Table of Contents For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-06706 BADGER METER, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of registrant as specified in its charter) | Wisconsin | 39-0143280 | | --- | --- | | (Sta ...

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]

Badger Meter (BMI) has been on a downward spiral lately with significant selling pressure. After declining 17.2% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum osci ...

Financial Data and Key Metrics Changes - Total sales reached $238 million in Q2 2025, representing a 10% year-over-year increase or 5% growth excluding $10 million from Smart Cover [6][11] - Operating earnings increased by 8% year-over-year to $44.9 million, with operating margins slightly down to 18.8% from 19.2% [7][11] - Gross margins expanded by 170 basis points to 41.1% from 39.4% in the prior year quarter, despite a sequential decline from 42.9% in Q1 2025 [8][10] - Free cash flow increased by 19% year-over-year to $40.6 million, largely due to higher earnings and improved working capital [11] Business Line Data and Key Metrics Changes - Utility water product line sales increased by 11% year-over-year or 6% excluding Smart Cover [6] - Sales for flow instrumentation product line were flat year-over-year, with lower demand in certain market applications offsetting modest growth in water-related end markets [7] Market Data and Key Metrics Changes - The company continues to see a robust demand for its products, with increasing numbers of RFPs requesting solutions beyond the meter [14] - The competitive landscape remains level, with ongoing trade uncertainties impacting pricing and costs [10] Company Strategy and Development Direction - The launch of BlueEdge aims to unify a comprehensive suite of products for managing water and wastewater systems beyond the meter, enhancing customer value [12][13] - The company is focused on long-term growth, expecting high single-digit revenue growth driven by favorable industry fundamentals and customer demand trends [17] - The integration of Smart Cover is progressing well, with expectations for sales and cost synergies to be realized [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties while supporting long-term customer goals [5] - Despite expected sequential sales decline in Q3 2025, year-over-year growth is still anticipated, excluding Smart Cover [16] - The company remains optimistic about the long-term demand for its core products, which are critical to utility operations [17] Other Important Information - The company has raised its sustainability targets and published a 2024 sustainability report, highlighting its commitment to greenhouse gas reduction [18] Q&A Session Summary Question: Inquiry about SG&A expense increase - Management acknowledged the increase in SG&A expenses due to the full quarter of Smart Cover and a unique deferred compensation expense, indicating ongoing investments to support growth [20][22] Question: Clarification on SG&A expense levels - Management confirmed that the $1.6 million intangible amortization is expected to continue, and the $52 million SG&A level may be a new baseline moving forward [24][25] Question: Impact of tariff costs on pricing - Management indicated that pricing actions implemented in mid-April may not fully mitigate tariff cost pressures, leading to uncertainty in future gross margins [39][40] Question: Status of AMI projects and market demand - Management clarified that while some AMI projects have rolled off, the overall project funnel remains robust, and customer demand for new projects is unchanged [44][45] Question: Smart Cover sales performance - Management expressed excitement about Smart Cover's integration and sales performance, indicating that the growth is driven by market positioning rather than seasonality [52][55] Question: Potential impact of EPA budget cuts - Management reassured that utilities have multiple funding avenues for projects, and the demand for metering remains a high priority regardless of potential budget cuts [70][71]

Financial Data and Key Metrics Changes - Total sales for Q2 2025 reached $238 million, representing a 10% year-over-year increase or 5% growth excluding Smart Cover sales of over $10 million [6][11] - Operating earnings increased by 8% year-over-year to $44.9 million, with operating margins slightly down to 18.8% from 19.2% in the prior year [7][11] - Gross margins expanded by 170 basis points to 41.1% from 39.4% in the prior year quarter, although this was a sequential decline from 42.9% in Q1 2025 [8][10] - Free cash flow increased by 19% year-over-year to $40.6 million, driven by higher earnings and improved working capital [11] Business Line Data and Key Metrics Changes - Utility water product line sales increased by 11% year-over-year or 6% excluding Smart Cover [6] - Sales for flow instrumentation product line remained flat year-over-year due to lower demand in certain market applications [7] Market Data and Key Metrics Changes - The competitive landscape is viewed as level, with ongoing trade uncertainties impacting tariff-related costs [10] - The company continues to see strong customer demand and momentum in technology adoption trends within the water industry [5][16] Company Strategy and Development Direction - The launch of BlueEdge aims to unify a comprehensive suite of products for managing water and wastewater systems beyond the meter, with positive reception at industry events [12][13] - The company is focused on long-term growth, expecting high single-digit revenue growth driven by favorable industry fundamentals and customer demand trends [16][17] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about navigating macroeconomic uncertainties while supporting long-term customer goals [5] - Despite expected sequential sales decline in Q3 2025, year-over-year growth is still anticipated excluding Smart Cover [15] - The company emphasizes the importance of the meter as a critical investment for utilities, reinforcing confidence in sustained demand [16] Other Important Information - The company is on track to deliver anticipated sales and cost synergies from the Smart Cover acquisition, with a focus on leveraging existing resources [17][68] - The recently published sustainability report highlights achievements in greenhouse gas reduction and financial performance [18] Q&A Session Summary Question: Inquiry about SG&A expense increase - Management acknowledged the increase in SG&A expenses due to the full quarter of Smart Cover and a unique deferred compensation expense, indicating ongoing investments to support growth [21][22][23] Question: Clarification on deferred compensation impact - Management clarified that while the deferred compensation expense was unique to the quarter, some impact would remain due to stock price fluctuations [32][33] Question: Comments on AMI project timing and municipal activity - Management noted that project timing can be uneven, but the demand for new projects remains strong, with no long-term concerns about growth [44][45] Question: Impact of potential EPA budget cuts - Management expressed confidence that utilities will continue to prioritize investments in metering regardless of potential funding cuts, citing various funding mechanisms available [70][71]

Badger Meter Second Quarter 2025 Financial Results July 22, 2025 1 Forward Looking Statements Certain statements contained in this presentation 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 words "anticipate," "believe," "estimate," "expect," "think," "should," "could" and "objective" or s ...

Badger Meter (BMI) came out with quarterly earnings of $1.17 per share, missing the Zacks Consensus Estimate of $1.21 per share. This compares to earnings of $1.12 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -3.31%. A quarter ago, it was expected that this manufacturer of products that measure gas and water flow would post earnings of $1.08 per share when it actually produced earnings of $1.3, delivering a surprise of +20. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 _______________________ Date of Report (Date of earliest event reported) July 22, 2025 4545 W. Brown Deer Rd., Milwaukee, Wisconsin 53223 (Address of principal executive offices, including zip code) (414) 355-0400 (Registrant's telephone number, including area code) Not Applicable Badger Meter, Inc. (Exact name of registrant as specified in it ...

Investors are always looking for stocks that are poised to beat at earnings season and Badger Meter, Inc. (BMI) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because Badger Meter is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty goo ...

Core Insights - Badger Meter, Inc. (BMI) is expected to report second-quarter 2025 earnings on July 22, with revenue estimates at $234.33 million, reflecting an 8.2% year-over-year growth, and earnings per share estimated at $1.21, indicating an 8.04% increase from the previous year [1][2] Financial Performance - The company has consistently exceeded the Zacks Consensus Estimate in the last four quarters, with an average surprise of 10.88% [2] - Utility water sales are projected to rise to $210 million from $173 million year-over-year, driven by strong demand for mechanical and E-Series Ultrasonic meters, ORION Cellular endpoints, and BEACON SaaS solutions [4][10] Growth Drivers - Badger Meter is benefiting from steady customer demand for smart water solutions and disciplined operational execution, particularly in cellular AMI solutions [2] - The introduction of the BlueEdge framework in May 2024 aims to enhance the company's water solutions portfolio, allowing for customization across the entire water cycle [3] - The acquisition of SmartCover on January 30, 2025, adds advanced sewer and lift-station monitoring capabilities to Badger's offerings, with positive customer feedback reinforcing its strategic value [3] Margin and Cost Management - Gross margin is expected to be supported by higher volumes, a favorable sales mix, and effective price/cost management, with long-term expectations of 38-40% [5] - However, elevated expenses from growth investments may offset some of the gross margin benefits [10] Market Outlook - Despite facing a challenging year-over-year comparison in the second quarter, the company remains optimistic about long-term growth, anticipating continued high single-digit revenue growth driven by industry trends in water infrastructure and smart technologies [7] - The flow instrumentation segment is experiencing a decline, with sales expected to dip 5% year-over-year, reflecting challenges in certain de-emphasized markets [6]