Badger Meter stock surges after beating Q1 expectations

Published 17/04/2025, 15:58
© Reuters

Investing.com -- Badger Meter Inc (NYSE:BMI) saw its stock jump 5.9% after the water technology company reported first-quarter earnings and revenue that surpassed analyst estimates. The company also provided an optimistic outlook for its long-term growth prospects.

For the first quarter ended March 31, 2025, Badger Meter reported earnings per share of $1.30, beating the analyst consensus of $1.07 by $0.23. Revenue came in at $222.2 million, exceeding expectations of $220.92 million and representing a 13% increase from $196.3 million in the same quarter last year.

The company’s utility water sales, which include two months of contribution from its recently acquired SmartCover business, grew 16% YoY. Excluding SmartCover, utility water sales still increased by 12%, driven by strong customer adoption of digital smart water solutions.

Badger Meter’s operating earnings rose 35% YoY to $49.5 million, with operating profit margins expanding 360 basis points to a record 22.2%. The company attributed this performance to favorable product and customer sales mix, as well as benefits from operational excellence initiatives.

Kenneth C. Bockhorst, Chairman, President and CEO of Badger Meter, commented on the results: "Steady customer demand and disciplined operating execution drove solid revenue growth and record margins in a strong start to 2025. Our ability to build upon record results reflects the underlying stability of our business model as favorable industry fundamentals drive the need for our innovative smart water solutions."

Looking ahead, Badger Meter maintained its outlook for average high-single-digit long-term revenue growth, citing attractive fundamentals in the water industry and its ability to provide innovative solutions to customers. Bockhorst said, "Our first quarter results demonstrate the resilience and durability of our replacement-driven business amidst a volatile macroeconomic environment. As previously communicated, we will face difficult prior-year comparisons in the upcoming second quarter of 2025."

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