Mueller Water Products, Inc. (NYSE:MWA) Q1 2024 Earnings Call Transcript

So look, overall, we think it is going to be beneficial to us, but we just don’t expect to see any meaningful impact in our fiscal ’24. I will highlight that given the near term focus that the administration has certainly put on the lead and comparable and lead service line replacements that one of the products that we sell, the service brass products, are generally needed in conjunction with the lead service line replacement.

Steve Heinrichs: As part of the infrastructure bill, nearly $12 billion was deployed to that program and the inventory that the municipalities are required to complete is due with the — well, really the start of our fiscal 2025 week day and at the end of this calendar ’24. So those benefits will start coming in when those lines start getting replaced.

Martie Zakas: Yes, it’s actually $15 billion, I think, it was the lead service line replacement, $12 billion in other areas of water infrastructure…

Steve Heinrichs: That’s correct. And as you know [$55 billion] going into the industry is always good there.

Operator: And at this time, we have no further questions.

Martie Zakas: Well, thank you all again for joining us today. While we are very pleased with our first quarter, it’s early in the year and there does remain a great deal of uncertainty in the external environment. But our team members have done exceptional work overcoming some of the recent external challenges, and I am really confident that we are better equipped to navigate any outside of our control. Mueller’s at an inflection point. We have made meaningful strategic investments and operational improvements to date. We are well positioned as we just discussed to benefit from the tailwinds for the increased investment in the water infrastructure, and we have the capability to help municipalities address their accelerating challenges.

We are on a path to continue increasing our margins, improving our operational performance and enhancing the position that we have with our customers, suppliers and employees. We thank you for your continued interest in Mueller. Operator, with that we can conclude the call.

Operator: Thank you. That concludes today’s conference. Thank you for participating. You may disconnect at this time.