Cash flow remains inconsistent, as evidenced by a 2026Q2 OCF/NI ratio of -0.22 and a $100.1 million working capital outflow, which may challenge the sustainability of the $11 million quarterly dividend.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 |
|---|
| Cash from Operations | 199.3M | 219.3M | 238.8M | 109M | 52.3M | 156.7M | 140.3M | 92.5M | 132.7M | 16.1M | 145.1M | 87.8M | 147.6M | 109.2M | 33.5M | 40.1M | 63M | 121.9M | 182M | 155.1M | 107.6M |
| Operating CF Margin % | - | 15.34% | 18.16% | 8.54% | 4.19% | 14.1% | 14.55% | 9.56% | 14.49% | 1.95% | 18.12% | 7.54% | 12.46% | 9.74% | 3.27% | 2.99% | 4.71% | 8.54% | 9.79% | 8.39% | 5.57% |
| Operating CF Growth % | -205.68% | -8.17% | 119.08% | 108.41% | -66.62% | 11.69% | 51.68% | -30.29% | 724.22% | -88.9% | 65.26% | -40.51% | 35.16% | 225.97% | -16.46% | -36.35% | -48.32% | -33.02% | 17.34% | 44.15% | - |
| Net Income | 207.4M | 191.7M | 115.9M | 85.5M | 76.6M | 70.4M | 72M | 63.8M | 105.6M | 54.3M | 63.9M | 30.9M | 55.5M | 35.4M | -5.6M | -36.1M | -45.2M | -996.7M | 42M | 48.2M | 5.1M |
| Depreciation & Amortization | 47.2M | 46.9M | 66.2M | 62.5M | 60.5M | 59.6M | 57.8M | 53M | 43.7M | 41.9M | 52.6M | 58.1M | 56.7M | 59.2M | 60.6M | 81.6M | 84.6M | 90.2M | 93.1M | 103.9M | 100M |
| Stock-Based Compensation | 9.2M | 10.7M | 9M | 8.5M | 8.7M | 8.1M | 5.3M | 4.3M | 4.3M | 6M | 5.2M | 4.8M | 8.6M | 7.1M | 5.1M | 5.5M | 8.3M | 11.6M | 13.2M | 10.7M | 3.1M |
| Deferred Taxes | 1.5M | -7M | -21.5M | -14.4M | -3.5M | -5.3M | 7.2M | 700K | -43.3M | -4M | -7.5M | 18.5M | 15.6M | 7.8M | 7.9M | -20.9M | -21.1M | -57.8M | -4.2M | 29.6M | -24.9M |
| Other Non-Cash Items | 18.4M | 4.2M | 28.7M | 1.7M | 7.1M | 19.2M | 10.8M | 3.7M | 4.4M | -38.8M | 24.9M | 37M | 3.2M | 3.1M | -29.1M | 16.3M | 16.6M | 1.02B | 20.5M | -7.5M | 23.6M |
| Working Capital Changes | -84.4M | -27.2M | 40.5M | -34.8M | -97.1M | 4.7M | -12.8M | -33M | 18M | -43.3M | 6M | -61.5M | 8M | -3.4M | -5.4M | -6.3M | 19.8M | 49.8M | 17.4M | -29.8M | 700K |
| Change in Receivables | 7.9M | -2.4M | 8.4M | 10.9M | -17.8M | -29.9M | -7.5M | 5.2M | -18.9M | -9.9M | -11.1M | 3.5M | -16.9M | 900K | -17.6M | -18.4M | 1.6M | 68.8M | -11.3M | 28.9M | -25.2M |
| Change in Inventory | -78.2M | -27.3M | -8M | -19.9M | -98.3M | -23.5M | 24.9M | -17.4M | -18.4M | -1.9M | 5.5M | -24.6M | 11M | -25.9M | -6M | 29.3M | 54.3M | 109.8M | -18.2M | 15M | 70.4M |
| Change in Payables | 6.2M | 17.5M | 6.8M | -19.7M | 32.2M | 23M | -17.6M | -11M | 18.9M | 3.5M | 11.1M | -3.5M | 16.9M | 20.3M | 0 | -22.2M | -69.8M | -87.3M | 35.5M | -51.9M | -21.1M |
| Cash from Investing | -57.9M | -47.1M | -47.2M | -42.1M | -54.9M | -81.7M | -67.5M | -211.8M | -48.4M | 230.9M | -39.1M | -31.6M | -42.2M | -31.7M | 55.1M | -39.3M | 23.6M | -42.9M | -78.5M | -113.7M | -81.4M |
| Capital Expenditures | -28.7M | -47.3M | -47.4M | -47.6M | -54.7M | -62.7M | -67.7M | -86.6M | -55.7M | -40.6M | -31.5M | -37.5M | -36.9M | -36.7M | -31.4M | -31.5M | -32.8M | -48.4M | -88.1M | -88.3M | -71.1M |
| CapEx % of Revenue | 1.96% | 3.31% | 3.61% | 3.73% | 4.39% | 5.64% | 7.02% | 8.95% | 6.08% | 4.92% | 3.93% | 3.22% | 3.11% | 3.27% | 3.07% | 2.35% | 2.45% | 3.39% | 4.74% | 4.78% | 3.68% |
| Acquisitions | 100K | 200K | 0 | 0 | -200K | -19.7M | 0 | -127.5M | 7.8M | -26.6M | 300K | 300K | -10M | -1.1M | -1.3M | -9.2M | 0 | 0 | 0 | -26.2M | -15.6M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -29.3M | 0 | 200K | 5.5M | 0 | 700K | 200K | 2.3M | 7.3M | 298.1M | -7.6M | 5.6M | 4.7M | 6.1M | 87.8M | 1.4M | 56.4M | 5.5M | 9.6M | 800K | 5.3M |
| Cash from Financing | -61.9M | -58.3M | -46M | -48.8M | -72M | -58.8M | -41.4M | -50.9M | -97.4M | -81.5M | -23.7M | -99M | -65.2M | -35.7M | -68.1M | -22.9M | -65.9M | -200.7M | -18.1M | -25.6M | 55.2M |
| Debt Issued (Net) | -1.5M | -1.3M | -900K | -1.1M | -700K | -12.8M | 400K | -13.2M | -43.2M | -4.9M | -5M | -76.5M | -55.7M | -23.2M | -56.6M | -13M | -48M | -353.7M | -5M | -8M | 18.1M |
| Equity Issued (Net) | -14M | -10.3M | -2.3M | -7.3M | -33M | -8.1M | -1.5M | -4.8M | -32.1M | -51.9M | 0 | -4.1M | 1.1M | 1.6M | 200K | 1M | 1M | 166.9M | 1.9M | 1.8M | 428.9M |
| Dividends Paid | -42.8M | -41.9M | -39.9M | -38.1M | -36.5M | -34.8M | -33.1M | -32M | -30.1M | -24M | -16.1M | -12M | -11.2M | -11M | -11M | -10.9M | -10.8M | -8.1M | -8.1M | -8M | -444.5M |
| Share Repurchases | -10M | -15M | -10M | -10M | -35M | -10M | -5M | -10M | -32.1M | -57.7M | -3.3M | -7.4M | -3.1M | -1.5M | -500K | -300K | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -3.6M | -4.8M | -2.9M | -2.3M | -1.8M | -3.1M | -7.2M | -900K | 7.1M | -700K | -2.6M | -6.4M | 600K | -3.1M | -700K | 0 | -8.1M | -14.4M | -6.9M | -11.4M | 52.7M |
| Net Change in Cash | 91.8M | 121.6M | 149.6M | 13.8M | -81M | 18.6M | 32.2M | -170.4M | -14.6M | 166.7M | 81.9M | -48M | 37.5M | 40.6M | 22M | -22.5M | 22.2M | -122.4M | 85M | 17.5M | 81.4M |
| Free Cash Flow | 170.6M | 172M | 191.4M | 61.4M | -2.4M | 94M | 72.6M | 5.9M | 77M | -24.5M | 113.6M | 50.3M | 110.7M | 72.5M | 2.1M | 8.6M | 30.2M | 73.5M | 93.9M | 66.8M | 36.5M |
| FCF Margin % | 11.66% | 12.03% | 14.56% | 4.81% | -0.19% | 8.46% | 7.53% | 0.61% | 8.41% | -2.97% | 14.19% | 4.32% | 9.34% | 6.47% | 0.21% | 0.64% | 2.26% | 5.15% | 5.05% | 3.61% | 1.89% |
| FCF Growth % | -11.28% | -10.14% | 211.73% | 2658.33% | -102.55% | 29.48% | 1130.51% | -92.34% | 414.29% | -121.57% | 125.84% | -54.56% | 52.69% | 3352.38% | -75.58% | -71.52% | -58.91% | -21.73% | 40.57% | 83.01% | - |
| FCF per Share | 1.08 | 1.09 | 1.22 | 0.39 | -0.02 | 0.59 | 0.46 | 0.04 | 0.48 | -0.15 | 0.70 | 0.31 | 0.68 | 0.45 | 0.01 | 0.06 | 0.20 | 0.63 | 0.81 | 0.58 | 0.36 |
| FCF Conversion (FCF/Net Income) | 0.82x | 1.14x | 2.06x | 1.27x | 0.68x | 2.23x | 1.95x | 1.45x | 1.26x | 0.13x | 2.27x | 2.84x | 2.66x | 2.68x | -0.31x | -1.11x | -1.39x | -0.12x | 4.33x | 3.22x | 21.10x |
| Interest Paid | -9.1M | 5.5M | 10M | 15.1M | 19.2M | 25.3M | 24.3M | 22.2M | 8.9M | 19.5M | 21.1M | 36.8M | 48.7M | 49.1M | 0 | 54.8M | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -30.5M | 69.1M | 74.4M | 37.7M | 26.9M | 16.8M | 15.3M | 29.1M | 10.7M | 31.9M | 27.1M | 3.7M | 2.6M | 700K | 0 | 4.6M | 0 | 0 | 0 | 0 | 0 |
Working capital volatility
As reported in recent financial filings, MWA's OCF/NI ratio has fluctuated significantly, reaching a low of -0.22 in 2026Q2, which suggests that reported net income frequently diverges from actual cash generation due to the timing of working capital requirements and non-cash accounting adjustments.
The stark disconnect between net income and operating cash flow in recent quarters indicates that earnings quality is heavily influenced by accrual-based accounting rather than immediate cash realization. Investors should monitor whether these periodic cash flow deficits represent structural inefficiencies in the collection cycle or merely temporary timing mismatches inherent in the municipal contracting process.
Based on quarterly data, MWA's free cash flow trajectory remains highly inconsistent, with margins swinging from 24.3% in 2024Q1 to 0.5% in 2026Q2, highlighting a sensitivity to operational cash flow that often obscures the company's long-term ability to fund internal growth and shareholder returns.
While the company demonstrates the capacity for high-margin cash generation during peak periods, the frequent compression of FCF suggests that the business model is susceptible to sudden working capital outflows. This volatility warrants further investigation into whether the current capital allocation strategy can remain sustainable if these cash flow troughs persist.
According to recent SEC filings, MWA experienced a substantial $100.1 million working capital outflow in 2026Q2, a trend that appears to be the primary driver of recent cash flow instability and suggests potential challenges in managing inventory levels or accounts receivable timing.
The significant quarter-over-quarter variance in working capital suggests that the company's cash position is highly sensitive to the timing of large municipal project milestones. Such fluctuations may indicate that the business is currently struggling to optimize its cash conversion cycle, potentially tying up liquidity in inventory or delayed receivables.
As reported in financial statements, MWA has maintained a consistent dividend payout of approximately $10 million to $11 million per quarter, even during periods of negative operating cash flow, which suggests a management commitment to capital returns that may be straining internal liquidity buffers.
The decision to maintain dividend payments despite significant cash flow volatility indicates a strong preference for shareholder remuneration, though this may limit the flexibility to reinvest in high-growth technology initiatives. Investors should monitor whether this dividend policy remains prudent if the current trend of erratic operating cash flow continues to pressure the company's available cash reserves.
Quick answers to the most common questions about buying MWA stock.
Mueller Water Products, Inc. (MWA) generated $219.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Mueller Water Products, Inc. (MWA) generated $172.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Mueller Water Products, Inc. (MWA) spent $47.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Mueller Water Products, Inc. (MWA) returned $41.9M to shareholders via cash dividends and spent $15.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.