Badger Meter(BMI) - 2025 Q1 - Earnings Call Presentation

Financial Performance Highlights - Sales reached $222.2 million in Q1 2025, a 13% increase year-over-year (10% excluding SmartCover)[8, 9] - Operating profit margin hit a record 22.2%, with a 35% year-over-year growth in operating profit[8] - Earnings per share (EPS) grew by 31% year-over-year to $1.30 per share[8, 9] - Free cash flow increased by 60% year-over-year to a record $30 million[8, 9] - Gross margins improved by 360 bps due to favorable product and customer sales mix[7, 10] Segment Performance - Utility water sales increased by 16% (12% excluding SmartCover), driven by Cellular AMI adoption[10] - Flow instrumentation sales decreased by 5%, but showed sequential quarterly growth of 7%[10] Strategic Initiatives - Completed the acquisition of SmartCover, adding sewer and lift station monitoring to the BlueEdge® suite[8] Tariff and Supply Chain - The company is managing tariff-related exposures with mitigation efforts, with the estimated impact contained within the normalized gross margin range[11] - Rare earth mineral restrictions, specifically on bismuth, have led to cost increases impacting castings component costs[13]