BMI Badger Meter Inc

Badger Meter, Inc. (NYSE: BMI) today reported results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Highlights

• Total sales of $205.2 million, 13% higher than the prior year’s $182.4 million.
• Operating profit increased 22% year-over-year, with operating profit margins expanding 150 basis points to 19.1% from 17.6%.
• Diluted earnings per share (EPS) increased 24% to $1.04, up from $0.84 in the comparable prior year quarter.
• Record cash flow with $52.1 million in net cash provided by operations, increasing 37% over the prior year.

Full Year 2024 Highlights

• Record total sales of $826.6 million, 18% higher than the prior year’s $703.6 million.
• Software sales of over $56 million, increasing approximately 30% year-over-year.
• Operating profit margins improved 230 basis points over the prior year to 19.1%.
• Diluted EPS increased 35% to a record $4.23, up from $3.14 in the prior year.
• Record cash flow with $155 million in net cash provided by operations.
• Introduced BlueEdge™, the platform brand aimed at simplifying the Badger Meter suite of scalable solutions for efficient water management.

Kenneth C. Bockhorst, Chairman, President and Chief Executive Officer, stated, “We finished 2024 with yet another quarter of excellent results, including solid performance across a variety of operating metrics with continued strong sales growth, expanding operating profit margins, robust EPS growth and record cash flow from operations. We utilized our strong balance sheet and cash flows to expand on the breadth of our BlueEdge suite of solutions, adding real-time monitoring of water collection systems with the acquisition of SmartCover® Systems (SmartCover) which we announced today. Lastly, I’m grateful for the hard work and commitment of the entire Badger Meter team in supporting our customers and delivering on our strategic growth goals and I want to welcome the employees of SmartCover to the Badger Meter team.”

Fourth Quarter Operating Results

Utility water sales increased 14% year-over-year with solid growth across the broad suite of BlueEdge technology solutions utilized by utility customers. Most notably, we continued to see robust adoption rates for our cellular AMI offering, which included higher sales of ORION® Cellular endpoints, BEACON® Software as a Service (SaaS), and mechanical and ultrasonic metering sales year-over-year.

Sales of flow instrumentation products increased 1% year-over-year with modest growth in the water-focused end markets more than offsetting declines across the array of de-emphasized applications, globally.

Operating earnings increased a robust 22% year-over-year, with operating profit margins expanding 150 basis points to 19.1% up from 17.6% in the fourth quarter of 2023. Gross margin dollars increased 16% year-over-year, and gross margin as a percent of sales was 40.3%, an increase of 110 basis points over the comparable prior year period. The gross margin improvement reflects the continued benefits of positive structural sales mix, including strong AMI and software-related sales, as well as ongoing price/cost benefit and solid operating execution.

Selling, engineering and administration (SEA) expenses in the fourth quarter of 2024 were $43.5 million, $4.2 million higher than the comparable prior year quarter with higher headcount and personnel-related costs as well as certain transaction costs associated with the acquisition of SmartCover. SEA as a percent of sales improved 40 basis points to 21.2% from 21.6% in the comparable prior year quarter.

The tax rate for the fourth quarter of 2024 was 27.1% compared to 26.1% in the prior year comparable period. As a result of the above, combined with increased interest income year-over-year, EPS was $1.04, an increase of 24% compared to $0.84 in the comparable prior year period.

Full Year Recap and Outlook

Bockhorst continued, “I’m incredibly proud of our performance in 2024, delivering 18% year-over-year sales growth. We achieved record operating profit margins at 19.1%, with both gross profit margin expansion and SEA leverage contributing to the 230 basis point increase year-over-year. We delivered a 35% increase in EPS, and generated record cash flows in 2024. In short, our track record of differentiated performance continued. This, coupled with execution of our strategic priorities, including investments in hardware and software innovation and complementary acquisitions, demonstrates our ability to further capitalize on the robust demand environment for comprehensive and tailorable digital water management solutions.

“These industry-leading solutions deliver efficiency, resiliency, and sustainability for customers to address the variety of persistent challenges facing the water industry, including the impacts from more frequent and severe flooding on municipalities. The acquisition of SmartCover, with its focus on sewer line and lift station monitoring solutions, aids customers in visualizing and optimally managing their wastewater systems. We will continue to explore opportunities for value-creating acquisitions like SmartCover, to further amplify our growth and generate enhanced returns.

“As we enter 2025, the demand environment for our end-to-end smart water offerings remains resilient. We remain committed to our strategic goals, including delivering high single-digit sales growth rates over the cycle, noting the usual unevenness common in the industry, generating modest year-over-year operating profit margin expansion and achieving free cash flow conversion above 100%.”

Bockhorst concluded, “In summary, we will continue to execute on the blueprint that has driven our success, namely our relentless focus on customer outcomes, our effective delivery of innovative solutions, and our differentiated operational acumen which we believe collectively results in strong shareholder returns and the protection of the world’s most precious resource.”

Conference Call and Webcast Information

Badger Meter management will hold a conference call to discuss the Company’s fourth quarter and full year 2024 results today, Friday, January 31, 2025 at 10:00 AM Central/11:00 AM Eastern time. The webcast and related presentation can be accessed via the Investor section of the Company’s website. Individuals wishing to participate in the call should use this online registration link: https://www.netroadshow.com/events/login?show=a5367bfa&confId=76111.

Safe Harbor Statement

Certain statements contained in this news release, as well as other information provided from time to time by Badger Meter, Inc. (the “Company”) or its employees, may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those statements. The Company’s results are subject to general economic conditions, variation in demand from customers, continued market acceptance of new products, the successful integration of acquisitions, competitive pricing and operating efficiencies, supply chain risk, material and labor cost increases, tax reform and foreign currency risk. See the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission for further information regarding risk factors, which are incorporated herein by reference. Badger Meter disclaims any obligation to publicly update or revise any forward-looking statements as a result of new information, future events or any other reason.

About Badger Meter

With more than a century of water technology innovation, Badger Meter provides comprehensive water management solutions through its BlueEdge™ suite. This tailorable portfolio of smart measurement hardware, reliable communications, data visualization and analytics software and ongoing support and industry expertise give customers the edge in optimizing their operations and contributing to the sustainable use and protection of the world’s most precious resource. For more information, visit www.badgermeter.com.

 

BADGER METER, INC.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

 

(in thousands, except share and earnings per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

 

Twelve Months Ended December 31,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

205,182

 

 

$

182,440

 

 

$

826,558

 

 

$

703,592

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

122,422

 

 

 

110,975

 

 

 

497,374

 

 

 

427,154

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

 

82,760

 

 

 

71,465

 

 

 

329,184

 

 

 

276,438

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, engineering and administration

 

 

43,537

 

 

 

39,386

 

 

 

171,248

 

 

 

158,389

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings

 

 

39,223

 

 

 

32,079

 

 

 

157,936

 

 

 

118,049

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

 

(2,924

)

 

 

(1,398

)

 

 

(8,613

)

 

 

(4,047

)

Other pension and postretirement costs

 

 

12

 

 

 

33

 

 

 

49

 

 

 

130

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before income taxes

 

 

42,135

 

 

 

33,444

 

 

 

166,500

 

 

 

121,966

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

11,418

 

 

 

8,723

 

 

 

41,558

 

 

 

29,368

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

30,717

 

 

$

24,721

 

 

$

124,942

 

 

$

92,598

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.05

 

 

$

0.84

 

 

$

4.26

 

 

$

3.16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

$

1.04

 

 

$

0.84

 

 

$

4.23

 

 

$

3.14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computation of earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

29,368,656

 

 

 

29,305,864

 

 

 

29,355,741

 

 

 

29,284,396

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

29,559,950

 

 

 

29,471,418

 

 

 

29,533,543

 

 

 

29,455,557

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BADGER METER, INC.

 

 

 

 

 

 

 

CONSOLIDATED CONDENSED BALANCE SHEETS

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

December 31,

 

 

December 31,

 

 

2024

 

 

2023

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

295,305

 

 

$

191,782

 

Receivables

 

84,325

 

 

 

83,507

 

Inventories

 

143,408

 

 

 

153,674

 

Other current assets

 

17,078

 

 

 

13,214

 

Total current assets

 

540,116

 

 

 

442,177

 

 

 

 

 

 

 

Net property, plant and equipment

 

74,260

 

 

 

73,878

 

Intangible assets, at cost less accumulated amortization

 

45,066

 

 

 

53,737

 

Other long-term assets

 

45,201

 

 

 

33,964

 

Goodwill

 

111,770

 

 

 

113,163

 

Total assets

$

816,413

 

 

$

716,919

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

Payables

$

55,659

 

 

$

81,807

 

Accrued compensation and employee benefits

 

34,912

 

 

 

29,871

 

Other current liabilities

 

27,634

 

 

 

20,270

 

Total current liabilities

 

118,205

 

 

 

131,948

 

 

 

 

 

 

 

Deferred income taxes

 

3,652

 

 

 

5,061

 

Long-term employee benefits and other

 

88,324

 

 

 

63,428

 

Shareholders' equity

 

606,232

 

 

 

516,482

 

Total liabilities and shareholders' equity

$

816,413

 

 

$

716,919

 

 

 

 

 

 

 

 

BADGER METER, INC.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

 

Twelve Months Ended December 31,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

 

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

30,717

 

 

$

24,721

 

 

$

124,942

 

 

$

92,598

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments to reconcile net earnings to net cash provided by operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

2,773

 

 

 

2,837

 

 

 

11,103

 

 

 

10,937

 

Amortization

 

 

5,295

 

 

 

4,353

 

 

 

21,082

 

 

 

17,173

 

Deferred income taxes

 

 

(11,074

)

 

 

(9,249

)

 

 

(11,074

)

 

 

(9,650

)

Noncurrent employee benefits

 

 

(141

)

 

 

(64

)

 

 

(153

)

 

 

(338

)

Stock-based compensation expense

 

 

1,587

 

 

 

1,225

 

 

 

6,182

 

 

 

5,188

 

Changes in:

 

 

 

 

 

 

 

 

 

 

 

 

Receivables

 

 

8,370

 

 

 

5,504

 

 

 

(1,444

)

 

 

(6,351

)

Inventories

 

 

13,687

 

 

 

(4,839

)

 

 

10,320

 

 

 

(32,467

)

Payables

 

 

(6,919

)

 

 

(3,776

)

 

 

(12,161

)

 

 

8,506

 

Prepaid expenses and other assets

 

 

(7,540

)

 

 

267

 

 

 

(15,312

)

 

 

(7,012

)

Other liabilities

 

 

15,312

 

 

 

16,966

 

 

 

21,549

 

 

 

31,533

 

Total adjustments

 

 

21,350

 

 

 

13,224

 

 

 

30,092

 

 

 

17,519

 

Net cash provided by operations

 

 

52,067

 

 

 

37,945

 

 

 

155,034

 

 

 

110,117

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment expenditures

 

 

(4,669

)

 

 

(2,054

)

 

 

(12,818

)

 

 

(12,003

)

Acquisitions, net of cash acquired

 

 

-

 

 

 

-

 

 

 

(3,000

)

 

 

(17,127

)

Net cash used for investing activities

 

 

(4,669

)

 

 

(2,054

)

 

 

(15,818

)

 

 

(29,130

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid

 

 

(9,985

)

 

 

(7,918

)

 

 

(35,847

)

 

 

(29,052

)

Proceeds from exercise of stock options

 

 

-

 

 

 

-

 

 

 

751

 

 

 

967

 

Net cash used for financing activities

 

 

(9,985

)

 

 

(7,918

)

 

 

(35,096

)

 

 

(28,085

)

Effect of foreign exchange rates on cash

 

 

(1,063

)

 

 

899

 

 

 

(597

)

 

 

828

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in cash and cash equivalents

 

 

36,350

 

 

 

28,872

 

 

 

103,523

 

 

 

53,730

 

Cash and cash equivalents - beginning of period

 

 

258,955

 

 

 

162,910

 

 

 

191,782

 

 

 

138,052

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents - end of period

 

$

295,305

 

 

$

191,782

 

 

$

295,305

 

 

$

191,782

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250131987609/en/

Karen Bauer (414) 371-7276 kbauer@badgermeter.com