Badger Meter Q4 Earnings & Revenues Surpass Estimates, Stock Gains

Core Insights - Badger Meter, Inc. (BMI) reported fourth-quarter 2024 earnings per share (EPS) of $1.04, exceeding the Zacks Consensus Estimate by 3$205.2 million, a 12.5% increase from $182.4 million year-over-year, driven by higher sales in utility water and flow instrumentation segments, and surpassed the consensus mark by 2.6$82.8 million, reflecting a 15.8% year-over-year increase, with a gross margin of 40.3%, up 110 basis points from the previous year [8] - Operating earnings were reported at $39.2 million, representing 19.1$32.1 million or 17.6% of sales in the prior year [9] - Selling, engineering, and administration expenses totaled $43.5 million, or 21.2$52.1 million in net cash from operating activities, up from $37.9 million a year ago [12] - The company reported a record quarterly free cash flow of$47.4 million, a 32% increase year-over-year, indicating improved earnings and working capital management [13] - As of December 31, 2024, Badger Meter had $295.3 million in cash and cash equivalents, compared to$259 million as of September 30, 2024 [12] Strategic Developments - Badger Meter announced the acquisition of SmartCover Systems for $185 million in cash, enhancing its BlueEdge suite with real-time monitoring capabilities for sewer lines and lift stations [4][5] - SmartCover, with annual revenues of$35 million, provides solutions that help utilities monitor sewer levels and prevent overflows, thereby reducing costs and protecting public health [4] Segment Performance - Utility water sales increased by 14%, driven by strong adoption of the BlueEdge suite among utility customers, particularly in cellular AMI [6] - Sales of flow instrumentation products saw a modest 1% increase year-over-year, with growth in water-related applications offsetting declines in other markets [7] Stock Performance - Following the earnings announcement, Badger Meter's shares rose by 2.6%, closing at $213.91 on January 31, 2025, with a 52.9% increase over the past year compared to the industry's 5.6% growth [3]