| SIX-MONTH REPORT | ||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||
| Three Months Ended | Six Months Ended | Twelve Months Ended | ||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||
| $ | 93,837 | $ | 72,624 | $ | 160,190 | $ | 131,484 | $ | 315,707 | $ | 264,043 | |||||||||||
| Cost of Sales | 65,130 | 44,760 | 116,933 | 85,798 | 224,336 | 171,491 | ||||||||||||||||
| Gross Profit | $ | 28,707 | $ | 27,864 | $ | 43,257 | $ | 45,686 | $ | 91,371 | $ | 92,552 | ||||||||||
| Selling, General and Administrative Expense | 14,111 | 13,332 | 26,173 | 24,865 | 51,571 | 49,338 | ||||||||||||||||
| Operating Income | $ | 14,596 | $ | 14,532 | $ | 17,084 | $ | 20,821 | $ | 39,800 | $ | 43,214 | ||||||||||
| Interest Income 1 | 325 | 578 | 901 | 607 | 2,017 | 1,299 | ||||||||||||||||
| Other Income (Expense) 1 | 11 | 50 | (30 | ) | 114 | 396 | 626 | |||||||||||||||
| Income before Provision for Income Taxes | $ | 14,932 | $ | 15,160 | $ | 17,955 | $ | 21,542 | $ | 42,213 | $ | 45,139 | ||||||||||
| Provision for Income Taxes | 3,513 | 3,531 | 4,237 | 4,985 | 10,372 | 10,163 | ||||||||||||||||
| Net Income | $ | 11,419 | $ | 11,629 | $ | 13,718 | $ | 16,557 | $ | 31,841 | $ | 34,976 | ||||||||||
| Earnings per Common Share –– Basic and Diluted | $ | 12.72 | $ | 12.50 | $ | 15.27 | $ | 17.74 | $ | 35.13 | $ | 37.40 | ||||||||||
| 1. Has been restated 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 | ||||||||||||
| Six Months Ended | ||||||||||||
| 2026 | 2025 | |||||||||||
| Net Income | $ | 13,718 | $ | 16,557 | ||||||||
| Other Comprehensive Income (Loss), Net of Tax: | ||||||||||||
| Foreign Currency Translation Adjustment | (843 | ) | 2,015 | |||||||||
| Comprehensive Income | $ | 12,875 | $ | 18,572 | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||||
| 2026 | 2025 | |||||||||||
| Cash and Cash Equivalents | $ | 32,113 | $ | 29,883 | ||||||||
| 6,518 | 19,913 | |||||||||||
| Accounts Receivable, net | 51,516 | 41,719 | ||||||||||
| Inventories (FIFO) | 49,677 | 52,715 | ||||||||||
| LIFO Reserve | (21,587 | ) | (21,051 | ) | ||||||||
| Inventories (LIFO) | 28,090 | 31,664 | ||||||||||
| Current Net Investments in Sales-Type Leases | 67 | 62 | ||||||||||
| Other Current Assets | 13,127 | 5,758 | ||||||||||
| Current Assets | $ | 131,431 | $ | 128,999 | ||||||||
| Net Property, Plant, and Equipment | 90,328 | 79,083 | ||||||||||
| Right of Use Assets | 2,270 | 2,276 | ||||||||||
| Other Assets | 1,443 | 1,625 | ||||||||||
| Long-Term Net Investments in Sales-Type Leases | 2,761 | 2,338 | ||||||||||
| Total Assets | $ | 228,233 | $ | 214,321 | ||||||||
| Accounts Payable | $ | 18,087 | $ | 17,750 | ||||||||
| Current Maturities and Short-Term Debt | 456 | 468 | ||||||||||
| Current Lease Liabilities | 411 | 403 | ||||||||||
| Advance Billings | 35,891 | 36,362 | ||||||||||
| Other Current Liabilities | 55,209 | 52,594 | ||||||||||
| Current Liabilities | $ | 110,054 | $ | 107,577 | ||||||||
| Long-Term Debt | 4,902 | 5,265 | ||||||||||
| Other Long-Term Liabilities | 1,551 | 1,618 | ||||||||||
| Lease Liabilities | 796 | 904 | ||||||||||
| Total Liabilities | $ | 117,303 | $ | 115,364 | ||||||||
| 110,930 | 98,957 | |||||||||||
| Total Liabilities and | $ | 228,233 | $ | 214,321 | ||||||||
| SELECTED FINANCIAL DATA | |||||||||
| 2026 | 2025 | ||||||||
| Book Value per Common Share | $ | 123.52 | $ | 110.09 | |||||
| Total Shares Outstanding | 898,059 | 898,883 | |||||||
| Backlog | $ | 206,950 | $ | 243,606 | |||||
| CONSOLIDATED STATEMENT OF SHAREHOLDERS' INVESTMENT | |||||||||||||||||||||||
| Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||
| Common Stock | Paid-in Surplus | Retained Earnings | Stock | ||||||||||||||||||||
| Total | |||||||||||||||||||||||
| Balance, | $ | 1,508 | $ | 9,708 | $ | 129,674 | $ | (39,511 | ) | $ | (2,422 | ) | $ | 98,957 | |||||||||
| Add (Deduct): | |||||||||||||||||||||||
| Net Income | 13,718 | 13,718 | |||||||||||||||||||||
| Other Comprehensive Income, Net of Tax | (843 | ) | (843 | ) | |||||||||||||||||||
| Dividends | (539 | ) | (539 | ) | |||||||||||||||||||
| Treasury Stock Acquisition | (363 | ) | (363 | ) | |||||||||||||||||||
| Other | - | ||||||||||||||||||||||
| Balance, | $ | 1,508 | $ | 9,708 | $ | 142,853 | $ | (39,874 | ) | $ | (3,265 | ) | $ | 110,930 | |||||||||
| CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||||
| Six Months Ended | Six Months Ended | ||||||||||
| Operating Activities: | |||||||||||
| Net Income | $ | 13,718 | $ | 16,557 | |||||||
| Adjustment to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||||||||
| Depreciation & Amortization | 4,408 | 3,380 | |||||||||
| ROU Asset Amortization | 24 | - | |||||||||
| Deferred Tax Expense | - | 288 | |||||||||
| Loss on Disposal of Equipment | 693 | 469 | |||||||||
| Change in Assets and Liabilities | |||||||||||
| (Inc) in Accts and Notes Receivable | (9,969 | ) | (15,765 | ) | |||||||
| (Inc) in Cost in Excess of Estimated Earnings and Billings | (343 | ) | (16 | ) | |||||||
| (Inc) Dec in Inventories | 3,871 | (2,256 | ) | ||||||||
| (Inc) in Prepayments | (7,030 | ) | (782 | ) | |||||||
| (Inc) in Net Investment in Sales-Type Leases | (490 | ) | (579 | ) | |||||||
| Dec in Other Assets | 360 | 2,026 | |||||||||
| (Dec) Inc in Accounts Payable | 451 | (4,589 | ) | ||||||||
| (Dec) Inc in Accrued Income Tax | (2,626 | ) | 913 | ||||||||
| Inc (Dec) in Other Accrued Expenses | (4,276 | ) | 3,088 | ||||||||
| Inc (Dec) in Advance Billings | (435 | ) | 12,784 | ||||||||
| Inc in Billings in Excess of Costs and Estimated Earnings | 9,591 | 12,156 | |||||||||
| Principal payments of Lease Liability for Operating | (180 | ) | (156 | ) | |||||||
| Inc in Long Term Deferred Tax Liabilities | 25 | 17 | |||||||||
| (Dec) in Other Long-Term Liabilities | (58 | ) | (1,730 | ) | |||||||
| Net Cash Provided by Operating Activities | $ | 7,734 | $ | 25,805 | |||||||
| Investing Activities | |||||||||||
| Purchases of | (40,099 | ) | (16,464 | ) | |||||||
| Proceeds from Sales of | 53,494 | 10,981 | |||||||||
| Proceeds from Sales of Equipment | 6 | - | |||||||||
| Additions to Property, Plant, and Equipment | (17,442 | ) | (13,850 | ) | |||||||
| Net Cash (Required) for Investing Activities | $ | (4,041 | ) | $ | (19,333 | ) | |||||
| Financing Activities | |||||||||||
| Principal payments of Lease Liability for Financing | (39 | ) | (50 | ) | |||||||
| (Repayment) of Short-Term Borrowings, Net | (234 | ) | (5,186 | ) | |||||||
| Proceeds of Short-Term Borrowings, Net | 234 | 2,136 | |||||||||
| (Repayment) of Long-Term Debt | (426 | ) | (1,864 | ) | |||||||
| Dividends Paid | (539 | ) | (495 | ) | |||||||
| Treasury Stock Acquisitions | (363 | ) | (1,664 | ) | |||||||
| Net Cash (Required) for Financing Activities | $ | (1,367 | ) | $ | (7,123 | ) | |||||
| Effect of Exchange Rate Changes | (96 | ) | 1,160 | ||||||||
| Net Increase in Cash and Cash Equivalents | $ | 2,230 | $ | 509 | |||||||
| Cash and Cash Equivalents at Beginning of Year | 29,883 | 21,169 | |||||||||
| Cash and Cash Equivalents at End of Quarter | $ | 32,113 | $ | 21,678 | |||||||
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
| Three Months Ended | ||||||||||
| Revenue | 2026 | 2025 | Variance | |||||||
| Domestic | $ | 76,802 | $ | 58,928 | $ | 17,874 | ||||
| $ | 17,046 | $ | 13,796 | $ | 3,250 | |||||
| Eliminations | $ | (11 | ) | $ | (100 | ) | $ | 89 | ||
| Net Revenue | $ | 93,837 | $ | 72,624 | $ | 21,213 | ||||
The table below depicts the net revenue on a consolidating basis for the six months ended
| Six Months Ended | ||||||||||
| Revenue | 2026 | 2025 | Variance | |||||||
| Domestic | $ | 128,386 | $ | 109,005 | $ | 19,381 | ||||
| $ | 31,825 | $ | 22,579 | $ | 9,246 | |||||
| Eliminations | $ | (21 | ) | $ | (100 | ) | $ | 79 | ||
| Net Revenue | $ | 160,190 | $ | 131,484 | $ | 28,706 | ||||
The table below depicts the net revenue on a consolidating basis for the twelve months ended
| Twelve Months Ended | ||||||||||
| Revenue | 2026 | 2025 | Variance | |||||||
| Domestic | $ | 255,252 | $ | 219,480 | $ | 35,772 | ||||
| $ | 60,504 | $ | 45,548 | $ | 14,956 | |||||
| Eliminations | $ | (49 | ) | $ | (985 | ) | $ | 936 | ||
| Net Revenue | $ | 315,707 | $ | 264,043 | $ | 51,664 | ||||
The table below depicts the net income on a consolidating basis for the three months ended
| Three Months Ended | ||||||||||
| Net Income | 2026 | 2025 | Variance | |||||||
| Domestic | $ | 9,986 | $ | 10,922 | $ | (936 | ) | |||
| $ | 1,433 | $ | 694 | $ | 739 | |||||
| Eliminations | $ | - | $ | 13 | $ | (13 | ) | |||
| Net Income | $ | 11,419 | $ | 11,629 | $ | (210 | ) | |||
The table below depicts the net income on a consolidating basis for the six months ended
| Six Months Ended | ||||||||||
| Net Income | 2026 | 2025 | Variance | |||||||
| Domestic | $ | 11,308 | $ | 16,350 | $ | (5,042 | ) | |||
| $ | 2,410 | $ | 200 | $ | 2,210 | |||||
| Eliminations | $ | - | $ | 7 | $ | (7 | ) | |||
| Net Income | $ | 13,718 | $ | 16,557 | $ | (2,839 | ) | |||
The table below depicts the net income on a consolidating basis for the twelve months ended
| Twelve Months Ended | ||||||||||
| Net Income | 2026 | 2025 | Variance | |||||||
| Domestic | $ | 28,056 | $ | 34,609 | $ | (6,553 | ) | |||
| $ | 3,798 | $ | 388 | $ | 3,410 | |||||
| Eliminations | $ | (13 | ) | $ | (21 | ) | $ | 8 | ||
| Net Income (Loss) | $ | 31,841 | $ | 34,976 | $ | (3,135 | ) | |||
B. The backlog as of
C. Revenue is up from the previous year by
Net Income is flat year over year on a three-month basis, and down
Net income in the second quarter of 2026 was nearly as strong as in the same quarter of 2025. This performance was supported by the continuing high level of work in our pharmaceutical business and strong profitability in our other markets. Particularly noteworthy is the strong performance of our Dutch subsidiary, which doubled net income over the prior-year quarter and operates primarily in the dairy farm market. Revenue in the second quarter was significantly higher, but net income as a percentage of revenue was lower. Significant factors contributing to this lower margin were an unusually profitable rush project in 2025 with no comparable project in 2026, the effects of startup activities in the new building, and the continued reliance on contractors in 2026 to handle volume above our internal capacity.
Our new module fabrication building is nearly full with active work, and much of the former module space in older buildings is still occupied by jobs being disassembled for shipment or waiting for customer sites to be ready. Without the new building, we could not have maintained this level of work.
D. We manage our business in the
| Ended | |||||||||||||||
| Three Months | Six Months | Twelve Months | |||||||||||||
| (In Thousands) | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | |||||||||
| Domestic Net Income | $ | 9,986 | $ | 10,922 | $ | 11,308 | $ | 16,350 | $ | 28,056 | $ | 34,609 | |||
| Income Tax Expense | $ | 3,016 | $ | 3,292 | $ | 3,407 | $ | 4,920 | $ | 9,113 | $ | 10,002 | |||
| Domestic EBT - GAAP | $ | 13,002 | $ | 14,214 | $ | 14,715 | $ | 21,270 | $ | 37,169 | $ | 44,611 | |||
| LIFO Adjustment | $ | 290 | $ | 369 | $ | 536 | $ | 1,752 | $ | (311 | ) | $ | 587 | ||
| Domestic EBT - Non-GAAP | $ | 13,292 | $ | 14,583 | $ | 15,251 | $ | 23,022 | $ | 36,858 | $ | 45,198 | |||
E. On
F. The consolidated financials are affected by the euro to dollar exchange rate when consolidating
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 www.paulmueller.com.
Press Contact: Dan Winters | Paul Mueller Company | Springfield, MO 65802 | (417) 575-9000
dwinters@paulmueller.com | https://paulmueller.com
