Financial Results Announcement - Badger Meter, Inc. announced its financial results for Q1 2025 on April 17, 2025[4] - The press release detailing the financial results is available as Exhibit 99.1[5] Company Information - The company is listed on the New York Stock Exchange under the ticker symbol BMI[2] - The report does not indicate whether Badger Meter is an emerging growth company[3] - No specific financial metrics or performance data were provided in the extracted content[4]

Financial Performance - Net sales in 2024 increased by $123.0 million, or 17.5%, to $826.6 million from $703.6 million in 2023, with utility water market sales rising by 20.3% to $725.5 million [141]. - Operating earnings in 2024 were $157.9 million, or 19.1% of sales, compared to $118.0 million, or 16.8% of sales in 2023, with gross margin as a percentage of sales increasing from 39.3% to 39.8% [143]. - Cash provided by operations in 2024 was $155.0 million, up from $110.1 million in 2023, driven by increased operating earnings and effective working capital management [150]. - Earnings per share on a diluted basis increased to $4.23 in 2024 from $3.14 in 2023, reflecting strong operational performance [147]. Acquisitions and Investments - The Company acquired 100% of SmartCover for approximately $185 million in cash effective January 30, 2025, enhancing its sewer line monitoring capabilities [136]. - The Company also acquired the Telog/Unity Assets for $3.0 million in cash effective January 1, 2024, expanding its remote water monitoring offerings [137]. Working Capital and Efficiency - Primary working capital as a percentage of sales was 20.8% as of December 31, 2024, compared to 22.1% in 2023, indicating improved efficiency [149]. - The Company had a net cash position of $295.3 million at the end of 2024, with $154.1 million of unused credit lines available [153]. Warranty and Tax Liabilities - The reserve for product warranties increased from $11.1 million in 2023 to $16.7 million in 2024, reflecting a rise in warranty claims rates due to new technology introductions [156]. - The gross accrued liability for unrecognized tax benefits decreased from $1.4 million in 2023 to $1.2 million in 2024, with accrued interest remaining approximately $0.1 million for both years [157]. - Valuation allowances for deferred tax assets rose from $2.7 million in 2023 to $3.3 million in 2024, primarily related to foreign net operating loss carryforwards [159]. Market Position and Risks - The Company estimates that approximately 40% of water utility connections in the U.S. have converted to an AMI radio solution, positioning it well for future growth [130]. - The Company is exposed to market risks due to competition in the water metering market, with potential impacts from new entrants lacking brand recognition [164]. - The Company relies on single suppliers for certain components, which could disrupt operations if those suppliers are lost [166]. - The price and availability of raw materials are influenced by economic conditions, with commodity risk managed by locking in purchase prices [167]. - The Company believes foreign currency risk will not materially affect its financial position or results of operations [168]. - The Company does not hold or issue derivative instruments for trading purposes, adhering to a strict policy against such practices [169]. - The Company is subject to contingencies related to environmental laws, which could result in future costs if circumstances change [162]. Goodwill and Intangible Assets - The Company completed its impairment analysis for goodwill and intangible assets in Q4 2024, noting no impairment and no adjustments recorded [161]. Software and Margin Improvement - The Company’s revenue from Software as a Service (SaaS) has significantly increased, contributing to margin improvement [134].

Financial Data and Key Metrics Changes - The company reported a 13% quarterly sales growth, building on a challenging 24% increase in the prior year comparable quarter [6] - Consolidated EPS was $1.04 in Q4 2024, a 24% improvement from $0.84 in the prior year comparable quarter [10] - Operating margins expanded by 150 basis points to 19.1% in the quarter, with gross profit margins improving to 40.3% from 39.2% in the prior year [7][10] - Free cash flow reached a record $47.4 million, up 32% year over year [11] Business Line Data and Key Metrics Changes - Total utility water product line sales increased by 14% year over year, driven by strong demand for the Blue Edge suite of utility smart water solutions [6] - Sales for the flow instrumentation product line were up slightly by 1% in the quarter, as growth in core water-related applications offset declines in other areas [7] Market Data and Key Metrics Changes - The company achieved 18% sales growth in 2024, surpassing $800 million in revenue, with a five-year top-line CAGR of 14% [12] - Software revenue exceeded $56 million, representing 6.7% of sales and a 28% compound annual growth rate over the past five years [12] Company Strategy and Development Direction - The acquisition of Smart Cover was announced, aimed at enhancing the company's offerings in sewer and lift station monitoring [4][14] - The company plans to leverage existing cash for the acquisition, which was priced at $185 million, equating to about five times Smart Cover's 2024 sales of approximately $35 million [15] - The strategic focus remains on addressing macro water challenges and enhancing the Blue Edge suite of solutions [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing positive tone of the business, with expectations for high single-digit growth in 2025 [27] - The company anticipates continued improvement in margins and working capital efficiency, despite potential macroeconomic uncertainties [18][19] Other Important Information - The company reclassified the current portion of deferred revenue from payables to other current liabilities, which does not affect cash from operations or free cash flow [70] - The next earnings call is tentatively scheduled for April 17, 2025, marking the last call for the current VP of Investor Relations [71] Q&A Session Summary Question: Can you clarify your Mexico manufacturing exposure and contingency plans for potential tariffs? - Management acknowledged the uncertainty surrounding tariffs but emphasized their limited sourcing from China and strong operational capabilities in North America [22][25] Question: What are the demand drivers for Smart Cover? - Demand is driven by regulatory compliance, labor availability, and the need for real-time monitoring due to extreme weather events [31][32] Question: How much of Smart Cover's revenue is recurring? - Approximately one-third of Smart Cover's $35 million in trailing revenue is classified as recurring, with an additional 20% from aftermarket product replacement services [35] Question: What enabled the improvement in working capital performance? - Continuous improvement efforts and a focus on inventory management contributed to the reduction in inventory levels [36][38] Question: What is the outlook for revenue cadence through 2024? - Management noted that revenue can be uneven from quarter to quarter, with expectations for high single-digit growth over the strategic planning horizon [44][45] Question: Why does Smart Cover have a significant market share in monitoring solutions? - Smart Cover has established a strong presence in the market, leveraging its expertise and existing relationships with utility customers [49][50] Question: Will the acquisition of Smart Cover be accretive or dilutive to earnings in the short term? - The acquisition is expected to be EPS dilutive in 2025 but accretive in the following year [67]

Financial Results Announcement - Badger Meter, Inc. announced its financial results for Q4 2024 on January 31, 2025[4] - The press release detailing the financial results is available as Exhibit 99.1[5] Company Information - The company is listed on the New York Stock Exchange under the symbol BMI[2] - The report was signed by Robert A. Wrocklage, Senior Vice President – Chief Financial Officer[10]

Table of Contents 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 For the quarterly period ended September 30, 2024 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. (Exact name of registrant as specified in its charter) 39-0143280 (I.R.S. Employer Identification ...

Financial Data and Key Metrics Changes - The company reported a 12% year-over-year sales growth in Q3 2024, following a 26% increase in the prior year comparable quarter [4][5] - Operating margins reached a record high of 19.5%, with gross margins improving to 40.2%, up from 39.1% in the prior year [6][7] - Consolidated EPS improved by 23% to $1.08 from $0.88 in the prior year [9] - Free cash flow reached a record $42 million, a 48% increase from $28 million in the previous year [9] Business Line Data and Key Metrics Changes - Total utility water product line sales increased by 14% year-over-year, driven by strong demand for the BlueEdge suite of utility smart water solutions [5] - Software as a Service (SaaS) revenues grew approximately 35% in the quarter, reflecting increased customer reliance on the BEACON digital solution [5][6] - Sales for the flow instrumentation product line remained flat, with solid order trends in focused water-related applications [6] Market Data and Key Metrics Changes - The company anticipates fewer customer operating days in Q4 due to the U.S. holiday season, which may impact sales [6][13] - Hurricane-related recovery activities could delay certain utility projects in the Southeastern U.S., although the impact is still uncertain [6][13] Company Strategy and Development Direction - The company continues to focus on high single-digit sales growth rates over the strategic cycle, with a strong opportunity funnel and bid pipeline [13] - The BlueEdge suite is designed to provide tailored solutions for customers, enhancing their ability to manage water efficiently [10][11] - The company remains committed to capital allocation priorities, including R&D leadership, dividend increases, and strategic M&A opportunities [14][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong results despite potential unevenness in quarterly performance [16][20] - The macro drivers for technology adoption in the water industry are becoming more pronounced, particularly due to extreme weather events and aging infrastructure [12][13] - Management does not expect down years in sales, citing strong historical performance even during challenging times [19][20] Other Important Information - The company is transitioning its investor relations leadership, with Karen Bauer set to retire in spring 2025 [2] - The company has maintained a healthy balance sheet and cash flow generation profile, allowing for continued investment in growth [14] Q&A Session Summary Question: Outlook for 2025 sales growth - Management indicated that while growth may moderate, they do not expect a down year, citing strong macro drivers in the industry [16][19] Question: Drivers of margin improvement - Management confirmed that margin improvement was driven by unit volume increases, pricing, and product mix [18] Question: Impact of hurricanes on business - Management acknowledged potential delays in projects due to hurricanes but emphasized that they do not expect cancellations [20][22] Question: Backlog normalization - Management stated that the backlog remains positive, with no significant changes noted in the current quarter [24] Question: SaaS revenue growth drivers - The majority of SaaS revenue growth is attributed to a 100% attachment rate to hardware sales, with additional contributions from new services [25][26] Question: International market opportunities - Management highlighted growth in international markets, particularly through acquisitions that have established customer relationships [38][39]

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) October 17, 2024 Badger Meter, Inc. (Exact name of registrant as specified in its charter) | --- | --- | |---------------------|-------| | | | | | | | | | | | | | | | | | | | Wisconsin | | | (State or other | | | | | | jurisdiction | | | incorporat ...

Table of Contents In addition, certain water utilities are converting from mechanical to static meters. Ultrasonic water metering maintains a high level of measurement accuracy over the life of the meter, reducing a utility's non-revenue water. The Company has over a decade of proven reliability in the market with its ultrasonic meters. Acquisitions The total purchase consideration for Syrinix, net of cash acquired, was $17.1 million. The Company's allocation of the purchase price at December 31, 2023 inclu ...

Badger Meter, Inc. (NYSE:BMI) Q2 2024 Earnings Call Transcript July 19, 2024 11:00 AM ET Company Participants Karen Bauer - VP of IR, Corporate Strategy and Treasurer Ken Bockhorst - Chairman, President and CEO Bob Wrocklage - CFO Conference Call Participants Nathan Jones - Stifel Andrew Krill - Deutsche Bank Rob Mason - Baird Operator Ladies and gentlemen, welcome to the Second Quarter 2024 Badger Meter Earnings Conference Call. After the prepared remarks, there will be an opportunity to ask questions. [Op ...

fi | --- | --- | --- | --- | --- | |---------------------|-------|-------|-------|-------| | | | | | | | | | | | | | Badger Meter | | | | | | Second Quarter 2024 | | | | | | Financial Results | | | | | | July 19, 2024 | | | | | | | | | | | | | | | | | In this presentation certain non-GAAP financial measures may be used. Please see the supplemental financial schedules at the end of this presentation for a reconciliation to the appropriate GAAP measure. 3 • Healthy pipeline and bid funnel; back half of year f ...