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Jun 30, 2023
Badger Meter Q2 2023 Earnings Report
Reported record results due to the adoption of differentiated smart water solutions, favorable market conditions and sound execution.
Key Takeaways
Badger Meter reported record second-quarter results, with total sales of $175.9 million, a 28% increase year-over-year. Diluted earnings per share increased 33% to $0.76, and the company saw strong operating profit margin expansion and solid cash flow.
Total sales increased by 28% year-over-year to $175.9 million.
Operating profit increased by 34% year-over-year, with operating profit margins expanding 80 basis points to 16.8%.
Diluted earnings per share increased by 33% to $0.76, compared to $0.57 in the prior year quarter.
The company experienced a robust demand environment with a book-to-bill ratio greater than one.
Forward Guidance
Badger Meter expects benefits from stabilizing supply chain and inflation dynamics for the balance of the year and is well-positioned to sustain its pattern of profitable growth enhanced by its innovative offerings, end market resiliency and proven execution.
Positive Outlook
- Innovative and tailorable smart water solutions portfolio enables customers to be more efficient, resilient and sustainable.
- Outstanding team focused on exceptional customer support continues to build momentum.
- Business model provides for durable growth despite macro-economic uncertainty given the support of backlog.
- Secular demand drivers and technologically differentiated portfolio of solutions address increasing water challenges.
- Benefits from stabilizing supply chain and inflation dynamics are expected for the balance of the year.
Challenges Ahead
- Facing tougher comparisons in the second half of 2023.
- General economic conditions.
- Variation in demand from customers.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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