Badger Meter(US:BMI) ZACKS·2025-04-21 10:45Core 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]