NANO Nuclear Achieves Inclusion in S&P Global Broad Market Index (BMI)NANO Nuclear's addition to the S&P BMI also qualifies it for inclusion in the S&P Total Market Index (TMI) and the SPX Completion Index, growing its exposure to institutional investors worldwideSeptember 25, 2025 8:25 AM EDT | Source: NANO Nuclear Energy Inc.New York, New York--(Newsfile Corp. - September 25, 2025) - NANO Nuclear Energy Inc. (NASDAQ: NNE) ("NANO Nuclear" or "the Company"), a leading advanced nuclear energy a ...

Sep 25, 2025 6:03 AM Eastern Daylight Time Founded in 2018, Marti is Türkiye's leading mobility app, offering a wide variety of transportation services. Marti operates a ride-hailing service that matches riders with car, motorcycle and taxi drivers and also operates a large fleet of rental e-mopeds, e-bikes and e-scooters. All of Marti's offerings are serviced by proprietary software systems and IoT infrastructure. For more information, visit www.marti.tech. Cautionary Note Regarding Forward-Looking Stateme ...

Core Idea - The article emphasizes the investment philosophy of Thomas W. Phelps, particularly his book "100 to 1 in the Stock Market," which advocates for buying exceptional companies early, holding them with discipline, and allowing compounding to generate wealth [1][4][6]. Phelps's Investment Framework - Phelps's framework focuses on identifying companies with durable advantages, such as network effects, proprietary know-how, and advantageous cost structures [8]. - The importance of verifying a large addressable market that allows for long-term compounding without hitting a wall is highlighted [8]. - Present-tense profitability is essential; Phelps preferred companies that generate cash rather than speculative ventures [8]. - The article suggests buying companies when their narratives are still forming, favoring modest valuations over those priced for perfection [8]. - A strategy of doing less is recommended, as holding onto winning investments can lead to tax deferral and reduced errors [8]. Current Investment Candidates - The article lists 25 companies that fit Phelps's criteria, categorized by how they create competitive advantages rather than by index labels [9]. - Companies in the construction and infrastructure sector, such as EMCOR Group and Quanta Services, are noted for their execution capabilities and ability to convert backlog into cash [10][11]. - Precision manufacturers like Celestica and Fabrinet are recognized for their high returns on capital and asset-light models [12]. - In network infrastructure, Arista Networks and Super Micro Computer are highlighted for their strong positions in high-speed switching and AI hardware, respectively [13]. - Companies in the materials sector, such as Martin Marietta Materials, are noted for their pricing power and local monopolies [14]. - Engineering firms like WSP Global are recognized for their expertise and customer relationships in regulated markets [15]. - Consumer brands like e.l.f. Beauty and Academy Sports are mentioned for their market share growth and operational efficiency [16]. - Specialty finance companies like FirstCash and software firms like Agilysys are noted for their cash generation and growth potential [17]. - Internationally, utilities like Sabesp and fintechs like StoneCo are highlighted for their governance and profitability improvements [18]. - UK companies like Spectris and Halma are recognized for their consistent acquisition strategies and operational excellence [19]. Conclusion - The article concludes that the focus should be on finding real engines of growth and sizing investments appropriately to endure market volatility, allowing time to enhance value [22].

Group 1 - Badger Meter, Inc. (BMI) is experiencing significant activity in the options market, particularly with the Nov 21, 2025 $130.00 Call showing high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to a rally or sell-off [2] - Analysts have a negative outlook on Badger Meter, with the company currently holding a Zacks Rank 4 (Sell) in the Instruments - Control Industry, and the Zacks Consensus Estimate for the current quarter has decreased from $1.22 to $1.12 per share due to downward revisions by four analysts [3][4] Group 2 - The high implied volatility in Badger Meter's options may indicate a trading opportunity, as seasoned traders often seek to sell premium on options with such volatility, hoping the stock does not move as much as expected by expiration [4]

Group 1: ASML - ASML is a critical player in the global semiconductor supply chain, specializing in lithography technology essential for manufacturing semiconductor chips [3][4] - The company holds a dominant position in both mature and leading-edge lithography markets, particularly benefiting from the rise of AI technologies [6][7] - Despite its strong market position, ASML's stock is currently 17% below its 52-week high, primarily due to geopolitical issues rather than operational challenges [7][8] - ASML's current valuation is 28 times earnings, aligning with the S&P 500 average and significantly below its 10-year average of 38 [9] - The global semiconductor industry is projected to grow by 8% through 2040, indicating a favorable outlook for ASML [11] - ASML has a history of returning value to shareholders through stock buybacks and a 31% annual growth rate in dividends over the past decade [12] Group 2: Badger Meter - Badger Meter is North America's leading provider of water and sewer monitoring solutions, with significant historical stock performance, turning $1 invested in 2000 into $74 today [13] - The company's stock has recently declined by 27% from its 52-week high due to disappointing second-quarter earnings, where EPS growth was only 5% [14] - Despite the EPS shortfall, free cash flow grew by 19%, indicating underlying strength in the business [14][15] - Badger Meter's BlueEdge solutions are modernizing traditional water and sewer infrastructure, with a growing SaaS revenue stream that has increased by 28% annually since 2019 [16][19] - 85% of Badger Meter's sales are replacement-driven, providing ample opportunity for upselling to smart water solutions amid stricter regulations [19] - The company currently trades at 34 times free cash flow, below its five-year average of 43, and has a 0.7% dividend yield with a history of increasing payments for 31 consecutive years [21][22]

Core Viewpoint - Badger Meter's recent earnings report showed a mixed performance, with earnings per share missing estimates but net sales increasing year over year, indicating potential growth despite challenges in the market [2][10]. Financial Performance - Badger Meter reported Q2 2025 earnings per share (EPS) of $1.17, missing the Zacks Consensus Estimate by 3.3%, but up from $1.12 in the same quarter last year [2]. - Quarterly net sales reached $238.1 million, a 10% increase from $216.7 million in the prior year, driven by higher utility water sales and contributions from the SmartCover acquisition [2]. - Gross profit was $97.8 million, up from $85.4 million year over year, with a gross margin of 41.1%, reflecting a 170 basis point improvement [6]. - Operating earnings increased by 8% year over year to $44.9 million, while operating margin slightly declined to 18.8% from 19.2% [7]. Segmental Performance - Utility water sales rose 11% year over year, supported by the adoption of digital smart water technologies, with organic utility water sales up 6% excluding SmartCover [4]. - Flow instrumentation sales remained flat year over year, as growth in water-related markets was offset by reduced demand in non-water-related applications [5]. Cost and Expenses - Selling, general and administrative (SGA) expenses increased by 20.7% year over year to $52.9 million, primarily due to the SmartCover acquisition [8]. - Without the SmartCover impact, SGA expenses rose by 8%, driven by higher personnel costs and deferred compensation expenses [8]. Cash Flow and Liquidity - In Q2 2025, Badger Meter generated $44.6 million in net cash from operating activities, compared to $36.4 million a year ago [9]. - As of June 30, 2025, the company had $165.2 million in cash and cash equivalents, with total current liabilities of $138.7 million [9]. Outlook - The company is optimistic about achieving high single-digit revenue growth in the long term, supported by strong industry fundamentals and sustained customer demand [10]. - However, estimates have been trending downward, with a consensus estimate shift of -8.68%, leading to a Zacks Rank of 5 (Strong Sell) [11][13].

Analyst's Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or a ...

Part I. Financial Information This section encompasses the unaudited consolidated condensed financial statements, management's analysis, market risk disclosures, and internal controls [Item 1 Financial Statements](index=4&type=section&id=Item%201%20Financial%20Statements) This section presents the unaudited consolidated condensed financial statements for Badger Meter, Inc., including balance sheets, statements of operations, comprehensive income, cash flows, and shareholders' equity, along with detailed notes explaining the basis of presentation, accounting policies, and specific financial items [Consolidated Condensed Balance Sheets](index=4&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) This section presents the consolidated condensed balance sheets, detailing assets, liabilities, and equity at specific reporting dates | Metric (In thousands) | June 30, 2025 | December 31, 2024 | Change | % Change | | :-------------------- | :------------ | :---------------- | :----- | :------- | | Cash and cash equivalents | $165,208 | $295,305 | $(130,097) | -44.0% | | Receivables, net | $117,667 | $84,325 | $33,342 | 39.5% | | Total inventories | $147,261 | $143,408 | $3,853 | 2.7% | | Total current assets | $448,275 | $540,116 | $(91,841) | -17.0% | | Total assets | $936,420 | $816,413 | $120,007 | 14.7% | | Total current liabilities | $138,710 | $118,205 | $20,505 | 17.3% | | Total shareholders' equity | $677,592 | $606,232 | $71,360 | 11.8% | [Consolidated Condensed Statements of Operations](index=5&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) This section provides the consolidated condensed statements of operations, outlining net sales, earnings, and diluted EPS for the reported periods | Metric (In thousands except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change | YoY % Change | | :----------------------------------- | :------------------------------- | :------------------------------- | :--------- | :----------- | | Net sales | $238,095 | $216,658 | $21,437 | 9.9% | | Gross margin | $97,810 | $85,368 | $12,442 | 14.6% | | Operating earnings | $44,863 | $41,512 | $3,351 | 8.1% | | Net earnings | $34,584 | $33,056 | $1,528 | 4.6% | | Diluted EPS | $1.17 | $1.12 | $0.05 | 4.5% | | Dividends declared per common share | $0.34 | $0.27 | $0.07 | 25.9% | | Metric (In thousands except per share) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change | YoY % Change | | :----------------------------------- | :----------------------------- | :----------------------------- | :--------- | :----------- | | Net sales | $460,306 | $412,938 | $47,368 | 11.5% | | Gross margin | $193,247 | $162,546 | $30,701 | 18.9% | | Operating earnings | $94,288 | $78,090 | $16,198 | 20.7% | | Net earnings | $72,982 | $62,187 | $10,795 | 17.4% | | Diluted EPS | $2.47 | $2.11 | $0.36 | 17.1% | | Dividends declared per common share | $0.68 | $0.54 | $0.14 | 25.9% | [Consolidated Condensed Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Condensed%20Statements%20of%20Comprehensive%20Income) This section details the consolidated condensed statements of comprehensive income, including net earnings and other comprehensive income components | Metric (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change | YoY % Change | | :-------------------- | :------------------------------- | :------------------------------- | :--------- | :----------- | | Net earnings | $34,584 | $33,056 | $1,528 | 4.6% | | Comprehensive income | $42,861 | $32,981 | $9,880 | 29.9% | | Metric (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change | YoY % Change | | :-------------------- | :----------------------------- | :----------------------------- | :--------- | :----------- | | Net earnings | $72,982 | $62,187 | $10,795 | 17.4% | | Comprehensive income | $86,417 | $58,490 | $27,927 | 47.8% | - Foreign currency translation adjustments significantly contributed to comprehensive income in 2025, showing a positive **$13,532 thousand** for the six months ended June 30, 2025, compared to a negative **$3,633 thousand** in the prior year[16](index=16&type=chunk) [Consolidated Condensed Statements of Cash Flows](index=7&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) This section presents the consolidated condensed statements of cash flows, categorizing cash movements from operating, investing, and financing activities | Metric (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change | YoY % Change | | :-------------------- | :----------------------------- | :----------------------------- | :--------- | :----------- | | Net cash provided by operations | $77,613 | $57,879 | $19,734 | 34.1% | | Net cash used for investing activities | $(190,928) | $(8,017) | $(182,911) | 2281.6% | | Net cash used for financing activities | $(19,467) | $(15,125) | $(4,342) | 28.7% | | (Decrease) increase in cash and cash equivalents | $(130,097) | $34,430 | $(164,527) | -477.8% | | Cash and cash equivalents – end of period | $165,208 | $226,212 | $(61,004) | -27.0% | - The significant increase in cash used for investing activities in 2025 was primarily due to the **$184.0 million** acquisition of SmartCover, Inc[18](index=18&type=chunk) [Consolidated Condensed Statements of Shareholders' Equity](index=8&type=section&id=Consolidated%20Condensed%20Statements%20of%20Shareholders'%20Equity) This section outlines the consolidated condensed statements of shareholders' equity, showing changes in equity components over time | Metric (In thousands) | June 30, 2025 | June 30, 2024 | | :-------------------- | :------------ | :------------ | | Total Shareholders' Equity | $677,592 | $563,138 | | Reinvested earnings | $600,763 | $505,040 | | Accumulated other comprehensive income (loss) | $5,529 | $(5,343) | - Shareholders' equity increased by **$71,360 thousand** from December 31, 2024, driven by net earnings and positive foreign currency translation adjustments[11](index=11&type=chunk)[21](index=21&type=chunk) [Notes to Unaudited Consolidated Condensed Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Condensed%20Financial%20Statements) This section provides detailed notes explaining the basis of presentation, accounting policies, and specific financial items supporting the financial statements [Note 1 Basis of Presentation](index=9&type=section&id=Note%201%20Basis%20of%20Presentation) This note describes the basis for preparing the unaudited consolidated condensed financial statements, including adjustments and interim reporting considerations - The unaudited consolidated condensed financial statements include all necessary adjustments for fair presentation, consisting primarily of normal recurring accruals, and interim results are not necessarily indicative of full-year results[25](index=25&type=chunk) [Note 2 Additional Financial Information Disclosures](index=9&type=section&id=Note%202%20Additional%20Financial%20Information%20Disclosures) This note provides additional disclosures on financial information, including cash equivalents and warranty reserves - Cash equivalents are highly liquid investments with original maturities of ninety days or less[28](index=28&type=chunk) **Warranty and After-Sale Costs Reserve (In thousands):** | Metric | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------- | :----------------------------- | :----------------------------- | | Balance at beginning of period | $16,693 | $11,102 | | Net additions charged to earnings | $7,327 | $6,598 | | Costs incurred | $(4,471) | $(3,851) | | Balance at end of period | $19,549 | $13,849 | [Note 3 Accumulated Other Comprehensive Income (Loss)](index=9&type=section&id=Note%203%20Accumulated%20Other%20Comprehensive%20Income%20(Loss)) This note details the components of accumulated other comprehensive income (loss), including pension benefits and foreign currency translation adjustments **Accumulated Other Comprehensive Income (Loss) (In thousands):** | Component | June 30, 2025 | June 30, 2024 | | :----------------------------------- | :------------ | :------------ | | Unrecognized pension and postretirement benefits | $1,049 | $856 | | Foreign currency translation | $4,480 | $(6,199) | | Total | $5,529 | $(5,343) | - The Company experienced a significant positive shift in foreign currency translation adjustments, moving from a loss of **$3,633 thousand** in the first six months of 2024 to an income of **$13,532 thousand** in the same period of 2025[30](index=30&type=chunk)[31](index=31&type=chunk) [Note 4 Acquisitions](index=10&type=section&id=Note%204%20Acquisitions) This note outlines details of recent acquisitions, including the purchase of SmartCover Systems and the Telog product line - On January 30, 2025, Badger Meter acquired 100% of Hadronex, Inc. (SmartCover® Systems), a provider of sewer line and lift station monitoring solutions, for **$184.0 million**, net of cash acquired[32](index=32&type=chunk)[33](index=33&type=chunk) - The SmartCover acquisition contributed **$16.7 million** in revenue for the five months ended June 30, 2025, and resulted in significant increases in intangible assets (**$85.6 million**) and goodwill (**$118.6 million**)[33](index=33&type=chunk) - On January 1, 2024, the Company acquired Telog® product line and Unity Remote Monitoring software for **$3.0 million** in cash[34](index=34&type=chunk) [Note 5 Contingencies, Litigation and Commitments](index=10&type=section&id=Note%205%20Contingencies,%20Litigation%20and%20Commitments) This note discusses the Company's contingencies, litigation status, and commitments, including material legal proceedings and supplier dependencies - The Company is not currently involved in any material legal proceedings[35](index=35&type=chunk) - Environmental compliance expenditures were not material in 2024 and the first half of 2025[36](index=36&type=chunk) - The Company relies on single suppliers for certain critical components (brass castings, resin, electronic subassemblies) but mitigates risks through close supplier relationships, alternative suppliers, and business interruption insurance[37](index=37&type=chunk) [Note 6 Income Taxes](index=12&type=section&id=Note%206%20Income%20Taxes) This note provides information on the Company's effective income tax rates and factors influencing them **Effective Income Tax Rate:** | Period | 2025 | 2024 | | :-------------------------- | :--- | :--- | | Three months ended June 30, | 24.5% | 23.8% | | Six months ended June 30, | 24.4% | 23.7% | - The effective income tax rate increased slightly in both the three-month and six-month periods ended June 30, 2025, compared to the prior year, primarily due to variations in state taxes and the relationship of foreign and domestic earnings[39](index=39&type=chunk)[40](index=40&type=chunk) [Note 7 Fair Value Measurements of Financial Instruments](index=12&type=section&id=Note%207%20Fair%20Value%20Measurements%20of%20Financial%20Instruments) This note explains the fair value measurements of financial instruments, particularly for short-term assets and liabilities - The carrying amounts of cash and cash equivalents, receivables, and payables approximate their fair values due to their short-term nature[41](index=41&type=chunk) [Note 8 Subsequent Events](index=12&type=section&id=Note%208%20Subsequent%20Events) This note discloses any material subsequent events evaluated through the financial statement filing date - The Company evaluated subsequent events through the filing date and determined that no material subsequent events exist[42](index=42&type=chunk) [Note 9 Industry Segment and Geographic Areas](index=12&type=section&id=Note%209%20Industry%20Segment%20and%20Geographic%20Areas) This note describes the Company's single reportable segment and how the Chief Operating Decision Maker assesses performance - Badger Meter operates as a single reportable segment, focusing on water and wastewater management solutions, due to similarities in products, processes, customers, and distribution methods[43](index=43&type=chunk) - The Chief Operating Decision Maker (CODM) assesses performance using gross margin, operating earnings, and net earnings, reviewing budget vs. actual and prior year vs. current year reporting[44](index=44&type=chunk) [Note 10 Revenue Recognition](index=13&type=section&id=Note%2010%20Revenue%20Recognition) This note details the Company's revenue recognition policies, disaggregated by geographic area and timing of transfer **Revenues Disaggregated by Geographic Area (In thousands):** | Region | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :----------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | United States | $214,350 | $193,963 | $416,325 | $371,153 | | Foreign | $23,645 | $22,790 | $43,981 | $31,786 | | Total | $238,095 | $216,658 | $460,306 | $412,938 | **Revenues Disaggregated by Timing of Transfer (In thousands):** | Timing | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Recognized over time | $23,086 (9.7%) | $14,345 (6.6%) | $43,372 (9.4%) | $27,078 (6.6%) | | Recognized at a point in time | $215,009 (90.3%) | $202,313 (93.4%) | $416,934 (90.6%) | $385,860 (93.4%) | - Revenue recognized over time, primarily from BEACON® SaaS and SmartCover® revenue, increased significantly, reflecting a growing shift towards subscription-based services[46](index=46&type=chunk)[50](index=50&type=chunk) **Receivables and Contract Liabilities (In thousands):** | Metric | June 30, 2025 | December 31, 2024 | | :----------- | :------------ | :---------------- | | Receivables | $117,667 | $84,325 | | Contract liabilities | $91,939 | $78,274 | - As of June 30, 2025, the aggregate transaction price allocated to unsatisfied or partially unsatisfied performance obligations was **$91.9 million**, with approximately **$15.2 million** expected to be recognized in 2025[51](index=51&type=chunk) [Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations](index=15&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial performance, condition, and operational results for the three and six months ended June 30, 2025 [BUSINESS DESCRIPTION AND OVERVIEW](index=15&type=section&id=BUSINESS%20DESCRIPTION%20AND%20OVERVIEW) This section provides an overview of Badger Meter's business, focusing on its water management solutions and product lines - Badger Meter is a global provider of water management solutions, with approximately **95%** of net sales from water-related applications, offering measurement and control hardware, connectivity, data analytics, and support services under its BlueEdge™ brand[53](index=53&type=chunk) - The Company's solutions are categorized into two product lines: Utility Water (approx. **88%** of 2024 Net Sales) and Flow Instrumentation (approx. **12%** of 2024 Net Sales)[57](index=57&type=chunk)[58](index=58&type=chunk)[67](index=67&type=chunk) - Utility water solutions include smart metering (AMR/AMI systems), water quality monitoring, leak detection, and remote sewer monitoring, with a focus on North America[58](index=58&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk)[65](index=65&type=chunk) - Flow instrumentation serves industrial markets, including water/wastewater, HVAC, and corporate sustainability, providing meters, valves, and sensing instruments for fluid measurement and control[67](index=67&type=chunk)[68](index=68&type=chunk) [Long Term Business Trends](index=18&type=section&id=Long%20Term%20Business%20Trends) This section discusses long-term trends driving demand in the water management market, including infrastructure needs and technology adoption - Long-term trends driving demand include infrastructure investment needs, an aging workforce, increasing regulations, and a focus on climate change and sustainability, all requiring better water resource management[69](index=69&type=chunk) - The utility water market is seeing a continuing conversion to Advanced Metering Infrastructure (AMI) solutions, with an estimated **40%** of U.S. water meters already converted, and a shift from mechanical to ultrasonic static meters for improved accuracy[70](index=70&type=chunk)[71](index=71&type=chunk) - Customers are increasingly seeking more frequent and diverse data for holistic water network management, which Badger Meter addresses with its smart water solutions, including water quality, pressure management, and sewer line monitoring[72](index=72&type=chunk)[73](index=73&type=chunk) [Acquisitions](index=18&type=section&id=Acquisitions) This section details recent acquisitions, including SmartCover Systems and the Telog product line, and their strategic impact - On January 30, 2025, the Company acquired SmartCover® Systems for **$184.0 million**, expanding its sewer line and lift station monitoring solutions within the utility water product line[74](index=74&type=chunk)[75](index=75&type=chunk) - On January 1, 2024, the Company acquired the Telog® product line and Unity Remote Monitoring software for **$3.0 million**, enhancing its remote water monitoring capabilities[76](index=76&type=chunk) [Revenue and Product Mix](index=19&type=section&id=Revenue%20and%20Product%20Mix) This section analyzes the Company's revenue and product mix, highlighting growth in SaaS and international expansion strategies - Revenue from Software as a Service (SaaS), including ORION Cellular and BEACON digital solutions, has significantly increased and is margin accretive, reflecting the industry's evolution towards advanced technologies[77](index=77&type=chunk) - The Company is pursuing additional revenue opportunities through expansion into select international markets (e.g., Middle East, UK) with its BlueEdge offering, field installation services, and strategic mergers and acquisitions[78](index=78&type=chunk) [Current Business Trends – Tariffs](index=19&type=section&id=Current%20Business%20Trends%20%E2%80%93%20Tariffs) This section addresses the impact of increased import tariffs on input costs and the Company's mitigation strategies - Increased import tariffs introduced by the United States in the first half of 2025 have the potential to raise input costs[79](index=79&type=chunk) - Badger Meter is managing tariff-related cost burdens through selective supply chain adjustments and pricing actions, with contingency plans in place for various economic scenarios[79](index=79&type=chunk) [Results of Operations - Three Months Ended June 30, 2025](index=19&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20June%2030,%202025) This section analyzes the Company's financial results for the three months ended June 30, 2025, focusing on net sales, earnings, and key expense drivers **Three Months Ended June 30, 2025 vs. 2024 (In millions):** | Metric | 2025 | 2024 | Change | % Change | | :-------------------- | :--- | :--- | :----- | :------- | | Net Sales | $238.1 | $216.7 | $21.4 | 9.9% | | Utility Water Sales | $212.2 | $190.6 | $21.6 | 11.4% | | Flow Instrumentation Sales | $25.9 | $26.1 | $(0.2) | -1.0% | | Operating Earnings | $44.9 | $41.5 | $3.4 | 8.1% | | Gross Margin % | 41.1% | 39.4% | 1.7 pp | | | SEA Expenses | $52.9 | $43.9 | $9.0 | 20.5% | | Net Earnings | $34.6 | $33.1 | $1.5 | 4.6% | | Diluted EPS | $1.17 | $1.12 | $0.05 | 4.5% | - Utility water net sales growth was driven by increased BEACON® SaaS revenues, higher meter volumes, and **$10.6 million** from the SmartCover acquisition[80](index=80&type=chunk) - Gross margin percentage improved due to increased sales volumes and a favorable product mix, including higher SaaS revenues, despite tariff and input cost pressures[81](index=81&type=chunk) - Selling, engineering, and administration (SEA) expenses increased significantly, primarily due to the SmartCover acquisition (including intangible asset amortization) and growth-related spending such as higher headcount and incentive compensation[81](index=81&type=chunk) [Results of Operations - Six Months Ended June 30, 2025](index=20&type=section&id=Results%20of%20Operations%20-%20Six%20Months%20Ended%20June%2030,%202025) This section analyzes the Company's financial results for the six months ended June 30, 2025, focusing on net sales, earnings, and key expense drivers **Six Months Ended June 30, 2025 vs. 2024 (In millions):** | Metric | 2025 | 2024 | Change | % Change | | :-------------------- | :--- | :--- | :----- | :------- | | Net Sales | $460.3 | $412.9 | $47.4 | 11.5% | | Utility Water Sales | $409.5 | $360.6 | $48.9 | 13.6% | | Flow Instrumentation Sales | $50.8 | $52.3 | $(1.5) | -2.9% | | Operating Earnings | $94.3 | $78.1 | $16.2 | 20.7% | | Gross Margin % | 42.0% | 39.4% | 2.6 pp | | | SEA Expenses | $99.0 | $84.5 | $14.5 | 17.2% | | Net Earnings | $73.0 | $62.2 | $10.8 | 17.4% | | Diluted EPS | $2.47 | $2.11 | $0.36 | 17.1% | - Utility water net sales increased due to higher metering and BEACON® SaaS revenues, along with **$16.7 million** from the SmartCover acquisition over five months[84](index=84&type=chunk) - Gross margin percentage improved significantly, driven by increased sales volumes and a favorable customer and product mix, partially offset by tariff and other input cost pressures[85](index=85&type=chunk) - SEA expenses rose due to the SmartCover acquisition (including intangible asset amortization) and continued investment in growth-related areas like headcount and merit increases[85](index=85&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=20&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section discusses the Company's liquidity sources, working capital, cash flow, and available credit lines - The Company's primary sources of liquidity are cash from operations and available borrowing capacity, with potential access to capital markets[88](index=88&type=chunk) **Primary Working Capital (PWC) (In thousands):** | Metric | June 30, 2025 | December 31, 2024 | Change | | :-------------------- | :------------ | :---------------- | :----- | | Receivables | $117,667 | $84,325 | $33,342 | | Inventories | $147,261 | $143,408 | $3,853 | | Payables | $(74,125) | $(55,659) | $(18,466) | | Primary Working Capital | $190,803 | $172,074 | $18,729 | | PWC as % of trailing twelve month Net sales | 21.8% | 20.8% | 1.0 pp | - Cash provided by operations increased to **$77.6 million** in the first six months of 2025, up **34.1%** from **$57.9 million** in the prior year, driven by higher net earnings and working capital changes[90](index=90&type=chunk) - Cash and cash equivalents decreased by **$130.1 million** to **$165.2 million** at June 30, 2025, primarily due to the **$184.0 million** SmartCover acquisition, partially offset by operating cash flow[91](index=91&type=chunk) - The Company had **$154.7 million** of unused credit lines available at June 30, 2025, and was in compliance with all credit facility covenants[92](index=92&type=chunk) [Item 3 Quantitative and Qualitative Disclosures about Market Risk](index=22&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section refers to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, stating that there have been no material changes to the quantitative and qualitative disclosures about market risk since that report was filed - No material changes to market risk disclosures have occurred since the Annual Report on Form 10-K for December 31, 2024[96](index=96&type=chunk) [Item 4 Controls and Procedures](index=22&type=section&id=Item%204%20Controls%20and%20Procedures) This section details the evaluation of the Company's disclosure controls and procedures and reports on any changes in internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=22&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section reports on management's conclusion regarding the effectiveness of the Company's disclosure controls and procedures - Management, with the CEO and CFO, concluded that the Company's disclosure controls and procedures were effective as of June 30, 2025[97](index=97&type=chunk) [Changes in Internal Control Over Financial Reporting](index=22&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) This section reports on any material changes in the Company's internal control over financial reporting during the quarter - There were no material changes in the Company's internal control over financial reporting during the quarter ended June 30, 2025[98](index=98&type=chunk) Part II. Other Information This section presents other required information, including risk factors, equity security sales, and exhibits [Item 1A Risk Factors](index=23&type=section&id=Item%201A%20Risk%20Factors) This section indicates that there have been no material changes to the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to risk factors have occurred since the Annual Report on Form 10-K for December 31, 2024[100](index=100&type=chunk) [Item 2 Unregistered Sales of Equity Securities and Use of Proceeds](index=23&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section provides information on the Company's share repurchase program, indicating no shares were purchased during the quarter ended June 30, 2025 - The Board authorized the repurchase of up to **200,000 shares** of Common Stock through February 2026[101](index=101&type=chunk) **Share Repurchase Program Activity (Quarter Ended June 30, 2025):** | Period | Total shares purchased | Average price paid per share | Total shares purchased as part of a publicly announced program | Maximum number of shares that may yet be purchased under the program | | :-------------------------- | :--------------------- | :--------------------------- | :----------------------------------------------------------- | :------------------------------------------------------------------- | | April 1, 2025 - April 30, 2025 | - | $ - | - | 200,000 | | May 1, 2025 - May 31, 2025 | - | $ - | - | 200,000 | | June 1, 2025 - June 30, 2025 | - | $ - | - | 200,000 | | Total as of June 30, 2025 | - | | - | 200,000 | [Item 5 Other Information](index=23&type=section&id=Item%205%20Other%20Information) This section confirms that no directors or executive officers adopted or terminated any Rule 10b5-1 or non-Rule 10b-1 trading arrangements during the second quarter of 2025 - No directors or executive officers adopted or terminated any Rule 10b5-1 or non-Rule 10b-1 trading arrangements during the second quarter of 2025[103](index=103&type=chunk) [Item 6 Exhibits](index=23&type=section&id=Item%206%20Exhibits) This section lists the exhibits filed as part of the Form 10-Q, including certifications by the CEO and CFO, and the interactive data files in iXBRL format - Exhibits include CEO and CFO certifications (31.1, 31.2, 32) and iXBRL formatted financial statements (101, 104)[105](index=105&type=chunk) [Signatures](index=24&type=section&id=Signatures) This section contains the signatures of the authorized officers of Badger Meter, Inc., certifying the filing of the report - The report is signed by Kenneth C. Bockhorst (Chairman, President and CEO), Robert A. Wrocklage (Senior Vice President – CFO), and Daniel R. Weltzien (Vice President – Controller and Treasurer) on July 23, 2025[109](index=109&type=chunk)

Core Insights - Badger Meter, Inc. (BMI) reported Q2 2025 EPS of $1.17, missing the Zacks Consensus Estimate by 3.3%, but up from $1.12 in the same quarter last year [1] - Quarterly net sales reached $238.1 million, a 10% increase from $216.7 million year-over-year, driven by higher utility water sales and contributions from the SmartCover acquisition [1] Segment Performance - Utility water sales increased by 11% year-over-year, supported by the adoption of digital smart water technologies and higher demand for metering solutions [4] - Flow instrumentation sales remained flat year-over-year, with slight growth in water-related markets offset by reduced demand in non-water-related applications [5] Financial Performance - Gross profit rose to $97.8 million from $85.4 million in the prior year, with a gross margin of 41.1%, up 170 basis points year-over-year [6] - Operating earnings increased by 8% year-over-year to $44.9 million, while operating margin slightly declined to 18.8% [7] Cash Flow & Liquidity - Cash from operations grew to $44.6 million from $36.4 million a year ago, with cash and cash equivalents at $165.2 million as of June 30, 2025 [11] Management Commentary - Management noted strong demand for its cellular AMI solution and BlueEdge portfolio, despite macroeconomic challenges [2] - The integration of SmartCover is expected to reveal new market opportunities [2] Outlook - The company anticipates high single-digit revenue growth in the long term, supported by strong industry fundamentals and sustained customer demand [12]

Core Viewpoint - Badger Meter (BMI) has experienced significant selling pressure, with a 17.2% decline over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, supported by analyst consensus for better-than-expected earnings [1] Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 typically indicating that a stock is oversold [2] - BMI's current RSI reading is 20.39, suggesting that the heavy selling pressure may be exhausting itself, indicating a potential reversal in trend [5] Group 2: Fundamental Analysis - Analysts have raised earnings estimates for BMI, with a 0.9% increase in the consensus EPS estimate over the last 30 days, which often correlates with near-term price appreciation [7] - BMI holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further indicating a potential turnaround [8]