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]