Financial Results Badger Meter Reports Q1 2025 Performance
The company today announced its financial results for the first quarter ending March 31, 2025, reporting a robust start to the year with impressive growth across key performance metrics. Strong customer demand, strategic execution, and the recent acquisition of SmartCover all contributed to the company’s record-setting results during the quarter.
First Quarter 2025 Financial Highlights
For the three months ended March 31, 2025, the company reported total sales of $222.2 million, representing a 13% increase from the $196.3 million reported in the same period of 2024. This strong year-over-year growth demonstrates the company’s ability to effectively respond to rising industry demand while executing on its strategic initiatives.
Operating earnings for the quarter climbed to $49.5 million, up 35% compared to the previous year. Operating profit margins also showed substantial improvement, increasing 360 basis points to reach 22.2%, compared to 18.6% in Q1 2024. This marks a new record for the company in terms of both operating profit and margin performance.
Earnings per diluted share (EPS) came in at $1.30, which is a 31% increase from the $0.99 reported in the same period last year. This increase was driven by a combination of higher operating profits, effective cost management, and favorable market conditions.
Additionally, the company successfully completed the acquisition of SmartCover on January 30, 2025, further strengthening its portfolio of intelligent water monitoring solutions.
Management Commentary
Kenneth C. Bockhorst, Chairman, President, and Chief Executive Officer, praised the team’s efforts and reflected on the company’s performance:
“Steady customer demand and disciplined operating execution drove solid revenue growth and record margins in a strong start to 2025. Our ability to build upon record results reflects the underlying stability of our business model as favorable industry fundamentals drive the need for our innovative smart water solutions.”
Bockhorst also spoke on the SmartCover acquisition and the company’s integration progress:
“Since closing the acquisition of SmartCover in late January, we’ve made swift progress in our integration efforts. We remain encouraged by the positive feedback received from customers on the addition of SmartCover’s sewer and lift-station monitoring capabilities to our BlueEdge® portfolio of tailorable water management solutions. I’d like to thank all of our dedicated employees for working together to deliver these solid results.”
Segment Performance and Operational Review
Utility Water Segment:
Utility water sales grew 16% year-over-year, boosted by two months of contributions from the newly acquired SmartCover business. Even when excluding SmartCover, utility water sales still posted a 12% increase, underlining the strong organic demand for the company’s suite of smart water technologies. Growth was particularly strong in sales of mechanical and E-Series Ultrasonic meters, ORION® Cellular radio endpoints, and the company’s BEACON® Software-as-a-Service (SaaS) platform.
Flow Instrumentation Segment:
Sales of flow instrumentation products declined 5% year-over-year. The company saw modest gains in water-related markets; however, these were offset by a reduction in demand across de-emphasized applications. Despite the annual decline, sequential performance improved, with a 7% increase in sales from the fourth quarter of 2024, suggesting early signs of stabilization and potential future growth.
Operating Earnings and Margins:
The first quarter saw operating earnings grow 35% from the same period last year, driven by higher revenue and improved efficiency. Operating margins set a new company record at 22.2%, a notable increase from 18.6% the prior year. The company’s gross margin also reached a new high at 42.9%, up 360 basis points from the prior year’s 39.3%. This was attributed to a highly favorable mix of products and customers, along with ongoing success in operational excellence initiatives.
Tariff and Cost Impacts:
Tariff-related impacts were minimal during the quarter. This allowed the company to maintain its margins without needing to implement cost increases that could have hindered customer adoption.
