Badger Meter Earnings Call Transcripts
Fiscal Year 2026
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Q2 2026 saw sequential sales growth as major projects ramped up, though year-over-year sales and earnings declined. Management reaffirmed flat organic revenue guidance for 2026, with growth expected to be weighted to Q4, and highlighted ongoing cost controls, strong market demand, and persistent supply chain pressures.
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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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Record Q4 and 2024 results featured double-digit sales and EPS growth, margin expansion, and robust free cash flow. The $185M SmartCover acquisition expands monitoring capabilities, though it will be EPS dilutive in 2025 before turning accretive. High single-digit growth and strong market drivers persist.
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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.