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Posted by Defense World Staff on Apr 27th, 2026

Jerash Holdings (US) (NASDAQ:JRSH – Get Free Report) and Under Armour (NYSE:UA – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Earnings and Valuation This table compares Jerash Holdings (US) and Under Armour”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Jerash Holdings (US) $145.81 million 0.30 -$850,000.00 $0.15 22.80 Under Armour $5.16 billion 0.49 -$201.27 million ($1.22) -4.91 Jerash Holdings (US) has higher earnings, but lower revenue than Under Armour. Under Armour is trading at a lower price-to-earnings ratio than Jerash Holdings (US), indicating that it is currently the more affordable of the two stocks.

Profitability This table compares Jerash Holdings (US) and Under Armour’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Jerash Holdings (US) 1.18% 2.86% 2.17% Under Armour -10.44% 1.48% 0.56% Volatility and Risk Jerash Holdings (US) has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Under Armour has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500.

Analyst Recommendations This is a breakdown of recent recommendations and price targets for Jerash Holdings (US) and Under Armour, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Jerash Holdings (US) 0 1 1 0 2.50 Under Armour 2 1 0 0 1.33 Jerash Holdings (US) presently has a consensus price target of $4.00, suggesting a potential upside of 16.96%. Given Jerash Holdings (US)’s stronger consensus rating and higher probable upside, equities analysts plainly believe Jerash Holdings (US) is more favorable than Under Armour.

Insider and Institutional Ownership 3.4% of Jerash Holdings (US) shares are held by institutional investors. Comparatively, 36.4% of Under Armour shares are held by institutional investors. 42.7% of Jerash Holdings (US) shares are held by insiders. Comparatively, 15.6% of Under Armour shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary Jerash Holdings (US) beats Under Armour on 10 of the 14 factors compared between the two stocks.

About Jerash Holdings (US) (Get Free Report)

Jerash Holdings (US), Inc., through its subsidiaries, manufactures and exports customized and ready-made sport and outerwear. The company offers t-shirts; jackets and pullover; pants and shorts; crew neck, polo shirts, and tank tops made from knitted fabric, as well as personal protective equipment. It serves various brand-name retailers in the United States, Hong Kong, Jordan, and internationally. The company was incorporated in 2016 and is headquartered in Fairfield, New Jersey.

About Under Armour (Get Free Report)

Under Armour, Inc., together with its subsidiaries, develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth. The company provides its apparel in compression, fitted, and loose fit types. It also offers footwear products for running, training, basketball, cleated sports, recovery, and outdoor applications. In addition, the company provides accessories, which include gloves, bags, headwear, and sports masks; and digital subscription, advertising, and other digital business services. It primarily offers its products under the UNDER ARMOUR, HEATGEAR, COLDGEAR, HOVR, UA, PROTECT THIS HOUSE, I WILL, UA Logo, ARMOUR FLEECE, and ARMOUR BRA brands. The company sells its products through wholesale channels, including national and regional sporting goods chains, independent and specialty retailers, department store chains, mono-branded Under Armour retail stores, institutional athletic departments, and leagues and teams, as well as independent distributors; and directly to consumers through a network of 439 Brand and Factory House stores, as well as through e-commerce websites. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. Under Armour, Inc. was incorporated in 1996 and is headquartered in Baltimore, Maryland.

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Under Armour reported a fiscal fourth-quarter loss as revenue declines in North America offset international sales gains.

Under Armour, Inc. (UAA) Q4 2026 Earnings Call Transcript

Insiders Buy 3 High-Risk Stocks—Here’s What’s Driving the MovesUnder Armour NYSE: UA executives said the athletic apparel company is entering fiscal 2027 with a sharper focus on premium products, disciplined inventory management and marketing efficiency after a fiscal 2026 marked by revenue declines, tariff pressure and a continued business reset.

On the company’s fourth-quarter earnings call, President and CEO Kevin Plank said Under Armour has spent the past two years making “more intentional choices about where and how we compete,” including walking away from certain unprofitable business, reducing complexity and implementing a category management model.

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Wolverine World Wide Breaks Out – Will the 92% Rally Continue?“Under Armour is becoming a more focused, disciplined, and intentional company, which is reflected in our execution,” Plank said.

Revenue Declines as North America Remains Under Pressure Chief Financial Officer Reza Taleghani, who joined the company earlier this year, said fiscal 2026 revenue declined 4% to $5 billion. North America revenue fell 8%, EMEA rose 9%, and APAC declined 5%.

Seize the Opportunity: Under Armour Stock Set for a ComebackFor the fourth quarter, revenue declined 1% to $1.2 billion. North America revenue fell 7%, primarily due to a decrease in wholesale and a slight decline in direct-to-consumer sales. EMEA revenue rose 7%, while APAC increased 13% and Latin America grew 22%.

By channel, wholesale revenue declined 3%, driven by lower full-price sales, partially offset by distributor growth. Direct-to-consumer revenue increased 5%, including 8% growth in owned and operated stores and flat e-commerce revenue. Licensing revenue rose 11%, driven by strength in international markets.

By product type, apparel revenue was flat, with growth in training, outdoor and sportswear offset by softness in running, team sports and golf. Footwear revenue was also flat, with strength in running and team sports offset by weakness in other categories. Accessories revenue increased 2%.

Tariffs and Promotions Weigh on Margins Under Armour’s adjusted gross margin for fiscal 2026 declined 220 basis points to 45.7%, which Taleghani attributed primarily to higher U.S. tariffs and a more promotional second half, partially offset by favorable foreign exchange and product mix.

In the fourth quarter, gross margin fell 470 basis points to 42%. Excluding restructuring efforts, adjusted gross margin declined 360 basis points to 43.1%. Taleghani said the decline included 315 basis points of supply chain headwinds, including roughly 260 basis points from U.S. tariffs, along with 90 basis points of promotional pressure and 20 basis points from unfavorable regional mix. These were partially offset by 65 basis points of favorable foreign currency and channel mix.

Fourth-quarter SG&A expenses decreased 15% to $518 million, primarily due to lower marketing spend related to timing, lower incentive compensation and other cost reductions. Excluding $15 million in transformation costs, adjusted SG&A declined 14% to $503 million.

The company reported a fourth-quarter operating loss of $34 million. Excluding transformation expenses and restructuring charges, adjusted operating income was $3 million. The diluted loss per share was $0.10, while the adjusted diluted loss per share was $0.03.

Company Expands Transformation Plan Taleghani said Under Armour has conducted a comprehensive business review and is initiating a targeted expansion of its transformation plan. Total anticipated costs are now expected to be approximately $305 million, with the plan substantially complete by Dec. 31.

The company ended the fiscal year with $915 million in inventory, down 3% from a year earlier. Taleghani said the reduction reflected “continued discipline” and deliberate fourth-quarter actions to further reduce inventory.

“Importantly, this is not just lower inventory, but better inventory with improved quality driven by tighter buys, a more focused assortment, and stronger alignment with demand,” Taleghani said.

Under Armour closed the year with $309 million in cash and $605 million in restricted investments set aside to cover principal and interest on senior notes due in June. The company also had $200 million in borrowings under its revolving credit facility.

Fiscal 2027 Outlook Calls for Slight Revenue Decline For fiscal 2027, Under Armour expects revenue to be down slightly, including an approximately 1-point impact from the Curry Brand exit. Excluding that impact, Taleghani said revenue would be roughly flat. The company expects a low-single-digit decline in North America, partially offset by low-single-digit growth in EMEA and APAC.

Under Armour forecast gross margin expansion of approximately 220 to 270 basis points versus fiscal 2026. That outlook includes a potential refund related to IEEPA tariffs expensed through the fiscal 2026 income statement, which is expected to contribute about 150 basis points, with most of the benefit recognized in the first quarter.

Excluding anticipated transformation expenses and restructuring charges, the company expects fiscal 2027 adjusted operating income of $140 million to $160 million. The outlook includes approximately $70 million of benefit from the expected tariff refund, which Taleghani said absorbs about $35 million of headwinds related to the Middle East conflict and $30 million in strategic marketing investments.

Adjusted diluted earnings per share are expected to range from $0.08 to $0.12. For the first quarter, revenue is expected to decline 2% to 3%, driven by a high-single-digit decline in North America, partially offset by a low-teens percentage increase in EMEA. APAC revenue is expected to be roughly flat.

Product and Marketing Strategy Centers on Premiumization Plank said Under Armour is prioritizing revenue quality over volume and is focused on fewer, more purposeful products. He pointed to a 25% reduction in SKUs over the past two years and said further reductions are expected under Kara, the company’s new chief merchandising officer.

The company is also emphasizing innovation in core apparel, including the UA Bouncy Cotton Tee, a $65 product launching in APAC and through Dick’s Sporting Goods and Under Armour’s direct-to-consumer channels in the U.S. Plank described the product as an example of the company’s broader premiumization effort.

“This is what we mean by premiumization, delivering greater performance, versatility, and value through fewer, more purposeful products,” Plank said.

Plank also highlighted Sharon Lokedi’s second consecutive Boston Marathon victory in Under Armour’s Velociti Elite 3, calling it a proof point for the brand’s performance footwear ambitions. He said growing the company’s $1 billion-plus footwear business remains central to its midterm strategy, even as apparel remains a core strength.

Marketing will also receive additional focus. Plank said Under Armour plans to spend an additional $30 million on marketing in fiscal 2027, aimed at supporting product launches and better activating existing assets, including its NFL and collegiate partnerships.

“This isn’t just us throwing money at something,” Plank said. “We believe that this will actually help us drive more efficiency.”

Executives said the company’s goal is to stabilize in fiscal 2027 and position the business for more sustainable growth beyond that period. Plank said the company is seeing early signs of cleaner inventory, improved sell-through and stronger engagement with key wholesale partners, though he acknowledged that Under Armour is “not improving our bottom line fast enough” and must continue tightening execution.

About Under Armour NYSE: UAUnder Armour, Inc is a global designer, marketer and distributor of branded performance apparel, footwear and accessories. The company's product portfolio spans a wide range of athletic categories, including running, training, basketball, outdoor and golf, with specialized lines for men, women and youth. Under Armour emphasizes innovative fabrics and technologies designed to enhance athletic performance, such as moisture-wicking HeatGear®, cold-weather ColdGear® and UV-protective UA Tech™ materials.

The company was founded in 1996 by former University of Maryland football captain Kevin Plank, who sought to create a superior moisture-wicking T-shirt to keep athletes cool and dry.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Something is going on in industrials that most retail investors seem to be overlooking. While attention stays fixed on software multiples, a group of companies building the physical backbone to services growing artificial intelligence (AI) processing and everyday infrastructure is quietly delivering strong earnings growth.

These companies are building their margins and locking in long-term demand that isn't tied to short-term cycles. Here are three great industrials-related growth stocks I think are worth owning for the long haul.

Image source: Getty Images.

1. Comfort Systems USA Comfort Systems (FIX +7.31%) doesn't show up on most people's radars because "mechanical contractor" isn't a phrase that gets clicks. But I think that framing is completely outdated. What Comfort Systems actually does is build the physical AI layer, the high-density liquid cooling, electrical distribution, and modular mechanical systems that keep hyperscale data centers from overheating.​

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In 2025, technology-related projects accounted for 42% of the company's year-to-date revenue, up from 37% a year earlier. The company's backlog hit $9.38 billion as of Q3 2025 -- 65% higher than the same period in 2024.

To meet that demand, management is expanding its modular construction footprint from 3 million to 4 million square feet by the end of 2026, with new facilities in Texas and North Carolina that incorporate robotics and automation to improve the scalability of output.

What separates Comfort Systems from a generic contractor is exactly this: It has turned data center construction into a product line rather than a project. Its modular, off-site approach cuts build times by 20% to 30% and gives hyperscalers the speed they need.

The book-to-bill ratio currently sits at a healthy 1.13x, meaning Comfort Systems is taking in more work than it's completing. The stock price is already trading up 277% over the past year, which has pushed its trailing 12-month price-to-earnings ratio to a somewhat expensive 46. But the book-to-bill ratio suggests there is still a lot of growth potential ahead for this stock, justifying the premium.

2. Watts Water Technologies Watts Water Technologies (WTS +2.40%) sits in a corner of the industrials sector (flow control, valves, heating, water treatment) that sounds slow and boring. It is, in fact, neither. It just reported a record Q4 2025 revenue of $625 million, up 16% year over year, with an adjusted operating margin of 19%, up 220 basis points. Full-year revenue reached $2.4 billion.​

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The angle most people are missing: Watts is becoming a quiet beneficiary of the AI infrastructure boom through its liquid-cooling valve systems. Data center sales grew double digits in 2025 and now represent over 3% of total revenue, with the company explicitly targeting that segment as its fastest-growing initiative for 2026.

As AI clusters shift from air-cooled to liquid-cooled architectures -- a transition that is happening fast -- Watts's stainless steel cooling valves and flow management systems are right at the inflection point.​

CEO Robert Pagano has layered two meaningful acquisitions on top of this organic story: Superior Boiler and Saudi Cast, together adding roughly $80 million in annual revenue and expected to be accretive to EPS in 2026. The company's forward guidance calls for 8% to 12% reported sales growth.

The stock is up 35% over the past year and trades at a reasonable P/E of 28, given its growth. I think this ticker is undervalued due to its exposure to the AI industry. It should grow as AI grows.

3. Mueller Water Products Mueller Water Products (MWA 0.04%) is the least glamorous of the three names featured here. The company makes fire hydrants, gate valves, and water distribution infrastructure. But it's been building a technology layer on top of its hardware for the past several years, and I think it's going to matter a lot.​

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Through its Mueller Systems division, the company offers acoustic leak detection sensors, advanced metering infrastructure (AMI), and software platforms that let municipalities move from reactive pipe replacement to predictive, data-driven maintenance.

This isn't bolt-on software. It's a service layer that deepens customer relationships, creates switching costs, and generates recurring revenue -- the kind of thing that rerates a multiple over time.​ The stock trades down about 4% over the past year, with a reasonable trailing P/E of 21.7. The company also has a pristine balance sheet: total cash of $459.6 million against total debt of $452.3 million, with no material maturities before June 2029. 

Posted by Defense World Staff on Mar 30th, 2026

SG Americas Securities LLC grew its stake in shares of Mueller Water Products (NYSE:MWA – Free Report) by 998.6% in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 387,050 shares of the industrial products company’s stock after acquiring an additional 351,819 shares during the period. SG Americas Securities LLC owned 0.25% of Mueller Water Products worth $9,220,000 at the end of the most recent quarter.

A number of other institutional investors also recently made changes to their positions in MWA. Invesco Ltd. lifted its holdings in Mueller Water Products by 19.4% during the 2nd quarter. Invesco Ltd. now owns 5,825,366 shares of the industrial products company’s stock worth $140,042,000 after purchasing an additional 945,258 shares during the last quarter. First Trust Advisors LP increased its position in Mueller Water Products by 66.1% during the 2nd quarter. First Trust Advisors LP now owns 5,535,000 shares of the industrial products company’s stock worth $133,061,000 after buying an additional 2,203,088 shares during the period. American Century Companies Inc. lifted its holdings in shares of Mueller Water Products by 11.8% during the third quarter. American Century Companies Inc. now owns 3,118,795 shares of the industrial products company’s stock worth $79,592,000 after buying an additional 330,231 shares in the last quarter. Amundi boosted its position in shares of Mueller Water Products by 112.2% in the third quarter. Amundi now owns 2,267,340 shares of the industrial products company’s stock valued at $58,099,000 after acquiring an additional 1,198,801 shares during the period. Finally, Millennium Management LLC grew its stake in shares of Mueller Water Products by 31.7% in the third quarter. Millennium Management LLC now owns 1,727,092 shares of the industrial products company’s stock valued at $44,075,000 after acquiring an additional 415,654 shares in the last quarter. Institutional investors own 91.68% of the company’s stock.

Analyst Upgrades and Downgrades Several analysts have weighed in on the stock. Oppenheimer reiterated an “outperform” rating and issued a $32.00 price objective (up from $30.00) on shares of Mueller Water Products in a research note on Monday, February 9th. Royal Bank Of Canada raised their target price on shares of Mueller Water Products from $27.00 to $29.00 and gave the stock a “sector perform” rating in a report on Friday, February 6th. Finally, Robert W. Baird set a $33.00 price target on Mueller Water Products in a research note on Friday, February 6th. Two equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, Mueller Water Products presently has an average rating of “Moderate Buy” and a consensus price target of $31.33.

View Our Latest Report on Mueller Water Products

Mueller Water Products Trading Up 0.1% MWA opened at $27.07 on Monday. Mueller Water Products has a twelve month low of $22.01 and a twelve month high of $31.00. The company has a 50-day simple moving average of $28.33 and a 200 day simple moving average of $26.10. The company has a quick ratio of 2.55, a current ratio of 4.02 and a debt-to-equity ratio of 0.44. The stock has a market capitalization of $4.23 billion, a price-to-earnings ratio of 21.48, a P/E/G ratio of 1.24 and a beta of 1.15.

Mueller Water Products (NYSE:MWA – Get Free Report) last released its earnings results on Wednesday, February 4th. The industrial products company reported $0.29 EPS for the quarter, beating the consensus estimate of $0.27 by $0.02. The firm had revenue of $318.20 million for the quarter, compared to analyst estimates of $315.26 million. Mueller Water Products had a net margin of 13.83% and a return on equity of 22.34%. The business’s quarterly revenue was up 4.6% compared to the same quarter last year. During the same period last year, the firm earned $0.25 EPS. Analysts predict that Mueller Water Products will post 1.24 EPS for the current fiscal year.

Mueller Water Products Dividend Announcement The company also recently declared a quarterly dividend, which was paid on Friday, February 20th. Investors of record on Tuesday, February 10th were given a dividend of $0.07 per share. The ex-dividend date was Tuesday, February 10th. This represents a $0.28 annualized dividend and a dividend yield of 1.0%. Mueller Water Products’s dividend payout ratio (DPR) is currently 22.22%.

Insider Activity at Mueller Water Products In other news, Director Brian C. Healy acquired 1,125 shares of the stock in a transaction on Wednesday, January 7th. The stock was acquired at an average cost of $24.41 per share, for a total transaction of $27,461.25. Following the completion of the transaction, the director directly owned 17,925 shares in the company, valued at approximately $437,549.25. This trade represents a 6.70% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through the SEC website. Also, SVP Todd P. Helms sold 10,720 shares of the company’s stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $27.61, for a total value of $295,979.20. Following the sale, the senior vice president owned 64,477 shares of the company’s stock, valued at $1,780,209.97. The trade was a 14.26% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.10% of the stock is currently owned by insiders.

About Mueller Water Products (Free Report)

Mueller Water Products, Inc is a leading provider of water infrastructure and flow control products and services designed to help water utilities and municipalities manage, control and measure their water distribution systems. The company’s portfolio includes a comprehensive range of products such as fire hydrants, valves, pipe repair systems, fittings and couplings, along with advanced metering and monitoring solutions. By combining traditional mechanical components with digital technologies, Mueller Water Products addresses the critical need for reliable and sustainable water distribution across North America.

The company’s operations are organized around two primary business segments.

Featured Articles Five stocks we like better than Mueller Water Products Want to see what other hedge funds are holding MWA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Mueller Water Products (NYSE:MWA – Free Report).

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April 22, 2026 16:13 ET  | Source: Mueller Water Products

ATLANTA, April 22, 2026 (GLOBE NEWSWIRE) -- Mueller Water Products, Inc. (NYSE: MWA) plans to release financial results for its second quarter ended March 31, 2026, after U.S. markets close on Tuesday, May 5, 2026. On Wednesday, May 6, 2026, at 11:00 a.m. ET, the Company will hold a conference call to discuss earnings and business results. Interested parties are invited to listen via webcast available on the Investor Relations section of the Company’s website www.muellerwaterproducts.com. An archive of the webcast will be available for approximately 90 days following the call.

About Mueller Water Products, Inc.

Mueller Water Products, Inc. is a leading manufacturer and marketer of products and solutions used in the transmission, distribution and measurement of water in North America. Our broad portfolio includes engineered valves, fire hydrants, pipe connection and repair products, metering products, leak detection, pipe condition assessment, pressure management products, and software that provides critical water system data. We help municipalities increase operational efficiencies, improve customer service and prioritize capital spending, demonstrating why Mueller Water Products is Where Intelligence Meets Infrastructure®. Visit us at www.muellerwaterproducts.com.

Mueller refers to one or more of Mueller Water Products, Inc. (MWP), a Delaware corporation, and its subsidiaries. MWP and each of its subsidiaries are legally separate and independent entities when providing products and services. MWP does not provide products or services to third parties. MWP and each of its subsidiaries are liable only for their own acts and omissions and not those of each other. 

Investor Relations Contact: Whit Kincaid
770-206-4116
[email protected]

Media Contact: Jenny Barabas
470-806-5771
[email protected]

Increased Net Sales 5.5% to $384.4 Million

Reported Net Income per Diluted Share of $0.38

Achieved Adjusted Net Income per Diluted Share of $0.40

Raises Annual Guidance for Fiscal 2026 Adjusted EBITDA

ATLANTA, May 05, 2026 (GLOBE NEWSWIRE) -- Mueller Water Products, Inc. (NYSE: MWA), a leading manufacturer and marketer of products and solutions used in the transmission, distribution and measurement of water in North America, announced financial results for its fiscal 2026 second quarter ended March 31, 2026.

In the second quarter of 2026, the Company:

Increased net sales 5.5% to $384.4 million as compared with $364.3 million in the prior year quarterReported operating income of $80.4 million as compared with $69.9 million in the prior year quarter, and increased adjusted operating income 16.0% to $84.8 million as compared with $73.1 million in the prior year quarterReported operating margin of 20.9% as compared with 19.2% in the prior year quarter, and expanded adjusted operating margin to 22.1% as compared with 20.1% in the prior year quarterReported net income of $59.1 million as compared with $51.3 million in the prior year quarter, with net income margin of 15.4% as compared with 14.1% in the prior year quarter, and increased adjusted net income 16.2% to $62.4 million as compared with $53.7 million in the prior year quarterReported net income per diluted share of $0.38 as compared with $0.33 in the prior year quarter, and increased adjusted net income per diluted share 17.6% to $0.40 as compared with $0.34 in the prior year quarterIncreased adjusted EBITDA 15.0% to $97.2 million as compared with $84.5 million in the prior year quarter, and expanded adjusted EBITDA margin to 25.3% as compared with 23.2% in the prior year quarterReported net cash provided by operating activities for the six-month period of $48.4 million as compared with $68.4 million in the prior year periodGenerated free cash flow for the six-month period of $16.5 million as compared with $47.3 million in the prior year period “We are pleased with our strong second quarter results, which were achieved through disciplined execution and resilient end-market demand. We set new quarterly records for net sales, adjusted EBITDA and adjusted net income per diluted share, demonstrating the strength of our brands and impact of our ongoing commitment to operational excellence and cost management. I want to thank our employees for their continued dedication and effort in supporting our customers and delivering value for all our stakeholders,” said Paul McAndrew, President and Chief Executive Officer of Mueller Water Products.

“We delivered another quarter of strong margin growth, with adjusted EBITDA margin improving 210 basis points year-over-year, supported by our team’s execution and commitment to delivering value for customers while enhancing efficiencies across our operations and supply chain. As we navigate increased uncertainty and ongoing external challenges, we remain focused on providing outstanding customer service, driving operational efficiencies and proactively managing our supply chain. Based on our outstanding performance through the first half of the year and our current expectations for the remainder of the year, we are raising our fiscal 2026 outlook for adjusted EBITDA.”

“We believe we are positioned for another record year. Our key strategic priorities to drive continued net sales growth and future margin improvements are supported by our strong, flexible balance sheet, which continues to provide ample capacity for capital investments and acquisitions, as well as continuing to return cash to shareholders. While we are experiencing greater uncertainty in the external operating environment, including changes in demand, tariffs and inflationary pressures, we are focused on driving results and investing in the capabilities and capacity needed to support long-term value creation,” Mr. McAndrew concluded.

Consolidated Results

Net sales for the second quarter increased $20.1 million, or 5.5%, to $384.4 million as compared with $364.3 million in the prior year quarter, primarily due to higher pricing across most product lines and increased volumes.

Gross profit for the second quarter increased $16.5 million, or 12.9%, to $144.5 million as compared with $128.0 million in the prior year quarter. Gross margin of 37.6% increased 250 basis points as compared with 35.1% in the prior year, primarily due to higher pricing, manufacturing efficiencies and increased volumes, partially offset by increased tariffs and inflationary pressures.

Selling, general and administrative expenses for the second quarter increased $4.0 million, or 7.2%, to $59.7 million as compared with $55.7 million in the prior year quarter. This increase was primarily due to unfavorable foreign currency and inflationary pressures.

Operating income for the second quarter increased $10.5 million, or 15.0%, to $80.4 million as compared with $69.9 million in the prior year quarter. This increase was primarily driven by higher pricing, manufacturing efficiencies and increased volumes, partially offset by increased tariffs, inflationary pressures, higher SG&A expenses and strategic reorganization and other charges. Operating margin for the second quarter expanded to 20.9% as compared with 19.2% in the prior year quarter.

During the quarter, the Company incurred $4.4 million of strategic reorganization and other charges, primarily related to expenses associated with our leadership transition, certain transaction-related expenses, and severance, which have been excluded from adjusted results.  

Adjusted operating income increased $11.7 million, or 16.0%, to $84.8 million as compared with $73.1 million in the prior year quarter. This increase was primarily driven by higher pricing, manufacturing efficiencies and increased volumes, partially offset by increased tariffs, inflationary pressures and higher SG&A expenses. Adjusted operating margin expanded 200 basis points to 22.1% as compared with 20.1% in the prior year quarter.

Net income increased $7.8 million, or 15.2%, to $59.1 million as compared with $51.3 million in the prior year quarter. Net income margin expanded to 15.4% as compared with 14.1% in the prior year quarter. Adjusted net income increased $8.7 million, or 16.2%, to $62.4 million as compared with $53.7 million in the prior year quarter.

Adjusted EBITDA of $97.2 million increased $12.7 million, or 15.0%, as compared with $84.5 million in the prior year quarter. Adjusted EBITDA margin expanded 210 basis points to 25.3% as compared with 23.2% in the prior year quarter.

Segment Results

Water Flow Solutions

Net sales for the 2026 second quarter increased $2.1 million, or 1.0%, to $218.3 million as compared with $216.2 million in the prior year quarter, primarily due to higher pricing across most product lines partially offset by lower volumes.

Operating income and adjusted operating income were both $65.2 million for the second quarter. Adjusted operating income increased $9.3 million, or 16.6%, compared with the prior year quarter. Benefits from manufacturing efficiencies and higher pricing more than offset increased tariffs, inflationary pressures and lower volumes. Operating and adjusted operating margin were both 29.9% as compared with 25.0% and 25.9% for the prior year quarter operating and adjusted operating margins, respectively.

Adjusted EBITDA of $72.4 million increased $10.2 million, or 16.4%, as compared with $62.2 million in the prior year quarter. Adjusted EBITDA margin expanded 440 basis points to 33.2% as compared with 28.8% in the prior year quarter.

Water Management Solutions

Net sales for the 2026 second quarter increased $18.0 million, or 12.2%, to $166.1 million as compared with $148.1 million in the prior year quarter, primarily due to increased volumes and higher pricing across most product lines.

Operating income was $35.3 million and adjusted operating income was $35.5 million for the second quarter. Adjusted operating income increased $4.1 million, or 13.1%, compared with the prior year quarter. Benefits from higher pricing and volume growth more than offset increased tariffs, manufacturing inefficiencies, higher SG&A expenses, including unfavorable foreign currency, and inflationary pressures. Operating margin was 21.3% and adjusted operating margin was 21.4%, as compared with 21.1% and 21.2% for the prior year quarter operating and adjusted operating margins, respectively.

Adjusted EBITDA of $40.6 million increased $4.2 million, or 11.5%, as compared with $36.4 million in the prior year quarter. Adjusted EBITDA margin was 24.4% as compared with 24.6% in the prior year quarter.

Interest Expense, Net

Interest expense, net, for the 2026 second quarter decreased to $1.6 million as compared with $2.3 million in the prior year quarter, primarily as a result of higher interest income.

Income Taxes

For the 2026 second quarter, income tax expense was $19.7 million, or 25.0% of income before tax, as compared with $16.4 million in the prior year quarter, or 24.2% of income before tax.

Cash Flow and Balance Sheet

Net cash provided by operating activities for the six-month period ended March 31, 2026, decreased $20.0 million to $48.4 million as compared with $68.4 million in the prior year period. The decrease was primarily driven by changes in working capital and other assets and liabilities, partially offset by higher net income and non-cash adjustments compared with the prior year period.

Through the first six months of 2026, the Company invested $31.9 million in capital expenditures as compared with $21.1 million in the prior year period, primarily driven by investments in our iron foundries.

Free cash flow (defined as net cash provided by operating activities less capital expenditures) for the six-month period decreased $30.8 million to $16.5 million as compared with $47.3 million in the prior year period, due to the decrease in net cash provided by operating activities and higher capital expenditures.

As of March 31, 2026, the Company had $452.4 million of total debt outstanding and $421.0 million of cash and cash equivalents. We did not have any borrowings under our ABL Agreement at the end of the quarter, nor did we borrow any amounts under our ABL during the quarter. There are no maturities on the Company’s debt financings until June 2029, and our 4.0% Senior Notes have no financial maintenance covenants. At the end of the quarter, the Company had $584.7 million of total liquidity, including $163.7 million in availability under the ABL.

Fiscal 2026 Outlook

The Company is reiterating its guidance for fiscal 2026 consolidated net sales to between $1,470 million and $1,490 million, or an increase of 2.8% to 4.2% compared with the prior year. The Company is increasing its expectations for fiscal 2026 adjusted EBITDA to between $360 million and $365 million, or an increase of 10.4% to 11.9% compared with the prior year. The Company now expects free cash flow as a percentage of adjusted net income to exceed 70% in fiscal 2026. With increased uncertainty in the external operating environment, including the anticipated slowdown in new residential construction activity, the Company is working closely with customers and suppliers to adapt, as needed, to changes in demand, tariffs and inflationary pressures.

The Company’s expectations for certain additional financial metrics for fiscal 2026 are as follows:

Total SG&A expenses between $243 million and $247 millionNet interest expense between $5 million and $6 millionEffective income tax rate between 24% and 25%Depreciation and amortization between $49 million and $50 millionCapital expenditures between $60 million and $65 millionPension expense other than service of approximately $0.1 million Conference Call Webcast

Mueller Water Products’ quarterly earnings conference call will take place on Wednesday, May 6, 2026, at 11:00 a.m. ET. Members of Mueller Water Products’ leadership team will discuss the Company’s recent financial performance and respond to questions from financial analysts. A live webcast of the call will be available on the Investor Relations section of the Company’s website. Please go to the website (www.muellerwaterproducts.com) at least 15 minutes prior to the start of the call to register, download and install any necessary software. A replay of the call will be available for 30 days and can be accessed by dialing 1-800-839-1334. An archive of the webcast will also be available for at least 90 days on the Investor Relations section of the Company’s website.

Use of Non-GAAP Measures

In an effort to provide investors with additional information regarding the Company’s results as determined by accounting principles generally accepted in the United States (“GAAP”), the Company also provides non-GAAP information that management believes is useful to investors. These non-GAAP measures have limitations as analytical tools, and securities analysts, investors and other interested parties should not consider any of these non-GAAP measures in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures used by other companies.

Adjusted net income, adjusted net income per diluted share, adjusted operating income, adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures that the Company presents as performance measures because management uses these measures to evaluate the Company’s underlying performance on a consistent basis across periods and to make decisions about operational strategies. Management also believes these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of the Company’s recurring performance.

Free cash flow is a non-GAAP liquidity measure used to assist management and investors in analyzing the Company’s ability to generate liquidity from its operating activities.

The calculations of these non-GAAP measures and reconciliations to GAAP results are included as an attachment to this press release, which has been posted online at www.muellerwaterproducts.com. The Company does not reconcile forward-looking non-GAAP measures to the comparable GAAP measures, as permitted by Regulation S-K, as certain items, e.g., expenses related to corporate development activities, transactions, pension expenses/(benefits), corporate restructuring and non-cash asset impairment, may have not yet occurred, are out of the Company’s control or cannot be reasonably predicted without unreasonable efforts. Additionally, such reconciliation would imply a degree of precision and certainty regarding relevant items that may be confusing to investors. Such items could have a substantial impact on GAAP measures of the Company's financial performance.

Forward-Looking Statements

This press release contains certain statements that may be deemed “forward-looking statements” within the meaning of the federal securities laws. All statements that address activities, events or developments that the Company intends, expects, plans, projects, believes or anticipates will or may occur in the future are forward-looking statements, including, without limitation, statements regarding outlooks, projections, forecasts, expectations, commitments, trend descriptions and the ability to capitalize on trends, value creation, long-term strategies, and the execution or acceleration thereof, operational improvements, inventory positions, the benefits of capital investments, financial or operating performance, including driving increased margins, operational and commercial initiatives, capital allocation and growth strategy plans, and the demand for the Company’s products. Forward-looking statements are based on certain assumptions and assessments made by the Company in light of the Company’s experience and perception of historical trends, current conditions and expected future developments.

Actual results and the timing of events may differ materially from those contemplated by the forward-looking statements due to a number of factors, including, without limitation, changing regulatory, trade and tariff conditions, including the impact of the Section 232 tariffs on the products produced by our Krausz business; logistical challenges and supply chain disruptions, geopolitical conditions, public health crises, or other events; inventory and in-stock positions of our distributors and end customers; an inability to realize the anticipated benefits from our operational initiatives, including our large capital investments, plant closures, and reorganization and related strategic realignment activities; an inability to attract or retain a skilled and diverse workforce, increased competition related to the workforce and labor markets; an inability to protect the Company’s information systems against service interruption; risks resulting from possible future cybersecurity incidents; misappropriation of data or breaches of security; failure to comply with personal data protection and privacy laws; cyclical and changing demand in core markets such as municipal spending, residential construction and natural gas distribution; government monetary or fiscal policies; the impact of adverse weather conditions; the impact of manufacturing and product performance; the impact of wage, commodity and materials price inflation; foreign exchange rate fluctuations; the impact of higher interest rates; the impact of warranty charges and claims, and related accommodations; the strength of our brands and reputation; an inability to successfully resolve significant legal proceedings or government investigations; compliance with environmental, trade and anti-corruption laws and regulations; climate change and legal or regulatory responses thereto; the failure to integrate and/or realize any of the anticipated benefits of acquisitions or divestitures; an inability to achieve our goals and commitments in environmental and sustainability programs; and other factors that are described in the section entitled “RISK FACTORS” in Item 1A. of the Company’s most recent Annual Report on Form 10-K and later filings on Form 10-Q, as applicable.

Forward-looking statements do not guarantee future performance and are only as of the date they are made. The Company undertakes no duty to update its forward-looking statements except as required by law. Undue reliance should not be placed on any forward-looking statements. You are advised to review any further disclosures the Company makes on related subjects in subsequent Forms 10-K, 10-Q, 8-K and other reports filed with the United States Securities and Exchange Commission.

About Mueller Water Products, Inc.

Mueller Water Products, Inc. is a leading manufacturer and marketer of products and solutions used in the transmission, distribution and measurement of water in North America. Our broad portfolio includes engineered valves, fire hydrants, pipe connection and repair products, metering products, leak detection, pipe condition assessment, pressure management products, and software that provides critical water system data. We help municipalities increase operational efficiencies, improve customer service and prioritize capital spending, demonstrating why Mueller Water Products is Where Intelligence Meets Infrastructure®. Visit us at www.muellerwaterproducts.com.

Mueller refers to one or more of Mueller Water Products, Inc. (MWP), a Delaware corporation, and its subsidiaries. MWP and each of its subsidiaries are legally separate and independent entities when providing products and services. MWP does not provide products or services to third parties. MWP and each of its subsidiaries are liable only for their own acts and omissions and not those of each other.

Investor Relations Contact: Whit Kincaid
770-206-4116
[email protected]

Media Contact: Jenny Barabas
470-806-5771
[email protected]

    MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)     March 31, September 30,  2026   2025  (in millions, except share amounts)Assets:   Cash and cash equivalents$421.0  $431.5 Receivables, net of allowance for credit losses of $3.2 million and $3.6 million 208.6   211.9 Inventories, net 385.4   328.7 Other current assets 51.0   56.8 Total current assets 1,066.0   1,028.9 Property, plant and equipment, net 343.7   335.7 Intangible assets, net 305.7   307.3 Goodwill, net 92.1   89.2 Other noncurrent assets 77.3   77.8 Total assets$1,884.8  $1,838.9     Liabilities and stockholders’ equity:   Current portion of long-term debt$1.4  $1.2 Accounts payable 128.6   134.4 Other current liabilities 103.3   154.7 Total current liabilities 233.3   290.3 Long-term debt 451.0   450.4 Deferred income taxes 67.0   51.0 Other noncurrent liabilities 62.7   65.5 Total liabilities 814.0   857.2     Commitments and contingencies       Preferred stock: par value $0.01 per share; 60,000,000 shares authorized; —   — none outstanding at March 31, 2026, and September 30, 2025 Common stock: par value $0.01 per share; 600,000,000 shares authorized; 1.6   1.6 156,446,656 and 156,331,004 shares outstanding at March 31, 2026, and September 30, 2025, respectively Additional paid-in capital 1,136.7   1,158.9 Accumulated deficit (71.9)  (174.2)Accumulated other comprehensive income (loss) 4.4   (4.6)Total stockholders' equity 1,070.8   981.7 Total liabilities and stockholders' equity$1,884.8  $1,838.9   MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)     Three months ended Six months ended March 31, March 31,  2026  2025   2026  2025  (in millions, except per share amounts)Net sales$384.4 $364.3  $702.6 $668.6 Cost of sales (1) 239.9  236.3   438.3  437.6 Gross profit 144.5  128.0   264.3  231.0 Operating expenses:       Selling, general and administrative 59.7  55.7   119.5  109.6 Strategic reorganization and other charges (2) 4.4  2.4   7.7  4.1 Total operating expenses 64.1  58.1   127.2  113.7 Operating income 80.4  69.9   137.1  117.3 Pension benefit other than service —  (0.1)  —  (0.1)Interest expense, net 1.6  2.3   2.6  3.9 Income before income taxes 78.8  67.7   134.5  113.5 Income tax expense 19.7  16.4   32.2  26.9 Net income$59.1 $51.3  $102.3 $86.6         Net income per basic share$0.38 $0.33  $0.65 $0.55 Net income per diluted share$0.38 $0.33  $0.65 $0.55         Weighted average shares outstanding:       Basic 156.4  156.6   156.4  156.5 Diluted 157.4  157.5   157.4  157.5         Dividends declared per share$0.070 $0.067  $0.140 $0.134         (1) For the three and six-month periods ended March 31, 2025, Cost of sales included $0.8 million and $4.1 million, respectively, in Inventory and other asset write-downs associated with the closure of our legacy brass foundry in Decatur, Illinois.(2) For the three-month period ended March 31, 2026, Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition, certain transaction-related expenses, and severance. For the six-month period ended March 31, 2026, Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition, severance, and certain transaction-related expenses. For the three and six-month periods ended March 31, 2025, Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition, non-cash asset impairment, and certain transaction-related expenses.   MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED) Six months ended March 31,  2026   2025  (in millions)Operating activities:   Net income$102.3  $86.6 Adjustments to reconcile net income to net cash provided by operating activities:   Depreciation 20.9   18.8 Amortization 3.6   3.6 Non-cash asset impairment —   1.0 Gain on sale of assets (0.1)  (0.1)Stock-based compensation 7.6   5.0 Pension cost 0.3   0.2 Deferred income taxes 15.5   (2.3)Inventory reserve provision 4.6   4.9 Other, net 0.8   0.6 Changes in assets and liabilities:   Receivables, net 3.3   (7.0)Inventories (60.4)  (9.5)Other assets 8.4   (1.6)Accounts payable (5.3)  6.0 Other current liabilities (49.9)  (33.1)Other noncurrent liabilities (3.2)  (4.7)Net cash provided by operating activities 48.4   68.4 Investing activities:   Capital expenditures (31.9)  (21.1)Proceeds from sale of assets 0.1   0.1 Net cash used in investing activities (31.8)  (21.0)Financing activities:   Dividends paid (21.9)  (21.0)Stock repurchased under buyback program (5.5)  (5.0)Employee taxes related to stock-based compensation (3.7)  (4.3)Common stock issued 1.3   3.9 Principal payments for finance lease obligations (0.7)  (0.5)Net cash used in financing activities (30.5)  (26.9)Effect of currency exchange rate changes on cash 3.4   (1.2)Net change in cash and cash equivalents (10.5)  19.3 Cash and cash equivalents at beginning of period 431.5   309.9 Cash and cash equivalents at end of period$421.0  $329.2       Six months ended March 31,  2026  2025 (in millions)Supplemental cash flow information:   Cash paid for interest, net$2.3 $3.2Cash paid for income taxes, net$32.8 $30.5    Non-cash investing and financing activities:   Property, plant and equipment accrued and unpaid$6.1 $4.8Property, plant and equipment acquired through finance leases$1.2 $1.1         MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP TO GAAP PERFORMANCE MEASURES
(UNAUDITED)   Three months ended March 31, 2026 Water
Flow
Solutions Water
Management
Solutions Corporate Consolidated (in millions, except per share amounts)Net sales$218.3  $166.1  $—  $384.4         Gross profit$87.1  $57.4  $—  $144.5 Selling, general and administrative expenses 21.9   21.9   15.9   59.7 Strategic reorganization and other charges (1) —   0.2   4.2   4.4 Operating income (loss)$65.2  $35.3  $(20.1) $80.4         Operating margin 29.9%  21.3%    20.9%        Capital expenditures$5.0  $9.7  $—  $14.7         Net income      $59.1 Net income margin       15.4%        Reconciliation of non-GAAP to GAAP performance measures:      Net income      $59.1 Strategic reorganization and other charges (1)       4.4 Income tax expense of adjusting items (2)       (1.1)Adjusted net income      $62.4         Weighted average diluted shares outstanding       157.4         Net income per diluted share      $0.38 Strategic reorganization and other charges per diluted share (1)
    0.03 Income tax expense of adjusting items per diluted share (2)
    (0.01)Adjusted net income per diluted share      $0.40         Net income      $59.1 Income tax expense (3)       19.7 Interest expense, net (3)       1.6 Operating income (loss)$65.2  $35.3  $(20.1)  80.4 Strategic reorganization and other charges (1) —   0.2   4.2   4.4 Adjusted operating income (loss) 65.2   35.5   (15.9)  84.8 Depreciation and amortization 7.2   5.1   0.1   12.4 Adjusted EBITDA$72.4  $40.6  $(15.8) $97.2         Adjusted operating margin 29.9%  21.4%    22.1%Adjusted EBITDA margin 33.2%  24.4%    25.3%        Reconciliation of free cash flow to net cash used in operating activities:    Net cash used in operating activities      $(12.8)Less capital expenditures       14.7 Free cash flow      $(27.5)        (1) Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition, certain transaction-related expenses, and severance.(2) The income tax expense of adjusting items reflects an effective tax rate of 25.0%, and may be subject to rounding.(3) The Company does not allocate interest or income taxes to its segments.   MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP TO GAAP PERFORMANCE MEASURES
(UNAUDITED)   Three months ended March 31, 2025 Water
Flow
Solutions Water
Management
Solutions Corporate Consolidated (in millions, except per share amounts)Net sales$216.2  $148.1  $—  $364.3         Gross profit (1)$77.0  $51.0  $—  $128.0 Selling, general and administrative expenses 21.9   19.6   14.2   55.7 Strategic reorganization and other charges (2) 1.0   0.1   1.3   2.4 Operating income (loss)$54.1  $31.3  $(15.5) $69.9         Operating margin 25.0%  21.1%    19.2%        Capital expenditures$4.8  $4.4  $—  $9.2         Net income      $51.3 Net income margin       14.1%        Reconciliation of non-GAAP to GAAP performance measures:      Net income      $51.3 Strategic reorganization and other charges (2)
    2.4 Other asset restructuring write-down
    0.8 Income tax expense of adjusting items (3)
    (0.8)Adjusted net income      $53.7         Weighted average diluted shares outstanding       157.5         Net income per diluted share      $0.33 Strategic reorganization and other charges per diluted share (2)      0.02 Other asset restructuring write-down per diluted share      0.01 Income tax expense of adjusting items per diluted share (3)      (0.02)Adjusted net income per diluted share      $0.34         Net income      $51.3 Income tax expense (4)       16.4 Interest expense, net (4)       2.3 Pension benefit other than service (4)       (0.1)Operating income (loss)$54.1  $31.3  $(15.5)  69.9 Strategic reorganization and other charges (2) 1.0   0.1   1.3   2.4 Other asset restructuring write-down 0.8   —   —   0.8 Adjusted operating income (loss) 55.9   31.4   (14.2)  73.1 Pension benefit other than service (4) —   —   0.1   0.1 Depreciation and amortization 6.3   5.0   —   11.3 Adjusted EBITDA$62.2  $36.4  $(14.1) $84.5         Adjusted operating margin 25.9%  21.2%    20.1%Adjusted EBITDA margin 28.8%  24.6%    23.2%        Reconciliation of free cash flow to net cash provided by operating activities:    Net cash provided by operating activities      $14.3 Less capital expenditures       9.2 Free cash flow      $5.1         (1) Gross profit includes $0.8 million in other asset write-downs associated with the closure of our legacy brass foundry in Decatur, Illinois.(2) Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition, non-cash asset impairment, and certain transaction-related expenses.(3) The income tax expense of adjusting items reflects an effective tax rate of 24.2%, and may be subject to rounding.(4) The Company does not allocate interest, income taxes, or pension amounts other than service to its segments.   MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP TO GAAP PERFORMANCE MEASURES
(UNAUDITED)
   Six months ended March 31, 2026 Water
Flow
Solutions Water
Management
Solutions Corporate Consolidated (in millions, except per share amounts)Net sales$391.3  $311.3  $—  $702.6         Gross profit$157.9  $106.4  $—  $264.3 Selling, general and administrative expenses 43.3   46.4   29.8   119.5 Strategic reorganization and other charges (1) —   0.2   7.5   7.7 Operating income (loss)$114.6  $59.8  $(37.3) $137.1         Operating margin 29.3%  19.2%    19.5%        Capital expenditures$11.4  $20.5  $—  $31.9         Net income      $102.3 Net income margin       14.6%        Reconciliation of non-GAAP to GAAP performance measures:      Net income      $102.3 Strategic reorganization and other charges (1)       7.7 Income tax expense of adjusting items (2)       (1.8)Adjusted net income      $108.2         Weighted average diluted shares outstanding       157.4         Net income per diluted share      $0.65 Strategic reorganization and other charges per diluted share (1)
    0.05 Income tax expense of adjusting items per diluted share (2)
    (0.01)Adjusted net income per diluted share      $0.69         Net income      $102.3 Income tax expense (3)       32.2 Interest expense, net (3)       2.6 Operating income (loss)$114.6  $59.8  $(37.3)  137.1 Strategic reorganization and other charges (1) —   0.2   7.5   7.7 Adjusted operating income (loss) 114.6   60.0   (29.8)  144.8 Depreciation and amortization 14.3   10.1   0.1   24.5 Adjusted EBITDA$128.9  $70.1  $(29.7) $169.3         Adjusted operating margin 29.3%  19.3%    20.6%Adjusted EBITDA margin 32.9%  22.5%    24.1%        Reconciliation of free cash flow to net cash provided by operating activities:    Net cash provided by operating activities      $48.4 Less capital expenditures       31.9 Free cash flow      $16.5         (1) Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition, severance, and certain transaction-related expenses.(2) The income tax expense of adjusting items reflects an effective tax rate of 23.9% and may be subject to rounding.(3) The Company does not allocate interest or income taxes to its segments.   MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES
SEGMENT RESULTS AND RECONCILIATION OF NON-GAAP TO GAAP PERFORMANCE MEASURES
(UNAUDITED)
   Six months ended March 31, 2025 Water
Flow
Solutions Water
Management
Solutions Corporate Consolidated (in millions, except per share amounts)Net sales$390.8  $277.8  $—  $668.6         Gross profit (1)$132.1  $98.9  $—  $231.0 Selling, general and administrative expenses 41.7   39.9   28.0   109.6 Strategic reorganization and other charges (2) 1.0   0.4   2.7   4.1 Operating income (loss)$89.4  $58.6  $(30.7) $117.3         Operating margin 22.9%  21.1%    17.5%        Capital expenditures$10.5  $10.6  $—  $21.1         Net income      $86.6 Net income margin       13.0%        Reconciliation of non-GAAP to GAAP performance measures:
    Net income      $86.6 Strategic reorganization and other charges (2)       4.1 Inventory and other asset restructuring write-down
    4.1 Income tax expense of adjusting items (3)       (1.9)Adjusted net income      $92.9         Weighted average diluted shares outstanding       157.5         Net income per diluted share      $0.55 Strategic reorganization and other charges per diluted share (2)
    0.03 Inventory and other asset restructuring write-down per diluted share
    0.03 Income tax expense of adjusting items per diluted share (3)
    (0.02)Adjusted net income per diluted share      $0.59         Net income      $86.6 Income tax expense (4)       26.9 Interest expense, net (4)       3.9 Pension benefit other than service (4)       (0.1)Operating income (loss)$89.4  $58.6  $(30.7)  117.3 Strategic reorganization and other charges (2) 1.0   0.4   2.7   4.1 Inventory and other asset restructuring write-down 4.1   —   —   4.1 Adjusted operating income (loss) 94.5   59.0   (28.0)  125.5 Pension benefit other than service (4) —   —   0.1   0.1 Depreciation and amortization 12.4   10.0   —   22.4 Adjusted EBITDA$106.9  $69.0  $(27.9) $148.0         Adjusted operating margin 24.2%  21.2%    18.8%Adjusted EBITDA margin 27.4%  24.8%    22.1%        Reconciliation of free cash flow to net cash provided by operating activities:    Net cash provided by operating activities      $68.4 Less capital expenditures       21.1 Free cash flow      $47.3         (1) Gross profit includes $4.1 million in Inventory and other asset write-downs associated with the closure of our legacy brass foundry in Decatur, Illinois.(2) Strategic reorganization and other charges primarily relate to expenses associated with our leadership transition, non-cash asset impairment, and certain transaction-related expenses.(3) The income tax expense of adjusting items reflects an effective tax rate of 23.7%, and may be subject to rounding.(4) The Company does not allocate interest, income taxes, or pension amounts other than service to its segments.

Mueller Water Products (MWA - Free Report) came out with quarterly earnings of $0.4 per share, beating the Zacks Consensus Estimate of $0.38 per share. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +6.67%. A quarter ago, it was expected that this maker of fire hydrants, pipes and water valves would post earnings of $0.27 per share when it actually produced earnings of $0.29, delivering a surprise of +7.41%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Mueller Water Products, which belongs to the Zacks Manufacturing - General Industrial industry, posted revenues of $384.4 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.65%. This compares to year-ago revenues of $364.3 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Mueller Water Products shares have added about 14.3% since the beginning of the year versus the S&P 500's gain of 5.2%.

What's Next for Mueller Water Products?While Mueller Water Products has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Mueller Water Products was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.39 on $393.1 million in revenues for the coming quarter and $1.45 on $1.48 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - General Industrial is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Middleby (MIDD - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 7.

This food preparation equipment company is expected to post quarterly earnings of $1.94 per share in its upcoming report, which represents a year-over-year change of -6.7%. The consensus EPS estimate for the quarter has been revised 0.8% lower over the last 30 days to the current level.

Middleby's revenues are expected to be $777.07 million, down 14.3% from the year-ago quarter.

Mueller Water Products, Inc. (MWA) Q2 2026 Earnings Call Transcript

Mueller Water Products is rated a buy, trading at a significant discount despite sector-leading margin expansion and robust fundamentals. MWA's competitive moat, pricing power, and manufacturing efficiencies have driven superior EBIT and net income growth versus peers, with further margin gains anticipated. Recent Q2 results showed revenue up 6% and EBIT margin at 20.92%, well above sector averages, but free cash flow conversion remains a near-term challenge due to inventory build.

Mueller Water Products (MWA - Free Report) has been on a downward spiral lately with significant selling pressure. After declining 16% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.

We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.

RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.

Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.

So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.

However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.

Why MWA Could Bounce Back Before LongThe heavy selling of MWA shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 29.29. So, the trend for the stock could reverse soon for reaching the old equilibrium of supply and demand.

The RSI value is not the only factor that indicates a potential turnaround for the stock in the near term. On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. Over the last 30 days, the consensus EPS estimate for MWA has increased 1.4%. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.

Moreover, MWA currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Investors looking for stocks in the Financial - Miscellaneous Services sector might want to consider either Intercorp Financial Services Inc. (IFS) or HA Sustainable Infrastructure Capital (HASI). But which of these two stocks offers value investors a better bang for their buck right now?

Rental properties are far from passive; the workload never ends. REITs offer scalable, truly passive real estate exposure. I present a REIT portfolio that generates me $3,000 of monthly income.

HA Sustainable Infrastructure Capital (HASI - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.

The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.

Therefore, the Zacks rating upgrade for HA Sustainable Infrastructure Capital basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for HA Sustainable Infrastructure Capital imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for HA Sustainable Infrastructure CapitalFor the fiscal year ending December 2026, this provider of financing for sustainable infrastructure projects is expected to earn $2.94 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for HA Sustainable Infrastructure Capital. Over the past three months, the Zacks Consensus Estimate for the company has increased 0.2%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of HA Sustainable Infrastructure Capital to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering HA Sustainable Infrastructure Capital (HASI - Free Report) , which belongs to the Zacks Financial - Miscellaneous Services industry.

This provider of financing for sustainable infrastructure projects has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 8.73%.

For the last reported quarter, HA Sustainable Infrastructure Capital came out with earnings of $0.67 per share versus the Zacks Consensus Estimate of $0.66 per share, representing a surprise of 1.52%. For the previous quarter, the company was expected to post earnings of $0.69 per share and it actually produced earnings of $0.8 per share, delivering a surprise of 15.94%.

Price and EPS Surprise

For HA Sustainable Infrastructure Capital, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

HA Sustainable Infrastructure Capital currently has an Earnings ESP of +1.03%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner.

With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Rithm (RITM - Free Report) came out with quarterly earnings of $0.51 per share, missing the Zacks Consensus Estimate of $0.53 per share. This compares to earnings of $0.52 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -2.86%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.55 per share when it actually produced earnings of $0.74, delivering a surprise of +34.55%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

Rithm, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $1.38 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 8.84%. This compares to year-ago revenues of $768.38 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Rithm shares have lost about 7.2% since the beginning of the year versus the S&P 500's gain of 4.8%.

What's Next for Rithm?While Rithm has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Rithm was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.59 on $1.26 billion in revenues for the coming quarter and $2.31 on $5.32 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the top 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, HA Sustainable Infrastructure Capital (HASI - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 7.

This provider of financing for sustainable infrastructure projects is expected to post quarterly earnings of $0.68 per share in its upcoming report, which represents a year-over-year change of +6.3%. The consensus EPS estimate for the quarter has been revised 2.3% higher over the last 30 days to the current level.

HA Sustainable Infrastructure Capital's revenues are expected to be $37.3 million, up 31.1% from the year-ago quarter.

ANNAPOLIS, Md. & NEW YORK--(BUSINESS WIRE)--HA Sustainable Infrastructure Capital, Inc. (“HASI”) (NYSE: HASI), a leading investor in sustainable infrastructure assets, and KKR, a leading global investment firm, today announced that CarbonCount Holdings 1 LLC (“CCH1”), a co-investment vehicle between HASI and KKR, has issued $508 million in aggregate principal amount of senior unsecured notes (the “Notes”) in a private offering. The fixed-rate amortizing notes will have a 20-year final maturity.

ANNAPOLIS, Md.--(BUSINESS WIRE)--HA Sustainable Infrastructure Capital, Inc. (“HASI,” “we” or “our”) (NYSE: HASI) today announced executive appointments, effective May 12, 2026. “I am pleased to announce these management changes and promotions as we continue to recruit and retain top talent to drive our ongoing success,” said Jeffrey A. Lipson, President and Chief Executive Officer of HASI. “All of these individuals are accomplished executives with a collaborative approach, and I am extremely c.

HA Sustainable Infrastructure Capital, Inc. (HASI) Q1 2026 Earnings Call Transcript

HA Sustainable Infrastructure Capital is transitioning from a yield-oriented REIT to a high-return infrastructure financing platform focused on renewable energy and energy transition assets. Despite double-digit earnings growth and >17% ROE guidance by 2028, HASI trades at compressed multiples, presenting a valuation disconnect and upside opportunity. My scenario analysis suggests 25% base case upside if management delivers on EPS guidance, with up to 50% upside in a bull case where the market re-rates the stock.

Posted by Defense World Staff on Apr 22nd, 2026

Eagle Global Advisors LLC lessened its holdings in Plains All American Pipeline Lp (NASDAQ:PAA – Free Report) by 11.8% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 3,631,255 shares of the company’s stock after selling 486,115 shares during the quarter. Plains All American Pipeline makes up about 2.4% of Eagle Global Advisors LLC’s investment portfolio, making the stock its 7th largest holding. Eagle Global Advisors LLC owned about 0.51% of Plains All American Pipeline worth $65,217,000 as of its most recent SEC filing.

Other hedge funds have also recently added to or reduced their stakes in the company. Citigroup Inc. lifted its stake in Plains All American Pipeline by 17.8% in the third quarter. Citigroup Inc. now owns 535,200 shares of the company’s stock valued at $9,131,000 after buying an additional 80,788 shares during the last quarter. JPMorgan Chase & Co. boosted its holdings in shares of Plains All American Pipeline by 15.5% during the third quarter. JPMorgan Chase & Co. now owns 7,198,958 shares of the company’s stock valued at $122,814,000 after acquiring an additional 967,059 shares during the period. Texas Yale Capital Corp. boosted its holdings in shares of Plains All American Pipeline by 10.4% during the third quarter. Texas Yale Capital Corp. now owns 637,343 shares of the company’s stock valued at $10,873,000 after acquiring an additional 60,000 shares during the period. Inspire Investing LLC acquired a new position in shares of Plains All American Pipeline during the third quarter valued at $1,045,000. Finally, PFG Investments LLC boosted its holdings in shares of Plains All American Pipeline by 91.8% during the third quarter. PFG Investments LLC now owns 130,443 shares of the company’s stock valued at $2,225,000 after acquiring an additional 62,446 shares during the period. Institutional investors and hedge funds own 41.78% of the company’s stock.

Plains All American Pipeline Stock Up 0.5% Shares of NASDAQ PAA opened at $21.06 on Wednesday. Plains All American Pipeline Lp has a fifty-two week low of $15.69 and a fifty-two week high of $22.79. The company’s 50-day moving average is $21.40. The company has a current ratio of 0.96, a quick ratio of 0.92 and a debt-to-equity ratio of 0.97. The company has a market capitalization of $14.86 billion, a PE ratio of 12.69, a P/E/G ratio of 2.48 and a beta of 0.53.

Plains All American Pipeline (NASDAQ:PAA – Get Free Report) last issued its quarterly earnings data on Friday, February 6th. The company reported $0.17 earnings per share for the quarter, missing analysts’ consensus estimates of $0.50 by ($0.33). Plains All American Pipeline had a net margin of 3.21% and a return on equity of 10.76%. During the same quarter in the prior year, the firm earned $0.42 EPS. The firm’s revenue was down 12.2% compared to the same quarter last year. On average, sell-side analysts anticipate that Plains All American Pipeline Lp will post 1.78 earnings per share for the current fiscal year.

Plains All American Pipeline Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Friday, May 1st will be paid a dividend of $0.4175 per share. This represents a $1.67 dividend on an annualized basis and a dividend yield of 7.9%. The ex-dividend date is Friday, May 1st. Plains All American Pipeline’s payout ratio is currently 100.60%.

Analyst Ratings Changes Several equities analysts have recently issued reports on the stock. Zacks Research downgraded shares of Plains All American Pipeline from a “strong-buy” rating to a “hold” rating in a report on Friday, January 30th. Barclays boosted their price target on shares of Plains All American Pipeline from $18.00 to $21.00 and gave the company an “underweight” rating in a report on Friday, April 10th. Bank of America downgraded shares of Plains All American Pipeline from a “neutral” rating to an “underperform” rating and set a $19.00 price target for the company. in a report on Wednesday, January 28th. Mizuho set a $23.00 price target on shares of Plains All American Pipeline in a report on Friday, January 23rd. Finally, Scotiabank reissued an “outperform” rating on shares of Plains All American Pipeline in a report on Monday, February 9th. Two investment analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, seven have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $22.08.

View Our Latest Research Report on PAA

About Plains All American Pipeline (Free Report)

Plains All American Pipeline (NASDAQ: PAA) is a publicly traded energy infrastructure company that provides midstream services for crude oil and natural gas liquids (NGLs). The company’s core activities include gathering, transporting, storing and marketing hydrocarbons, using an integrated network of pipelines, storage terminals, rail and truck transloading facilities. Plains also offers logistics and marketing services that connect upstream producers with refiners, traders and export markets.

Plains owns and operates a portfolio of pipeline and terminal assets concentrated in major U.S.

See Also Five stocks we like better than Plains All American Pipeline

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The war with Iran is having an enormous impact on the global oil market. According to an estimate by Goldman Sachs, oil production from the Persian Gulf region is down 57% from its pre-war level, or about 14.5 million barrels per day. The world is currently covering the shortfall by drawing oil from storage, including a record 400 million barrel release by members of the International Energy Agency (IEA).

Here's a look at some of the energy companies built for moments like these.

Image source: Getty Images.

American's emergency oil stockpile The U.S. is helping offset the impact of the Strait of Hormuz closure by adding supply to the market. The Department of Energy (DOE) is releasing 172 million barrels of oil from the Strategic Petroleum Reserve (SPR) as part of the IEA's record release.

The SPR is the world's largest emergency oil stockpile, with a capacity of 714 million barrels. The SPR relies on energy companies to transport crude oil from its four storage sites along the U.S. Gulf Coast. The SPR feeds into three oil pipeline distribution systems (Seaway, Taxoma, and Capline) that connect this oil to refineries along the Gulf Coast (and elsewhere) as well as three marine terminals (Seaway, Nederland, and St. James).

The energy companies supporting the SPR release Enterprise Products Partners (EPD 1.50%) and Enbridge (ENB +0.04%) co-own the Seaway Pipeline Company, which operates the Seaway Pipeline and marine facilities. Their system plays a crucial role in helping the DOE transport oil from the SPR to U.S. refineries and global markets via their export docks. Additionally, both companies own other vital oil infrastructure. Enterprise operates several oil pipelines, storage terminals (including at the critical Cushing, OK, hub), and export facilities. Meanwhile, Enbridge operates North America's longest and most complex crude oil transportation system, moving 30% of the crude oil produced on the continent. It also operates the Enbridge Ingleside Energy Center, the largest crude oil export terminal by volume.

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Plains All American Pipelines (PAA 1.10%) is a leader in U.S. oil infrastructure. It operates 20,000 miles of crude oil pipelines, including an interest in the Capline Pipeline, which supports SPR releases. Additionally, Plains All American has 75 million barrels of commercial crude storage capacity and owns five marine terminals in the U.S. Its infrastructure is crucial to supporting the flow of oil from wells to market centers.

Energy Transfer (ET 1.47%) owns the Nederland terminal, which connects directly with the SPR. That facility, as well as its Houston terminal, played a vital role in the 2022 SPR release following Russia's invasion of Ukraine. Additionally, Energy Transfer operates extensive oil infrastructure across the U.S., including 17,950 miles of oil pipelines and a crude oil terminal with 73 million barrels of capacity.

Filling the gap Enbridge, Enterprise Products Partners, Plains All American Pipeline, and Energy Transfer operate crucial crude oil infrastructure. Their systems are assisting the DOE in getting oil from the SPR to U.S. refineries and global markets to help offset the supply issues in the Persian Gulf. As a result, these companies should see higher volumes this year, boosting their cash flow. That will provide additional support for their high-yielding and steadily rising dividends.

Matt DiLallo has positions in Enbridge, Energy Transfer, and Enterprise Products Partners. The Motley Fool has positions in and recommends Enbridge and Goldman Sachs Group. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.

Unlike exploration and production operations, the midstream energy space is generally less vulnerable to fluctuations in oil and natural gas prices. Despite this, the outlook for the Zacks Oil and Gas - Pipeline MLP industry is gloomy, primarily due to the conservative spending of upstream companies, which is likely to continue hurting the demand for transportation and storage assets.

Notwithstanding these developments, players like Enterprise Products Partners LP (EPD - Free Report) , Energy Transfer LP (ET - Free Report) and Plains All American Pipeline LP (PAA - Free Report) are well-positioned to sail through the prevailing uncertainties.

About the Industry The Zacks Oil and Gas - Pipeline MLP industry comprises master limited partnerships (or MLPs) that primarily transport oil, natural gas, refined petroleum products and natural gas liquids (NGL) to consumers in North America. Apart from transporting the commodities, the partnerships have huge capacities to store oil, natural gas and petrochemical products.  The partnerships thus provide midstream services to producers and consumers of the commodities. The firms generate stable fee-based revenues from all these transportation and storage assets. The services provided by the MLPs entail the gathering and processing of commodities. The integrated midstream energy players also generate cashflows from ownership interests in fractionators and condensate distillation facilities.

What's Shaping the Future of Oil & Gas - Production & Pipelines Industry? High Debt Load: The industry is inherently capital-intensive, as evident in the debt-to-capitalization ratio of 56.8%, where borrowing is a common practice to finance large infrastructure projects. However, elevated leverage can constrain financial flexibility, hindering midstream energy companies' capacity to invest in new developments, navigate economic downturns, or address unforeseen costs.

Shift to Renewables: Energy majors will increasingly face challenges in providing sustainable energy to the world while reducing greenhouse gas emissions. To address the issues of climate change, there will be a gradual shift from fossil fuels to renewable energy. This will lower the demand for the partnerships’ pipeline and storage networks for oil and natural gas.

Explorers’ Conservative Capital Spending: Oil and gas exploration and production companies are facing heightened pressure from investors to focus on stockholders’ returns rather than production. This is hindering the production growth of commodities, thereby denting the demand for pipeline and storage assets.

Zacks Industry Rank Indicates Weak Prospects The Zacks Oil and Gas - Pipeline MLP industry is a seven-stock group within the broader Zacks Oil - Energy sector. The industry currently carries a Zacks Industry Rank #195, which places it in the bottom 20% of more than 250 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

The industry’s position in the bottom 50% of the Zacks-ranked industries forms an unfavorable earnings outlook for the constituent stocks in aggregate. Before we present a few stocks that you may want to consider, let’s look at the industry’s recent stock market performance and its valuation picture.

Industry Underperforms Sector, S&P 500 The Zacks Oil and Gas - Pipeline MLP industry has underperformed the broader Zacks Oil - Energy sector and the Zacks S&P 500 Composite over the past year. The industry has rallied 19.8% in the past year compared with the broader sector’s 47.6% surge and the S&P 500's 29.6% rise.

One-Year Price Performance

Industry's Current Valuation Since midstream-focused oil and gas partnerships use fixed-rate debt for the majority of their borrowings, it makes sense to value them based on the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) ratio. This is because the valuation metric takes into account not just equity but also the level of debt.

On the basis of the trailing 12-month enterprise value-to-EBITDA (EV/EBITDA), the industry is currently trading at 12.22X, lower than the S&P 500’s 18.70X. It is, however, significantly above the sector’s trailing 12-month EV/EBITDA of 7.16X.

Over the past five years, the industry has traded as high as 12.60X and as low as 8.27X, with a median of 10.65X.

Trailing 12-Month Enterprise Value-to EBITDA (EV/EBITDA) Ratio

3 Oil & Gas Pipeline MLPs to Gain Enterprise Products Partners is a leading midstream player and therefore has a resilient business model. EPD has a pipeline network that spans more than 50,000 miles, transporting oil, natural gas, refined products and other commodities. The partnership generates stable fee-based revenues from the midstream assets as the assets are booked by shippers for a long term.

Due to the resilience of its business model, the partnership, currently carrying a Zacks Rank #2 (Buy), has been able to return capital to unitholders on an ongoing basis. Since its IPO, Enterprise Products has returned billions of dollars to unitholders through both repurchases and distributions. EPD has increased distributions for 27 consecutive years. Thus, the partnership has successfully kept cash flow steady at all business cycles.

Price and Consensus: EPD

Energy Transfer has a stable business model with its huge pipeline network of natural gas, oil and refined petroleum products across 140,000 miles. The partnership has midstream assets in all the key basins in the United States, generating stable fee-based revenues.

Energy Transfer, with a Zacks Rank of 3, has offered a higher dividend yield than the composite stocks belonging to the industry over the past three consecutive years. For this year, the partnership is likely to see earnings growth of 25.6%.

Price and Consensus: ET

Plains All American Pipeline also enjoys stable fee-based revenues, banking on its oil and natural gas pipeline network and storage assets. Over the past 30 days, the #3 Ranked stock has witnessed upward earnings estimate revisions for 2026. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Price and Consensus: PAA

Key Takeaways Plains All American expects Q1 EPS of 41 cents, up 5.13% year over year. PAA may benefit from Cactus III synergies and operational efficiency gains in Q1. Higher interest costs tied to the Cactus III deal may weigh on Plains All American's results. Plains All American Pipeline, L.P. (PAA - Free Report) is set to report first-quarter 2026 results on May 8, before market open. The firm reported a negative earnings surprise of 14.89% in the last quarter.

Let us discuss the factors that are likely to be reflected in the upcoming quarterly results.

Q1 Expectations for PAAThe Zacks Consensus Estimate for earnings is pegged at 41 cents per share, implying 5.13% year-over-year growth.

The consensus estimate for revenues is pinned at $12.54 billion, indicating an increase of 4.39% from the year-ago reported figure.

Factors Likely to Have Impacted PAA’s Q1 EarningsPlains All American Pipeline’s first-quarter earnings are expected to have benefited from synergies stemming from its Cactus III acquisition, supporting its pure-play crude midstream transition strategy. This is likely to improve service quality and drive EBITDA growth, supporting the upcoming earnings results.

PAA's continuous focus on operational efficiency and cost optimization is likely to have acted as a tailwind to its performance in the to-be-reported quarter. This is expected to have lowered expenses, improved returns and boosted first-quarter earnings per share.

The company's disciplined cost allocation plans, along with its widespread network of pipelines and storage assets across major North American oil-producing regions, are expected to have supported revenue growth and strengthened first-quarter earnings performance.

However, the loan taken to fund the Cactus III acquisition is likely to have increased interest expenses, which may have offset some positives in first-quarter earnings.

What Our Quantitative Model Predicts for PAAOur proven model does not predict an earnings beat for Plains All American Pipeline this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.

PAA’s Earnings ESP: The firm has an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

PAA’s Zacks Rank: Currently, Plains All American Pipeline carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.

Stocks to ConsiderInvestors may consider the following players from the same sector, as these have the right combination of elements to post an earnings beat this reporting cycle.

Shell plc (SHEL - Free Report) is scheduled to report first-quarter results on May 7. It has an Earnings ESP of +3.56% and a Zacks Rank #1 at present.

The company has a dividend yield of 3.32%. The Zacks Consensus Estimate for first-quarter EPS is pinned at $1.78, which implies a year-over-year fall of 3.26%.

Pembina Pipeline Corporation (PBA - Free Report) is set to report first-quarter results on May 7. It has an Earnings ESP of +0.65% and a Zacks Rank #3 at present.

The company has a dividend yield of 4.50%. The Zacks Consensus Estimate for first-quarter EPS is pinned at 52 cents, which implies a year-over-year fall of 7.14%.

South Bow Corporation (SOBO - Free Report) is likely to come up with earnings beat when it reports first-quarter results on May 7. It has an Earnings ESP of +9.29% and a Zacks Rank #3 at present.

The company has a dividend yield of 5.66%. The Zacks Consensus Estimate for first-quarter EPS is pinned at 46 cents, which implies a year-over-year fall of 2.13%.