Financial Data and Key Metrics Changes - Total sales for Q4 2025 reached $221 million, an 8% year-over-year increase, with base sales growth of 2% [6] - Operating earnings grew by 10% year-over-year, with operating profit margins increasing by 40 basis points to 19.5% [9] - Consolidated EPS was $1.14, a 10% increase from $1.04 in the prior year quarter [12] - Record quarterly free cash flow of $50.8 million, up approximately $3.4 million year-over-year [12] Business Line Data and Key Metrics Changes - Utility water product line sales increased by 9% year-over-year, or 2% excluding SmartCover [6] - Flow instrumentation product line sales were flat year-over-year, with modest growth in water-focused end markets [9] - SmartCover generated $40 million in sales for 2025, representing a 25% annualized growth [21] Market Data and Key Metrics Changes - The U.S. market for meters is approximately 6 million units per year, with Badger Meter holding about 30% market share [35] - 85% of the U.S. market is replacement-driven, indicating a stable demand for Badger Meter's products [63] Company Strategy and Development Direction - The company aims to leverage its cellular AMI technology as a foundation for real-time insights and analytics, expanding through the Blue Edge suite of smart water management solutions [14] - The PRASA AMI project is expected to be one of the largest deployments globally, with a focus on E-Series ultrasonic meters and ORION cellular AMI radios [15] - The company is committed to maintaining a clean balance sheet with over $225 million in cash, allowing for organic and inorganic growth investments [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving high single-digit sales growth over the next five years, despite potential project pacing dynamics in 2026 [24] - The company does not foresee significant impacts from federal funding constraints on its growth trajectory [23] - Management highlighted the importance of long-term trends in the water industry, which support demand for smart water management solutions [22] Other Important Information - The company successfully integrated SmartCover into its operations, with expectations for earnings accretion in 2026 [21] - SG&A expenses in Q4 were $49.9 million, with a year-over-year increase primarily due to the SmartCover acquisition [11] Q&A Session Summary Question: Did the company see the full impact of project conclusions in Q4? - Management noted that project pacing can vary, and the second half of the year was expected to show lower growth due to fewer working days and project completions [27][28] Question: What is the expected growth rate for 2026? - Management anticipates a lower growth rate in the first half of 2026, with a higher growth rate expected in the second half due to awarded projects [30][31] Question: How does the company view the U.S. market size and its share? - Management confirmed that the U.S. market size is around 6 million meters per year, with Badger Meter's share remaining approximately 30% [35][38] Question: What is the expected impact of the PRASA project on revenue? - Management refrained from sizing the revenue impact of the PRASA project, emphasizing the variability in project deployment timelines [18][19] Question: How does the company manage pricing in relation to tariffs? - Management indicated that pricing adjustments have primarily been through list price increases, without temporary tariff add-ons, maintaining a clean pricing strategy [56][57]

Core Insights - Badger Meter, Inc. reported record sales, profitability, and cash flow for the full year 2025, driven by sustained demand for smart water management solutions [2][11] - The acquisition of SmartCover in early 2025 expanded Badger Meter's capabilities in sewer monitoring and stormwater management, positioning the company for long-term growth [3][11] Fourth Quarter 2025 Highlights - Utility water sales increased by 9% year-over-year, or 2% excluding SmartCover, with growth driven by customer adoption of digital smart water solutions [5][9] - Operating earnings rose by 10% year-over-year to $43.0 million, with operating profit margins expanding to 19.5% [7][9] - Total sales reached $220.7 million, an 8% increase from $205.2 million in the prior year [9][10] Full Year 2025 Highlights - Record sales of $916.7 million, up 11% from $826.6 million in 2024, with base sales increasing by 6% year-over-year [9][11] - Operating earnings for the year increased by 16% to $183.4 million, with operating profit margins at 20.0% [9][11] - Diluted earnings per share (EPS) increased by 13% to $4.79, compared to $4.23 in 2024 [9][11] Strategic Initiatives - The company emphasized the importance of its BlueEdge suite of smart water management solutions, which addresses various challenges across the water cycle [12][13] - Badger Meter's selection for the Puerto Rico Aqueduct and Sewer Authority's AMI project highlights its capabilities in enhancing water system resiliency [14] Financial Performance - Gross margin improved to 42.1%, benefiting from a favorable sales mix and lower pass-through revenue [7][9] - Cash provided by operations reached $54.8 million in Q4 2025 and $183.7 million for the full year [9][11] Outlook - The company anticipates high single-digit sales growth and operating profit margin expansion over the next five years, driven by the adoption of cellular AMI solutions and international expansion opportunities [15][16]

Core Viewpoint - Badger Meter's recent earnings report indicates strong performance, with earnings per share surpassing estimates and significant revenue growth, despite ongoing macroeconomic challenges [3][4][12]. Financial Performance - Badger Meter reported Q3 2025 earnings per share of $1.19, exceeding the Zacks Consensus Estimate by 7.2% and up from $1.08 in the same quarter last year [3]. - Quarterly net sales reached $235.7 million, a 13.1% increase from $208.4 million year-over-year, driven by higher utility water sales [3]. - Gross profit for the quarter was $95.8 million, up from $83.9 million in the prior-year quarter, with a gross margin of 40.7%, reflecting a 50 basis point improvement year-over-year [7]. Segmental Performance - Utility water sales increased by 14% year-over-year, with an 8% rise even when excluding SmartCover, driven by higher ultrasonic meter volumes and increased demand for BEACON Software-as-a-Service [6]. - Flow instrumentation sales grew by 4% year-over-year, supported by strength in water-related markets [6]. Cash Flow and Liquidity - The company generated $51.3 million in net cash from operating activities in Q3 2025, compared to $45.1 million a year ago [10]. - As of September 30, 2025, Badger Meter had $201.7 million in cash and cash equivalents, up from $165.2 million as of June 30, 2025 [10]. Strategic Outlook - The company is optimistic about long-term growth prospects, expecting an average high single-digit top-line growth rate over the next five years, driven by technology adoption and strategic pricing initiatives [12]. - Badger Meter has raised its normalized gross margin range to 39%–42%, positioning itself well for innovation and value-driven acquisitions [13]. Market Reaction - Following the earnings release, there has been an upward trend in fresh estimates for Badger Meter, indicating positive market sentiment [14][16]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [16].

Core Insights - Itron, in partnership with Pacific Technologies, is deploying smart metering technology for the Water Authority of Fiji (WAF) to enhance water operations and infrastructure [1][2] - The initiative aligns with WAF's Water Sector Strategy 2050, which aims for clean water, safe sanitation, financial sustainability, and a skilled workforce [2][5] - The deployment began in May 2025 and is expected to be completed by Q3 2025, focusing on modernizing existing infrastructure [1][3] Infrastructure Upgrade - WAF is upgrading its existing meters to Itron mechanical meters equipped with Cyble communications modules, transforming them into smart meters [3][4] - The Cyble module features a clip-on design that simplifies installation, making it a cost-effective solution for modernizing water operations [3][5] - The Temetra solution will facilitate data collection and storage, eliminating the need for manual meter reading and allowing for easy access to consumption data [3][4] Addressing Non-Revenue Water - The deployment aims to reduce non-revenue water, which WAF estimates to be 47% of its produced water [2][4] - Itron's solutions will provide insights and advanced data analytics to identify water losses, enhancing operational efficiency [4][6] - The integration of Itron's technology with WAF's existing systems will offer a comprehensive view of the water infrastructure across Fiji [4][6] Long-Term Vision - WAF's long-term vision includes creating a resilient and reliable water network, with the scalability of Itron's solutions allowing for gradual expansion based on priorities and budget [5][6] - The deployment is seen as a practical model for smart water management, enabling WAF to upgrade its network at its own pace [6][7] - Itron's smart water solution is designed to withstand harsh environmental conditions, reducing long-term maintenance costs for WAF [6][7]

Financial Performance - FY25 Q2 revenue was $18 million, down 26% quarter-over-quarter[17] - FY25 Q2 gross profit was $1.7 million, down 70% quarter-over-quarter[17] - FY25 Q2 net loss was $9.8 million, a 126% increase quarter-over-quarter[17] - FY25 Q2 adjusted EBITDA was a loss of $6.5 million, down 129% quarter-over-quarter[17] - Trailing twelve months (TTM) revenue was $116.5 million, down 15% year-over-year[20] - TTM gross profit was $46.4 million, down 17% year-over-year[20] - TTM net loss was $16.4 million, down 202% year-over-year[20] - TTM adjusted EBITDA was $16 million, down 53% year-over-year[20] Segment Performance - Smart Water segment Q2 revenue increased 48% quarter-over-quarter to $9.5 million[25] - Energy Solutions segment Q2 revenue decreased 77% quarter-over-quarter to $2.6 million[31] - Intelligent Industrial segment Q2 revenue decreased 13% quarter-over-quarter to $5.9 million[37] Smart Water Segment - Over 27 million Hydroconn® universal AMI connectors have been sold[13] - Hydroconn® connectors achieved their highest first six-months revenue to date[15, 28] - Hydroconn® smart water meter connector cabling product line is BABA compliant[29]

Core Insights - Itron, Inc. has shipped over 2 million Cyble 5 communication modules, with Metz Eurométropole Water Utility receiving the milestone module, supporting its transition to advanced metering infrastructure (AMI) [1][2] - The Cyble 5 module enables real-time monitoring and advanced analytics, allowing water providers to make data-driven decisions for optimized operations and improved service delivery [2][3] - Metz Eurométropole Water Utility serves over 47,000 people and utilizes the Cyble 5 module to enhance leak prevention, resource allocation, and billing accuracy since its deployment began in 2022 [3] Company and Product Features - The Cyble 5 module connects to Metz Eurométropole's LoRaWAN AMI network, facilitating two-way communication and extensive data sets [3] - The module's durable design is IP68-rated, ensuring protection against harsh environments, which helps lower maintenance and meter replacement costs [6] - It offers interoperability with open standards, allowing seamless integration with AMR, AMI, and IoT networks [6] Strategic Importance - The deployment of the Cyble 5 module is seen as a strategic investment for Metz Eurométropole, enabling the utility to achieve its water management goals [2][4] - The improved data management capabilities allow for better targeting of investments, enabling reinvestment of savings into expanding smart water solutions [4] - Itron emphasizes the critical need for smarter operations in light of rising water demand, climate disruption, and urbanization [4]