Badger Meter Reports Strong Q1 2025 Results; EPS Up 31%

Badger Meter, Inc. announced solid first quarter 2025 financial results, with total sales reaching $222.2 million, a 13% year-over-year increase. Operating earnings rose 35% to $49.5 million, and earnings per share grew 31% to $1.30 from $0.99 a year earlier. Operating margins expanded to 22.2% from 18.6%.

The company attributed the performance to steady demand for its smart water solutions, particularly in its utility water segment, which grew 16%, including contributions from its recent SmartCover acquisition. Flow instrumentation sales declined 5%, though they improved sequentially from Q4 2024.

Badger Meter emphasized that SmartCover’s stormwater monitoring capabilities enhance its BlueEdge® suite, and early integration progress has been positive. Despite facing tough comparisons in Q2, the company reaffirmed its long-term revenue growth outlook in the high single digits.

The company will maintain its normalized gross margin range of 38–40%, citing uncertainty around tariffs. Cash and cash equivalents declined to $131.4 million, mainly due to the $184.9 million SmartCover acquisition.

Badger Meter, Inc. (NYSE: BMI) reported strong financial results for the fourth quarter and full year of 2024. In Q4, total sales reached $205.2 million, a 13% increase from the previous year, with a 22% rise in operating profit. Diluted EPS was up 24% at $1.04. The company generated record cash flow of $52.1 million, marking a 37% year-over-year increase.

For the full year, total sales hit a record $826.6 million, an 18% rise, while operating profit margins improved to 19.1%. Software sales grew 30% to over $56 million, and diluted EPS increased 35% to $4.23. Badger Meter also introduced BlueEdge™, a new platform to streamline its water management solutions, and acquired SmartCover®, enhancing real-time monitoring of wastewater systems.

CEO Kenneth C. Bockhorst highlighted strong sales growth, margin expansion, and strategic investments in innovation and acquisitions. Looking ahead to 2025, the company anticipates continued demand for its smart water solutions, targeting high single-digit sales growth and further profitability improvements.