Mueller Industries Reports 21.7% Revenue Growth, Net Income Increase in Q3 2024

Mueller Industries Inc. reported significant financial performance improvements for the quarter and nine months ended September 28, 2024, compared to the same periods in the previous fiscal year.

For the third quarter of 2024, net sales reached $997.8 million, a 21.7% increase from $819.8 million in Q3 2023. The nine-month net sales also rose to $2.845 billion, up 5.9% from $2.688 billion in the prior year. The increase in revenue was primarily driven by contributions from recent acquisitions, particularly the Nehring Electrical Works Company, which added $92.1 million in sales for the quarter and $122.7 million for the nine months. Additionally, higher net selling prices in core product lines contributed $53.3 million in the quarter and $66.4 million year-to-date.

Operating income for Q3 2024 was $206.7 million, reflecting a 14.2% increase from $181.0 million in Q3 2023. However, for the nine months, operating income decreased slightly to $600.1 million from $620.8 million in the previous year. The decline in year-to-date operating income was attributed to increased selling, general, and administrative expenses, which rose due to higher employment costs and acquisition-related expenses.

Net income for the third quarter was $171.8 million, a 27.1% increase from $135.7 million in Q3 2023. For the nine months, net income totaled $476.9 million, down from $490.4 million in the same period last year. The decrease in nine-month net income was influenced by a reduction in sales from the Heatlink Group disposition and lower unit sales volume in core product lines.

The company declared a quarterly cash dividend of $0.20 per share, up from $0.15 in the same quarter last year, reflecting a commitment to returning value to shareholders. Basic earnings per share for Q3 2024 were $1.51, compared to $1.19 in Q3 2023, while diluted earnings per share were $1.48, up from $1.17.

Strategically, Mueller Industries made significant acquisitions, including the purchase of Nehring Electrical Works for approximately $583.5 million and Elkhart Products Corporation for about $38.1 million. These acquisitions are expected to enhance the company's market position and product offerings.

As of September 28, 2024, the company reported total assets of $3.206 billion, a notable increase from $2.759 billion at the end of the previous fiscal year, largely due to the acquisitions. Cash and cash equivalents decreased to $965.1 million from $1.170 billion, reflecting the cash outflows associated with these acquisitions.

Overall, Mueller Industries' financial results indicate a robust performance driven by strategic acquisitions and increased sales, despite some challenges in profitability metrics year-to-date.