Mueller Water Products Inc (MWA) 2025 Q4 法說會逐字稿

Good morning, and thank you for standing by. (Operator Instructions) Today's conference is being recorded. If you have any objections, you may disconnect at this time. It is now my pleasure to turn the call over to Whit Kincaid. Thank you, sir.

早上好，感謝您的耐心等待。（操作說明）今天的會議正在錄音。如果您有任何異議，可以立即斷開連接。現在我很高興將電話轉交給惠特·金凱德。謝謝您，先生。

You may begin.

你可以開始了。

Good morning, everyone. Thank you for joining us for Mueller Water Products fourth-quarter and fiscal 2025 conference call. Yesterday afternoon, we issued our press release reporting results of operations for the quarter and year-ended September 30, 2025. A copy of the press release is available on our website muellerwaterproducts.com. I am joined this morning by Martie Zakas, our Chief Executive Officer; Paul McAndrew, our President and Chief Operating Officer; and Melissa Rasmussen, our Chief Financial Officer.

各位早安。感謝您參加 Mueller Water Products 第四季及 2025 財政年度電話會議。昨天下午，我們發布了新聞稿，公佈了截至 2025 年 9 月 30 日的季度和年度經營業績。新聞稿全文可在我們的網站 muellerwaterproducts.com 上查閱。今天早上與我一同出席的有：執行長 Martie Zakas；總裁兼營運長 Paul McAndrew；以及財務長 Melissa Rasmussen。

Following our prepared remarks, we will address questions related to the information covered on the call. As a reminder, please keep to one question and a follow-up and then return to the queue. This morning's call is being recorded and webcast live on the Internet. We have also posted slides on our website to accompany today's discussion. They also address forward-looking statements and our non-GAAP disclosure requirements.

在宣讀完準備好的演講稿後，我們將回答與本次電話會議所涵蓋資訊相關的問題。再次提醒，請每次只提一個問題，然後提出後續問題，之後請返回佇列。今天上午的電話會議正在進行錄音，並透過網路進行現場直播。我們也在我們的網站上發布了與今天討論相關的幻燈片。它們還涉及前瞻性聲明和我們的非GAAP揭露要求。

At this time, please refer to slide 2. This slide identifies non-GAAP financial measures referenced in our press release, on our slides and on this call. It discloses the reasons why we believe that these measures provide useful information to investors. Reconciliations between non-GAAP and GAAP financial measures are included in the supplemental information within our press release and on our website. Slide 3 addresses forward-looking statements made on this call.

此時，請參考投影片 2。本投影片列出了我們在新聞稿、投影片和本次電話會議中提到的非GAAP財務指標。它揭示了我們認為這些措施能夠為投資者提供有用資訊的原因。非GAAP財務指標與GAAP財務指標的調節表已包含在我們新聞稿和網站上的補充資訊中。第 3 張投影片闡述了本次電話會議中所作的前瞻性陳述。

This slide includes cautionary information identifying important factors that could cause actual results to differ materially from those included in forward-looking statements. Please review slides 2 and 3 in their entirety. During this call, all references to a specific year or quarter, unless specified otherwise, refer to our fiscal year, which ends on the September 30. A replay of this morning's call will be available for 30 days at 1-866-388-5360. The archive of the webcast and corresponding slides will be available for at least 90 days on the Investor Relations section of our website.

此投影片包含警示訊息，指出可能導致實際結果與前瞻性聲明中包含的結果有重大差異的重要因素。請完整閱讀第2頁及第3頁投影片。在本次通話中，除非另有說明，所有提及的具體年份或季度均指我們的財政年度，該財政年度於 9 月 30 日結束。今天早上電話會議的錄音回放可在 1-866-388-5360 上收聽 30 天。網路直播的存檔和相應的幻燈片將在我們網站的投資者關係部分保留至少 90 天。

I'll now turn the call over to Martie.

現在我將把電話轉給瑪蒂。

Thanks, Whit, and good morning, everyone. Thank you for joining our fourth-quarter and fiscal 2025 earnings call. Before we discuss our results, I would like to briefly address the announcement made yesterday. After almost two decades at Mueller, I will be retiring as Chief Executive Officer and member of the Board of Directors effective February 9, 2026. It has been the highlight of my career to lead this talented team and company with such a rich legacy and heritage.

謝謝惠特，大家早安。感謝您參加我們第四季及2025財年業績電話會議。在討論我們的結果之前，我想先簡單談談昨天發布的公告。在 Mueller 工作近二十年後，我將於 2026 年 2 月 9 日卸任執行長和董事會成員。能夠領導這支才華洋溢的團隊和擁有如此豐富歷史底蘊的公司，是我職業生涯中最輝煌的時刻。

Since winning Mueller in 2006, we've driven growth, delivered innovative and sustainable solutions and strengthened our commitment to customers and the communities we serve. Paul has played an important role in these achievements. His deep understanding of our industry, portfolio of products and solutions, operations and customer relationships combined with his leadership positions Mueller for continued success.

自 2006 年贏得 Mueller 以來，我們推動了成長，提供了創新和永續的解決方案，並加強了我們對客戶和我們所服務社區的承諾。保羅在這些成就中發揮了重要作用。他對我們行業、產品和解決方案組合、營運和客戶關係的深刻理解，加上他的領導才能，使 Mueller 能夠繼續取得成功。

The transition will be effective February 9, 2026, and I will serve as a special adviser through the end of calendar 2026 to ensure a smooth handover. With that, I'll recap our fourth quarter and full year performance and then turn it over to Paul. We closed the year on an exceptional note, delivering another record-breaking performance with our fourth quarter net sales and adjusted EBITDA exceeding the high end of our expectations.

過渡將於 2026 年 2 月 9 日生效，我將擔任特別顧問至 2026 年底，以確保順利交接。接下來，我將總結我們第四季和全年的業績，然後把發言權交給保羅。我們以優異的成績結束了這一年，第四季度淨銷售額和調整後 EBITDA 都超出預期上限，再次創下歷史新高。

Net sales growth of 9.4% in the quarter reflected strong volume gains and improved price realization demonstrating enhanced commercial execution and resilient end market demand. Our team's unwavering commitment and relentless focus on operational excellence and customer service enabled consolidated gross margin expansion of 500 basis points in the fourth quarter.

本季淨銷售額成長 9.4%，反映出銷售強勁成長和價格實現改善，顯示商業執行力增強和終端市場需求強勁。我們團隊堅定不移的承諾和對卓越營運及客戶服務的不懈追求，使得第四季度綜合毛利率提高了 500 個基點。

Record results set new benchmarks for quarterly adjusted EBITDA and adjusted EBITDA margin with adjusted EBITDA margin exceeding 24%. Adjusted net income per share grew 73% year-over-year to $0.38 per share which exceeded the record level from last quarter.

創紀錄的業績為季度調整後 EBITDA 和調整後 EBITDA 利潤率設定了新的基準，調整後 EBITDA 利潤率超過 24%。經調整後的每股淨收益年增 73% 至每股 0.38 美元，超過了上一季的創紀錄水準。

I'm incredibly proud of how our organization continues to execute our strategy and deliver value for all stakeholders. In 2025, even as we navigated a complex external operating environment, we achieved record levels for net sales, gross margin, adjusted EBITDA and adjusted net income per diluted share.

我為我們組織能夠持續執行策略並為所有利害關係人創造價值而感到無比自豪。2025年，儘管我們面臨著複雜的外部經營環境，但我們仍實現了淨銷售額、毛利率、調整後EBITDA和調整後每股攤薄淨收入的歷史新高。

Our annual performance significantly exceeded the initial annual expectations for net sales and adjusted EBITDA, which we provided a year ago. This year was marked by exceptional achievements and continued progress. We increased net sales by 8.7% to over $1.4 billion, reflecting strong demand and effective execution.

我們的年度業績顯著超過了一年前我們對淨銷售額和調整後 EBITDA 的預期。今年取得了卓越的成就，並持續取得了進步。淨銷售額成長 8.7%，超過 14 億美元，這反映了強勁的需求和有效的執行。

Adjusted EBITDA grew 14.6% year-over-year to a record $326 million, with our adjusted EBITDA margin expanding 110 basis points year-over-year to 22.8%. For the year, we delivered record adjusted net income per share of $1.31, an increase of approximately 37% year-over-year. We generated $172 million of free cash flow and returned $57 million to shareholders through dividends and common stock repurchases.

經調整的 EBITDA 年成長 14.6%，達到創紀錄的 3.26 億美元，調整後的 EBITDA 利潤率年增 110 個基點，達到 22.8%。本年度，我們實現了創紀錄的調整後每股淨收入 1.31 美元，年增約 37%。我們產生了 1.72 億美元的自由現金流，並透過股息和普通股回購向股東返還了 5,700 萬美元。

We recently increased our quarterly dividend for the 11th time since 2014, underscoring our commitment to delivering long-term value. Our transformation over the past two years has delivered remarkable results, including expanding our gross margin by more than 600 basis points.

自 2014 年以來，我們第 11 次提高了季度股息，這凸顯了我們致力於創造長期價值的承諾。過去兩年，我們的轉型取得了顯著成果，包括毛利率提高了 600 多個基點。

We are energized by the progress we've made and the opportunities ahead as we continue to invest across all aspects of our business. Our performance over the past few years reinforces our team's commitment to driving further improvements and leveraging favorable market trends in infrastructure spending. Looking ahead, we expect to deliver continued net sales growth and margin expansion in 2026, which Melissa will describe later in the call.

我們為取得的進展和未來的機會感到振奮，我們將繼續在業務的各個方面進行投資。過去幾年的業績鞏固了我們團隊致力於進一步改進和利用基礎設施支出方面有利的市場趨勢的決心。展望未來，我們預計 2026 年淨銷售額將持續成長，利潤率也將持續擴大，梅莉莎稍後將在電話會議中對此進行詳細介紹。

I'll now turn it over to Paul to address some of our commercial and operational insights and highlights.

現在我將把發言權交給保羅，讓他來談談我們的一些商業和營運方面的見解和亮點。

Thanks, Martie. Good morning, everyone. It's great to be with you. I am extremely pleased with how we closed out the year and the strong foundation we have built for the future. Our teams delivered exceptional execution despite a challenging external environment.

謝謝你，瑪蒂。各位早安。和你在一起真好。我對我們今年的收官方式以及我們為未來奠定的堅實基礎感到非常滿意。儘管外部環境充滿挑戰，但我們的團隊依然出色地完成了任務。

Through discipline, dedication and teamwork, we delivered another year of gross margin improvement, expanding by more than 100 basis points year-over-year. This improvement was primarily driven by higher volumes and manufacturing efficiencies, partially offset by the newer tariffs. Our commercial investments, which enhanced customer service and expanded market penetration, contributed to mid-single-digit volume growth this year. We delivered double-digit net sales growth for iron gate valves and specialty valves, hydrants and repair products.

透過紀律、奉獻和團隊合作，我們實現了毛利率連續第二年增長，同比增長超過 100 個基點。這項改善主要得益於產量增加和生產效率提高，但部分被新的關稅所抵銷。我們透過商業投資提升了客戶服務水平，擴大了市場滲透率，從而實現了今年中等個位數的銷售成長。我們實現了鐵閘閥、特殊閥門、消防栓和維修產品的兩位數淨銷售成長。

Our specialty valve portfolio continues to perform exceptionally well since transitioning to the new facility in Kimball. With the benefits of our capital investments, improved operational execution and enhanced product and commercial strategies, we have tremendous position into this year. I am confident that we will build on this success and unlock even greater opportunities ahead. Earlier this year, we completed the transition to our state-of-the-art brass foundry, which in addition to service brass products manufactures critical components for our iron gate valves and hydrants.

自從遷至金博爾新工廠以來，我們的特殊閥門產品組合一直表現出色。憑藉資本投資、改進的營運執行以及增強的產品和商業策略，我們今年處於非常有利的地位。我相信，我們將在此成功的基礎上再接再厲，開拓更大的發展機會。今年早些時候，我們完成了向最先進的黃銅鑄造廠的過渡，該鑄造廠除了生產黃銅製品外，還為我們的鐵閘閥和消防栓生產關鍵部件。

In the first half of 2026, we expect to continue to achieve the remaining year-over-year gross margin benefit from the closure of the legacy foundry, while unlocking significant multiyear opportunities for volume and margin expansion as we scale production and drive efficiencies at the new foundry. Over the last several years, we have strengthened our foundation by elevating operational standards, delivering outstanding customer service, optimizing supply chain processes and advancing manufacturing capabilities to achieve greater productivity across our facilities.

預計在 2026 年上半年，我們將繼續從關閉原有代工廠中實現剩餘的同比毛利率收益，同時隨著我們在新代工廠擴大生產規模和提高效率，釋放出未來多年銷量和利潤增長的巨大機遇。過去幾年，我們透過提高營運標準、提供卓越的客戶服務、優化供應鏈流程和提升製造能力，鞏固了自身基礎，從而提高了我們所有工廠的生產力。

Additionally, we have fostered collaboration and teamwork throughout the organization as we build a culture of performance and accountability. I am especially proud of our safety performance this year, where we achieved the lowest TRIR in our history. This safety improvement reflects the tremendous progress our teams have made. This year, we will continue to make disciplined investments in both commercial and operational capabilities to drive additional performance improvements. Commercially, we are making investments to enhance our digital customer experience, launching new product offerings and optimizing processes to improve delivery times.

此外，我們在整個組織內培養了協作和團隊精神，從而建立了一種注重績效和責任的文化。我尤其為我們今年的安全表現感到自豪，我們實現了史上最低的TRIR（事故發生率）。這項安全改進體現了我們團隊的巨大進步。今年，我們將繼續在商業和營運能力方面進行審慎的投資，以推動績效的進一步提升。在商業方面，我們正在進行投資，以提升我們的數位化客戶體驗，推出新產品，並優化流程以縮短交付時間。

Operationally, we are focused on driving margin expansion through productivity gains and strategic price cost management. We continue to look for ways to position Mueller for the future by growing and strengthening our talent, especially in the commercial and operation areas. These efforts will continue to support the business with leaders having extensive experience and a proven history of success. I am confident that our current future leadership will accelerate our efforts to improve our operational and commercial strategies while positioning Mueller for future growth.

在營運方面，我們專注於透過提高生產力和策略性的價格成本管理來推動利潤率的提升。我們將繼續尋找各種方法，透過培養和加強我們的人才，特別是商業和營運領域的人才，來為穆勒的未來做好準備。這些舉措將繼續為公司提供支持，公司領導層擁有豐富的經驗和卓著的成功績效。我相信，我們目前的領導階層將加快我們改善營運和商業策略的步伐，同時為穆勒的未來發展奠定基礎。

We believe that now is the time to accelerate our capital investments to expand capacity and drive efficiencies, including increasing our domestic capabilities. With two mature iron foundries, we are committed to maintaining the appropriate level of investment in our facilities to increase efficiencies and expand innovation to support sales growth and margin expansion. As a reminder, our two iron foundries are mainly focused on supporting our iron gate valve and hydrant products. Planned equipment upgrades of these foundries, along with other key projects, are expected to increase capital expenditures to 4% to 5% of net sales over the next three years.

我們認為，現在是時候加快資本投資，擴大產能，提高效率，包括增強國內產能。我們擁有兩座成熟的鑄鐵廠，致力於對我們的設施保持適當的投資水平，以提高效率並擴大創新，從而支持銷售成長和利潤率提升。再次提醒，我們的兩家鑄鐵廠主要致力於為我們的鑄鐵閘閥和消防栓產品提供支援。這些鑄造廠的計劃設備升級以及其他重點項目預計將在未來三年內將資本支出增加到淨銷售額的 4% 至 5%。

We anticipate that these strategic investments, along with our commercial and operational initiatives, will position us to expand our capacity, deliver sustained gross margin expansion and promote long-term value creation. With that, I'll turn it over to Melissa so she can provide you with a deeper dive into the financials.

我們預計，這些策略性投資，以及我們的商業和營運舉措，將使我們能夠擴大產能，實現持續的毛利率成長，並促進長期價值創造。接下來，我將把發言權交給梅莉莎，讓她為大家深入分析財務狀況。

Thanks, Paul, and good morning, everyone. We are delighted to close another record-breaking year with strong fourth quarter performance. Net sales grew 9.4% to $380.8 million, setting a new quarterly record. This growth was primarily driven by increased volumes and higher pricing across most product lines, with both segments delivering an exceptional finish to the year.

謝謝保羅，大家早安。我們很高興以強勁的第四季業績為另一個破紀錄的年份畫下圓滿的句點。淨銷售額成長9.4%，達到3.808億美元，創下新的季度紀錄。這一增長主要得益於大多數產品線的銷售增加和價格上漲，這兩個板塊都為這一年畫上了圓滿的句號。

For the full year, net sales increased 8.7% and exceeded $1.4 billion, reflecting robust growth fueled by increased volumes and favorable pricing in both segments. In the quarter, gross profit of $140 million increased 26.2% year-over-year and gross margin expanded 500 basis points to 36.8%. The improvement in gross profit was driven by manufacturing efficiencies, volume growth and favorable price cost dynamics, including the expected benefits from pricing actions taken to offset higher tariffs.

全年淨銷售額成長 8.7%，超過 14 億美元，反映出在兩個業務板塊銷售成長和價格優惠的推動下實現了強勁成長。本季毛利為 1.4 億美元，年增 26.2%，毛利率成長 500 個基點至 36.8%。毛利的改善得益於生產效率的提高、銷售的成長以及有利的價格成本動態，包括為抵銷關稅上漲而採取的價格措施所帶來的預期收益。

For the full year, gross margin was 36.1%, an increase of 120 basis points compared with the prior year, which is a record level for Mueller. The improvement was driven by manufacturing efficiencies and increased volumes, which more than offset the impact from higher tariffs. Excluding tariffs implemented in 2025, which were primarily associated with specialty valves and repair products, price cost was favorable for the year.

全年毛利率為 36.1%，較前一年成長 120 個基點，創下 Mueller 的歷史新高。生產效率的提高和產量的增加推動了業績的改善，這足以抵消關稅上漲帶來的影響。除 2025 年實施的關稅（主要與特種閥門和維修產品有關）外，今年的價格成本是有利的。

For the quarter, total SG&A expenses of $66.7 million were $3.6 million higher than the prior year, primarily due to higher personnel costs, inflationary pressures and unfavorable foreign currency fluctuations, partially offset by lower amortization expense. Operating income increased 145.1% in the quarter to $69.6 million compared with the prior year.

本季銷售、管理及行政費用總額為 6,670 萬美元，較上年同期增加 360 萬美元，主要原因是人員成本上升、通貨膨脹壓力和不利的外匯波動，部分被較低的攤銷費用所抵銷。本季營業收入年增 145.1%，達到 6,960 萬美元。

Operating income includes $3.7 million of strategic reorganization and other charges as well as a $5.6 million warranty charge at Water Management Solutions. These items have been excluded from adjusted results. Turning now to our consolidated net GAAP results for the quarter.

營業收入包括 370 萬美元的策略重組和其他費用，以及 Water Management Solutions 的 560 萬美元保固費用。這些項目已從調整後的結果中排除。現在來看看我們本季的合併淨GAAP業績。

Adjusted operating income increased 39.6% in the quarter to $78.9 million, driven by manufacturing efficiencies, volume growth, lower amortization expense and favorable price cost, partially offset by higher SG&A expenses. Adjusted operating margin expanded 450 basis points year-over-year to 20.7%, which is a record level for Mueller. Adjusted EBITDA and adjusted EBITDA margin reached new records in the quarter and year.

經過調整後的營業收入在本季度增長了 39.6%，達到 7890 萬美元，這主要得益於生產效率的提高、銷量的增長、攤銷費用的降低以及有利的價格成本，但部分被較高的銷售、一般及行政費用所抵消。調整後的營業利潤率年增 450 個基點至 20.7%，創下 Mueller 的歷史新高。本季和本年度調整後 EBITDA 和調整後 EBITDA 利潤率均創歷史新高。

For the quarter, adjusted EBITDA of $91.8 million increased 26.6% year-over-year and adjusted EBITDA margin expanded 330 basis points year-over-year to 24.1%. For the full year, adjusted EBITDA grew 14.6% year-over-year to $326.2 million or 22.8% of net sales. Adjusted net income per share increased 72.7% year-over-year to $0.38 per share, and for the full year rose 36.5% year-over-year to $1.31 per share, both are new records for Mueller.

本季度，調整後 EBITDA 為 9,180 萬美元，年增 26.6%；調整後 EBITDA 利潤率年增 330 個基點，達到 24.1%。全年調整後 EBITDA 年增 14.6% 至 3.262 億美元，佔淨銷售額的 22.8%。經調整後的每股淨收入年增 72.7% 至每股 0.38 美元，全年年增 36.5% 至每股 1.31 美元，這兩項數據均為 Mueller 的新紀錄。

Moving on to quarterly segment performance, starting with WFS. Net sales increased 8.6% year-over-year to $217.5 million, driven by volume growth in iron gate and specialty valves and higher pricing across most product lines. Adjusted operating income increased 32.5% year-over-year to $55.1 million, resulting from benefits from manufacturing efficiencies, volume growth and lower amortization expense, which more than offset higher SG&A expenses. Adjusted EBITDA increased 21.3% year-over-year to $62.7 million, and adjusted EBITDA margin improved 300 basis points year-over-year to 28.8%.

接下來分析各季度業務板塊的業績，首先從WFS板塊開始。淨銷售額年增 8.6% 至 2.175 億美元，主要得益於鐵閘閥和特種閥門的銷售成長以及大多數產品線價格上漲。經調整後的營業收入年增 32.5% 至 5,510 萬美元，這得益於生產效率的提高、銷量的增長以及攤銷費用的降低，這些收益足以抵消更高的銷售、一般及行政費用。經調整的 EBITDA 較去年同期成長 21.3% 至 6,270 萬美元，經調整的 EBITDA 利潤率年增 300 個基點至 28.8%。

For the full year, adjusted EBITDA margin of 28.7% was similar to the prior year. I'll now move on to quarterly results for WMS. Net sales increased 10.4% year-over-year to $163.3 million, led by volume growth of hydrants and repair products as well as higher pricing. Adjusted operating income increased 33.6% year-over-year to $39.8 million, reflecting benefits from manufacturing efficiencies, favorable price cost, volume growth and lower amortization expense, which more than offset higher SG&A expenses. WMS set new records for fourth quarter and full year for adjusted EBITDA and adjusted EBITDA margin.

全年調整後 EBITDA 利潤率為 28.7%，與前一年基本持平。接下來我將介紹WMS的季度業績。淨銷售額年增 10.4% 至 1.633 億美元，主要得益於消防栓和維修產品銷售成長以及價格上漲。經調整後的營業收入年增 33.6% 至 3,980 萬美元，主要得益於生產效率的提高、有利的價格成本、銷售成長以及攤銷費用的降低，這些收益足以抵銷更高的銷售、一般及行政費用。WMS第四季和全年調整後EBITDA和調整後EBITDA利潤率均創下新紀錄。

For the quarter, adjusted EBITDA increased 22.6% year-over-year to $45 million and adjusted EBITDA margin of 27.6% improved 280 basis points. For the full year, adjusted EBITDA margin of 24.7% improved 170 basis points. Moving on to cash flow. Net cash provided by operating activities for the full year was $219.3 million, a decrease of $19.5 million compared with the prior year. The decrease was primarily driven by changes in working capital, including decreases in other current liabilities, partially offset by higher net income compared with the prior year.

本季度，調整後 EBITDA 年成長 22.6% 至 4,500 萬美元，調整後 EBITDA 利潤率為 27.6%，提高了 280 個基點。全年調整後 EBITDA 利潤率為 24.7%，提高了 170 個基點。接下來分析現金流。全年經營活動產生的淨現金流量為 2.193 億美元，比前一年減少了 1,950 萬美元。此下降主要受營運資本變動的影響，包括其他流動負債的減少，但部分被上年淨收入的增加所抵銷。

Capital expenditures of $47.3 million for the year was similar to the prior year. Free cash flow exceeded our expectations at $172 million and 84% of adjusted net income. We ended the year with $452 million in total debt and $432 million of cash and cash equivalents. We have a strong and flexible balance sheet, with a net debt leverage ratio below 1. No debt maturities until June 2029 and $450 million in senior notes at a fixed 4% interest rate.

本年度資本支出為 4,730 萬美元，與去年基本持平。自由現金流超出預期，達到 1.72 億美元，佔調整後淨收入的 84%。年底時，我們的總債務為 4.52 億美元，現金及現金等價物為 4.32 億美元。我們擁有穩健且靈活的資產負債表，淨債務槓桿比率低於 1。2029 年 6 月之前沒有債務到期，並發行了 4.5 億美元的優先票據，固定利率為 4%。

We had no borrowings under our ABL and ended the year with $595 million of total liquidity, including $164 million of availability under the ABL. As a result, we continue to have ample liquidity, capacity and flexibility to support our strategic priorities, including acquisitions.

我們在 ABL 項下沒有借款，年底總流動資金為 5.95 億美元，其中 ABL 項下可用資金為 1.64 億美元。因此，我們持續擁有充足的流動資金、產能和靈活性，以支持我們的策略重點，包括收購。

I will now review our outlook for fiscal 2026. We expect consolidated net sales between $1.45 billion and $1.47 billion, representing year-over-year growth between 1.4% and 2.8%. Consolidated net sales seasonality is anticipated to be normalized with quarterly consolidated net sales highest in the third quarter and lowest in the first quarter.

接下來，我將回顧我們對2026財年的展望。我們預計合併淨銷售額將在 14.5 億美元至 14.7 億美元之間，年增 1.4% 至 2.8%。預計合併淨銷售額的季節性波動將趨於正常化，季合併淨銷售額在第三季最高，第一季最低。

We also expect a sequential increase in consolidated net sales in the second quarter as the construction season begins to ramp up for the spring. Our net sales guidance includes the expected benefit from last year's pricing actions and does not contemplate potential future pricing actions. As a reminder, our practice is to announce price increases to customers before disclosing them to the public.

隨著春季建築旺季的到來，我們預計第二季合併淨銷售額將較上季成長。我們的淨銷售預期包含了去年定價措施帶來的預期收益，但並未考慮未來可能採取的定價措施。再次提醒，我們的慣例是先向客戶宣布價格上漲，然後再向公眾公佈。

We expect our adjusted EBITDA will range from $345 million to $350 million, reflecting year-over-year growth of 5.8% to 7.3%. At the midpoint of our guidance range, adjusted EBITDA achieved a 23.8% margin for the year, reflecting a 100 basis point year-over-year improvement.

我們預計調整後的 EBITDA 將在 3.45 億美元至 3.5 億美元之間，年增 5.8% 至 7.3%。在我們預期範圍的中點，調整後的 EBITDA 全年利潤率為 23.8%，比上年同期提高了 100 個基點。

We expect our second half adjusted EBITDA margin to be higher than the first half of the year, primarily driven by seasonality of net sales. Our estimate for annualized tariff impact is approximately 3% of cost of sales based on tariff announcements through November 6. We have taken actions to offset the annualized tariff impact through targeted pricing actions as well as supply chain and operational initiatives.

我們預計下半年調整後 EBITDA 利潤率將高於上半年，主要原因是淨銷售額的季節性波動。根據截至 11 月 6 日的關稅公告，我們估計年度關稅影響約為銷售成本的 3%。我們已採取措施，透過有針對性的定價措施以及供應鏈和營運措施來抵銷年度關稅影響。

Free cash flow is expected to exceed 85% of adjusted net income. This includes a higher level of capital expenditures expected to be between 4% and 5% of net sales as we invest in growth, operational efficiencies and domestic capacity with a focus on our iron foundries.

預計自由現金流將超過調整後淨收入的 85%。這包括更高的資本支出水平，預計將佔淨銷售額的 4% 至 5%，因為我們將投資於成長、營運效率和國內產能，重點是我們的鑄鐵廠。

Our strong financial position ensures we can continue executing on our strategic initiatives and driving long-term value. With that, I'll turn it back to Martie for closing comments.

我們雄厚的財務實力確保我們能夠繼續執行策略舉措並創造長期價值。接下來，我將把發言權交還給瑪蒂，請她做總結發言。

Thanks, Melissa. Before we open it up for Q&A, I want to share some final thoughts. We are proud to celebrate our second consecutive year of record results, reflecting significant momentum behind our transformation. This achievement is a direct result of the hard work, dedication and commitment of our employees. Our team members are passionate about being leaders in water infrastructure solutions, solving challenges, enriching lives and safeguarding the future.

謝謝你，梅麗莎。在正式進入問答環節之前，我想分享一些最後的想法。我們很自豪地慶祝連續第二年取得創紀錄的業績，這反映了我們轉型的巨大進展。這項成就直接歸功於我們員工的辛勤工作、奉獻精神和敬業精神。我們的團隊成員熱衷於成為水利基礎設施解決方案的領導者，解決各種挑戰，豐富人們的生活，並保障未來。

We are connecting communities to water, life's most essential resource with exceptional people, solutions and products. I am confident in our future because of how Mueller's team members differentiate us in the market. While the external landscape remains uncertain, we are leaning in and increasing investments in our facilities and employees to enhance operational efficiencies and expand our domestic capabilities and capacity.

我們致力於透過傑出的人才、解決方案和產品，將社區與生命中最基本的資源——水——連結起來。我對我們的未來充滿信心，因為穆勒的團隊成員讓我們在市場上脫穎而出。儘管外部環境仍不明朗，但我們正在加大對設施和員工的投資，以提高營運效率，擴大國內業務能力和產能。

Fueled by our improving commercial and operational execution, we will continue to build on our momentum to accelerate net sales growth and expand margins. Additionally, our strong flexible balance sheet gives us capacity to advance our strategic priorities, including capital investments and acquisitions while continuing to return cash to shareholders.

在不斷提升的商業和營運執行力的推動下，我們將繼續保持成長勢頭，加速淨銷售成長並擴大利潤率。此外，我們穩健且靈活的資產負債表使我們能夠推進策略重點，包括資本投資和收購，同時繼續向股東返還現金。

That concludes our comments. Operator, please open the call for questions.

我們的發言到此結束。接線員，請開啟提問環節。

(Operator Instructions)

（操作說明）

Bryan Blair, Oppenheimer.

布萊恩布萊爾，奧本海默。

Thank you. Good morning, everyone. Solid quarter.

謝謝。各位早安。穩健的季度。

Hey, good morning, Brian.

嘿，早上好，布萊恩。

Martie and Paul, congratulations to you both.

瑪蒂和保羅，恭喜你們兩位。

Thank you, Bryan.

謝謝你，布萊恩。

Of course, To level set a bit on your initial fiscal '26 outlook, how did muni and residential market sales shake out in fiscal '25? And what's contemplated on each side in FY26 revenue guidance of 1.4% to 2.8% growth?

當然，為了稍微平衡一下您最初的 2026 財年展望，2025 財年市政和住宅市場銷售情況如何？雙方在2026財年營收成長預期（1.4%至2.8%）中分別考慮了什麼？

Hi Bryan. As it relates to our '26 sales guidance, we have contemplated slightly positive volumes, and that's predicated on expecting a slowdown that we started to see in the fourth quarter with residential construction. We're contemplating that residential construction will be down in the high single-digit range and muni repair and replacement growth will be in the low single-digit to mid-single-digit range and project-based specialty valves will be in the mid-single-digit to high single-digit range.

嗨，布萊恩。關於我們對 2026 年的銷售預期，我們預計銷量將略有增長，這是基於我們對住宅建設放緩的預期，而這種放緩趨勢已在第四季度開始顯現。我們認為住宅建設將下降個位數高位，市政維修和更換成長將下降個位數低位至個位數中位，而基於專案的特種閥門將下降個位數中位至個位數高位。

We think we're expecting that both the muni repair and replacement in the specialty valves will more than offset the slowdown that will be seen in the residential construction.

我們認為，市政維修和特殊閥門的更換將足以抵消住宅建設放緩帶來的影響。

And just to hit a little bit on what we saw coming in, in '25 with our results, we did see very solid volume growth through our 2025 results, and that was certainly reflective of a very resilient and continuing healthy municipal market. We had indicated probably back in the May time frame that we had expected to start seeing the residential construction markets slow down, particularly with respect to single-family housing starts. And I would say we did see some of that in our fourth quarter.

再簡單談談我們對 2025 年業績的預期，我們確實看到了非常穩健的銷售成長，這無疑反映了市政債券市場具有很強的韌性，並且持續健康發展。我們可能早在五月就曾表示，我們預期住宅建築市場將開始放緩，尤其是獨棟住宅的開工量。我想說，我們在第四季確實看到了一些這樣的情況。

But I think as you heard earlier, with that, we did have good volume growth overall, with strong volume growth, particularly across our iron gate valves, hydrants, specialty and repair products.

但我認為正如你之前聽到的，總體而言，我們的銷量增長良好，尤其是鐵閘閥、消防栓、特種產品和維修產品，銷量增長強勁。

Understood, very helpful color. And as a follow-up, Paul, you were walking through a number of initiatives and investments that will take place going forward? And maybe provide a bit more detail on those if there are any anticipated benefits, whether that's fiscal '26 or beyond? And then in terms of capital deployment, also touch on how your team is thinking about the M&A environment and potential actionability in fiscal '26? Thank you.

明白了，這個顏色很有幫助。保羅，作為後續問題，你剛才提到了一些未來將要進行的計畫和投資？如果預期會有任何收益，無論是在 2026 財年還是以後，或許可以提供更多細節？此外，在資本部署方面，能否談談您的團隊如何看待併購環境以及 2026 財年的潛在行動方案？謝謝。

Yeah, Bryan, I'll take you through the actual capital in the facilities, and then I'll ask Martie to take you through the M&A. In terms of the benefit in the short term in '26, the capital we will deploy in our two 50-year-old iron foundries, which make our iron gate valves and hydrants, they will be multiyear investments to add capacity, more dramatic capabilities and upgrade those facilities.

好的，布萊恩，我會帶你參觀實際的資本設施，然後我會請瑪蒂帶你了解併購情況。就 2026 年的短期收益而言，我們將投入資金到我們兩家擁有 50 年歷史的鑄鐵廠（生產我們的鐵閘閥和消防栓），這將是一項多年投資，旨在增加產能、提升能力併升級這些設施。

So there's no anticipated margin benefit in '26 as we continue to roll out the additional equipment and new equipment that we're going to be installing. But what it will position us for is a lot more growth in the future, a lot more capacity, and there will be margin expansion in the future from these investments, but not in the short term.

因此，在我們繼續推出我們將要安裝的額外設備和新設備的過程中，預計 2026 年不會有利潤成長。但這些投資將使我們在未來獲得更大的成長，更大的產能，並在未來帶來利潤率的提升，但短期內不會。

Yes, and then just to hit your question in and around acquisitions, I think as Melissa walked through it, I think as we continue to see, we are very well positioned with the flexibility and capacity that our balance sheet structure affords us. Additionally, we have a strong cash position. And I would say we continue to look across capital allocation, thinking about the dividend, which was just increased, share repurchase. Paul just talked through the opportunities we see to reinvest in our business, which we think continue to position us well for the future.

是的，至於你提出的收購相關問題，我認為正如梅麗莎所闡述的那樣，而且正如我們不斷看到的那樣，憑藉我們資產負債表結構所賦予的靈活性和能力，我們處於非常有利的地位。此外，我們擁有充足的現金儲備。我認為我們將繼續審視資本配置，考慮剛剛提高的股利和股票回購。保羅剛才談到了我們看到的對業務進行再投資的機會，我們認為這些機會將繼續使我們在未來處於有利地位。

And I would say we also are more active today in terms of looking for acquisitions that we think will be beneficial to our long-term growth. The types of acquisitions that we are interested in, I would say, anything that we think could either expand or deepen the product portfolio that we have largely within water infrastructure. We continue to talk about the strength of our customer relationships, the investments we have from a commercial perspective.

而且我認為，如今我們在尋找我們認為有利於公司長期發展的收購目標方面也更加積極主動。我想說，我們感興趣的收購類型，是任何我們認為可以擴展或深化我們主要在水利基礎設施領域擁有的產品組合的收購。我們繼續談論我們與客戶關係的牢固性，以及我們從商業角度的投資。

And if there are opportunities for us to leverage those distribution channels and customer relationships, we certainly will look for that with our acquisition opportunities. And certainly manufacturing and operations are core capabilities of ours, and that could also represent an opportunity.

如果存在可以利用這些分銷管道和客戶關係的機會，我們一定會在收購機會中尋找這樣的機會。當然，製造和營運是我們的核心能力，這也可能代表著一個機會。

We do focus on the drinking water and wastewater primarily. We like well-established brands and/or opportunities where Mueller brand could position us even stronger. We're going to look for good sales and profitability and organic growth as well as identifying revenue and cost synergies. I'll tell you the challenge that we have is really relates to a lot of the actionability of some of the targets that we think are interesting. You tend to find a lot of private and/or family-owned businesses in our space.

我們主要關注飲用水和廢水。我們喜歡成熟的品牌，或是能夠讓 Mueller 品牌進一步增強我們實力的機會。我們將尋找良好的銷售業績、獲利能力和內生成長點，同時也要找出營收和成本的綜效。我告訴你，我們面臨的挑戰實際上與我們認為有趣的某些目標的可操作性有關。在這個領域，你往往會發現很多私人企業和/或家族企業。

But we think that we are certainly very well positioned today with a lot of our transformation behind us with the operational improvements. I think as a team, we feel that we are much better positioned as we look for the acquisition opportunities. And I can always go back and certainly give the Krausz acquisition with the repair products, I think, is very representative of the type of acquisition that can be meaningful for us and for our shareholders from a long-term growth perspective.

但我們認為，隨著營運改善的完成，我們的轉型工作已經取得很大進展，我們現在處於非常有利的地位。我認為作為一個團隊，我們感到我們在尋找收購機會方面處於更有利的地位。我當然可以回顧一下 Krausz 收購其維修產品業務的案例，我認為，這非常具有代表性，說明從長期成長的角度來看，這種收購對我們和我們的股東來說意義重大。

All makes sense. Thank you again.

一切都說得通。再次感謝。

Brian Lee, Goldman Sachs.

Brian Lee，高盛集團。

Hey everyone, good morning. Thanks for taking the questions and kudos on a great career at Mueller, Martie. I guess the first question I had was around just the margin trajectory. You guys did a great job this year and have really started to execute on that strategy of margin expansion. Kind of what's the what sort of the cadence and trajectory we should think about as we look across the two segments in '26 given all the success you've had throughout '25. Just how should we think about the margin expansion cadence across the segments for this year?

大家好，早安。感謝你回答問題，也恭喜你在穆勒公司取得如此輝煌的成就，瑪蒂。我第一個問題是關於利潤率走勢的。你們今年做得非常出色，並且真正開始執行利潤率擴張策略。鑑於你們在 2025 年取得的所有成功，我們在展望 2026 年的兩個階段時，我們應該考慮什麼樣的節奏和軌跡呢？我們該如何看待今年各細分市場的利潤率擴張節奏？

Good morning. As we think about the segment cadence for 2026, we're expecting that the net sales growth will be in the similar guidance range that we put forward for the consolidated view. With that, we're expecting that we'll see margin expansion in both segments. And expect that, that will be greater in the second half, similar to what we saw in 2025.

早安.在展望 2026 年的業務發展節奏時，我們預期淨銷售額成長將與我們為合併業績提出的預期範圍類似。因此，我們預計這兩個業務板塊的利潤率都將有所提高。預計下半年這種情況會更加嚴重，類似於我們在 2025 年看到的情況。

We do still anticipate that we'll see the benefit from the closure of the legacy brass foundry in the first half in the WFS segment. And we expect that we will see that we will not see the same impact related to foreign current repeat in 2026 that we saw in 2025. So we would expect gross margin to be higher in WFS and we would expect EBITDA margin to be higher in WMS. We do expect both segments to be impacted by tariffs. We had anticipated that 3% of total cost of sales would be the impact of 2026 tariffs.

我們仍然預計，在 WFS 業務板塊，關閉傳統黃銅鑄造廠將在上半年帶來好處。我們預計，2026 年不會出現與 2025 年相同的外國當前匯率波動影響。因此，我們預期 WFS 的毛利率會更高，而 WMS 的 EBITDA 利潤率會更高。我們預計這兩個領域都會受到關稅的影響。我們曾預計，2026 年關稅的影響將佔銷售總成本的 3%。

And in the WFS segment, that is mostly focused on our or I guess, related to our specialty valves in WMS, that's related to our repair products. We do still anticipate that we'll have some benefits from the 2025 price actions that were put in place.

在 WFS 領域，主要集中在我們的或說與我們的 WMS 特殊閥門相關的領域，也就是與我們的維修產品相關的領域。我們仍然預期，已實施的 2025 年價格措施將會帶來一些好處。

But 2026, potential price actions are not factored in as we typically expect to announce to our customers any price actions we plan to take before announcing those to the public.

但 2026 年的潛在價格變動並未納入考慮，因為我們通常會在向公眾宣布之前，先向我們的客戶宣布我們計劃採取的任何價格行動。

That's super helpful color. Maybe just a quick follow-up on the pricing actions. I know you're not prepared to announce anything on this call, just given that needs to go to customers first. But when we think about the revenue guidance of 1.4% to 2.8% up for fiscal '26, it sounds like there's some spillover from the '25 pricing actions. Is there I guess, potential upside to the revenue growth targets for fiscal '26 if you implement what has historically been kind of your systematic pricing actions each year if maybe low single digits and non-tariff, non-supply chain impacted environments.

這個顏色非常實用。或許需要就定價策略做一個簡短的後續說明。我知道你還沒準備好在這次電話會議上宣布任何事情，因為這件事需要先告知客戶。但考慮到 2026 財年營收成長 1.4% 至 2.8% 的預期，這似乎與 2025 年的定價策略有一定的外溢效應。我想，如果實施你們歷來每年都會採取的系統性定價措施，例如在低個位數的漲幅和不受關稅、不受供應鏈影響的環境下，那麼2026財年的營收成長目標是否有可能實現呢？

Is that kind of the way to think about it? Thank you.

是這樣想的嗎？謝謝。

Yeah, Brian. I think that's a fair way to think about it. We implemented our pricing in Q2 of fiscal year '25. We also implemented the target pricing as we spoke about, really sort of phased in, in Q4 of fiscal year '25. And you are correct, our current guidance does not include any new pricing. And so your way of thinking about it is fair, how you laid that out.

是的，布萊恩。我覺得這種思考方式很合理。我們在 2025 財年第二季實施了定價策略。正如我們之前所說，我們也實施了目標定價，實際上是在 2025 財年第四季分階段實施的。您說得對，我們目前的指導意見不包含任何新的定價資訊。所以你的想法很合理，你闡述的方式也很有道理。

Okay thank you so much. I'll pass it on.

好的，非常感謝。我會轉達的。

Mike Halloran, Baird.

麥克哈洛蘭，貝爾德。

Hey, good morning everyone. And Congratulations, Martie. We've worked together a long time. I wish you nothing about the best moving forward. And same for you, Paul, congratulations on the job title change and the new responsibilities. So a couple of questions.

嘿，大家早安。恭喜你，瑪蒂。我們合作很久了。我祝你未來一切順利。保羅，也祝賀你職位變更並承擔新的職責。我有幾個問題。

First question, just how should we think about inventory in the channel, where your backlog stands? And any kind of those puts and takes? Are we at the point where we're seeing normalization across those types of threads? Or is there a little bit more to do in the channel or with your backlog or whatever it might look like?

首先，我們該如何看待通路庫存，你們的積壓訂單狀況如何？以及所有類型的買賣交易？我們是否已經看到這些類型的執行緒趨於規範化了？或者頻道裡還有一些工作要做，或是你的待辦事項清單裡還有一些工作要做，或是其他什麼方面？

Hey, good morning, we've kind of monitor all the time, and I don't think there's any kind of change in that channel inventory there. We think it's normalized from most product lines. We are continuing to watch if there's been any buy ahead, particularly around any tariff related buy ahead from a supply chain perspective. Where we are right now, from a seasonality perspective, as things slowdown in the construction season, we believe that channel inventory is at a normal level.

嘿，早上好，我們一直在監控，我認為該渠道的庫存沒有任何變化。我們認為這在大多數產品線中已經屬於正常現象。我們會繼續關注是否有提前採購的情況，特別是從供應鏈角度來看，是否有與關稅相關的提前採購。從季節角度來看，隨著建築旺季的結束，業務逐漸放緩，我們認為通路庫存處於正常水平。

Got it. That makes sense. And then just to follow up on the first question that was asked. Just when you think about the expectations that you laid out by the end markets for this year, is the expectation that you just run at a relatively normal seasonal pattern from, call it, the run rate entering the year or the run rate exiting fiscal '25? Is there any assumption for improvement or deceleration from what that current run rate looks like? And just maybe how you think about the trajectory underlying those assumptions.

知道了。這很有道理。然後，我想就第一個問題做個後續說明。當你思考今年終端市場提出的預期時，你是否預期會按照相對正常的季節性模式運行，比如說，按照年初的運行速度或 2025 財年末的運行速度運行？目前的運轉速度是否有可能提高或降低？或許，你對這些假設背後的發展軌跡的看法也很重要。

Yeah, we expect that for 2026 that we'll see the typical seasonality where we would expect our highest period to be in third quarter, and we would expect that to just follow the typical seasonality for the entire 2026 period.

是的，我們預計 2026 年將會出現典型的季節性波動，我們預計最高時期將出現在第三季度，並且我們預計整個 2026 年期間都將遵循典型的季節性波動。

So there, there's implicitly no acceleration or deceleration from an assumption of what the end markets are going to give you relative to what you're seeing today.

因此，對於最終市場將帶給你的東西，相對於你今天所看到的東西，並沒有隱含的加速或減速的假設。

No, not as we've looked out for the full year. I think basically sort of with the expectation that you got a fairly resilient, healthy municipal market. And then I think importantly, resi is where we are anticipating that we will see lower levels on a year-over-year basis. But I think as we had indicated, I think we started to see that in our fourth quarter. And that's what we expect with the view that we have right now into 2026.

不，就我們全年的觀察來看，並非如此。我認為，基本上是希望能夠建立一個相當有韌性、健康的市政市場。而且我認為很重要的一點是，我們預計住宅物業的同比水平將會下降。但我認為正如我們之前所指出的，我們在第四季度開始看到這種情況。這就是我們目前對 2026 年的預期。

Makes sense. Thanks Martie.

有道理。謝謝你，瑪蒂。

Deane Dray, RBC Capital Markets.

迪恩德雷，加拿大皇家銀行資本市場。

Thank you. Good morning everyone.

謝謝。大家早安。

Good morning, Deane.

早上好，迪恩。

Hey, Martie, I start with you, fabulous run, congratulations and you really are leaving the company in great shape. But I will note you've had back-to-back record quarters and you're really going to make it a tough act to follow for Paul.

嘿，瑪蒂，我先說說你，你做得太棒了，恭喜你，你真的把公司打造成了一個非常好的團隊。但我注意到你們已經連續兩季創下紀錄，你們的表現真的會讓保羅很難超越。

There is a great team at Mueller.

穆勒公司擁有一支非常優秀的團隊。

Of course. Congrats to everyone. And Paul, wishing you the best year. And you and I overlapped when I was covering Emerson, so we've had lots of interaction and wishing you hit the ground running in February. So for the questions here, maybe just -- anything on the government shutdown?

當然。恭喜大家。保羅，祝福你新的一年一切順利。我之前報道艾默生學院的時候，我們有過交集，所以我們有很多互動，祝你二月一切順利。那麼，對於這裡的問題，或許可以問一下──關於政府停擺有什麼消息嗎？

I know most of all spending is state and local, it's not federal government, but there's some funding of programs potentially. Have you seen any of that ripple into your business?

我知道大部分支出都來自州和地方政府，而不是聯邦政府，但可能有一些計畫獲得了聯邦政府的資助。你是否發現這些影響對你的業務產生了任何影響？

Yeah, no, look, it's an important question and certainly a very current question. Look, it, we do, from what we have seen with the government shutdown, certainly most of the, spending that we see in our area does come at the municipal level, as with very little coming from the federal level. So I would say at this point we don't think we have seen any noticeable impacts from a government shutdown.

是的，沒錯，這是一個重要的問題，而且絕對是一個非常現實的問題。你看，從政府停擺的情況來看，我們地區的大部分支出確實來自市政層面，而來自聯邦層面的支出則非常少。所以我覺得目前為止，我們還沒有看到政府停擺造成任何明顯的影響。

Federal funding, if you go back to the infrastructure bill certainly as we shared, it is always slow for that to actually roll out into projects, and I think as you've heard with the guidance that we've given we're not anticipating really any material impact in our 2026. As well from all of that, I think more what I would say the government shutdown is it's just that overall sentiment of uncertainty. I think that that comes with the government shutdown that we've seen, but specifically I can't say that we've had a direct impact.

聯邦資金，如果你回顧基礎設施法案，正如我們之前分享的那樣，總是需要很長時間才能真正落實到專案中。而且我認為，正如你們從我們給出的指導意見中聽到的那樣，我們預計在 2026 年不會產生任何實質性的影響。除此之外，我認為政府停擺更主要的原因是人們普遍感到不確定。我認為這與我們所看到的政府停擺有關，但具體來說，我不能說我們已經受到了直接影響。

Great, that's a good color there. And then just a quick follow-up for Melissa, any color around the warranty charge that was taken, what product line, and any other reserve changes that you could talk about today?

太好了，這個顏色真好看。最後，我想快速問一下梅麗莎，關於保固費用，您有什麼細節可以透露嗎？涉及哪些產品線？今天您還能談談其他方面的變動嗎？

Yeah, good morning, Dean. The overall warranty charge, as similar with past adjustments with warranty that's related to our metering products. So the, WMS segment is where you're seeing that warranty impact. We monitor and analyze our warranty accruals periodically and, over, excuse me, at an annual basis. We leverage a third-party to look at the historical failure rates and help forecast the projected replacement rates. With that, we make adjustments as necessary based on information that's available at that point in time. Now that said, I also want to remind you that the metering products by the industry standards have a very long warranty period.

早上好，迪恩。整體保固費用與過去對我們計量產品保固的調整類似。所以，在WMS（倉庫管理系統）環節，你會看到保固方面的影響。我們會定期監控和分析保固累積情況，而且，恕我直言，是每年一次。我們利用第三方機構來查看歷史故障率，並協助預測預計更換率。因此，我們會根據當時掌握的信息，酌情做出必要的調整。話雖如此，我還想提醒您，按照業界標準，計量產品的保固期非常長。

Great, that sounds pretty routine. Thank you.

太好了，聽起來很常規。謝謝。

Joseph Giordano, TD Cowen.

Joseph Giordano，TD Cowen。

Hi, good morning. This is Chris on for Joe.

您好，早安。這裡是克里斯替喬報道。

Good morning.

早安.

You've addressed most of my question, so maybe just one from me. In the recent past, you've highlighted achieving the leak detection goal ahead of schedule. And just curious if you could update us on how any of these initiatives or products are translating into commercial opportunities for you as you look to the next year? Any recent wins or partnerships or developments that are that you see accelerating adoption or contributing to growth in '26 in that area?

你已經解答了我的大部分問題，所以我可能只需要問一個問題了。最近，您曾專注於提前實現了洩漏檢測目標。我很好奇，您能否向我們介紹一下，在展望明年之際，這些舉措或產品在哪些方面轉化為您的商業機會？最近有哪些成功案例、合作關係或發展動態，您認為會加速該領域的普及或促進 2026 年的成長？

Yeah, no, look, thank you for the question in and around leak detection and importantly you're citing one of the important metrics that is part of our annual sustainability report. So certainly as you look at not the particular product and solution that we have in and around leak detection, but importantly how it's addressing overall the challenges of non-revenue water and water loss when you see so many challenges with aging infrastructure.

是的，不，謝謝你提出關於洩漏檢測的問題，更重要的是，你提到了我們年度永續發展報告中的一項重要指標。因此，您不僅要關注我們在洩漏檢測方面的具體產品和解決方案，更重要的是，要關注它如何應對老化基礎設施帶來的諸多挑戰，例如無收益水和水損等問題。

So we continue to believe that the product solution that we have through Echologics that uses a noninvasive methodology for leak detection is a terrific offering for the market, and importantly what we have continued to work to do is to find ways to integrate the benefits of that solution. Into the infrastructure products that we are largely known for, we did introduce a new product at Ace in Denver and it was a hydrant renewal, to give a quick description of what that is it basically is offering. A municipality to replace an aged hydrant, but the installation process is substantially easier because it's primarily replacing the top part, the upper, portion of the hydrant.

因此，我們仍然相信，我們透過 Echologics 提供的採用非侵入性方法進行洩漏檢測的產品解決方案，對市場來說是一個極好的產品，更重要的是，我們一直在努力尋找整合該解決方案優勢的方法。在我們主要為人所知的基礎設施產品領域，我們在丹佛的 Ace 展會上推出了一款新產品，即消防栓更新，簡單描述一下它基本上提供的功能。市政當局要更換一個老舊的消防栓，但安裝過程要容易得多，因為它主要是更換消防栓的頂部，也就是上部。

Such that the construction costs and time required are substantially easier, but the benefits through to the municipality is they've got a brand new hydrant, new parts, and a new 10 year warranty. To further differentiate this and really make it even more meaningful to that local municipality, we are also including the ecologic monitoring technology that will also be offered with that product.

這樣一來，施工成本和所需時間都大大降低，而市政當局則獲得了全新的消防栓、新零件和 10 年保固。為了進一步凸顯其獨特性，並使其對當地市政當局更有意義，我們也將生態監測技術與該產品一同提供。

And I think it's important because you're replacing an older hydrant and it's allowing that municipality to begin to see the benefits of leak detection with that. So we think it really does help to solve some of the challenges that communities and municipalities are seeing with aging infrastructure, and it further differentiates us from our competition. We're still in the pilot phase with this new product introduction. We expect to roll it out more in 2026. We've got customer field trials underway, but I think it, is, I think a good example, reflective of the question that you asked.

我認為這很重要，因為您更換了一個老舊的消防栓，這使得該市政當局能夠開始看到洩漏檢測的好處。因此，我們認為這確實有助於解決社區和市政當局在基礎設施老化方面面臨的一些挑戰，這也進一步使我們與競爭對手區分開來。我們目前仍處於新產品推廣的試點階段。我們預計將在 2026 年更廣泛地推廣這項服務。我們正在進行客戶現場試驗，但我認為這是一個很好的例子，反映了您提出的問題。

Really helpful color. Thank you very much.

非常實用的顏色。非常感謝。

(Operator Instructions)

（操作說明）

Walt Liptak, Seaport Research.

沃爾特·利普塔克，海港研究公司。

Hi, thanks. Good morning, everyone. And yeah, and congratulations, Marty and, you know the 600 basis points of gross margin are, have really been something. I wonder if you could tell us, based on your kind of feel for where we are in the transformation, do we have more to go, or is it just a continuation kind of into the future with these CapEx programs?

您好，謝謝。各位早安。是的，恭喜你，馬蒂，你知道，600 個基點的毛利率真的非常了不起。我想請您根據您對我們目前轉型階段的感受，告訴我們，我們是否還有很長的路要走，或者這些資本支出項目只是未來發展的延續？

Yeah, So look, I think, certainly, as we look at the results that we just posted for the fourth quarter and the full year, very pleased with that and pleased with what we have delivered with the transformation that has been underway. I think the team has worked hard, and I think we're really energized by the progress that we've seen. But I think importantly, as you look out to the guidance that we've just given for 2026, implicit in there, it does look at continued margin expansion from an adjusted EBITDA and from a gross margin perspective. As we look at our end markets over the longer term, we certainly continue to see opportunities.

是的，所以你看，我認為，當然，當我們審視我們剛剛公佈的第四季度和全年業績時，我們對此非常滿意，也對我們一直在進行的轉型所取得的成果感到非常滿意。我認為團隊付出了很多努力，我們也為所取得的進步而備受鼓舞。但我認為重要的是，當我們展望我們剛剛給出的 2026 年業績指引時，其中隱含著從調整後的 EBITDA 和毛利率角度來看，利潤率將持續擴張。從長遠來看，當我們審視我們的終端市場時，我們當然會繼續看到機會。

Municipality have always been a fairly resilient and healthy end market. And although we do expect to see low a downturn on the residential construction side, that's just the outlook that we have for 2026. Paul talked about, we have been making disciplined investments both on the commercial side and on the operational side. And I think commercially with the investments that we're making, not only in our sales team, but also looking for ways to enhance the customer experience with the investments that we have on our digital offerings and ways for us to better work with and deliver through to our customers, I think that over the longer term can continue to yield benefits.

市政市場一直以來都是相當有韌性且健康的終端市場。儘管我們預期住宅建設方面會出現小幅下滑，但這只是我們對 2026 年的展望。保羅談到，我們一直在商業和營運方面進行有紀律的投資。我認為，從商業角度來看，我們不僅在銷售團隊方面進行投資，而且還在尋求透過投資數位化產品來提升客戶體驗，並尋求更好地與客戶合作和交付產品的方法，我認為從長遠來看，這些投資將繼續帶來收益。

Paul and Melissa both talked through our expectations, and importantly, I think the opportunities we see to invest in our facilities that will give us more capacity as well as can create further opportunities for operational improvements.

Paul 和 Melissa 都詳細討論了我們的期望，更重要的是，我認為我們看到了投資我們設施的機會，這將使我們擁有更大的產能，並能為營運改善創造更多機會。

So as we look forward, I would say we do see continued opportunities for growth over the longer term. Certainly, in 2025, and with our outlook for '26, the tariffs have certainly provided challenges. But when we look at the teams that we have, they have worked diligently to mitigate the impact of the tariffs both through the targeted pricing actions that we've talked about as well as the initiatives from our supply chain and operational teams.

展望未來，我認為從長遠來看，我們確實看到了持續成長的機會。當然，在 2025 年以及我們對 2026 年的展望中，關稅無疑帶來了挑戰。但當我們審視我們擁有的團隊時，他們已經努力減輕關稅的影響，這既包括我們討論過的有針對性的定價措施，也包括我們供應鏈和營運團隊的舉措。

Okay, great, thank you and maybe I'll follow on to that one, for Paul is, as we think about, you, doing the job as the CEO, is it the CapEx programs you think that are, sort of the top priority at this point, or, what would your top priority be?

好的，太好了，謝謝。也許我會接著問這個問題。保羅，我們想想，你作為首席執行官，你認為目前最重要的事情是資本支出項目嗎？或者，你認為最重要的事情是什麼？

Hey, good morning, Walt. I think just to expand on what Martie spoke about there, the capital is one priority in terms of how we reinvest in our core iron foundries. We already started in terms of our broader commercial and operational investments and how they are going to position us from a top line growth perspective, and importantly, from a margin expansion -- year-over-year margin expansion. The investments we've made is not just in equipment, but we've also in the people that we brought into the organization. So from my priority, from that perspective is how we drive long-term value creation for the organization.

嘿，早上好，沃特。我想補充一下 Martie 剛才提到的，資金是我們對核心鑄鐵廠進行再投資的首要考慮因素之一。我們已經開始進行更廣泛的商業和營運投資，以及這些投資將如何從營收成長的角度，更重要的是從利潤率擴張的角度——逐年利潤率擴張的角度——來定位我們。我們所做的投資不僅體現在設備上，也體現在我們引進組織的人才上。因此，從這個角度來看，我的首要任務是如何為組織創造長期價值。

Okay great. Okay thanks and maybe just the last one for me the special charge that you guys announced, not the warranty the other operational one, what was that expense for?

好的，太好了。好的，謝謝。我最後一個問題，你們宣布的那項特殊收費，不是保固費，而是營運費，這筆費用是做什麼用的？

The other item was related to strategic reorganization and other charges.

另一項內容與策略重組和其他費用有關。

Okay, so is that part of the people investment?

好的，所以這是人才投資的一部分嗎？

It some of it is goes back as we look at it with respect to some of the leadership transition that has that we have undertaken and that's largely what you're seeing under that with the restructuring and other charges line. And then they're also just some other transaction related expenses.

其中一些可以追溯到我們已經進行的一些領導過渡時期，而這在很大程度上就是你在重組和其他費用項下看到的內容。此外，還有一些其他的交易相關費用。

Okay, great. Okay, thanks for clarifying that.

好的，太好了。好的，謝謝你的解釋。

Great.

偉大的。

Well, look, thank you for all the participants. Thank you, operator. Certainly appreciate everyone who joined us on the call today. As we said, we are very pleased with how we finished our 2025 with record net sales and adjusted EBITDA, especially given the uncertainty and complexity in the external environment. We are very excited about the progress we have made in just a few years. With the annual guidance we've given for 2026, we are on track for another year of net sales growth and margin expansion. I want to once again thank our dedicated employees.

好了，謝謝所有參與者。謝謝接線生。非常感謝今天所有參加電話會議的人。正如我們所說，我們對 2025 年的業績非常滿意，淨銷售額和調整後 EBITDA 均創歷史新高，尤其是在外部環境充滿不確定性和複雜性的情況下。我們對短短幾年內的進展感到非常興奮。根據我們對 2026 年的年度預期，我們預計將實現另一年的淨銷售額成長和利潤率擴張。我再次感謝我們敬業的員工。

They have been and always will be the driving force behind our success. While this isn't my last earnings call, I want to thank everyone in the investment community who have gotten to know over the years. I so enjoy sharing the Mueller story with you. Thank you all, and we look forward to speaking with you again on our first quarter results when they are announced in February. And with that, we'll conclude our call, operator.

他們一直是並將永遠是我們成功的驅動力。雖然這不是我最後一次財報電話會議，但我還是要感謝多年來認識我的投資界的每位朋友。我非常樂意與你分享穆勒的故事。謝謝大家，我們期待在二月公佈第一季業績時再次與大家交流。好了，我們的通話到此結束，接線生。

Thank you.

謝謝。

This concludes today's conference call. You may go ahead, and disconnect at this time.

今天的電話會議到此結束。您可以斷開連線了。