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Mar 31
Badger Meter Q1 2025 Earnings Report
Badger Meter reported strong revenue growth and record operating margins in Q1 2025.
Key Takeaways
Badger Meter started 2025 with a solid performance, reporting a 13% increase in revenue and 31% growth in EPS. Operating margin hit a record high, boosted by a favorable sales mix and integration of the SmartCover acquisition.
Revenue increased 13% year-over-year to $222.2 million.
EPS rose 31% to $1.30 compared to $0.99 in Q1 2024.
Operating margin reached a record 22.2%, up from 18.6% last year.
The SmartCover acquisition contributed to growth in utility water sales and broadened the BlueEdge portfolio.
Badger Meter
Badger Meter
Forward Guidance
Badger Meter expects a challenging Q2 due to tough year-over-year comparisons but remains confident in long-term growth driven by industry fundamentals and SmartCover integration.
Positive Outlook
- Continued strong demand for digital smart water solutions.
- SmartCover integration progressing with positive customer feedback.
- Record gross margins driven by technology adoption and favorable mix.
- Financial flexibility supports strategic acquisitions.
- Sustainable solutions recognized in Barron’s 2025 Most Sustainable Companies.
Challenges Ahead
- Challenging comparisons expected in Q2 2025.
- Evolving tariff environment adds cost uncertainty.
- Decline in flow instrumentation sales year-over-year.
- Lower interest income due to capital deployment.
- Operating environment remains macroeconomically volatile.