Paul Mueller Company Announces Its Third Quarter Earnings of 2025

SPRINGFIELD, Mo., Oct. 24, 2025 (GLOBE NEWSWIRE) -- Paul Mueller Company (OTC: MUEL) today announced earnings for the third quarter ended September 30, 2025.

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 2025 2024 2025 2024 2025 2024 Net Sales$61,375 $62,085 $192,859 $178,111 $263,333 $233,897 Cost of Sales 45,349 41,028 131,147 121,459 175,812 160,203 Gross Profit$16,026 $21,057 $61,712 $56,652 $87,521 $73,694 Selling, General and Administrative Expense 10,298 12,238 35,163 34,013 47,398 85,736 Operating Income (Loss)$5,728 $8,819 $26,549 $22,639 $40,123 $(12,042)Interest Expense (50) (83) (163) (256) (208) (347)Other Income 691 840 1,525 1,885 2,017 2,741 Income (Loss) before Provision (Benefit) for Income Taxes$6,369 $9,576 $27,911 $24,268 $41,932 $(9,648)Provision (Benefit) for Income Taxes 1,487 2,297 6,472 5,736 9,353 (4,306)Net Income (Loss)       3225$4,882 $7,279 $21,439 $18,532 $32,579 $(5,342) Earnings (Loss) per Common Share -         Basic and Diluted$5.25 $7.77 $23.00 $18.79 $34.90 $(5.28)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Nine Months Ended September 30 2025 2024 Net Income$21,439 $18,532 Other Comprehensive Income (Loss), Net of Tax: Foreign Currency Translation Adjustment 3,166 526 Comprehensive Income$24,605 $19,058

CONSOLIDATED BALANCE SHEETS September 30 December 31 2025 2024 Cash and Cash Equivalents$13,812 $21,169 Marketable Securities 28,345 24,446 Accounts Receivable 39,460 31,266 Inventories (FIFO) 48,859 40,905 LIFO Reserve (21,460) (20,146)Inventories (LIFO) 27,399 20,759 Current Net Investments in Sales-Type Leases 57 39 Other Current Assets 9,918 4,933 Current Assets$118,991 $102,612 Net Property, Plant, and Equipment 68,279 50,754 Right of Use Assets 2,403 2,235 Other Assets 1,767 1,862 Long-Term Net Investments in Sales-Type Leases 1,590 1,211 Total Assets$193,030 $158,674 Accounts Payable$17,462 $17,588 Current Maturities and Short-Term Debt 468 3,466 Current Lease Liabilities 412 336 Advance Billings 39,400 26,788 Other Current Liabilities 27,237 23,226 Current Liabilities$84,979 $71,404 Long-Term Debt 5,382 5,096 Long-Term Pension Liabilities - - Other Long-Term Liabilities 691 2,329 Lease Liabilities 977 896 Total Liabilities$92,029 $79,725 Shareholders' Investment 101,001 78,949 Total Liabilities and Shareholders' Investment$193,030 $158,674

SELECTED FINANCIAL DATA September 30 December 31 2025 2024 Book Value per Common Share$108.62 $84.27 Total Shares Outstanding 929,883 936,837 Backlog$250,448 $153,685

CONSOLIDATED STATEMENT OF SHAREHOLDERS' INVESTMENT Accumulated Other Comprehensive Income (Loss) Common Stock Paid-in Surplus Treasury Stock Retained Earnings TotalBalance, December 31, 2024$1,508 $9,708 $96,037 $(22,697) $(5,607) $78,949 Add (Deduct): Net Income 21,439 21,439 Other Comprehensive Income (Loss), Net of Tax 3,166 3,166 Dividends (774) (774)Treasury Stock Acquisition (1,779) (1,779)Other - Balance, September 30, 2025$1,508 $9,708 $116,702 $(24,476) $(2,441) $101,001

CONSOLIDATED STATEMENT OF CASH FLOWS Nine Months Ended September 30, 2025 Nine Months Ended September 30, 2024 Operating Activities: Net Income$21,439 $18,532 Pension Contributions (Greater) than Expense - (25)Depreciation & Amortization 5,323 5,177 Deferred Tax Expense 288 - (Gain) on Sales of Equipment (42) (104)Loss (Gain) on Disposal of Equipment 647 (389)Change in Assets and Liabilities (Inc) in Accounts and Notes Receivable (7,843) (6,197)(Inc) in Cost in Excess of Estimated Earnings and Billings (870) - (Inc) Dec in Inventories (5,976) 738 (Inc) in Prepayments (4,752) (2,724)(Inc) in Net Investment in Sales-type leases (754) (353)Dec in Other LT Assets 2,313 1,036 (Dec) Inc in Accounts Payable (126) 1,962 (Dec) in Accrued Income Tax (443) (1,063)Inc in Other Accrued Expenses 1,295 1,606 Inc (Dec) in Advanced Billings 12,611 (4,686)Inc in Billings in Excess of Costs and Estimated Earnings 3,190 5,842 Inc in Lease Liability for Operating - 169 Principal payments of Lease Liability for Operating (251) (188)Inc (Dec) in Long Term Deferred Tax Liabilities 24 (85)(Dec) Inc in Other Long-Term Liabilities (1,739) (119)Net Cash Provided by Operating Activities$24,334 $19,129 Investing Activities Purchases of Marketable Securities (26,822) (16,442)Proceeds from Sales of Marketable Securities 22,923 29,403 Proceeds from Sales of Equipment 42 131 Additions to Property, Plant, and Equipment (21,106) (8,637)Net Cash (Required) for Investing Activities$(24,963) $4,455 Financing Activities Principal payments of Lease Liability for Financing (70) (149)(Repayment) of Short-Term Borrowings, Net (5,186) (1,637)Proceeds of Short-Term Borrowings, Net 2,136 1,637 (Repayment) of Long-Term Debt (2,187) (1,152)Dividends Paid (774) (594)Treasury Stock Acquisitions (1,779) (11,910)Net Cash Provided by (Required for) Financing Activities$(7,860) $(13,805) Effect of Exchange Rate Changes 1,132 357 Net (Decrease) Increase in Cash and Cash Equivalents$(7,357) $10,136 Cash and Cash Equivalents at Beginning of Year 21,169 5,894 Cash and Cash Equivalents at End of Quarter$13,812 $16,030

PAUL MUELLER COMPANY
SUMMARIZED NOTES TO THE FINANCIAL STATEMENTS
(In thousands)

A. The chart below depicts the net revenue on a consolidating basis for the three months ended September 30.

Three Months Ended September 30Revenue 2025 2024 Domestic$48,950 $52,560 Mueller BV$12,442 $10,087 Eliminations$(17)$(562)Net Revenue$61,375 $62,085

The chart below depicts the net revenue on a consolidating basis for the nine months ended September 30.

Nine Months Ended September 30Revenue 2025 2024 Domestic$157,955 $144,267 Mueller BV$35,021 $35,076 Eliminations$(117)$(1,232)Net Revenue$192,859 $178,111

The chart below depicts the net revenue on a consolidating basis for the twelve months ended September 30.

Twelve Months Ended September 30Revenue 2025 2024 Domestic$215,870 $187,349 Mueller BV$47,903 $48,043 Eliminations$(440)$(1,495)Net Revenue$263,333 $233,897

The chart below depicts the net income (loss) on a consolidating basis for the three months ended September 30.

Three Months Ended September 30Net Income 2025 2024 Domestic$4,682 $7,365 Mueller BV$208 $(84)Eliminations$(9)$(2)Net Income (Loss)$4,881 $7,279

The chart below depicts the net income on a consolidating basis for the nine months ended September 30.

Nine Months Ended September 30Net Income 2025 2024 Domestic$21,032 $17,440 Mueller BV$408 $1,064 Eliminations$(2)$28 Net Income (Loss)$21,438 $18,532

The chart below depicts the net income on a consolidating basis for the twelve months ended September 30.

Twelve Months Ended September 30Net Income 2025 2024 Domestic$31,926 $(8,121)Mueller BV$680 $2,775 Eliminations$(28)$4 Net Income Loss$32,578 $(5,342)

B. September 30, 2025 backlog is $250.4 million compared to $171.5 million at September 30, 2024. The September 30, 2025 backlog has been reduced by $50.2 million as we received notice that a large pharmaceutical project is to be canceled and we anticipate the cancellation to be finalized in the fourth quarter. As a result, we are publishing the September 30, 2025 backlog with this project removed. We did, however, receive a purchase order for a $20 million project around the time we received the cancellation, which will help fill in our schedule primarily in 2026.

With the cancelled order removed, our U.S. backlog is $238.4 million, compared to $165.3 million at September 30, 2024. The increase in the U.S. backlog is primarily from pharmaceutical clients of the Industrial Equipment segment. In our European Operations, the September 30, 2025 backlog of $12.9 million has almost doubled from the September 30, 2024 backlog of $6.9 million.

C. Profits are down in the third quarter compared to the first two quarters of 2025. Most of our large projects are recorded using the over-time method of revenue recognition which recognizes revenue and profit based on either the cost or hours worked compared to the estimated total cost or hours to complete. In the third quarter, we fell behind on two large pharmaceutical jobs as we encountered some challenging fabrication tasks. We pulled resources from other areas of the company and increased outside contract labor to get back on schedule.

Although these projects are still profitable, this disruption in production in the third quarter caused us to change our opinion about the estimated cost of completing these two jobs. Since we use over-time revenue recognition, these adjustments in our estimate to completion had a negative effect on third quarter earnings.

D. We manage our business in the U.S. looking at earnings before tax (EBT) and excluding the effects of LIFO and non-reoccurring events such as the pension settlement. This non-GAAP adjusted EBT (as shown in the table below) is down over the prior year by $4.2 million for the three months ended September 30, but up $6.2 million for six months, and $12 million for the trailing twelve months primarily from strong results in the Industrial Equipment segment.

Results Ending September 30th Three Months Ended September 30 Nine Months Ended September 30 Twelve Months Ended September 30(In Thousands) 2025 2024 2025 2024 2025 2024 Domestic Net Income$4,682 $7,365 $21,032$17,440 $31,926 $(8,121)Income Tax Expense$1,411 $2,321 $6,331$5,391 $9,092 $(3,834)Domestic EBT - GAAP$6,093 $9,686 $27,363$22,831 $41,018 $(11,955)LIFO Adjustment$(438)$151 $1,314$(312) $(2)$(770)Pension Adjustment$- $- $-$- $- $41,774 Domestic EBT - Non-GAAP$5,655 $9,837 $28,677$22,519 $41,016 $29,049

E. On October 24, 2025, the Company announced the board approved a tender offer at $485 per share that ends on November 21, 2025.

F. On October 24, 2025, the Company announced the board approved a thirty-cent dividend payable on December 29, 2025 to shareholders of record on November 26, 2025.

G. 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 1.12 at September 2024; 1.04 at December 2024 and 1.17 for September 2025, respectively.

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 2024 annual report, available at
www.paulmueller.com.

Press Contact: Ken Jeffries | Paul Mueller Company | Springfield, MO 65802 | (417) 575-9346
[email protected] | http://paulmueller.com