A manufacturer of copper, brass, and aluminum parts for plumbing, heating, cooling, and construction — from copper tube and brass rod to refrigeration valves and flexible duct systems — Mueller sells to wholesalers and manufacturers worldwide. Its name reaches back to 1857, when German immigrant and inventor Hieronymus Mueller opened a gun shop in Decatur, Illinois, that grew into a plumbing business. In 1930 the company introduced the "Streamline" solder-type fitting, which made copper pipe joints stronger than the pipe itself.
Q2 FY2026 revenue rose 19.3% to $1.19B but operating cash flow fell 29.8% to $79.7M
fell 29.8% to $79.7M even as profit grew. rose 19.3% to $1,193.0M and rose 55.4% to $2.16 as widened 2.9 points to 30.0% on higher metal prices, while a $41.4M business sale lifted Q1 and Bison closed after quarter-end. The company is generating record profit but pulling less cash from it, with $1.4B on hand and no debt.
Key takeaways
fell 29.8% to $79.7M from $113.6M a year earlier, driven by a $200.2M increase in and a $43.9M build that offset , per the Q1 filing.
rose 19.3% to $1,193.0M and 24.0% sequentially from $962.4M, with $219.1M in higher selling prices tied to raw-material costs partially offset by a $33.4M core unit volume decline in Q1.
widened 2.9 points to 30.0% and rose 51.4% to $312.2M, boosted by a $41.4M gain on the sale of the Sherwood business in Q1.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 sales rose 25.5% on higher metal prices and the Bison acquisition, while operating income grew only 1.9% as gross margin compressed.
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Consolidated Q2 increased 25.5% to $1.43B, driven by $184.6M in higher selling prices tied to raw-material costs and $62.5M from the Bison acquisition.
Q2 fell to 27.7% from 31.0% a year ago, as cost of goods sold rose faster than sales; edged up just 1.9% to $310.0M.
rose 55.4% to $2.16 and rose 51.8% to $239.0M; widened 5.5 points to 26.2%.
The company held $1,382.3M cash, up 64.2% , with no and a new $100M , and agreed to acquire Bison Metals Technologies for $142M.
Industrial Metals grew 47.2% in Q1 on a 27.5% sales increase with a $21.5M core volume gain, while Piping Systems operating income rose 37.2% on copper pricing.
What changed
Core unit volume: Q1 FY2026 showed a $33.4M consolidated decline, but Industrial Metals posted a $21.5M volume gain; the FY2025 watch on volume after a $43.3M Q3 drop remains open with Q2 Bison contribution pending.
Industrial Metals : improved to 18.0% in Q3 FY2025 from 14.1%; Q1 FY2026 rose 47.2% but margin was not separately disclosed, leaving the FY2025 watch unresolved.
: the Q1 drop to $79.7M (down 29.8%) on a $200.2M increase continued the pattern flagged after Q1 FY2025's $113.6M (down 34.6% on $101.5M receivables); the FY2025 warning about cash conversion materialized.
Bison Metals Technologies: flagged in Q1 FY2026 as a $142M agreed acquisition; it closed after the quarter, adding to the earlier Nehring and Elkhart deals that drove Industrial Metals and Piping Systems volume.
Tariffs: FY2025 flagged February 2026 Supreme Court ruling and all-country tariffs; the Q2 10-Q risk factors restated no material change from the 2025 10-K, so the effect is still unquantified.
Copper futures: at Q1 the company held $23.3M buy and $7.5M sell contracts; the Q2 filing shows $28.6M buy and $2.4M sell open at June 27, 2026, tied to fixed-price sales.
What to watch
Q3 FY2026 to see if the $79.7M Q1 level recovers as and normalize
Bison Metals Technologies contribution to Q3 and Industrial Metals margin after the $142M close
Core unit volume in Q3 after the $33.4M Q1 consolidated decline to see if Industrial Metals gains offset broader softness
Industrial Metals next quarter after Q1 rose 47.2% without a disclosed margin
Piping Systems Q2 sales grew 27.3% on higher copper tube prices and Bison, but dipped 0.8% as contracted to 30.4% from 34.1%.
Industrial Metals Q2 sales rose 31.2% on stronger pricing and volume for brass rod and wire, lifting 39.8% despite a slight gross-margin decline.
Climate Q2 sales increased 5.4% on higher commercial-construction demand, but was nearly flat and fell to 35.7% from 38.6%.
Liquidity remains strong with $1.4B in cash, a 4.8-to-1 , and no borrowings under the $100M ; the quarterly was raised to 17.5 cents per share.
Quantitative and Qualitative Disclosures About Market Risk
Primary market risks are raw-material costs (copper/brass), interest rates, and foreign exchange; the company uses futures/forwards selectively to hedge.
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Copper and brass are the largest variable production costs; significant metal-price increases not passed through to customers could materially hurt the business.
At June 27, 2026, the company held open futures contracts to buy ~$28.6M of copper over 13 months tied to fixed-price sales orders and to sell ~$2.4M of copper over one month tied to .
Natural-gas price risk may be hedged with futures or vendor forward arrangements, but as of June 27, 2026, no open natural-gas futures contracts were held.
With no variable-rate debt outstanding at quarter-end, a hypothetical 10% rise in interest rates would have an insignificant impact on pretax earnings and cash flows.
Foreign-currency transactional exposure is hedged selectively; at June 27, 2026, open forward contracts to sell ~€8.3M and ~NOK 4.9M through September 2026 were in place.
The company generally does not hedge net investments in foreign subsidiaries, viewing them as long-term; primary translation exposures are CAD, GBP, MXN, KRW, and BHD.
General The Company is involved in certain litigation as a result of claims that arose in the ordinary course of business. Additionally, the Company may realize the benefit of certain legal claims and litigation in the future; these gain contingencies are not recognized in the C…
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General
The Company is involved in certain litigation as a result of claims that arose in the ordinary course of business. Additionally, the Company may realize the benefit of certain legal claims and litigation in the future; these gain contingencies are not recognized in the Condensed Consolidated Financial Statements. For a description of material pending legal proceedings, see “Note 11 - Commitments and Contingencies” in the Notes to the Condensed Consolidated Financial Statements, which is incorporated herein by reference.
The Company is exposed to risk as it operates its businesses. To provide a framework to understand the operating environment of the Company, we have provided a brief explanation of the more significant risks associated with our businesses in our 2025 Annual Report on Form 10-K.…
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The Company is exposed to risk as it operates its businesses. To provide a framework to understand the operating environment of the Company, we have provided a brief explanation of the more significant risks associated with our businesses in our 2025 Annual Report on Form 10-K. There have been no material changes in risk factors that were previously disclosed in our 2025 Annual Report on Form 10-K. Additionally, the operating results of the Company’s unconsolidated affiliates may be adversely affected by unfavorable economic and market conditions.
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