Mar 31, 2022

Badger Meter Q1 2022 Earnings Report

Badger Meter reported a solid start to the year with sales growth and record order rates, but gross margins were pressured by inflation and supply chain challenges.

Key Takeaways

Badger Meter reported a 12% increase in total sales, reaching $132.4 million, and diluted earnings per share of $0.49. The company experienced robust demand and record order pace, but faced inflationary pressures and supply chain challenges that impacted gross margins.

Total sales increased by 12% to $132.4 million compared to the prior year quarter.

Diluted earnings per share (EPS) were $0.49, compared to $0.47 in the prior year period.

Utility water sales increased 15% year-over-year.

Gross margin was 38.3%, a decrease from 41.9% in the prior year comparable quarter due to inflationary pressures and production volatility.

Total Revenue
$132M
Previous year: $118M
+12.4%
EPS
$0.49
Previous year: $0.47
+4.3%
Operating Margin
14.2%
Previous year: 15.1%
-6.0%
Gross Profit
$50.7M
Previous year: $49.4M
+2.8%
Cash and Equivalents
$89.2M
Previous year: $51.4M
+73.6%
Free Cash Flow
$8.11M
Previous year: $28.8M
-71.8%
Total Assets
$546M
Previous year: $486M
+12.3%

Badger Meter

Badger Meter

Forward Guidance

Badger Meter anticipates near term unevenness in the market but remains confident in their ability to execute strategic plans and address customer requirements to enhance operational efficiency and resiliency.

Positive Outlook

  • Actions taken to improve operating resiliency.
  • Longstanding portfolio of solutions designed to fulfill varied customer needs.
  • Ability to secure supply and strategically price solutions.
  • Strong industry demand fundamentals.
  • Comprehensive offering of innovative and tailorable smart water solutions.

Challenges Ahead

  • Recent geopolitical events have increased supply chain uncertainty.
  • Accelerated inflationary pressures in an already difficult environment.
  • Near term unevenness appears to be the norm.
  • COVID-19 on the global economy
  • Supply chain risk