Financial Performance - Sales reached $238 million, a 10% increase year-over-year, although 5% excluding SmartCover[7] - Operating margin decreased by 40 bps to 18.8%[7] - EPS grew by 4% year-over-year to $1.17 per share[7] - Free cash flow increased by 19% year-over-year to $41 million[7] - Gross margin improved by 170 bps to 41.1%[8] Business Segments - Utility water sales increased by 11% (6% excluding SmartCover)[8] - Flow instrumentation sales were essentially flat[8] Sustainability - The company reduced GHG emissions intensity by 55% since 2020[15] - The company reduced internal water usage intensity by 30%[15] - The company aims to reduce future GHG intensity by 30% using 2024 as the next baseline[15] Outlook - The company anticipates long-term shareholder value creation with favorable demand and industry dynamics[16]

Core Viewpoint - Badger Meter reported quarterly earnings of $1.17 per share, missing the Zacks Consensus Estimate of $1.21 per share, but showing an increase from $1.12 per share a year ago [1][2] Financial Performance - The company posted revenues of $238.1 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.61% and increasing from $216.66 million year-over-year [3] - Badger Meter has surpassed consensus revenue estimates three times over the last four quarters [3] Stock Performance - Badger Meter shares have increased approximately 15.6% since the beginning of the year, compared to a 7.2% gain in the S&P 500 [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.22 on revenues of $234.97 million, and for the current fiscal year, it is $4.93 on revenues of $924.92 million [8] - The estimate revisions trend for Badger Meter was mixed ahead of the earnings release, which may change following the recent report [7] Industry Context - The Instruments - Control industry, to which Badger Meter belongs, is currently in the top 11% of over 250 Zacks industries, indicating a favorable outlook [9]

[FORM 8-K Filing Details](index=1&type=section&id=FORM%208-K%20Filing%20Details) This section provides essential details regarding the Form 8-K filing, including registrant identification and securities registration information [Registrant Information](index=1&type=section&id=Registrant%20Information) This section identifies Badger Meter, Inc. as the registrant for this Form 8-K filing, detailing its incorporation state, commission file number, IRS employer identification number, and principal executive offices - Registrant: **Badger Meter, Inc.**[1](index=1&type=chunk) - Date of Report (earliest event reported): **July 22, 2025**[1](index=1&type=chunk) - Jurisdiction of incorporation: **Wisconsin**[1](index=1&type=chunk) [Securities Registration](index=1&type=section&id=Securities%20Registration) The company's Common Stock is registered on the New York Stock Exchange under the symbol BMI, and the registrant is not an emerging growth company Securities Registration Details | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :------------------ | :---------------- | :---------------------------------------- | | Common Stock | BMI | New York Stock Exchange | - Badger Meter, Inc. is **not an emerging growth company**[3](index=3&type=chunk) [Item 2.02 Results of Operations and Financial Condition](index=3&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) This section details the announcement of the company's financial results for the second quarter of 2025 [Second Quarter 2025 Financial Results Announcement](index=3&type=section&id=Second%20Quarter%202025%20Financial%20Results%20Announcement) Badger Meter, Inc. announced its financial results for the second quarter ended June 30, 2025, through a press release issued on July 22, 2025, which is furnished as Exhibit 99.1 - Badger Meter, Inc. issued a press release on **July 22, 2025**, announcing financial results for the **second quarter ended June 30, 2025**[4](index=4&type=chunk) - The press release is furnished as **Exhibit 99.1**[5](index=5&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=3&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section provides an index of the financial statements and exhibits included in the filing [Exhibit Index](index=3&type=section&id=Exhibit%20Index) This section lists the exhibits accompanying the Form 8-K filing, specifically identifying the press release dated July 22, 2025, as Exhibit 99.1 Exhibits Included | Exhibit No. | Description | | :---------- | :-------------------------------- | | (99.1) | Badger Meter, Inc. Press Release, dated July 22, 2025. | [SIGNATURES](index=3&type=section&id=SIGNATURES) This section confirms the official authorization and signing of the Form 8-K report [Report Authorization](index=3&type=section&id=Report%20Authorization) The report was duly signed on behalf of Badger Meter, Inc. by Robert A. Wrocklage, Senior Vice President – Chief Financial Officer, on July 22, 2025 - The report was signed by **Robert A. Wrocklage**, **Senior Vice President – Chief Financial Officer**[12](index=12&type=chunk) - Date of signing: **July 22, 2025**[12](index=12&type=chunk)

Core Insights - Badger Meter, Inc. (BMI) is positioned favorably for an upcoming earnings report, with positive trends indicating a potential earnings beat [1][5] Earnings Estimates - Recent earnings estimate revisions for BMI have been favorable, suggesting analysts are optimistic about the company's performance [2] - The Most Accurate Estimate for the upcoming quarter is $1.28 per share, compared to the broader Zacks Consensus Estimate of $1.21 per share, indicating a recent upward revision by analysts [3] Earnings ESP - BMI has a Zacks Earnings ESP of +5.61%, which is a positive indicator heading into earnings season [3] - A positive Zacks Earnings ESP has historically led to positive surprises and outperformance in the market, with a nearly 70% success rate in producing positive surprises [4] Investment Consideration - With a Zacks Rank of 3 (Hold) and a positive Earnings ESP, BMI may be a stock worth considering for investors ahead of the earnings report [5]

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]

Group 1: Stock Performance - Badger Meter (BMI) closed at $240.91, with a +1.36% increase from the previous day, outperforming the S&P 500's gain of 0.32% [1] - Prior to the recent trading session, shares had declined by 2.01%, lagging behind the Computer and Technology sector's gain of 7.22% and the S&P 500's gain of 4.51% [1] Group 2: Earnings Performance - Badger Meter is set to release earnings on July 22, 2025, with projected EPS of $1.21, indicating an 8.04% increase year-over-year [2] - The Zacks Consensus Estimate for revenue is $234.33 million, reflecting an 8.16% increase from the same period last year [2] Group 3: Full-Year Estimates - Full-year Zacks Consensus Estimates predict earnings of $4.93 per share and revenue of $924.92 million, representing year-over-year changes of +16.55% and +11.9%, respectively [3] Group 4: Analyst Estimates and Stock Performance - Recent changes in analyst estimates for Badger Meter indicate positive sentiment regarding the company's business and profitability [3] - Empirical research shows that revisions in estimates correlate with stock price performance, which is utilized in the Zacks Rank model [4] Group 5: Zacks Rank and Valuation - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with 1 stocks averaging a +25% annual return since 1988 [5] - Badger Meter currently holds a Zacks Rank of 3 (Hold) [5] - The company has a Forward P/E ratio of 48.2, indicating a premium compared to the industry average Forward P/E of 26.31 [6] Group 6: Industry Metrics - Badger Meter has a PEG ratio of 3.39, aligning with the industry average [7] - The Instruments - Control industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 229, placing it in the bottom 8% of over 250 industries [7][8]

Core Insights - Rhythm Pharmaceuticals announced positive topline results from its Phase 2 trial of bivamelagon, showing significant BMI reductions in patients with acquired hypothalamic obesity [2][3] - The company plans to engage with regulatory authorities for a Phase 3 trial design and has requested an End-of-Phase 2 meeting with the U.S. FDA [7] Group 1: Trial Results - Bivamelagon achieved BMI reductions of -9.3% in the 600mg cohort and -7.7% in the 400mg cohort at 14 weeks [1][4] - A post-hoc analysis indicated that the BMI reductions from bivamelagon were consistent with those achieved by setmelanotide in similar patient populations [3][5] - Patients reported a mean reduction of -2.8 points in hunger scores in both the 600mg and 400mg cohorts [1][3] Group 2: Safety and Tolerability - The trial demonstrated safety and tolerability consistent with MC4R agonism, with limited instances of localized hyperpigmentation observed [4][6] - The most common adverse events included mild diarrhea and nausea, with one serious adverse event reported [6] Group 3: Next Steps and Regulatory Plans - Rhythm plans to seek input from U.S. and EU regulatory authorities regarding the Phase 3 trial design for bivamelagon [7] - The company is refining the formulation of bivamelagon to potentially improve tolerability before initiating the Phase 3 trial [7] Group 4: Company Background - Rhythm Pharmaceuticals is focused on transforming the lives of patients with rare neuroendocrine diseases and has in-licensed bivamelagon from LG Chem, Ltd [2][13] - The company’s lead asset, setmelanotide, is already approved for treating certain types of obesity [13][14]

Company Performance - Badger Meter (BMI) ended the recent trading session at $239.51, demonstrating a -1.28% change from the preceding day's closing price, trailing the S&P 500 which registered a daily loss of 0.79% [1] - Over the past month, shares of Badger Meter had lost 1.73%, lagging behind the Computer and Technology sector's gain of 7.88% and the S&P 500's gain of 5.22% [2] Earnings Projections - The company is scheduled to release its earnings on July 22, 2025, with projected earnings per share (EPS) of $1.19, reflecting a 6.25% increase from the same quarter last year, and expected revenue of $234.33 million, showing an 8.16% escalation compared to the year-ago quarter [3] - For the full year, Zacks Consensus Estimates project earnings of $4.91 per share and revenue of $924.92 million, representing changes of +16.08% and +11.9%, respectively, from the prior year [4] Analyst Estimates and Valuation - Recent changes to analyst estimates for Badger Meter reflect the latest short-term business trends, with upbeat changes indicating a favorable outlook on business health and profitability [5] - Badger Meter is currently trading at a Forward P/E ratio of 49.41, which is a premium compared to the industry average Forward P/E of 27.52 [8] Industry Context - The Instruments - Control industry, which includes Badger Meter, is part of the Computer and Technology sector and currently carries a Zacks Industry Rank of 201, placing it within the bottom 19% of over 250 industries [10]

Core Viewpoint - Badger Meter, Inc. (BMI) has shown a strong stock performance with a year-to-date gain of 14.9%, outperforming the S&P 500 and the Instruments-Control industry [1][2] Group 1: Positive Long-Term Outlook - Increasing demand for digital smart water solutions is driven by regulatory pressures, aging infrastructure, and climate-related challenges [3] - Macroeconomic factors such as replacement-driven demand and the rise of Advanced Metering Infrastructure (AMI) adoption are additional growth drivers [3] - BMI is experiencing strong demand for its products, including mechanical and E-Series Ultrasonic meters, ORION Cellular endpoints, and BEACON Software-as-a-Service revenues [4] Group 2: Strategic Acquisitions - BMI's acquisition of SmartCover Systems for $185 million enhances its monitoring solutions and expands its BlueEdge suite [7] - SmartCover contributes $35 million in annual revenues and provides technology that helps utilities monitor sewer levels, reducing costs and protecting public health [8] - The acquisition has already generated $6 million in revenue contribution within months [9] Group 3: Financial Performance - BMI reported a record quarterly free cash flow of $30 million, a 60% increase year over year, supported by improved earnings and effective working capital management [10] - As of March 31, 2025, the company had $131.4 million in cash and cash equivalents, indicating a strong cash position [10] Group 4: Challenges Ahead - Rising expenses and intense competition pose challenges, with ongoing tariff uncertainties expected to impact U.S. manufacturing operations [11] - Tariffs on electronics and components may lead to higher input costs, necessitating selective price increases [12] - The first quarter of 2025 saw SEA expenses rise to $46 million, primarily due to the incorporation of SmartCover [13] Group 5: Market Position and Valuation - BMI's stock is trading at a forward price/earnings ratio of 48.48X, significantly higher than the industry's 18.96X, reflecting its long-term growth potential [16] - Analysts have revised earnings estimates downward by 0.9% for the current quarter, indicating some caution in the market [17] Group 6: Investment Strategy - The company's strong position in the smart water solutions market and strategic acquisitions provide a competitive edge [18] - While the valuation is high and short-term cost pressures exist, robust free cash flow and a solid balance sheet offer financial flexibility [18] - New investors are advised to wait for a better entry point, while existing investors should retain their holdings [19]

Core Insights - Badger Meter, Inc. (BMI) reported Q1 2025 EPS of $1.30, exceeding Zacks Consensus Estimate by 20.4% and up from $0.99 in the same quarter last year [1] - Quarterly net sales reached $222.2 million, a 13% increase from $196.3 million year-over-year, driven by higher utility water sales and contributions from the SmartCover acquisition [1][4] Financial Performance - Gross profit for the quarter was $95.4 million, up from $77.2 million year-over-year, with a gross margin of 42.9%, an increase of 360 basis points [6] - Operating earnings surged 35% year-over-year to $49.5 million, with an operating margin of 22.2%, also expanding by 360 basis points [6] - The company generated $33 million in net cash from operating activities, compared to $21.5 million a year ago [9] Segment Performance - Utility water sales increased by 16%, supported by strong demand for mechanical and E-Series Ultrasonic meters, and a 12% organic growth excluding SmartCover contributions [4] - Flow instrumentation sales decreased by 5% year-over-year, but showed a 7% sequential increase from Q4 2024, indicating potential long-term growth [5] Strategic Developments - Badger Meter completed the acquisition of SmartCover on January 30, 2025, enhancing its smart water portfolio with advanced monitoring capabilities [2] - Customer feedback on SmartCover's integration has been positive, reinforcing the strategic value of the acquisition [2] Market Reaction - Following the strong performance, BMI's shares rose by 9.64%, closing at $201.63 on April 17, 2025, with a year-over-year gain of 11.3% compared to a 10.8% decline in the Zacks Instruments-Control industry [3] Outlook - The company anticipates a challenging year-over-year comparison in Q2 but remains optimistic about long-term growth, expecting continued high single-digit revenue growth [11]