Badger Meter Earnings Call Transcripts
Fiscal Year 2026
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Revised summary: The company is transforming from metering to a software-enabled water platform, targeting high single-digit organic growth and double-digit expansion in software and Beyond the Meter solutions. Its BlueEdge platform, financial discipline, and consultative sales drive differentiation, recurring revenue, and long-term customer value.
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Q1 2026 revenue fell 9% year-over-year due to project pacing and weaker short cycle orders, but management expects sequential improvement and flat full-year organic revenue. Gross margin remained strong, and the $100M UDlive acquisition expands global sewer monitoring capabilities.
Fiscal Year 2025
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Record 2025 results featured 11% sales growth, margin expansion, and strong free cash flow, driven by robust AMI demand and SmartCover integration. Outlook for 2026 anticipates lower first-half growth, accelerating in the second half as major projects like PRASA ramp up.
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Q3 2025 saw 13% sales growth, record free cash flow, and margin expansion, driven by strong demand for smart water solutions and successful SmartCover integration. The outlook remains positive, with high single-digit growth expected and continued resilience amid tariff and macroeconomic uncertainties.
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Record Q2 sales and gross margin expansion were driven by technology adoption and SmartCover integration. Despite sequential sales moderation expected in Q3, long-term growth outlook remains strong, supported by robust demand and industry fundamentals.
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Q1 2025 saw 13% sales growth, record margins, and 31% EPS increase, driven by strong utility water sales, software growth, and the SmartCover acquisition. Tariff and input cost uncertainties persist, but pricing actions and a resilient replacement-driven model support a positive long-term outlook.
Fiscal Year 2024
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Q4 2024 saw record sales, margin expansion, and strong cash flow, capped by the $185M SmartCover acquisition to enhance recurring revenue and monitoring solutions. High single-digit growth and margin improvement are expected, though 2025 EPS will be temporarily diluted by the deal.
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Q3 2024 saw 12% sales growth, record 19.5% operating margin, and 23% EPS increase, with robust cash flow and strong SaaS revenue. Outlook remains positive with high single-digit growth targeted, despite potential Q4 delays from holidays and hurricanes.
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Record Q2 sales of $217M marked 23% growth, with operating margin and EPS at all-time highs. Sales growth is expected to normalize to high single digits in the second half, with strong cash flow and continued investment flexibility.