MUELLER INDUSTRIES INC

Previous wording

•Piping Systems: The Piping Systems segment is composed of Domestic Piping Systems Group, Great Lakes Copper, European Operations, Trading Group, Jungwoo-Mueller (our South Korean joint venture), and Mueller Middle East (our Bahraini joint venture). The Domestic Piping Systems Group manufactures and distributes copper tube, fittings, and line sets. These products are manufactured in the U.S., sold in the U.S., and exported to markets worldwide. Great Lakes Copper manufactures copper tube and line sets in Canada and sells the products primarily in the U.S. and Canada. European Operations manufactures copper tube in the United Kingdom, which is sold throughout Europe. The Trading Group manufactures pipe nipples and sources products for import distribution in North America. Jungwoo-Mueller manufactures copper-based joining products that are sold worldwide. Mueller Middle East manufactures copper tube and serves markets in the Middle East and Northern Africa. The Piping Systems segment sells products to wholesalers in the plumbing and refrigeration markets, distributors to the manufactured housing and recreational vehicle industries, building material retailers, and air-conditioning original equipment manufacturers (OEMs).

Current wording

•Piping Systems: The Piping Systems segment is composed of Domestic Piping Systems Group, Great Lakes Copper, European Operations, Trading Group, Jungwoo-Mueller (our South Korean joint venture), and Mueller Middle East (our Bahraini joint venture). The Domestic Piping Systems Group manufactures and distributes copper tube, fittings, and line sets. These products are manufactured in the U.S., sold in the U.S., and exported to markets worldwide. Great Lakes Copper manufactures copper tube and line sets in Canada and sells the products primarily in the U.S. and Canada. European Operations manufactures copper tube in the United Kingdom, which is sold throughout Europe. The Trading Group manufactures pipe nipples and sources products for import distribution in North America. Jungwoo-Mueller manufactures copper-based joining products that are sold worldwide. Mueller

Previous wording

According to the U.S. Census Bureau, the March 2025 seasonally adjusted annual rate of new housing starts was 1.32 million, compared to the March 2024 rate of 1.30 million. The average 30-year fixed mortgage ratewas 6.83 percent for the first quarter of 2025 and 6.72 percent for the year ended December 2024. The private non-residential construction sector includes offices, industrial, health care, and retail projects. According to the U.S. Census Bureau, the seasonally adjusted annual value of private nonresidential construction put in placewas $757.5 billion in February 2025 compared to the February 2024 rate of $739.3 billion.

Current wording

According to the U.S. Census Bureau, the June 2025 seasonally adjusted annual rate of new housing startswas 1.32 million, compared to the June 2024 rate of 1.33 million. The average 30-year fixed mortgage ratewas 6.81 percent for the first half of 2025 and 6.72 percent for the year ended December 2024. The private non-residential const ruction sector includes offices, industrial, health care, and retail projects. According to the U.S. Census Bureau, the seasonally adjusted annual value of private nonresidential construction put in place was $737.7 billion in May 2025 compared to the May 2024 rate of $767.2 billion.

Previous wording

The increase in net sales during the first quarter of 2025 was primarily due to (i) sales of $103.7 million recorded by Nehring, acquired in fiscal June 2024, (ii) higher net selling prices of $66.9 million in our core product lines, primarily copper tube and brass rod, related to the rise in raw material costs, (iii) sales of $16.6 million recorded by Elkhart, acquired in fiscal August 2024, and (iv) an increase in sales of $6.3 million in our non-core product lines. These increases were partially offset by lower unit sales volume of $43.0 million in our core product lines.

Current wording

The increase in net sales during the second quarter of 2025 was primarily due to (i) incremental sales of $84.3 million recorded by Nehring, acquired in fiscal June 2024, (ii) higher net selling prices of $77.8 million in our core product lines, primarily copper tube, related to the rise in raw material costs, (iii) an increase in sales of $16.7 million in our non-core product lines, and (iv) sales of $14.2 million recorded by Elkhart, acquired in fiscal August 2024. These increases were partially offset by lower unit sales volume of $52.6 million in our core product lines, primarily copper tube and brass rod.

Previous wording

For the first quarter of 2024, the difference between the effective tax rate and the amount computed using the U.S. federal statutory rate was primarily attributable to (i) increases related to the provision for state income taxes, net of the federal benefit, of $5.9 million, (ii)the effect of foreign tax rates higher than statutory tax rates and other foreign items of $1.5 million, and (iii) other items of$2.1 million.

Current wording

For the second quarter of 2024, the difference between the effective tax rate and the amount computed using the U.S. federal statutory rate was primarily attributable to (i) increases related to the provision for state income taxes, net of the federal benefit, of $6.1 million, (ii)the effect of foreign tax rates higher than statutory tax rates and other foreign items of $2.3 million, and (iii) other items of$3.2 million.

Previous wording

During the first quarters of 2025 and 2024, we recognized netlosses of $0.5 million and $8.0 million, respectively, on our investments in unconsolidated affiliates.

Current wording

During the second quarters of 2025 and 2024, we recognized net income of $2.9 million and net losses of $1.1 million, respectively, on our investments in unconsolidated affiliates.

Previous wording

Cost of goods sold increased in the first quarter of 2025 primarily due to the increase in raw material costs. Gross margin as a percentage of sales was 27.2 percent compared with 28.4 percent in the prior year quarter. Depreciation and amortization increased during the first quarter of 2025 primarily as a result of incremental expenses associated with the acquisition of Nehring. Selling, general, and administrative expense increased in the first quarter of 2025 primarily as a result of (i) costs of $5.2 million related to a recent product launch, (ii) incremental expenses of $4.3 million associated with Nehring and Elkhart, (iii) higher employment costs, including incentive compensation, of $2.1 million, (iv) higher sales and marketing costs of $1.0 million, and (v) higher repairs and maintenance of $0.9 million. In addition, during the first quarter of 2025 we recognized net gains on the sale of assets of $14.5 million.

Current wording

Cost of goods sold increased in the first half of 2025 primarily due to the factors noted above regarding the change in net sales. Gross margin as a percentage of sales was 29.2 percent compared with 27.8 percent in the prior year. Depreciation and amortization increased in the first half of 2025 as a result of incremental expenses associated with the acquisitions of Nehring and Elkhart. Selling, general, and administrative expense increased in the first half of 2025 primarily as a result of (i) costs of $7.7 million related to a recent product launch, (ii) incremental expenses of $7.3 million associated with the acquisitions of Nehring and Elkhart, (iii) higher employment costs, including incentive compensation, of $6.8 million, (iv) higher foreign currency transaction losses of $5.2 million, (v) higher sales and marketing costs of $1.5 million, and (vi) higher repairs and maintenance of $1.0 million. In addition, during the first half of 2025 we recognized net gains on the disposal of assets of $14.8 million anda gain of $36.3 million for the excess of insurance proceeds received over the losses incurred related to the March 2023 tornado at our Covington, Tennessee manufacturing operation.

Previous wording

Interest expense was consistent with the first quarter of 2024. Interest income decreased during the first quarter of 2025 primarily as a result of lower average cash balances and lower interest rates. During the first quarter of 2025, we recognized unrealized losses on short-term investments of $5.0 million. During the first quarter of 2024, we recognized gains on the sale of short-term investments of $0.4 million. Other income, net, was consistent with the first quarter of 2024.

Current wording

Interest expense was consistent with the first half of 2024. Interest income decreased during the first half of 2025 primarily as a result of lower average cash balances and lower interest rates. During the first half of 2025, we recognized unrealized gains on short-term investments of $8.2 million. During the first half of 2024, we recognized gains on the sale of short-term investments of $0.4 million. Other expense, net, was consistent with the first half of 2024.

Previous wording

Our effective tax rate for the first quarter of 2025 was 24 percent compared with 26 percent for the same period last year. The items impacting the effective tax rate were (i) increases related to the provision for state income taxes, net of the federal benefit, of $6.8 million and (ii) the effect of foreign tax rates higher than statutory tax rates and other foreign items of $2.1 million. These were partially offset by decreases to other items of $1.9 million.

Current wording

Our effective tax rate for the first half of 2025 was 24 percent compared with 26 percent for the same period last year. The items impacting the effective tax rate were primarily related to (i) the provision for state income taxes, net of the federal benefit, of $16.9 million and (ii) the effect of foreign tax rates higher than statutory tax rates and other foreign items of $2.5 million. These were partially offset by other adjustments of $1.5 million.

Previous wording

The following table compares summary operating results for the first quarters of 2025 and 2024 for the businesses comprising our Piping Systems segment:

Current wording

The following table compares summary operating results for the first half of 2025 and 2024 for the businesses comprising our Piping Systems segment:

Previous wording

The increase in net sales during the first quarter of 2025 was primarily attributable to (i) higher net selling prices in the segment’s core product lines, primarily copper tube, of $54.5 million and (ii) sales of $16.6 million recorded by Elkhart. These increases were partially offset by (i) lower unit sales volume of $20.4 million in the segment’s core product lines and (ii) a decrease in sales of $1.3 million in the segment’s non-core product lines.

Current wording

The increase in net sales during the second quarter of 2025 was primarily attributable to (i) higher net selling prices in the segment’s core product lines, primarily copper tube, of $74.5 million, (ii) sales of $14.2 million recorded by Elkhart, and (iii) an increase in sales of $6.1 million in the segment’s non-core product lines. These increases were partially offset by lower unit sales volume of $36.3 million in the segment’s core product lines.

Previous wording

The increase in cost of goods sold during the first quarter of 2025 was primarily due to the increase in raw material costs. Gross margin as a percentage of sales was 28.4 percent compared with 28.7 percent in the prior year quarter. Depreciation and amortization was consistent with the first quarter of 2024. Selling, general, and administrative expense increased for the first quarter of 2025 primarily as a result of (i) costs of $5.2 million related to a recent product launch, (ii) higher employment costs, including incentive compensation, of $1.8 million, (iii) incremental expenses of $1.1 million associated with Elkhart, (iv) higher sales and marketing costs of $0.9 million, and (v) higher repairs and maintenance of $0.8 million. In addition, during the first quarter of 2025 the segment recognized net gains on the sale of assets of $14.5 million.

Current wording

The increase in cost of goods sold during the first half of 2025 was primarily due to the factors noted above regarding the change in net sales. Gross margin as a percentage of sales was 31.4 percent compared with 27.9 percent in the prior year. Depreciation and amortization increased in the first half of 2025 as a result of incremental expenses associated with the acquisition of Elkhart. Selling, general, and administrative expense increased for the first half of 2025 primarily as a result of (i) costs of $7.7 million related to a recent product launch, (ii) higher foreign currency transaction losses of $6.4 million, (iii) higher employment costs, including incentive compensation and healthcare, of $5.9 million, (iv) incremental expenses of $2.2 million associated with the acquisition of Elkhart, (v) higher sales and marketing expense of $1.6 million, and (vi) higher repairs and maintenance of $1.0 million. In addition, during the first half of 2025 the segment recognized net gains on the disposal of assets of $15.8 million anda gain of $36.3 million for the excess of insurance proceeds received over the losses incurred related to the March 2023 tornado at our Covington, Tennessee manufacturing operation.

Previous wording

The following table compares summary operating results for the first quarters of 2025 and 2024 for the businesses comprising our Industrial Metals segment:

Current wording

The following table compares summary operating results for the first half of 2025 and 2024 for the businesses comprising our Industrial Metals segment:

Previous wording

The increase in net sales during the first quarter of 2025 was primarily due to (i) sales of $103.7 million recorded by Nehring and (ii) higher net selling prices of $12.3 million in the segment’s core product lines, primarily brass rod. These increases were partially offset by lower unit sales volume of $22.6 million in the segment’s core product lines.

Current wording

The increase in net sales during the second quarter of 2025 was primarily due to (i) incremental sales of $84.3 million recorded by Nehring, (ii) an increase in sales of $3.6 million in the segment’s non-core product lines, and (iii) higher net selling prices of $3.2 million in the segment’s core product lines, primarily brass rod. These increases were partially offset by lower unit sales volume of $16.3 million in the segment’s core product lines.

Previous wording

The increase in cost of goods sold during the first quarter of 2025 was primarily due to the factors noted above regarding the change in net sales. Gross margin as a percentage of sales was 17.6 percent compared with 18.9 percent in the prior year quarter. Depreciation and amortization increased during the first quarter of 2025 primarily as a result of incremental expenses associated with the acquisition of Nehring. Selling, general, and administrative expense increased for the first quarter of 2025 primarily as a result of incremental expenses of $2.9 million associated with Nehring.

Current wording

The increase in cost of goods sold during the second quarter of 2025 was primarily due to the factors noted above regarding the change in net sales. Gross margin as a percentage of sales was 16.6 percent compared with 18.5 percent in the prior year quarter. Depreciation and amortization increased during the second quarter of 2025 primarily as a result of incremental expenses associated with the acquisition of Nehring. Selling, general, and administrative expense increased for the second quarter of 2025 primarily as a result of incremental expenses of $1.9 million associated with Nehring.

Previous wording

The following table compares summary operating results for the first quarters of 2025 and 2024 for the businesses comprising our Climate segment:

Current wording

The following table compares summary operating results for the first half of 2025 and 2024 for the businesses comprising our Climate segment:

Previous wording

Sales for the first quarter of 2025 increased primarily as a result of an increase in volume in certain product lines.

Current wording

Sales for the second quarter and first half of 2025 increased primarily as a result of an increase in volume in certain product lines.

Previous wording

Cost of goods sold increased during the first quarter of 2025 primarily due to factors noted above regarding the change in net sales. Gross margin as a percentage of sales was 36.2 percent compared with 35.3 percent in the prior year quarter. Depreciation and amortization and selling, general, and administrative expense were consistent with the first quarter of 2024.

Current wording

Cost of goods sold increased during the second quarter of 2025 primarily due to factors noted above regarding the change in net sales. Gross margin as a percentage of sales was 38.6 percent compared with 37.0 percent in the prior year quarter. Depreciation and amortization and selling, general, and administrative expense were consistent with the second quarter of 2024. During the second quarter of 2025, the segment recorded a loss on the disposal of assets of $1.0 million.

Previous wording

The following table presents selected financial information for the first quarters of 2025 and 2024:

Current wording

The following table presents selected financial information for the first half of 2025 and 2024:

Previous wording

During the quarter ended March 29, 2025, net cash provided by operating activities was primarily attributable to (i) consolidated net income of $159.3 million, (ii) an increase in current liabilities of $57.7 million, and (iii) dividends from unconsolidated affiliates of $2.8 million. There were also increases due to non-cash adjustments primarily consisting of (i) depreciation and amortization of $17.1 million, (ii) stock-based compensation expense of $6.2 million, and (iii) unrealized losses on short-term investments of $5.0 million. These increases were partially offset by (i) an increase in accounts receivable of $101.5 million, (ii) an increase in inventories of $18.5 million, and (iii) gains on the sale of properties of $14.5 million.

Current wording

During the six months ended June 28, 2025, net cash provided by operating activities was primarily attributable to (i) consolidated net income of $407.8 million, (ii) an increase in current liabilities of $72.3 million, and(iii) non-capital related insurance proceeds of$12.3 million for the March 2023 tornado in Covington, Tennessee. There were also increases due to non-cash adjustments primarily consisting of (i) depreciation and amortization of $35.0 million and (ii) stock-based compensation expense of $13.9 million. These increases were partially offset by (i) an increase in accounts receivable of $134.5 million, (ii) the gain of $36.3 million related to insurance proceeds for the March 2023 tornado in Covington, Tennessee, (iii) an increase in inventories of $41.2 million, (iv) gains on the disposal of properties of $14.8 million, and (v) unrealized gains on short-term investments of $8.2 million.

Previous wording

During the quarter ended March 30, 2024, net cash provided by operating activities was primarily attributable to (i) consolidated net income of $141.7 million, (ii) an increase in current liabilities of $33.9 million, (iii) a decrease in inventories of $22.5 million, (iv) non-capital related insurance proceeds of $15.0 million for the March 2023 tornado in Covington, Tennessee, and (v) a decrease in other assets of $12.0 million. There were also increases due to non-cash adjustments primarily consisting of (i) depreciation and amortization of $9.3 million, (ii) losses from unconsolidated affiliates of$8.0 million, and (iii) stock-based compensation expense of $6.2 million. These increases were partially offset by an increase in accounts receivable of $75.2 million.

Current wording

During the six months ended June 29, 2024, net cash provided by operating activities was primarily attributable to (i) consolidated net income of $305.2 million, (ii) an increase in current liabilities of $30.3 million, (iii) non-capital related insurance proceeds of $15.0 million for the March 2023 tornado in Covington, Tennessee, (iv) a decrease in other assets of $8.5 million, and (v) a decrease in inventories of $6.7 million. There were also increases due to non-cash adjustments primarily consisting of (i) depreciation and amortization of $19.3 million, (ii) stock-based compensation expense of $13.5 million, and (iii) losses from unconsolidated affiliates of$9.1 million. These increases were partially offset by an increase in accounts receivable of $132.0 million.

Previous wording

The major components of net cash used in investing activities during the quarter ended March 29, 2025 included (i) the purchase of short-term investments of $26.6 million and (ii) capital expenditures of $16.6 million. These uses were partially offset by proceeds from the sale of assets of $19.7 million.

Current wording

The major components of net cash used in investing activities during the six months ended June 28, 2025 included (i) capital expenditures of $30.7 million and (ii) the purchase of short-term investments of $26.6 million. These uses were partially offset by proceeds from the sale of properties of $21.1 million.

Previous wording

The major components of net cash provided by investing activities during the quarter ended March 30, 2024 included (i) proceeds from the sale of securities of$96.5 million and (ii) proceeds from the sale of properties of $2.9 million. These sources were partially offset by (i) capital expenditures of $16.4 million and (ii) the issuance of notes receivable of$12.5 million.

Current wording

The major components of net cash used in investing activities during the six months ended June 29, 2024 included (i)$566.6 million for the purchase of Nehring,(ii) capital expenditures of $25.6 million, (iii) investments in unconsolidated affiliates of$8.7 million, (iv) the purchase of long-term investments of $8.0 million, and(v) the issuance of notes receivable of$3.8 million. These uses were partially offset by (i)proceeds from the sale of securities of$96.5 million and (ii) proceeds from the sale of properties of $4.0 million.

Previous wording

For the quarter ended March 29, 2025, net cash used in financing activities consisted primarily of (i) $243.6 million used to repurchase common stock of the Company, (ii) $27.3 million used for the payment of regular quarterly dividends to stockholders of the Company, (iii) $12.2 million used for the payment of dividends to noncontrolling interests, and (iv) $4.5 million net cash used to settle stock-based awards.

Current wording

For the six months ended June 28, 2025, net cash used in financing activities consisted primarily of (i) $243.6 million used to repurchase common stock of the Company, (ii) $54.4 million used for the payment of regular quarterly dividends to stockholders of the Company, (iii) $12.2 million used for the payment of dividends to noncontrolling interests, and (iv) $4.2 million net cash used to settle stock-based awards.

Previous wording

For the quarter ended March 30, 2024, net cash used in financing activities consisted primarily of (i) $27.9 million used to repurchase common stock, (ii) $22.3 million used for the payment of regular quarterly dividends to stockholders of the Company, and (iii) $2.5 million net cash used to settle stock-based awards.

Current wording

For the six months ended June 29, 2024, net cash used in financing activities consisted primarily of (i) $44.5 million used for the payment of regular quarterly dividends to stockholders of the Company, (ii) $43.0 million used to repurchase common stock, and (iii) $2.0 million net cash used to settle stock-based awards.

Previous wording

As of March 29, 2025, we had$830.1 million of cash onhand and $371.2 million available to be drawn under the Credit Agreement. Our current ratio was 4.3 to 1.

Current wording

As of June 28, 2025, we had$1.0 billion of cash onhand and $371.2 million available to be drawn under the Credit Agreement. Our current ratio was 4.9 to 1.

Previous wording

We have significant environmental remediation obligations which we expect to pay over future years. Cash used for environmental remediation activities was approximately $0.3 million during the first quarter of 2025. We expect to spend approximately $3.2 million over the next twelve months for ongoing environmental remediation activities.

Current wording

We have significant environmental remediation obligations which we expect to pay over future years. Cash used for environmental remediation activities was approximately $0.9 million during the first half of 2025. We expect to spend approximately $3.5 million over the next twelve months for ongoing environmental remediation activities.

Previous wording

The Company declared a quarterly cash dividend of 25.0 cents and 20.0 cents per common share during the first quarters of 2025 and 2024, respectively. Payment of dividends in the future is dependent upon our financial condition, cash flows, capital requirements, earnings, and other factors.

Current wording

The Company declared a quarterly cash dividend of 25.0 cents per common share during the first and second quarters of 2025, and 20.0 cents per common share during the first and second quarters of 2024, respectively. Payment of dividends in the future is dependent upon our financial condition, cash flows, capital requirements, earnings, and other factors.

Previous wording

The Company’s Credit Agreement provides for an unsecured $400.0 million revolving credit facility, which matures March 31, 2026. There were no borrowings outstanding under the Credit Agreement as of March 29, 2025. The Credit Agreement backed approximately $28.8 million in letters of credit at the end of the first quarter of 2025.

Current wording

The Company’s Credit Agreement provides for an unsecured $400.0 million revolving credit facility, which matures March 31, 2026. There were no borrowings outstanding under the Credit Agreement as of June 28, 2025. The Credit Agreement backed approximately $28.8 million in letters of credit at the end of the second quarter of 2025.