Mueller Industries, Inc. (NYSE:MLI) announces results for the second quarter of 2024. Comparisons are to the second quarter of 2023.

Net Sales of $997.7 million versus $897.0 million
Operating Income of $210.0 million versus $210.7 million
Earnings Before Taxes of $222.9 million versus $241.0 million
Net Income of $160.2 million versus $177.7 million
Diluted EPS of $1.41 versus $1.56¹

Second Quarter Financial and Operating Highlights:

COMEX copper averaged $4.55 per pound during the quarter, 18.4% higher than in the second quarter of 2023.
The increase in net sales was attributable to higher unit shipments in most of our businesses, price increases tied to higher copper prices, and the inclusion of one month of reported sales for our recently acquired Nehring business.
In 2023, we reported an insurance settlement gain of $19.5 million related to the August 2022 fire at our Westermeyer facility. Adjusting for this gain, our quarterly operating income performance improved by 9.8% over the prior year period.
Net cash generated from operations was $100.8 million, and our cash balance was $825.7 million at quarter end. Cash deployed during the quarter included $566.6 million for acquisitions and $15.1 million in stock repurchases.
Our current ratio remains solid at 4.7 to 1.

Regarding the quarter performance and outlook, Greg Christopher, Mueller's CEO said, "Our businesses continue to perform well despite persistent heightened inflation and restrained construction activity. We maintain a positive long-term outlook for our business. Our internal investments are paying off, and we expect they will yield even greater benefits as market conditions improve. Moreover, our acquisition of Nehring Electrical Works, which we completed during the quarter, provides a substantial platform for expansion in the energy infrastructure space."

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Diluted EPS for the second quarter of 2023 has been adjusted retroactively to reflect the two-for-one stock split that took effect on October 20, 2023.1 Diluted EPS for the second quarter of 2023 has been adjusted retroactively to reflect the two-for-one stock split that took effect on October 20, 2023.

Mueller Industries, Inc. (NYSE:MLI) is an industrial corporation whose holdings manufacture vital goods for important markets such as air, water, oil and gas distribution; climate comfort; food preservation; energy transmission; medical; aerospace; and automotive. It includes a network of companies and brands throughout North America, Europe, Asia, and the Middle East.

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Statements in this release that are not strictly historical may be "forward-looking" statements, which involve risks and uncertainties. These include economic and currency conditions, continued availability of raw materials and energy, market demand, pricing, competitive and technological factors, and the availability of financing, among others, as set forth in the Company's SEC filings. The words "outlook," "estimate," "project," "intend," "expect," "believe," "target," "encourage," "anticipate," "appear," and similar expressions are intended to identify forward-looking statements. The reader should not place undue reliance on forward-looking statements, which speak only as of the date of this report. The Company has no obligation to publicly update or revise any forward-looking statements to reflect events after the date of this report.

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

	For the Quarter Ended						For the Six Months Ended
(In thousands, except per share data)	June 29, 2024			July 1, 2023			June 29, 2024			July 1, 2023

Net sales	$	997,745		$	896,984		$	1,847,399		$	1,868,176

Cost of goods sold		724,990			639,272			1,333,693			1,318,070
Depreciation and amortization		10,018			10,416			19,187			21,073
Selling, general, and administrative expense		52,731			56,062			101,088			108,693
Gain on insurance settlement		—			(19,466	)		—			(19,466	)

Operating income		210,006			210,700			393,431			439,806

Interest expense		(107	)		(135	)		(222	)		(278	)
Interest income		14,383			7,732			31,628			13,967
Realized and unrealized gains on short-term investments		—			20,820			365			22,730
Other (expense) income, net		(1,356	)		1,841			(726	)		2,167

Income before income taxes		222,926			240,958			424,476			478,392

Income tax expense		(58,384	)		(62,122	)		(110,218	)		(123,479	)
(Loss) income from unconsolidated affiliates, net of foreign tax		(1,095	)		715			(9,102	)		(269	)

Consolidated net income		163,447			179,551			305,156			354,644

Net income attributable to noncontrolling interests		(3,282	)		(1,840	)		(6,628	)		(3,694	)

Net income attributable to Mueller Industries, Inc.	$	160,165		$	177,711		$	298,528		$	350,950

Weighted average shares for basic earnings per share ⁽¹⁾		111,216			111,320			111,316			111,354
Effect of dilutive stock-based awards ⁽¹⁾		2,763			2,680			2,746			2,046

Adjusted weighted average shares for diluted earnings per share ⁽¹⁾		113,979			114,000			114,062			113,400

Basic earnings per share ⁽¹⁾	$	1.44		$	1.60		$	2.68		$	3.15

Diluted earnings per share ⁽¹⁾	$	1.41		$	1.56		$	2.62		$	3.09

Dividends per share ⁽¹⁾	$	0.20		$	0.15		$	0.40		$	0.30







⁽¹⁾Adjusted retroactively to reflect the two-for-one stock split that occurred on October 20, 2023.





MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME, CONTINUED
(Unaudited)

	For the Quarter Ended						For the Six Months Ended
(In thousands)	June 29, 2024			July 1, 2023			June 29, 2024			July 1, 2023

Summary Segment Data:

Net sales:
Piping Systems Segment	$	688,469		$	638,005		$	1,278,637		$	1,300,484
Industrial Metals Segment		195,341			146,266			351,408			311,500
Climate Segment		130,532			123,954			247,342			276,908
Elimination of intersegment sales		(16,597	)		(11,241	)		(29,988	)		(20,716	)

Net sales	$	997,745		$	896,984		$	1,847,399		$	1,868,176

Operating income:
Piping Systems Segment	$	162,258		$	151,142		$	304,938		$	314,996
Industrial Metals Segment		29,693			17,971			53,964			45,186
Climate Segment		38,993			57,067			71,568			111,055
Unallocated income (expenses)		(20,938	)		(15,480	)		(37,039	)		(31,431	)

Operating income	$	210,006		$	210,700		$	393,431		$	439,806

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

	(Unaudited)
(In thousands)	June 29, 2024		December 30, 2023
ASSETS
Cash and cash equivalents	$	825,655	$	1,170,893
Short-term investments		—		98,146
Accounts receivable, net		522,572		351,561
Inventories		406,217		380,248
Other current assets		50,347		39,173

Total current assets		1,804,791		2,040,021

Property, plant, and equipment, net		471,443		385,165
Operating lease right-of-use assets		34,534		35,170
Other assets		755,417		298,945

Total assets	$	3,066,185	$	2,759,301

LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of debt	$	785	$	796
Accounts payable		198,537		120,485
Current portion of operating lease liabilities		8,000		7,893
Other current liabilities		179,906		187,964

Total current liabilities		387,228		317,138

Long-term debt		74		185
Pension and postretirement liabilities		11,696		12,062
Environmental reserves		14,808		15,030
Deferred income taxes		20,023		19,134
Noncurrent operating lease liabilities		26,330		26,683
Other noncurrent liabilities		33,168		10,353

Total liabilities		493,327		400,585

Total Mueller Industries, Inc. stockholders' equity		2,546,103		2,337,445
Noncontrolling interests		26,755		21,271

Total equity		2,572,858		2,358,716

Total liabilities and equity	$	3,066,185	$	2,759,301

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

	For the Six Months Ended
(In thousands)	June 29, 2024			July 1, 2023

Cash flows from operating activities
Consolidated net income	$	305,156		$	354,644
Reconciliation of consolidated net income to net cash provided by operating activities:
Depreciation and amortization		19,349			21,252
Stock-based compensation expense		13,476			12,459
Provision for doubtful accounts receivable		(67	)		(80	)
Loss from unconsolidated affiliates		9,102			269
Dividends from unconsolidated affiliates		3,541			—
Insurance proceeds - noncapital related		15,000			9,854
Gain on disposals of properties		(1,286	)		(141	)
Unrealized gain on short-term investments		—			(20,820	)
Gain on sales of securities		(365	)		—
Gain on insurance settlement		—			(19,466	)
Deferred income tax (benefit) expense		(1,509	)		2,406
Changes in assets and liabilities, net of effects of businesses acquired:
Receivables		(132,012	)		(77,701	)
Inventories		6,706			(12,149	)
Other assets		8,511			(5,571	)
Current liabilities		30,276			(14,460	)
Other liabilities		(2,375	)		(976	)
Other, net		872			1,310

Net cash provided by operating activities	$	274,375		$	250,830

Cash flows from investing activities
Capital expenditures	$	(25,603	)	$	(29,221	)
Acquisition of businesses, net of cash acquired		(566,577	)		—
Investments in unconsolidated affiliates		(8,700	)		—
Insurance proceeds - capital related		—			24,646
Purchase of short-term investments		—			(106,231	)
Purchase of long-term investments		(7,976	)		—
Proceeds from the maturity of short-term investments		—			217,863
Proceeds from the sale of securities		96,465			—
Issuance of notes receivable		(3,800	)		—
Proceeds from sales of properties		3,976			142
Dividends from unconsolidated affiliates		—			797

Net cash (used in) provided by investing activities	$	(512,215	)	$	107,996


MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

	For the Six Months Ended
(In thousands)	June 29, 2024			July 1, 2023

Cash flows from financing activities
Dividends paid to stockholders of Mueller Industries, Inc.	$	(44,488	)	$	(33,402	)
Repurchase of common stock		(42,994	)		(19,303	)
Repayments of debt		(111	)		(130	)
Issuance (repayment) of debt by consolidated joint ventures, net		11			(143	)
Net cash used to settle stock-based awards		(2,002	)		(2,588	)

Net cash used in financing activities	$	(89,584	)	$	(55,566	)

Effect of exchange rate changes on cash		(4,784	)		4,825

(Decrease) increase in cash, cash equivalents, and restricted cash		(332,208	)		308,085
Cash, cash equivalents, and restricted cash at the beginning of the period		1,174,223			465,296

Cash, cash equivalents, and restricted cash at the end of the period	$	842,015		$	773,381

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Mueller Industries, Inc. Reports Second Quarter 2024 Earnings