Mueller Water Products, Inc. (MWA) 2026 Q3 法說會逐字稿

Good morning and thank you for standing by. Your lines are on a listen-only mode until the question-and-answer session of today's conference. (Operator Instructions) Today's conference is being recorded. If you have any objections, you may disconnect at this time.

早安，感謝各位撥冗等候。在今天會議的問答環節開始前，各位的線路將維持僅收聽模式。(接線員指示) 今天的會議將被錄音。如有任何異議，您可於此時中斷連線。

It is now my pleasure to turn the call over to Whit Kincaid.

現在我很榮幸將電話會議交給 Whit Kincaid。

Good morning, everyone. Thank you for joining us for Mueller Water Products third-quarter conference call. Yesterday afternoon, we issued our press release reporting results of operations for the quarter ended June 30, 2026. A copy of the press release is available on our website, muellerwaterproducts.com.

各位早安。感謝各位參加 Mueller Water Products 第三季電話法說會。昨天下午，我們已發布新聞稿，公告截至 2026 年 6 月 30 日止季度的營運結果。新聞稿副本可於我們的網站 muellerwaterproducts.com 取得。

I am joined this morning by Paul McAndrew, our President and Chief Executive Officer; and Melissa Rasmussen, our Chief Financial Officer.

今天早上與我一同出席的有：我們的總裁兼執行長 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.

在我們的準備發言之後，我們將回答與本次電話會議所涵蓋資訊相關的問題。提醒各位，請每位提問者以一個問題加一個追問為限，之後請回到隊列。今天早上的電話會議將被錄音，並透過網路進行即時網路直播。我們也已在網站上張貼投影片，以配合今天的討論。投影片亦涵蓋前瞻性陳述以及我們的非 GAAP 揭露要求。

At this time, please prefer 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 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.

此刻請翻到投影片第 2 頁。本頁列示我們在新聞稿、投影片以及本次電話會議中引用的非 GAAP 財務衡量指標。並揭露我們認為這些指標能為投資人提供有用資訊的原因。非 GAAP 與 GAAP 財務衡量指標之間的調節表，已收錄於新聞稿的補充資訊以及我們的網站。

Slide 3 addresses forward-looking statements made on this call. 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.

投影片第 3 頁說明本次電話會議中的前瞻性陳述。本頁包含警示性資訊，指出可能導致實際結果與前瞻性陳述所述結果出現重大差異的重要因素。請完整閱讀投影片第 2 頁與第 3 頁。

During this call, all references to a specific year or quarter, unless specified otherwise, refer to our fiscal year which ends September 30. A replay of this morning's call will be available for 30 days at 1-866-386-1299. The archive webcast and corresponding slides will be available for at least 90 days on the Investor Relations section of our website.

在本次電話會議中，除非另有說明，所有對特定年度或季度的提及，均指我們截至 9 月 30 日止的會計年度。今天早上電話會議的重播將於 30 天內提供，電話為 1-866-386-1299。網路直播存檔及相應投影片將於我們網站的投資人關係專區提供至少 90 天。

I'll now turn the call over to Paul.

接下來我把電話交給 Paul。

Thanks, Whitt. Good morning, everyone. Thank you for joining our third-quarter earnings call. Our outstanding third quarter results reflect strong execution and continued progress against the operating priorities we outlined in the last quarter. We achieved quality records for net sales, adjusted EBITDA, and adjusted net income per diluted share.

謝謝你，Whitt。各位早安。感謝各位參加我們第三季財報電話會議。我們第三季的優異表現，反映出強勁的執行力，以及在上一季所提出的營運優先事項上持續取得進展。我們在淨銷售額、調整後 EBITDA，以及稀釋後每股調整後淨利方面，皆創下品質紀錄。

Net sales grew 4.1% in the quarter supported by commercial execution, resilient municipal and market demand, and strong growth in project-related specialty valves. Adjusted EBITDA margin expanded 440 basis points year over year, reflecting our continued focus on operational excellence, productivity, and disciplined cost management.

本季淨銷售額成長 4.1%，主要受惠於商務執行、具韌性的市政與市場需求，以及專案相關之特殊閥門的強勁成長。調整後 EBITDA 利潤率年增 440 個基點，反映我們持續聚焦於營運卓越、提升生產力，以及嚴謹的成本管理。

Free cash flow was strong this quarter, enabling us to continue funding capacity and efficiency investments while returning approximately $21 million to shareholders through our quarterly dividend and share repurchases. I am proud of what our teams have accomplished and the continued commitment to serving our customers.

本季自由現金流表現強勁，使我們得以持續投入產能與效率投資，同時透過季度股利與庫藏股回購向股東回饋約 2,100 萬美元。我為團隊所達成的成果，以及持續致力於服務客戶的承諾感到自豪。

Last quarter, we introduced the Mueller Operating System as the framework we are using to drive greater discipline, execution, and accountability across the company. Our results provide further evidence of the progress we are making in expanding margins, strengthening cash generation, and investing in growth and simplification.

上一季我們推出 Mueller Operating System，作為推動全公司更高紀律、執行力與責任承擔的架構。我們的成果進一步證明，我們在擴大利潤率、強化現金創造能力，以及投資成長與簡化方面正持續取得進展。

Following our announcement from the last quarter, we completed the exit of the i2O pressure monitoring business outside of North America. GWF AG, a utility metering and smart water technology company headquartered in Switzerland, acquired certain assets and liabilities of i2O Water. During the quarter, we incurred one-time costs associated with the transaction, along with a tax benefit, which lowered our income tax rate. We expect the cost savings and tax benefits to support margin expansion and enhance free cash flow.

延續上一季的公告，我們已完成退出北美以外的 i2O 壓力監測業務。總部位於瑞士的公用事業計量與智慧水務科技公司 GWF AG，收購了 i2O Water 的部分資產與負債。本季我們認列了與該交易相關的一次性成本，並同時取得稅務利益，使我們的所得稅率下降。我們預期成本節省與稅務利益將支持利潤率擴張並提升自由現金流。

With our increased fiscal 2026 adjusted EBITDA guidance, we remain on track to deliver another year of meaningful margin expansion, while we continue to navigate slower new residential construction activity and broader external uncertainty. We remain focused on what we can control: executing our strategies, investing in growth, and proactively managing costs. Our commercial initiatives are focused on increasing market penetration for our leading products and expanding into adjacent markets for our specialty valves.

隨著我們上調 2026 會計年度調整後 EBITDA 指引，我們仍按計畫可望再度實現具意義的利潤率擴張，同時持續因應新建住宅施工活動放緩以及更廣泛的外部不確定性。我們仍專注於可控事項：落實策略、投資成長，並主動管理成本。我們的商務計畫聚焦於提升主力產品的市場滲透率，並將特殊閥門拓展至相鄰市場。

We believe the disciplined execution embedded in the Mueller Operating System positions us well to build on this momentum and create long-term value for our customers and shareholders. I am proud of the progress our teams have achieved this year, reflecting a focus on serving customers, strengthening operations, and collaborating across the organization.

我們相信，Mueller Operating System 所內嵌的紀律化執行，使我們具備良好定位以延續此一動能，並為客戶與股東創造長期價值。我為團隊今年所取得的進展感到自豪，這反映出我們專注於服務客戶、強化營運，以及跨組織協作。

We recently published our 2025 sustainability report, highlighting our continued progress in advancing environmental stewardship, operational excellence, responsible business practices, employee well-being and community impact. As cities and municipalities confront a growing range of challenges, critical infrastructure is under increasing strain. At the same time, aging systems continue to pose significant risks.

我們近期發布 2025 年永續報告，重點呈現我們在推動環境管理、營運卓越、負責任的商業實務、員工福祉與社區影響方面的持續進展。隨著城市與地方政府面臨日益多元的挑戰，關鍵基礎設施承受的壓力也在增加。同時，老化系統仍持續帶來重大風險。

Against this backdrop, Mueller's role as a provider of resilient, reliable water infrastructure solutions is more essential than ever. Notable 2025 achievements include reaching an outstanding milestone of the lowest total recordable incident rate in our history, reflective of our team's unwavering commitment to safety. We've also maintained strong momentum towards reducing our carbon footprint, cutting Scope 1 and 2 emissions intensity by 13% year over year, bringing our total reduction to 35%. This moves us closer to our goal of reducing greenhouse gas emissions intensity by 50% by 2035.

在此背景下，Mueller 作為具韌性、可靠的水務基礎設施解決方案供應商，其角色比以往任何時候都更為關鍵。2025 年的重要成果包括：達成我們歷史上最低的總可記錄事故率之卓越里程碑，反映團隊對安全的堅定承諾。我們也持續在降低碳足跡方面保持強勁動能，範疇 1 與範疇 2 排放強度年減 13%，使累計降幅達 35%。這使我們更接近 2035 年前將溫室氣體排放強度降低 50% 的目標。

As for employee engagement, we reached our goal one year ahead of our schedule, achieving an 80% employee engagement score in our annual employee survey. Our vision is to be the leader in water infrastructure solutions, solving challenges, enriching lives, and safeguarding the future. We will continue to drive progress through our innovative products and solutions that help utilities and municipalities strengthen system resilience, detect leaks faster and with greater precision, rehabilitate and maintain aging infrastructure, and provide life-saving fire protection.

在員工敬業度方面，我們比原定時程提前一年達成目標，在年度員工調查中取得 80% 的員工敬業度分數。我們的願景是成為水務基礎設施解決方案的領導者，解決挑戰、豐富生活並守護未來。我們將持續透過創新產品與解決方案推動進展，協助公用事業與地方政府強化系統韌性、更快速且更精準地偵測漏水、整修並維護老化基礎設施，以及提供拯救生命的消防防護。

Our achievements of the past several years established a new foundation for future progress and are the direct result of the hard work, focus and collaboration demonstrated across our organization. With that, I'll turn it over to Melissa to take us through the financials.

過去數年的成果為未來進一步進展奠定了新的基礎，並且是全體組織展現的努力、專注與協作所直接促成的結果。接下來我把時間交給 Melissa，帶大家檢視財務表現。

Thanks, Paul, and good morning, everyone. We are pleased to deliver another record quarter, demonstrating the strength of our business, the resilience of our end markets, and the continued execution by our teams despite a dynamic external environment.

謝謝你，Paul，各位早安。我們很高興再度交出創紀錄的一季，展現我們業務的實力、終端市場的韌性，以及在外部環境多變之下團隊持續的執行力。

Consolidated net sales increased 4.1% to a new record of $395.9 million, driven primarily by higher pricing across most product lines, partially offset by slightly lower volumes. Gross profit increased 6.9% to a record $155.8 million, with gross margin expanding 110 basis points to 39.4%. The improvement reflects the benefits of pricing actions and tariff refunds, which more than offset inflationary pressures, performance, volume impacts, portfolio optimization costs, and product mix.

合併淨銷售額成長 4.1%，達到創新高的 3.959 億美元，主要由多數產品線的價格上調所帶動，但部分被出貨量略為下降所抵銷。毛利成長 6.9%，達到創新高的 1.558 億美元，毛利率提升 110 個基點至 39.4%。此一改善反映價格措施與關稅退稅的效益，且其效益超過通膨壓力、績效、銷量影響、產品組合最佳化成本以及產品組合變動的影響。

During the quarter, we incurred $3.1 million of portfolio optimization costs associated with the strategic exit of the i2O pressure monitoring business outside of North America, impacting WMS cost of sales. While we continue to experience elevated tariff costs mainly attributable to Section 232 tariffs along with ongoing inflationary pressures, the International Emergency Economic Powers Act tariff refunds received during the quarter helped offset a portion of those impacts.

本季度，我們產生了310萬美元的投資組合優化成本，與在北美以外策略性退出 i2O 壓力監測業務相關，並影響了 WMS 的銷貨成本。儘管我們仍持續承受偏高的關稅成本（主要歸因於第232條關稅）以及持續的通膨壓力，但本季度收到的《國際緊急經濟權力法》（IEEPA）關稅退稅有助於抵銷其中一部分影響。

Excluding the impact of these prior period tariff refunds and the portfolio optimization costs, adjusted gross margin was approximately 30 basis points higher than the prior year's gross margin of 38.3%, demonstrating the underlying benefit of our pricing actions and operational execution despite a challenging cost environment.

若排除前期關稅退稅及投資組合優化成本的影響，調整後毛利率較去年38.3%的毛利率約高出30個基點，顯示即使在具挑戰性的成本環境下，我們的定價措施與營運執行仍帶來實質效益。

Total SG&A expenses for the quarter of $64 million decreased $7 million year over year, reflecting reduced foreign currency headwinds and lower incentive compensation expense, partially offset by continued inflationary pressures. This performance underscores our disciplined approach to cost management while continuing to invest in the business.

本季度SG&A費用合計6,400萬美元，年減700萬美元，反映外匯不利因素減輕及激勵性薪酬費用降低，部分被持續的通膨壓力所抵銷。此表現凸顯我們在持續投資業務的同時，對成本管理採取嚴謹自律的作法。

We incurred $11.2 million of strategic reorganization and other charges. These costs primarily relate to the i2O exit, including non-cash asset impairment charges, certain transaction-related expenses, severance, and costs associated with our leadership transition. Our adjusted results do not include strategic reorganization and other charges or the portfolio optimization costs reflected in the WMS segment.

我們產生了1,120萬美元的策略性重組及其他費用。這些成本主要與退出 i2O 相關，包括非現金資產減損費用、部分交易相關費用、資遣費，以及與管理層交接相關的成本。我們的調整後結果不包含策略性重組及其他費用，亦不包含反映於 WMS 部門的投資組合優化成本。

Adjusted EBITDA reached a record of $107.4 million, an increase of 24.3% compared to the prior year quarter. Adjusted EBITDA margin expanded 440 basis points year over year to a record 27.1%. This strong performance was primarily driven by pricing actions, tariff refunds, and favorable SG&A cost management, which more than offset inflationary pressures, performance, volume impacts, and product mix. On a trailing 12-month basis, adjusted EBITDA improved to $369 million or 24.9% of net sales, representing an improvement of 290 basis points versus the prior 12-month period.

調整後EBITDA達到創紀錄的1.074億美元，較去年同期增加24.3%。調整後EBITDA利潤率年增440個基點至創紀錄的27.1%。此強勁表現主要由定價措施、關稅退稅及有利的SG&A成本管理所帶動，並且足以抵銷通膨壓力、績效、銷量影響及產品組合變化。以過去12個月（TTM）計，調整後EBITDA提升至3.69億美元，約占淨銷售額的24.9%，較前一個12個月期間改善290個基點。

Adjusted net income per diluted share increased 47.1% year over year to a record $0.50 per share. During the quarter, we benefited from lower net interest expense driven by higher interest income. Our third quarter effective income tax rate was 15.7% compared with 27.1% in the prior year, reflecting a one-time tax benefit associated with the exit of the i2O business. This benefit contributed approximately $0.06 per diluted share during the quarter.

調整後稀釋每股淨利年增47.1%至創紀錄的每股0.50美元。本季度，我們受惠於較低的淨利息費用，主要由較高的利息收入所帶動。第三季有效所得稅率為15.7%，相較去年同期為27.1%，反映與退出 i2O 業務相關的一次性稅務利益。該利益於本季度約貢獻稀釋每股0.06美元。

Turning now to segment performance starting with WFS. Net sales were $215.3 million, declining 0.6% year over year, as higher pricing across most product lines and volume growth in specialty valves largely offset lower iron gate valve and service brass volumes.

接著看各部門表現，先從 WFS 開始。淨銷售額為2.153億美元，年減0.6%；多數產品線較高的定價與特殊閥門的銷量成長，基本抵銷了鑄鐵閘閥及服務用銅製配件銷量下滑。

Adjusted EBITDA increased 9.5% to a record $73.5 million. Adjusted EBITDA margin expanded 310 basis points to a record 34.1% compared to 31% in the prior year period, reflecting the benefits of pricing, tariff refunds, and performance, which more than offset lower volumes, inflationary pressures, and product mix.

調整後EBITDA增加9.5%至創紀錄的7,350萬美元。調整後EBITDA利潤率較去年同期的31%擴張310個基點至創紀錄的34.1%，反映定價、關稅退稅及績效帶來的效益，且足以抵銷較低的銷量、通膨壓力及產品組合影響。

Moving to WMS, net sales increased 10.3% to $180.6 million, driven by strong volume growth in hydrants and natural gas distribution products, along with higher pricing across most product lines. Adjusted EBITDA increased 43.6% to a record $50.7 million, reflecting benefits from higher pricing, lower SG&A expenses, including reduced foreign currency headwinds, volume growth, and tariff refunds, which more than offset performance and inflationary pressures.

再看 WMS，淨銷售額增加10.3%至1.806億美元，主要由消防栓與天然氣配銷產品的強勁銷量成長所帶動，並加上多數產品線的較高定價。調整後EBITDA增加43.6%至創紀錄的5,070萬美元，反映較高定價、較低的SG&A費用（包括外匯不利因素減輕）、銷量成長及關稅退稅帶來的效益，且足以抵銷績效與通膨壓力。

Adjusted EBITDA margin expanded 650 basis points to a record 28.1% compared with 21.6% in the prior year period. The continued improvement in profitability reflects the significant progress we have made in strengthening operating performance and driving leverage across the business.

調整後EBITDA利潤率擴張650個基點至創紀錄的28.1%，相較去年同期為21.6%。獲利能力的持續改善反映我們在強化營運績效並推動全公司槓桿效益方面所取得的重大進展。

Turning to free cash flow. For the first nine months of the year, free cash flow increased $7.6 million to $110.6 million and represented 59% of adjusted net income. The increase was driven by higher net cash provided by operating activities partially offset by higher capital expenditures. Net cash provided by operating activities increased $18.4 million year over year, driven primarily by favorable non-cash adjustments and higher net income, partially offset by changes in working capital and other assets and liabilities.

接著談自由現金流。今年前九個月，自由現金流增加760萬美元至1.106億美元，約占調整後淨利的59%。此增幅主要由營運活動提供的淨現金增加所帶動，但部分被較高的資本支出所抵銷。營運活動提供的淨現金年增1,840萬美元，主要由有利的非現金調整與較高的淨利所驅動，但部分被營運資金及其他資產與負債變動所抵銷。

While working capital remains elevated due to inventory investments, inflation, and tariffs, these investments continue to support customer service levels and our long-term growth objectives. We invested $43.6 million in capital expenditures during the first nine months of the year compared with $32.8 million in the prior year period, reflecting continued investment in our iron foundries that support future productivity, capacity, and operational excellence.

儘管因存貨投資、通膨與關稅使營運資金仍處於較高水準，這些投資仍持續支撐客戶服務水準與我們的長期成長目標。今年前九個月，我們投入4,360萬美元資本支出，較去年同期的3,280萬美元增加，反映我們持續投資於鑄鐵鑄造廠，以支援未來的生產力、產能與卓越營運。

We ended the quarter with $495 million of cash and cash equivalents and $453 million of total debt. Our balance sheet remains exceptionally strong, providing significant flexibility to support both organic investments and strategic growth opportunities.

本季度末，我們持有4.95億美元的現金及約當現金，總負債為4.53億美元。我們的資產負債表仍極為強健，提供顯著的彈性以支援內生成長投資與策略性成長機會。

We have no debt maturities until June 2029 and $450 million of senior notes at a favorable 4% fixed interest rate and had no borrowings under our ABL facility. We ended the quarter with total liquidity of $659 million, including $164 million of available capacity under the ABL, positioning us well to execute our strategic priorities and pursue attractive acquisition opportunities.

我們在2029年6月之前沒有到期債務，並有4.5億美元的優先票據，固定利率4%且條件有利，同時在我們的 ABL 額度融資下沒有任何借款。本季度末，我們的總流動性為6.59億美元，其中包括ABL項下1.64億美元的可用額度，使我們具備良好條件以執行策略重點並把握具吸引力的併購機會。

Turning now to our outlook for fiscal 2026. Given our strong year-to-date performance and outlook for the balance of the year, we are narrowing our consolidated net sales growth guidance to a range of 2.8% and 3.5% year over year, reflecting our current expectations for end market demand, volumes, and price realization.

接著談我們對2026會計年度的展望。鑑於我們年初至今的強勁表現以及對今年剩餘期間的展望，我們將合併淨銷售額成長指引收斂至年增2.8%至3.5%的區間，反映我們目前對終端市場需求、銷量與價格實現的預期。

While we anticipate softer new residential construction activity during the fourth quarter, we continue to expect resilient municipal repair and replacement activity and strong growth in specialty valve. Based on our record performance through the first nine months of the year and confidence in our ability to execute for the rest of the year, we are raising our annual adjusted EBITDA guidance to a new range of $367 million to $372 million. At the midpoint, our updated guidance range represents an adjusted EBITDA margin of 25.1%, which would represent another annual record for the company.

雖然我們預期第四季新建住宅建設活動將趨緩，但我們仍預期市政維修與汰換活動具韌性，且特殊閥門將維持強勁成長。基於今年前九個月的創紀錄表現，以及我們對全年剩餘期間執行力的信心，我們將全年調整後EBITDA指引上調至3.67億至3.72億美元的新區間。以中位數計算，我們更新後的指引區間代表調整後EBITDA利潤率為25.1%，將再度創下公司年度新高。

We are also reducing our expectations for total SG&A expenses within this updated guidance to a new range of $241 million to $245 million, reflecting ongoing discipline in managing costs while supporting strategic growth initiatives. Additionally, we are lowering our effective tax rate guidance to between 21% and 23%, reflecting the one-time tax benefit recognized during the third quarter.

我們也在此更新後的指引中下調對SG&A費用總額的預期至2.41億至2.45億美元的新區間，反映在支持策略性成長計畫的同時，持續自律地管理成本。此外，我們將有效稅率指引下調至21%至23%，反映第三季認列的一次性稅務利益。

Finally, we are reaffirming our capital expenditure outlook of $60 million to $65 million and continue to expect our free cash flow conversion to exceed 70% of adjusted net income for the full year. Overall, our performance year-to-date demonstrates the strength of our business model, the resilience of our end markets, and the effectiveness of our pricing, operational and cost management initiatives. We remain confident in our ability to deliver another record year while continuing to invest for long-term growth and value creation.

最後，我們重申資本支出展望為6,000萬至6,500萬美元，並仍預期全年自由現金流轉換率將超過調整後淨利的70%。整體而言，我們年初至今的表現展現了商業模式的強健、終端市場的韌性，以及我們在定價、營運與成本管理措施上的成效。我們仍有信心在持續投資以促進長期成長與價值創造的同時，再度交出創紀錄的一年。

With that, I'll turn it back to Paul for closing comments.

那麼，我把時間交回給 Paul 作結語。

Thanks, Melissa. I want to provide a few closing comments before opening it up for Q&A. Overall, I am extremely proud of our team's outstanding performance this quarter. I'm pleased for the third consecutive quarter, we are raising our annual adjusted EBITDA guidance. We delivered strong results in an uncertain operating environment by staying focused on serving customers, executing with discipline, and investing in capabilities that support long-term value creation.

謝謝你，Melissa。在開放問答之前，我想先做幾點結語。整體而言，我為我們團隊本季的卓越表現感到非常自豪。我很高興我們連續第三個季度上調全年調整後 EBITDA 指引。在不確定的營運環境下，我們仍專注於服務客戶、以紀律執行，並投資於支持長期價值創造的能力，因此交出強勁成果。

Our priorities remain clear: drive above market sales growth, continued expanding margins, and maintain disciplined capital allocation. The Mueller Operating System is the execution engine behind those priorities, providing the tools, processes, and management disciplines to improve execution, accountability, and continuous improvement across the company. This quarter provides further evidence that the system is taking hold.

我們的優先事項依然明確：推動高於市場的銷售成長、持續擴大利潤率，並維持嚴謹的資本配置。Mueller 營運系統是支撐這些優先事項的執行引擎，提供工具、流程與管理紀律，以提升全公司的執行力、問責性與持續改善。本季進一步證明該系統正在落地見效。

At the center of our success are our employees. Their commitment, collaboration, and safety-first mindset enable us to serve customers well, strengthen operations, and sustain our momentum. Through the disciplined execution embedded in the Mueller Operating System, we will continue to reduce complexity, improve business processes, expand margins, and generate cash to fund growth investments, including capacity, efficiency, digital tools, innovation, and specialty valve capabilities.

我們成功的核心是員工。他們的投入、協作與安全第一的心態，使我們能良好服務客戶、強化營運並維持動能。透過 Mueller 營運系統所內建的紀律化執行，我們將持續降低複雜度、改善業務流程、擴大利潤率，並產生現金以支持成長投資，包括產能、效率、數位工具、創新，以及特殊閥門能力。

Finally, we will remain disciplined in allocating capital across organic investments, targeted acquisitions, and cash returned to shareholders. Mueller is becoming a stronger, more focused and more resilient company, and we remain committed to creating sustainable long-term value for our shareholders.

最後，我們將在有機投資、策略性併購，以及回饋股東的現金之間，持續以紀律進行資本配置。Mueller 正在成為一家更強大、更聚焦且更具韌性的公司，我們也將持續致力於為股東創造可持續的長期價值。

I want to thank our employees worldwide for their extraordinary commitment to our customers and communities. They are the reason for our success and why Mueller has been a trusted partner for more than a century.

我要感謝全球員工對客戶與社區展現的非凡承諾。他們是我們成功的原因，也是 Mueller 一百多年來能成為值得信賴合作夥伴的原因。

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

以上是我們的說明。接線員，請開放提問。

(Operator Instructions) Bryan Blair, Oppenheimer.

(接線員指示) Bryan Blair，Oppenheimer。

Thank you. Good morning, everyone.

謝謝。各位早安。

Good morning, Bryan.

早安，Bryan。

Updated guidance implies top line down slightly year on year against a pretty healthy stacked comp and think about 1% EBITDA growth, again, against solid Q4 '25 performance. How should we think about segment contribution to that? The year has progressed a little differently than we expected; still very strong overall. I'm just curious how we should think about the Q4 dynamics by segment.

更新後的指引意味著，在相當健康的疊加比較基期下，營收年對年略為下滑；而 EBITDA 約成長 1%，同樣是相對於 2025 會計年度第四季的穩健表現。我們應該如何看待各事業部對此的貢獻？今年的進展與我們原先預期有些不同；整體仍非常強勁。我只是好奇，我們應該如何按事業部來看第四季的動態。

Yeah, I'll give the overall first, Bryan, and then I let Melissa talk by segment. You are correct. We narrowed our net sales range. I guess that's based on our current expectations around orders and shipments, mainly around the slower residential construction activity.

好的，Bryan，我先講整體，然後再請 Melissa 按事業部分別說明。你說得沒錯。我們縮窄了淨銷售額區間。我想這是基於我們目前對訂單與出貨的預期，主要與住宅建築活動放緩有關。

We're also lapping tariff price actions from Q4 implementation of last year. Again though, we're really -- overall, really pleased where we are as a company, Bryan. Pleased to be growing that sales and expanding margins for the third consecutive year. It's really where we are reflective of where we see the slower residential construction and the uncertainty in macro environments as we move into Q4. As for segments, I'll pass over to Melissa.

我們也正在對比去年第四季實施的關稅調價措施所帶來的影響。不過，整體而言，Bryan，我們對公司目前的狀況非常滿意。也很高興連續第三年實現銷售成長並擴大利潤率。這確實反映了我們對住宅建築放緩，以及進入第四季時宏觀環境不確定性的看法。至於各事業部，我把時間交給 Melissa。

Sure, good morning, Bryan. For the WFS segment, we are expecting adjusted EBITDA to be above prior year due to gross margin improvements, operational efficiencies, and then, price realization. We're expecting to see a sequential decline from third to fourth quarter, which part of that is due to the typical seasonality decline sequentially. And we expect volumes and product mix to be a driver of that as well.

好的，Bryan，早安。就 WFS 事業部而言，我們預期調整後 EBITDA 將高於去年，原因包括毛利率改善、營運效率提升，以及價格實現。我們預期第三季到第四季會出現季減，其中一部分是典型的季節性下滑。我們也預期出貨量與產品組合會是影響因素。

Volume will be impacting our short cycle products, so iron gate valves and service brass. And we'll expect to see a shift toward specialty valve because we have continued to see strength in specialty valves throughout the year.

出貨量將影響我們的短週期產品，例如鑄鐵閘閥與服務用銅製配件。同時我們預期產品組合將轉向特殊閥門，因為我們全年持續看到特殊閥門的強勁需求。

For WMS, we're expecting to see lower margins versus the prior year and sequentially, and that's going to be due to lower hydrant volumes. We have benefited from a backlog in hydrants throughout the first three quarters. We expect that that backlog will be normalized as we enter fourth quarter, so the residential slowdown will impact WMS more than it has so far this year.

就 WMS 而言，我們預期相較去年以及相較前一季的利潤率都會較低，主要是因為消防栓出貨量較低。在前三個季度，我們受惠於消防栓的積壓訂單。我們預期進入第四季時，該積壓訂單將回到正常水準，因此住宅放緩對 WMS 的影響將比今年迄今更大。

We do expect to see that we'll be lapping our tariff pricing that was put in place and began to benefit the fourth quarter of last year. And we'll continue to see higher inflationary pressures and ongoing tariff expense, while we have had the relief from the IEEPA tariffs that has been replaced by higher Section 232 tariffs impacting our Krausz business line. And we do not expect to have any further tariff refunds.

我們確實預期將進入與去年第四季開始受益的關稅定價措施之比較基期。同時，我們將持續面臨較高的通膨壓力與持續的關稅費用；雖然先前 IEEPA 關稅帶來的緩解已被更高的 232 條款關稅所取代，並影響我們的 Krausz 產品線。我們不預期會再有任何關稅退稅。

Okay, very helpful detail. Thank you. You mentioned tariff refunds there. I think you gave us the math that we can back into consolidated benefit for fiscal Q3. What were tariff refunds on a segment level?

好的，細節非常有幫助。謝謝。你剛提到關稅退稅。我想你提供了我們可以回推第三財季合併層面受益的計算方式。那麼在事業部層級，關稅退稅是多少？

Yes, so, as I mentioned in the prepared remarks, we had 150-basis-point benefit overall for the tariff refunds in the quarter. For the segments, that's split about 50-50. So you would see 140-basis-point impact in WFS and 170-basis-point impact in WMS.

是的，如同我在事先準備的講稿中提到，本季關稅退稅整體帶來 150 個基點的受益。就事業部而言，大約是 50/50 分攤。因此你會看到 WFS 影響約 140 個基點，WMS 影響約 170 個基點。

Understood, thank you again.

了解，再次感謝。

Walt Liebig, Seaport Research.

Walt Liebig，Seaport Research。

Hi, thanks for the guidance for fourth quarter. I wanted to ask about the specialty valves. You called those out a couple of times because of projects. And it sounds like the demand was strong. I wonder if you could provide some more detail about the demand levels in third quarter and what the visibility is like in the fourth quarter.

嗨，謝謝你們提供第四季指引。我想問一下特殊閥門。你們因為專案而多次提到它們。聽起來需求很強。想請你們提供更多第三季需求水準的細節，以及第四季的能見度如何。

Yeah, sure, Walt, good morning. Specialty valve is slightly different in terms of how we -- the sales cycle in comparison to our short cycle business. So specialty valve makes up the majority of our backlog then. And it's been the fastest-growing category for us over the past few years, and we are really leveraging our operational investments and the consolidation of locations into Kimball along with our engineering investments.

好的，當然可以，Walt，早安。特殊閥門在銷售週期上與我們的短週期業務略有不同。因此，特殊閥門占我們積壓訂單的大部分。過去幾年它一直是我們成長最快的品類；我們也正充分運用營運投資、將據點整併至 Kimball，以及工程方面的投資。

And I think you know there's many different types of valves within specialty valve then that impact not just potable water but waste water and industrial water. And industrial water, although a small category for us has been one of our fastest-growing categories as we kind of not just think about the potable water or the infrastructure water around data centers, we're also seeing a step increase then of our ability to get the specialty valves into industrial water for data centers as well.

而且我想你也知道，特殊閥門之下有許多不同類型的閥門，影響的不僅是飲用水，也包括廢水與工業用水。工業用水雖然對我們而言是較小的品類，但卻是成長最快的品類之一；因為我們不僅著眼於飲用水或資料中心周邊的基礎設施用水，我們也看到我們將特殊閥門導入資料中心工業用水領域的能力出現階梯式提升。

Okay, great. And I wonder the data center opportunity, are you -- are these being sold through distribution, or are you getting specked in the data centers?

好的，很棒。我想問一下資料中心的機會，你們是透過經銷通路銷售，還是你們的產品被納入資料中心的規格（spec）？

It's a combination. We sell through distribution. We've also made commercial investments in our teams to gain access for approved manufacturing list as well. So it's one of our commercial initiatives going forward, and we're starting to see traction right now.

這是多種方式的組合。我們透過經銷通路銷售。我們也在團隊上進行商業投資，以取得核准製造商名單（AML）的准入。因此，這是我們未來推進的商業舉措之一，而且我們現在已開始看到進展。

Okay. Okay, thanks very much.

好的。好的，非常感謝。

Jeffrey, RBC Capital Markets.

Jeffrey，RBC Capital Markets。

Thanks. Good morning. Maybe just following up on that data center question, could you size how big that business is for you today?

謝謝。早安。也許延續剛才資料中心的問題，你能否說明目前這項業務對你們而言規模有多大？

It's relatively small in the overall size of the business for us, Jeff. And industrial water within specialty valves is a piece of that where we are seeing probably our fastest growth. And it is one of our highest commercial initiatives then to really work with these engineering firms around the AMLs. But in terms of size right now, relatively small.

Jeff，就我們而言，相對於整體業務規模，這部分目前還算小。而在專用閥門中，工業用水是其中一塊，我們看到那可能是成長最快的領域。因此，與這些工程公司就 AML 合作，確實是我們最高優先的商業舉措之一。但就目前規模而言，仍相對較小。

Got it. Appreciate that. And maybe just a higher level question, kind of the muni repair and replacement market seems to be resilient, but I think some federal stimulus seems to be sunsetting. Just like if you look over the next like year or two, I mean, how much visibility do you have into the spending outlook?

了解。感謝說明。再問一個較高層次的問題：市政維修與汰換市場看起來很有韌性，但我想部分聯邦刺激措施似乎正在到期。如果看未來一到兩年，你們對支出前景有多少能見度？

Yeah, if you think about the federal sunset in -- federal investment is less than 5% of the total investment into municipalities, the rest coming from state and local governments. I know we are seeing the sunset and it's going to take multiple years to see that impact because a lot of those funds have already been appropriated then and they just need to be executed in the projects. So over the next one to three years, we don't see any meaningful change then from the federal funding impact.

是的，如果你想到聯邦資金到期——聯邦投資占市政總投資不到 5%，其餘來自州與地方政府。我們確實看到聯邦資金逐步到期，但要花好幾年才會看到影響，因為其中許多資金已經完成撥款，只是還需要在專案中執行。因此在未來一到三年，我們不認為聯邦資金的影響會帶來任何顯著變化。

Got it. And maybe if I could just sneak in one more, I think at ACE this year, you guys are showcasing your hydrant renewal system. I think it's a really great opportunity. Can you just update us on where the commercialization stands today? Any early customer feedback, and how you're thinking about revenue contribution as this scales?

了解。如果我可以再追問一個，我想你們今年在 ACE 展示了你們的消防栓更新系統。我覺得這是個很好的機會。能否更新一下目前商業化進展？有沒有早期客戶回饋？以及隨著規模擴大，你們如何看待營收貢獻？

Yeah, so we have launched [hydrogen] renewal. We continue to get very positive customer feedback from customer trials. And just as a reminder for everyone, this will be replacing aged hydrants without having to dig up the part of the [hydro] which is below the ground, so it gives a much more efficient solution for our customers. And we're also pleased how much positive feedback we've had, Jeff, on the leak testing capabilities is integrated into that solution as well.

是的，我們已推出[hydrogen]更新方案。我們持續從客戶試用中獲得非常正面的回饋。也提醒大家，這套方案可在不必挖掘地下的[hydro]部分的情況下，更換老舊消防栓，為客戶提供更高效率的解決方案。此外，Jeff，我們也很高興看到，整合在該方案中的漏水測試能力同樣獲得大量正面回饋。

(Operator Instructions) Brian Lee, Goldman Sachs.

（接線員指示）Brian Lee，Goldman Sachs。

Hey guys, this is Keshav Choudhary on for Brian Lee. Thank you for taking my question. So pricing has been a contributor for your growth in recent quarters. Can you maybe discuss the sustainability of the pricing realization going forward, particularly as the tariff-related price increases began to lap up in the second half, and whether you're seeing any change in sort of customer acceptance as these increases work through the market? Thank you.

各位好，我是代替 Brian Lee 的 Keshav Choudhary。謝謝讓我提問。近幾季定價一直是你們成長的貢獻因素。能否談談未來定價落地（price realization）的可持續性，特別是與關稅相關的漲價在下半年開始進入同比基期後，以及你們是否看到客戶接受度在這些漲價逐步傳導至市場時出現任何變化？謝謝。

Good morning. We have historically been successful at taking pricing actions to offset inflationary impacts. We have typically ranged in the mid- and low single-digit range of price realization. And we continue to expect to see that opportunity into the future. We have been price/cost positive and continue to expect that that will be the same as we move into fourth quarter.

早安。我們過去一向能成功採取定價行動，以抵消通膨影響。我們的價格落地通常落在中到低個位數的區間。我們也持續預期未來仍有這樣的機會。我們一直維持價格/成本為正，並預期進入第四季仍會如此。

With the price realization, we will expect to see a little bit lower price realization in fourth quarter because we'll be lapping the tariff benefits that we started to see in fourth quarter of last year.

就價格落地而言，我們預期第四季會略低一些，因為我們將進入去年第四季開始看到的關稅效益的同比基期。

Yeah, just a reminder, we have very strong brands and very good pricing power. So we feel comfortable whatever inflation or tariff impacts we may see, we have the pricing ability to offset that cost.

是的，提醒一下，我們擁有非常強的品牌與很好的定價能力。因此，無論我們可能面臨任何通膨或關稅影響，我們都有能力透過定價來抵消這些成本。

Okay, thank you. That helps. Just maybe one more. So if you look towards fiscal '27, the residential demand has been slow. And if the residential construction continues to remain soft, can the municipal repair and replacement activity and the specialty valve project continue to support growth, or do you see limits to how much of these markets can offset the resi weakness and resi will need to come back at some point to help with the growth?

好的，謝謝。這很有幫助。再問一個。如果看向 2027 財年，住宅需求一直偏弱。若住宅建築持續疲軟，市政維修與汰換活動以及專用閥門專案能否繼續支撐成長？還是你們認為這些市場能抵消住宅疲弱的程度有限，住宅端終究需要在某個時間點回升才能帶動成長？

Yeah, well, we don't give our guidance for 2027 until the next earnings call. We continue to look at all those market indicators you referenced then, and we know that we're going to be seen continued or leveled out, where -- slowdown in residential construction. We believe from a municipal perspective and our commercial and strategic initiatives that they cannot really offset where we can see that kind of depressed residential construction right now.

是的，我們要到下一次財報電話會議才會提供 2027 年的指引。我們持續關注你提到的所有市場指標，也知道住宅建築將持續放緩或趨於持平。我們認為，從市政面以及我們的商業與策略性舉措來看，並不足以完全抵消目前住宅建築如此低迷的狀況。

But I'd like to add, residential construction cannot stay depressed forever. There is a pent-up demand of housing, and we know that they will bounce back and we will -- that will be a tailwind for us as well when that bounce back comes.

但我想補充，住宅建築不可能永遠低迷。住房存在被壓抑的需求，我們知道它會反彈；當反彈到來時，對我們也會是順風。

Okay, thank you. That helps. I'll pass along.

好的，謝謝。這很有幫助。我就先把時間交回去。

Thank you. I will now turn the call back over to Paul for any closing comments.

謝謝。我現在把電話交回給 Paul，請他做結語。

Thank you, operator. Thanks to everyone who joined us on our call today. Overall, we're excited about the quarter. Our results provide further evidence of the progress we are making in expanding margins, strengthening cash generation, investing in growth and simplification.

謝謝你，接線員。感謝今天參與我們電話會議的各位。整體而言，我們對本季表現感到振奮。我們的結果進一步證明，我們在擴大利潤率、強化現金創造、投資成長與簡化方面正持續取得進展。

Our increased annual guidance for adjusted EBITDA reflects the confidence we have in our commercial and operational capabilities. We remain vigilant in an increasingly uncertain external operating environment as it relates to demand, tariffs, and inflationary pressures. We will stay focused on what we can control and take action if needed.

我們上調全年調整後 EBITDA 指引，反映出我們對商業與營運能力的信心。面對與需求、關稅及通膨壓力相關、日益不確定的外部營運環境，我們仍保持警覺。我們將持續聚焦於可控事項，並在需要時採取行動。

I want to once again thank our dedicated team members. We look forward to speaking with you again on our fourth-quarter results when they are announced in early November. And with that operator, please conclude the call.

我想再次感謝我們敬業的團隊成員。我們期待在 11 月初公布第四季業績時，再次與各位交流。接線員，請結束本次電話會議。

Thank you, sir. This concludes today's conference. You may disconnect at this time and have a great rest of your day.

謝謝您。今天的會議到此結束。您現在可以掛線，祝您今天剩下的時間愉快。