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Mueller Water Products begins CFO search as Heinrichs plans exit

Published 05/09/2024, 22:10
MWA
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ATLANTA - Mueller Water Products, Inc. (NYSE: NYSE:MWA), a key player in the water infrastructure industry, has initiated the process of searching for a new Chief Financial Officer. The company announced today that Steven S. Heinrichs, the current CFO and Chief Legal and Compliance Officer, will be stepping down from his role at the end of the year.


Heinrichs is set to leave his position effective December 31, 2024, after a tenure marked by significant contributions to the company's operations and financial health. Under his guidance, Mueller Water Products has seen operational and financial improvements, as well as the development of skilled and dedicated teams.


In preparation for this change, Mueller Water Products has engaged a leading executive search firm to ensure a meticulous selection process for Heinrichs' successor. The company aims to maintain continuity and strategic focus, with Heinrichs continuing his duties until a new CFO is appointed. To further support a seamless transition, he will also offer consulting services to the company until September 30, 2025.


The CEO of Mueller Water Products, Martie Edmunds Zakas, expressed gratitude towards Heinrichs for his support during the transition period and commended his role in the company's success. Heinrichs reflected positively on his time at Mueller, highlighting the company’s operational and financial progress during his tenure.


Mueller Water Products is recognized for its comprehensive range of products and services that cater to the water transmission, distribution, and measurement sectors in North America. The company's portfolio includes engineered valves, fire hydrants, metering products, and software technology critical to water system management.


This announcement is based on a press release statement from Mueller Water Products. The company is committed to finding a suitable replacement to continue its trajectory of growth and success in the water infrastructure industry.


In other recent news, Mueller Water Products reported strong results for the third fiscal quarter of 2024, outperforming expectations with substantial topline growth. The company's operating income increased by 45%, largely due to the Water Flow Solutions segment's high volume of iron gate valves. The new brass foundry is progressing as planned, expected to replace the old one by the end of 2024, improving the company's gross margins by 80 to 100 basis points.


RBC Capital Markets has raised its price target for Mueller Water Products to $23.00 from the previous $20.00, maintaining a Sector Perform rating. The firm predicts a moderate boost in the company's fiscal year 2025 due to lead service line replacements under the Infrastructure Investment and Jobs Act (IIJA).


The company's earnings call revealed a significant year-over-year increase in net sales and adjusted EBITDA, leading to an optimistic outlook for the remainder of the fiscal year. Adjusted net income per diluted share reached a record quarterly high of $0.32, up by 78%. Mueller Water Products is raising its 2024 guidance, indicating confidence in its operational strategy and market position.


These are recent developments that underline the company's strong performance and future prospects.


InvestingPro Insights


As Mueller Water Products, Inc. (NYSE: MWA) navigates the transition to a new Chief Financial Officer, the company's financial health and market performance remain key areas of interest for investors. According to InvestingPro, Mueller Water Products has demonstrated a strong commitment to shareholder returns, having raised its dividend for 9 consecutive years and maintained dividend payments for 19 consecutive years. This consistent return to shareholders underscores the company's financial stability during a period of executive change.


InvestingPro Data indicates that Mueller Water Products has a market capitalization of $3.1 billion, with a P/E ratio of 25.25, which is considered low relative to its near-term earnings growth. This could suggest that the stock is potentially undervalued based on its earnings potential. Additionally, the company has experienced a large price uptick over the last six months, with a total return of 32.61%, reflecting investor confidence in its operations and market position.


Investors looking for further insights can find additional InvestingPro Tips on Mueller Water Products, including the company's debt levels, profitability forecasts, and analysts' earnings revisions. Currently, there are 9 more InvestingPro Tips available, which can offer a comprehensive analysis of the company's financial health and future outlook. For more detailed information, interested parties can visit https://www.investing.com/pro/MWA.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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