Fri, Apr 18, 1:58 PM (35 days ago)
**Badger Meter, Inc. (BMI) Q1 2025 Financial Performance Summary** **Financial Health and Performance Metrics:** - **Revenue:** $222.2 million, up 13.2% from $196.3 million in Q1 2024. - **Gross Margin:** 42.9%, up from 39.3% in Q1 2024. - **Operating Earnings:** $49.4 million, or 22.2% of sales, up from $36.6 million, or 18.6% of sales, in Q1 2024. - **Net Earnings:** $38.4 million, or $1.30 per diluted share, up from $29.1 million, or $0.99 per diluted share, in Q1 2024. - **Cash Provided by Operations:** $33.0 million, up from $21.5 million in Q1 2024. **Key Trends and Uncertainties:** - **Acquisitions:** Badger Meter acquired SmartCover Systems in January 2025 for $184.9 million, contributing $6.2 million in revenue for the quarter. - **Market Trends:** Increasing demand for smart water solutions, AMI technology, and water quality monitoring. - **Tariffs:** New U.S. trade policy actions may increase input costs, but the company has contingency plans in place. - **Liquidity:** The company has $154.3 million of unused credit lines available and believes it has adequate resources to fund ongoing operations and future growth. **Future Operations Impact:** - **Smart Water Solutions:** Badger Meter is well-positioned to benefit from the adoption of smart water solutions, with a strong product portfolio and strategic partnerships. - **Acquisitions:** The company continues to seek strategic mergers and acquisitions to drive growth. - **Global Expansion:** Badger Meter is making inroads into select regional markets outside the U.S. with its BlueEdge offering. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by increased sales of mechanical and ultrasonic meters, ORION Cellular endpoints, and BEACON SaaS revenue. - **Gross Margin Improvement:** Benefited from increased sales volumes and favorable customer sales and product mix. - **Operating Earnings Growth:** Driven by higher gross margin dollars and disciplined cost management. - **Cash Flow:** Improved cash flow from operations, despite higher incentive compensation payments. **Conclusion:** Badger Meter delivered strong financial results in Q1 2025, with double-digit revenue growth, improved margins, and increased earnings. The company is well-positioned to capitalize on long-term trends in the water management industry, with a strong product portfolio, strategic acquisitions, and a focus on operational excellence. However, the company faces uncertainties related to tariffs and potential changes in environmental regulations. Overall, Badger Meter's Q1 2025 performance demonstrates its ability to execute on its strategic initiatives and drive growth in a competitive market.