StockNews.AI
BMI
StockNews.AI
200 days

Badger Meter Reports Fourth Quarter and Full Year 2024 Financial Results

1. Q4 sales rose 13% to $205.2 million from $182.4 million. 2. Operating profit margin improved by 150 basis points to 19.1%. 3. EPS increased by 24% to $1.04, a significant year-over-year growth. 4. Record cash flow of $52.1 million, a 37% increase over last year. 5. SmartCover acquisition expands Badger Meter's capabilities in wastewater management.

Earnings
+2.56%Current Return
VS
-0.53%S&P 500
$208.5801/31 08:42 AM EDTEvent Start
$213.9102/03 09:09 AM EDTLatest Updated
20m saved
Insight
Article

FAQ

Why Bullish?

Strong quarterly results typically lead to positive investor sentiment, seen in similar cases.

How important is it?

The article indicates strong operational improvements and strategic acquisitions that could positively influence BMI.

Why Long Term?

Acquisition and sales growth are expected to foster sustainable growth over years, unlike short-term spikes.

Related Companies

BMISMT
MILWAUKEE--(BUSINESS WIRE)--Badger Meter, Inc. (NYSE: BMI) today reported results for the fourth quarter and full year ended December 31, 2024. Fourth Quarter 2024 Highlights Total sales of $205.2 million, 13% higher than the prior year’s $182.4 million. Operating profit increased 22% year-over-year, with operating profit margins expanding 150 basis points to 19.1% from 17.6%. Diluted earnings per share (EPS) increased 24% to $1.04, up from $0.84 in the comparable prior year quarter. Record cash flow with $52.1 million in net cash provided by operations, increasing 37% over the prior year. Full Year 2024 Highlights Record total sales of $826.6 million, 18% higher than the prior year’s $703.6 million. Software sales of over $56 million, increasing approximately 30% year-over-year. Operating profit margins improved 230 basis points over the prior year to 19.1%. Diluted EPS increased 35% to a record $4.23, up from $3.14 in the prior year. Record cash flow with $155 million in net cash provided by operations. Introduced BlueEdge™, the platform brand aimed at simplifying the Badger Meter suite of scalable solutions for efficient water management. Kenneth C. Bockhorst, Chairman, President and Chief Executive Officer, stated, “We finished 2024 with yet another quarter of excellent results, including solid performance across a variety of operating metrics with continued strong sales growth, expanding operating profit margins, robust EPS growth and record cash flow from operations. We utilized our strong balance sheet and cash flows to expand on the breadth of our BlueEdge suite of solutions, adding real-time monitoring of water collection systems with the acquisition of SmartCover® Systems (SmartCover) which we announced today. Lastly, I’m grateful for the hard work and commitment of the entire Badger Meter team in supporting our customers and delivering on our strategic growth goals and I want to welcome the employees of SmartCover to the Badger Meter team.” Fourth Quarter Operating Results Utility water sales increased 14% year-over-year with solid growth across the broad suite of BlueEdge technology solutions utilized by utility customers. Most notably, we continued to see robust adoption rates for our cellular AMI offering, which included higher sales of ORION® Cellular endpoints, BEACON® Software as a Service (SaaS), and mechanical and ultrasonic metering sales year-over-year. Sales of flow instrumentation products increased 1% year-over-year with modest growth in the water-focused end markets more than offsetting declines across the array of de-emphasized applications, globally. Operating earnings increased a robust 22% year-over-year, with operating profit margins expanding 150 basis points to 19.1% up from 17.6% in the fourth quarter of 2023. Gross margin dollars increased 16% year-over-year, and gross margin as a percent of sales was 40.3%, an increase of 110 basis points over the comparable prior year period. The gross margin improvement reflects the continued benefits of positive structural sales mix, including strong AMI and software-related sales, as well as ongoing price/cost benefit and solid operating execution. Selling, engineering and administration (SEA) expenses in the fourth quarter of 2024 were $43.5 million, $4.2 million higher than the comparable prior year quarter with higher headcount and personnel-related costs as well as certain transaction costs associated with the acquisition of SmartCover. SEA as a percent of sales improved 40 basis points to 21.2% from 21.6% in the comparable prior year quarter. The tax rate for the fourth quarter of 2024 was 27.1% compared to 26.1% in the prior year comparable period. As a result of the above, combined with increased interest income year-over-year, EPS was $1.04, an increase of 24% compared to $0.84 in the comparable prior year period. Full Year Recap and Outlook Bockhorst continued, “I’m incredibly proud of our performance in 2024, delivering 18% year-over-year sales growth. We achieved record operating profit margins at 19.1%, with both gross profit margin expansion and SEA leverage contributing to the 230 basis point increase year-over-year. We delivered a 35% increase in EPS, and generated record cash flows in 2024. In short, our track record of differentiated performance continued. This, coupled with execution of our strategic priorities, including investments in hardware and software innovation and complementary acquisitions, demonstrates our ability to further capitalize on the robust demand environment for comprehensive and tailorable digital water management solutions. “These industry-leading solutions deliver efficiency, resiliency, and sustainability for customers to address the variety of persistent challenges facing the water industry, including the impacts from more frequent and severe flooding on municipalities. The acquisition of SmartCover, with its focus on sewer line and lift station monitoring solutions, aids customers in visualizing and optimally managing their wastewater systems. We will continue to explore opportunities for value-creating acquisitions like SmartCover, to further amplify our growth and generate enhanced returns. “As we enter 2025, the demand environment for our end-to-end smart water offerings remains resilient. We remain committed to our strategic goals, including delivering high single-digit sales growth rates over the cycle, noting the usual unevenness common in the industry, generating modest year-over-year operating profit margin expansion and achieving free cash flow conversion above 100%.” Bockhorst concluded, “In summary, we will continue to execute on the blueprint that has driven our success, namely our relentless focus on customer outcomes, our effective delivery of innovative solutions, and our differentiated operational acumen which we believe collectively results in strong shareholder returns and the protection of the world’s most precious resource.” Conference Call and Webcast Information Badger Meter management will hold a conference call to discuss the Company’s fourth quarter and full year 2024 results today, Friday, January 31, 2025 at 10:00 AM Central/11:00 AM Eastern time. The webcast and related presentation can be accessed via the Investor section of the Company’s website. Individuals wishing to participate in the call should use this online registration link: https://www.netroadshow.com/events/login?show=a5367bfa&confId=76111. Safe Harbor Statement Certain statements contained in this news release, as well as other information provided from time to time by Badger Meter, Inc. (the “Company”) or its employees, may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those statements. The Company’s results are subject to general economic conditions, variation in demand from customers, continued market acceptance of new products, the successful integration of acquisitions, competitive pricing and operating efficiencies, supply chain risk, material and labor cost increases, tax reform and foreign currency risk. See the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission for further information regarding risk factors, which are incorporated herein by reference. Badger Meter disclaims any obligation to publicly update or revise any forward-looking statements as a result of new information, future events or any other reason. About Badger Meter With more than a century of water technology innovation, Badger Meter provides comprehensive water management solutions through its BlueEdge™ suite. This tailorable portfolio of smart measurement hardware, reliable communications, data visualization and analytics software and ongoing support and industry expertise give customers the edge in optimizing their operations and contributing to the sustainable use and protection of the world’s most precious resource. For more information, visit www.badgermeter.com.   BADGER METER, INC. CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (in thousands, except share and earnings per share data) Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 (Unaudited) (Unaudited) (Unaudited) Net sales $ 205,182 $ 182,440 $ 826,558 $ 703,592 Cost of sales 122,422 110,975 497,374 427,154 Gross margin 82,760 71,465 329,184 276,438 Selling, engineering and administration 43,537 39,386 171,248 158,389 Operating earnings 39,223 32,079 157,936 118,049 Interest income, net (2,924 ) (1,398 ) (8,613 ) (4,047 ) Other pension and postretirement costs 12 33 49 130 Earnings before income taxes 42,135 33,444 166,500 121,966 Provision for income taxes 11,418 8,723 41,558 29,368 Net earnings $ 30,717 $ 24,721 $ 124,942 $ 92,598 Earnings per share: Basic $ 1.05 $ 0.84 $ 4.26 $ 3.16 Diluted $ 1.04 $ 0.84 $ 4.23 $ 3.14 Shares used in computation of earnings per share: Basic 29,368,656 29,305,864 29,355,741 29,284,396 Diluted 29,559,950 29,471,418 29,533,543 29,455,557   BADGER METER, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands) Assets December 31, December 31, 2024 2023 (Unaudited) Cash and cash equivalents $ 295,305 $ 191,782 Receivables 84,325 83,507 Inventories 143,408 153,674 Other current assets 17,078 13,214 Total current assets 540,116 442,177 Net property, plant and equipment 74,260 73,878 Intangible assets, at cost less accumulated amortization 45,066 53,737 Other long-term assets 45,201 33,964 Goodwill 111,770 113,163 Total assets $ 816,413 $ 716,919 Liabilities and Shareholders' Equity Payables $ 55,659 $ 81,807 Accrued compensation and employee benefits 34,912 29,871 Other current liabilities 27,634 20,270 Total current liabilities 118,205 131,948 Deferred income taxes 3,652 5,061 Long-term employee benefits and other 88,324 63,428 Shareholders' equity 606,232 516,482 Total liabilities and shareholders' equity $ 816,413 $ 716,919   BADGER METER, INC. CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (in thousands) Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 (Unaudited) (Unaudited) (Unaudited) Operating activities: Net earnings $ 30,717 $ 24,721 $ 124,942 $ 92,598 Adjustments to reconcile net earnings to net cash provided by operations: Depreciation 2,773 2,837 11,103 10,937 Amortization 5,295 4,353 21,082 17,173 Deferred income taxes (11,074 ) (9,249 ) (11,074 ) (9,650 ) Noncurrent employee benefits (141 ) (64 ) (153 ) (338 ) Stock-based compensation expense 1,587 1,225 6,182 5,188 Changes in: Receivables 8,370 5,504 (1,444 ) (6,351 ) Inventories 13,687 (4,839 ) 10,320 (32,467 ) Payables (6,919 ) (3,776 ) (12,161 ) 8,506 Prepaid expenses and other assets (7,540 ) 267 (15,312 ) (7,012 ) Other liabilities 15,312 16,966 21,549 31,533 Total adjustments 21,350 13,224 30,092 17,519 Net cash provided by operations 52,067 37,945 155,034 110,117 Investing activities: Property, plant and equipment expenditures (4,669 ) (2,054 ) (12,818 ) (12,003 ) Acquisitions, net of cash acquired - - (3,000 ) (17,127 ) Net cash used for investing activities (4,669 ) (2,054 ) (15,818 ) (29,130 ) Financing activities: Dividends paid (9,985 ) (7,918 ) (35,847 ) (29,052 ) Proceeds from exercise of stock options - - 751 967 Net cash used for financing activities (9,985 ) (7,918 ) (35,096 ) (28,085 ) Effect of foreign exchange rates on cash (1,063 ) 899 (597 ) 828 Increase in cash and cash equivalents 36,350 28,872 103,523 53,730 Cash and cash equivalents - beginning of period 258,955 162,910 191,782 138,052 Cash and cash equivalents - end of period $ 295,305 $ 191,782 $ 295,305 $ 191,782

Related News