total liabilities and equity	$4,297,594		$3,733,029

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Nine Months Ended
(In thousands)	September 26, 2026	September 27, 2025
Cash flows from operating activities
Consolidated net income	$715,993	$618,018
Reconciliation of consolidated net income to net cash provided by operating activities:
Depreciation and amortization	55,160	51,635
Stock-based compensation expense	23,307	20,328
Provision for credit losses	802	67
Income from unconsolidated affiliates	(8,723)	(6,140)
Dividends from unconsolidated affiliates	5,701	5,440
Insurance proceeds - noncapital related	-	15,469
Loss (gain) on disposals of assets, net	1,720	(26,654)
Gain on sale of business	(41,407)	-
Unrealized gains on short-term investments	(10,367)	(5,925)
Impairment charges	2,653	2,018
Gain on insurance proceeds	(4,352)	(41,147)
Deferred income tax expense	17,282	10,627
Changes in assets and liabilities, net of effects of businesses acquired and sold:
Receivables	(253,596)	(100,830)
Inventories	(95,916)	(40,669)
Other assets	3,466	(8,756)
Current liabilities	219,818	120,796
Other liabilities	1,376	286
Other, net	(3,952)	(330)
Net cash provided by operating activities	$628,965	$614,233
Cash flows from investing activities
Capital expenditures	$(60,764)	$(48,982)
Acquisition of business, net of cash acquired	(135,752)	-
Proceeds from sale of business, net of cash sold	57,004	-
Insurance proceeds - capital related	4,352	4,531
Purchase of short-term investments	-	(26,633)
Purchase of long-term investments	(5,834)	(781)
Proceeds from sales of assets	62	38,478
Other	-	600
Net cash used in investing activities	$(140,932)	$(32,787)

	For the Nine Months Ended
MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)	September 26, 2026	September 27, 2025
Cash flows from financing activities
Dividends paid to stockholders of Mueller Industries, Inc.	$(113,869)	$(81,723)
Repurchase of common stock	(278,297)	(243,615)
Repayments of debt	-	(185)
Net cash used to settle stock-based awards	(24,882)	(29,528)
Dividends paid to noncontrolling interests	(5,051)	(12,240)
Other	3,100	-
Net cash used in financing activities	$(418,999)	$(367,291)
Effect of exchange rate changes on cash	(4,214)	9,836
Increase in cash, cash equivalents, and restricted cash	64,820	223,991
Cash, cash equivalents, and restricted cash at the beginning of the period	1,385,157	1,038,895
Cash, cash equivalents, and restricted cash at the end of the period	$1,449,977	$1,262,886