Paul Mueller Company Announces Its Third Quarter Earnings Of 2026
| PAUL MUELLER COMPANY | |||||||||||||||||||||||
| NINE-MONTH REPORT | |||||||||||||||||||||||
| Unaudited | |||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | Twelve Months Ended | |||||||||||||||||||||
| September 30 | September 30 | September 30 | |||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||
| Net Sales | $ | 92,460 | $ | 61,375 | $ | 252,650 | $ | 192,859 | $ | 346,792 | $ | 263,333 | |||||||||||
| Cost of Sales | 64,266 | 45,348 | 181,199 | 131,146 | 243,254 | 175,811 | |||||||||||||||||
| Gross Profit | $ | 28,194 | $ | 16,027 | $ | 71,451 | $ | 61,713 | $ | 103,538 | $ | 87,522 | |||||||||||
| Selling, General and Administrative Expense | 13,293 | 10,298 | 39,466 | 35,163 | 54,566 | 47,398 | |||||||||||||||||
| Operating Income | $ | 14,901 | $ | 5,729 | $ | 31,985 | $ | 26,550 | $ | 48,972 | $ | 40,124 | |||||||||||
| Interest Income 1 | 305 | 596 | 1,206 | 1,223 | 1,706 | 1,178 | |||||||||||||||||
| Other Income (Expense) 1 | 65 | 43 | 35 | 137 | 435 | 630 | |||||||||||||||||
| Income before Provision for Income Taxes | $ | 15,271 | $ | 6,368 | $ | 33,226 | $ | 27,910 | $ | 51,113 | $ | 41,932 | |||||||||||
| Provision for Income Taxes | 3,612 | 1,487 | 7,849 | 6,472 | 12,497 | 9,353 | |||||||||||||||||
| Net Income | $ | 11,659 | $ | 4,881 | $ | 25,377 | $ | 21,438 | $ | 38,616 | $ | 32,579 | |||||||||||
| Earnings per Common Share –– Basic and Diluted | $ | 12.98 | $ | 5.25 | $ | 28.25 | $ | 23.00 | $ | 42.98 | $ | 34.90 | |||||||||||
| 1. Has been reclassified to move Interest Income out of Other Income (Expense) and net it with Interest Expense on the Interest Income line for all periods being presented. | |||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||
| Nine Months Ended | ||||||||
| September 30 | ||||||||
| 2026 | 2025 | |||||||
| Net Income | $ | 25,377 | $ | 21,438 | ||||
| Other Comprehensive Income (Loss), Net of Tax: | ||||||||
| Foreign Currency Translation Adjustment | (1,010 | ) | 3,166 | |||||
| Comprehensive Income | $ | 24,367 | $ | 24,605 | ||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| September 30 | December 31 | |||||||
| 2026 | 2025 | |||||||
| Cash and Cash Equivalents | $ | 19,200 | $ | 29,883 | ||||
| Marketable Securities | 2,785 | 19,913 | ||||||
| Accounts Receivable, net | 58,758 | 41,719 | ||||||
| Inventories (FIFO) | 49,654 | 52,715 | ||||||
| LIFO Reserve | (21,745 | ) | (21,051 | ) | ||||
| Inventories (LIFO) | 27,909 | 31,664 | ||||||
| Current Net Investments in Sales-Type Leases | 72 | 62 | ||||||
| Other Current Assets | 16,045 | 5,758 | ||||||
| Current Assets | $ | 124,769 | $ | 128,999 | ||||
| Net Property, Plant, and Equipment | 93,823 | 79,083 | ||||||
| Right of Use Assets | 2,172 | 2,276 | ||||||
| Other Assets | 1,481 | 1,625 | ||||||
| Long-Term Net Investments in Sales-Type Leases | 2,970 | 2,338 | ||||||
| Total Assets | $ | 225,215 | $ | 214,321 | ||||
| Accounts Payable | $ | 14,949 | $ | 17,750 | ||||
| Current Maturities and Short-Term Debt | 452 | 468 | ||||||
| Current Lease Liabilities | 388 | 403 | ||||||
| Advance Billings | 21,552 | 36,362 | ||||||
| Other Current Liabilities | 58,790 | 52,594 | ||||||
| Current Liabilities | $ | 96,131 | $ | 107,577 | ||||
| Long-Term Debt | 4,746 | 5,265 | ||||||
| Other Long-Term Liabilities | 1,527 | 1,618 | ||||||
| Lease Liabilities | 703 | 904 | ||||||
| Total Liabilities | $ | 103,107 | $ | 115,364 | ||||
| Shareholders' Investment | 122,108 | 98,957 | ||||||
| Total Liabilities and Shareholders' Investment | $ | 225,215 | $ | 214,321 | ||||
| SELECTED FINANCIAL DATA | |||||
| September 30 | December 31 | ||||
| 2026 | 2025 | ||||
| Book Value per Common Share | $ | 135.97 | $ | 110.09 | |
| Total Shares Outstanding | 898,059 | 898,883 | |||
| Backlog | $ | 245,594 | $ | 243,606 | |
| CONSOLIDATED STATEMENT OF SHAREHOLDERS' INVESTMENT | ||||||||||||||||||||||
| Common Stock | Paid-in Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||
| Balance, December 31, 2025 | $ | 1,508 | $ | 9,708 | $ | 129,674 | $ | (39,511 | ) | $ | (2,422 | ) | $ | 98,957 | ||||||||
| Add (Deduct): | ||||||||||||||||||||||
| Net Income | 25,377 | 25,377 | ||||||||||||||||||||
| Other Comprehensive Income, Net of Tax | (1,010 | ) | (1,010 | ) | ||||||||||||||||||
| Dividends | (853 | ) | (853 | ) | ||||||||||||||||||
| Treasury Stock Acquisition | (363 | ) | (363 | ) | ||||||||||||||||||
| Other | - | |||||||||||||||||||||
| Balance, September 30, 2026 | $ | 1,508 | $ | 9,708 | $ | 154,198 | $ | (39,874 | ) | $ | (3,432 | ) | $ | 122,108 | ||||||||
| CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||
| Nine Months Ended September 30, 2026 | Nine Months Ended September 30, 2025 | ||||||
| Operating Activities: | |||||||
| Net Income | $ | 25,377 | $ | 21,438 | |||
| Adjustment to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||||
| Depreciation & Amortization | 7,167 | 5,323 | |||||
| ROU Asset Amortization | 36 | - | |||||
| Unrealized Gain on Trading Securities | (113 | ) | - | ||||
| Interest Income | 723 | - | |||||
| Deferred Tax Expense | - | 288 | |||||
| Gain on Sales of Equipment | - | (42 | ) | ||||
| Loss on Disposal of Equipment | 649 | 647 | |||||
| Change in Assets and Liabilities | |||||||
| (Inc) in Accts and Notes Receivable | (17,269 | ) | (7,843 | ) | |||
| (Inc) in Cost in Excess of Estimated Earnings and Billings | - | (870 | ) | ||||
| (Inc) Dec in Inventories | 4,116 | (5,976 | ) | ||||
| (Inc) in Prepayments | (10,291 | ) | (4,752 | ) | |||
| (Inc) in Net Investment in Sales-Type Leases | (725 | ) | (754 | ) | |||
| Dec in Other Assets | 635 | 2,313 | |||||
| (Dec) Inc in Accounts Payable | (2,649 | ) | (126 | ) | |||
| (Dec) Inc in Accrued Income Tax | (333 | ) | (443 | ) | |||
| Inc (Dec) in Other Accrued Expenses | (2,174 | ) | 1,295 | ||||
| Inc (Dec) in Advance Billings | (14,762 | ) | 12,611 | ||||
| Inc in Billings in Excess of Costs and Estimated Earnings | 8,806 | 3,190 | |||||
| Principal payments of Lease Liability for Operating | (266 | ) | (251 | ) | |||
| Inc(Dec) in Long Term Deferred Tax Liabilities | (86 | ) | 24 | ||||
| Inc (Dec) in Other Long-Term Liabilities | 39 | (1,739 | ) | ||||
| Net Cash (Required) for Operating Activities | $ | (1,120 | ) | $ | 24,334 | ||
| Investing Activities | |||||||
| Purchases of Marketable Securities | (16,919 | ) | (26,822 | ) | |||
| Proceeds from Sales of Marketable Securities | 33,436 | 22,923 | |||||
| Proceeds from Sales of Equipment | 51 | 42 | |||||
| Additions to Property, Plant, and Equipment | (23,986 | ) | (21,106 | ) | |||
| Net Cash (Required) for Investing Activities | $ | (7,418 | ) | $ | (24,963 | ) | |
| Financing Activities | |||||||
| Principal payments of Lease Liability for Financing | (57 | ) | (70 | ) | |||
| (Repayment) of Short-Term Borrowings, Net | (234 | ) | (5,186 | ) | |||
| Proceeds of Short-Term Borrowings, Net | 234 | 2,136 | |||||
| (Repayment) of Long-Term Debt | (733 | ) | (2,187 | ) | |||
| Dividends Paid | (853 | ) | (774 | ) | |||
| Treasury Stock Acquisitions | (363 | ) | (1,779 | ) | |||
| Net Cash (Required) for Financing Activities | $ | (2,006 | ) | $ | (7,860 | ) | |
| Effect of Exchange Rate Changes | (139 | ) | 1,132 | ||||
| Net Decrease in Cash and Cash Equivalents | $ | (10,683 | ) | $ | (7,357 | ) | |
| Cash and Cash Equivalents at Beginning of Year | 29,883 | 21,169 | |||||
| Cash and Cash Equivalents at End of Quarter | $ | 19,200 | $ | 13,812 | |||
| PAUL MUELLER COMPANY SUMMARIZED NOTES TO THE FINANCIAL STATEMENTS (In thousands) |
A. The table below depicts the net revenue on a consolidating basis for the three months ended September 30.
| Three Months Ended September 30 | ||||||||||
| Revenue | 2026 | 2025 | Variance | |||||||
| Domestic | $ | 77,896 | $ | 48,950 | $ | 28,946 | ||||
| Mueller BV | $ | 14,654 | $ | 12,442 | $ | 2,212 | ||||
| Eliminations | $ | (90 | ) | $ | (17 | ) | $ | (73 | ) | |
| Net Revenue | $ | 92,460 | $ | 61,375 | $ | 31,085 |
The table below depicts the net revenue on a consolidating basis for the nine months ended September 30.
| Nine Months Ended September 30 | |||||||||
| Revenue | 2026 | 2025 | Variance | ||||||
| Domestic | $ | 206,282 | $ | 157,955 | $ | 48,327 | |||
| Mueller BV | $ | 46,479 | $ | 35,021 | $ | 11,458 | |||
| Eliminations | $ | (111 | ) | $ | (117 | ) | $ | 6 | |
| Net Revenue | $ | 252,650 | $ | 192,859 | $ | 59,791 |
The table below depicts the net revenue on a consolidating basis for the twelve months ended September 30.
| Twelve Months Ended September 30 | |||||||||
| Revenue | 2026 | 2025 | Variance | ||||||
| Domestic | $ | 284,198 | $ | 215,870 | $ | 68,328 | |||
| Mueller BV | $ | 62,716 | $ | 47,903 | $ | 14,813 | |||
| Eliminations | $ | (122 | ) | $ | (440 | ) | $ | 318 | |
| Net Revenue | $ | 346,792 | $ | 263,333 | $ | 83,459 |
The table below depicts the net income on a consolidating basis for the three months ended September 30.
| Three Months Ended September 30 | ||||||||
| Net Income | 2026 | 2025 | Variance | |||||
| Domestic | $ | 10,637 | $ | 4,682 | $ | 5,955 | ||
| Mueller BV | $ | 1,020 | $ | 208 | $ | 812 | ||
| Eliminations | $ | 2 | $ | (9 | ) | $ | 11 | |
| Net Income | $ | 11,659 | $ | 4,881 | $ | 6,778 |
The table below depicts the net income on a consolidating basis for the nine months ended September 30.
| Nine Months Ended September 30 | ||||||||
| Net Income | 2026 | 2025 | Variance | |||||
| Domestic | $ | 21,945 | $ | 21,032 | $ | 913 | ||
| Mueller BV | $ | 3,430 | $ | 408 | $ | 3,022 | ||
| Eliminations | $ | 2 | $ | (2 | ) | $ | 4 | |
| Net Income | $ | 25,377 | $ | 21,438 | $ | 3,939 |
The table below depicts the net income on a consolidating basis for the twelve months ended September 30.
| Twelve Months Ended September 30 | |||||||||
| Net Income | 2026 | 2025 | Variance | ||||||
| Domestic | $ | 34,009 | $ | 31,927 | $ | 2,082 | |||
| Mueller BV | $ | 4,610 | $ | 680 | $ | 3,930 | |||
| Eliminations | $ | (3 | ) | $ | (28 | ) | $ | 25 | |
| Net Income (Loss) | $ | 38,616 | $ | 32,579 | $ | 6,037 |
B. The backlog as of September 30, 2026 remains strong at $245.6 million compared to $250.4 million at September 30, 2025, with the majority being in Industrial Equipment. The U.S. backlog is $231.4 million at September 30, 2026 compared to $238.4 million at September 30, 2025. In the Netherlands, the backlog has increased to $14.2 million at September 30, 2026 from $12.1 million at September 30, 2025.
C. Revenue is up from the previous year by $31.1 million on a three-month basis and up $83.5 million for the trailing twelve months. Revenues in the U.S. are up $28.9 million for the three months and $68.3 million for the twelve months, with the increases primarily from the Industrial Equipment segment. In the Netherlands, revenues are up $2.2 million on a three-month basis and $14.8 million on a twelve-month basis.
Net Income is more than double the previous year for the same three-month period, increasing to $11.7 million driven by revenue increases. For the three-month period net income is up $6.8 million and is up $6.0 million for the trailing twelve months. Net Income in the U.S. is up $6.0 million for the three months and $2.1 million for the twelve months. In the Netherlands, Net Income is up $0.8 million on a three-month basis and $3.9 million on a twelve-month basis.
As a percentage of revenue, Domestic net income rose to 13.7% compared to 9.6% for the same three-month period in 2025. Domestic profitability improves as we continue the transition into the new module fabrication building. The move added critical capacity to achieve our 30.6% domestic revenue growth year-to-date. We continue to see strong profitability in our other domestic markets as well. Our Dutch subsidiary's revenue and net income increased 17.8% and 390.4% for the quarter, respectively. Demand in European dairy farm markets remains strong, resulting in an increased backlog despite double-digit revenue growth.
We manage our business in the U.S. looking at earnings before tax (EBT) and excluding the effects of LIFO. This non-GAAP adjusted EBT (as shown in the table below) is up $8.4 million for the three months, $0.6 million for the nine months and $4.2 million for the trailing twelve months.
| Ended September 30 | ||||||||||||||
| Three Months | Nine Months | Twelve Months | ||||||||||||
| (In Thousands) | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||||||
| Domestic Net Income | $ | 10,637 | $ | 4,682 | $ | 21,945 | $ | 21,032 | $ | 34,009 | $ | 31,927 | ||
| Income Tax Expense | $ | 3,266 | $ | 1,411 | $ | 6,673 | $ | 6,331 | $ | 10,968 | $ | 9,092 | ||
| Domestic EBT - GAAP | $ | 13,903 | $ | 6,093 | $ | 28,618 | $ | 27,363 | $ | 44,977 | $ | 41,019 | ||
| LIFO Adjustment | $ | 158 | $ | (438 | ) | $ | 694 | $ | 1,314 | $ | 285 | $ | (2 | ) |
| Domestic EBT - Non-GAAP | $ | 14,061 | $ | 5,655 | $ | 29,312 | $ | 28,677 | $ | 45,262 | $ | 41,017 |
D. The consolidated financials are affected by the euro to dollar exchange rate when consolidating Mueller B.V., the Dutch subsidiary. The month-end euro to dollar exchange rate was 1.17 for September 2025, 1.17 for December 2025, and 1.13 for September 2026.
This press release contains forward-looking statements that provide current expectations of future events based on certain assumptions. All statements regarding future performance growth, conditions, or developments are forward-looking statements. Actual future results may differ materially from those described in the forward-looking statements due to a variety of factors, including, but not limited to, the factors described in the Company's Annual Report under“Safe Harbor for Forward-Looking Statements”, which is available at paulmueller.com. The Company expressly disclaims any obligation or undertaking to update these forward-looking statements to reflect any future events or circumstances.
The accounting policies related to this report and additional management discussion and analysis are provided in the 2025 annual report, available at
.
Press Contact: Dan Winters | Paul Mueller Company | Springfield, MO 65802 | (417) 575-9000
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