- Badger Meter (BMI, Financial) reported a 13% increase in total sales, reaching $222.2 million in Q1 2025.
- Operating earnings surged by 35% to $49.5 million, with margins expanding by 360 basis points to 22.2%.
- Diluted EPS increased by 31% year-over-year to $1.30.
Badger Meter, Inc. (BMI) unveiled impressive financial results for the first quarter of 2025, demonstrating robust growth and operational efficiency. Total sales climbed 13% to $222.2 million, compared to the previous year's $196.3 million, indicating strong demand for the company's smart water solutions.
The company's operating earnings showed a significant increase of 35%, reaching $49.5 million. This was accompanied by a 360 basis point improvement in operating margins, which hit a record 22.2%, supported by a favorable product mix and efficiency initiatives. Gross margin also set a record at 42.9%, up 360 basis points from the previous year.
Badger Meter's utility water sales grew 16%, with a major contribution from the recently acquired SmartCover. Excluding this acquisition, utility water sales still showed a solid 12% growth, driven by higher adoption of digital smart water solutions. Conversely, sales in flow instrumentation products experienced a 5% decline.
On January 30, 2025, Badger Meter completed its acquisition of SmartCover, which strategically extended its BlueEdge suite into sewer and stormwater monitoring. CEO Kenneth C. Bockhorst emphasized the positive market reception and seamless integration progress of SmartCover.
Looking forward, Badger Meter remains confident in achieving high-single-digit long-term revenue growth, although it anticipates challenging year-over-year comparisons in Q2 2025. Despite these challenges, the firm's resilience and innovative water management solutions continue to position it as a leader in the water technology sector.
