Badger Meter (BMI) Investor presentation summary

Business overview and strategic positioning

• Premier provider of smart water solutions with $852M in Q1'25 TTM sales and operations in over 50 countries.

• Offers a comprehensive suite of digital water management products, including flow, quality, pressure, and network monitoring with analytics.

• Maintains a strong culture of innovation, continuous improvement, and sustainability, supported by five R&D centers.

• Holds a leading position in North American smart water solutions and is expanding internationally.

• Recognized for ESG leadership with an AAA MSCI rating and inclusion in Barron's Top 100 Sustainable Companies.

Financial performance and trends

• Q1 2025 sales grew 13.2% year-over-year to $222.2M, with gross margin up 360 bps to 42.9%.

• EPS increased 31.3% to $1.30, and free cash flow rose 59.6% to $30M.

• Full-year 2024 sales reached $826.6M, with operating earnings of $157.9M and EBITDA of $190.1M.

• SaaS revenue grew at a 28% CAGR, now representing 6.7% of total sales.

• Maintains strong liquidity with $131M cash, no debt, and a $150M untapped revolver.

Growth strategies and innovation

• Focuses on organic growth, annual dividend increases, and strategic acquisitions aligned with core strategy.

• Key growth drivers include AMI adoption, leveraging meter replacement cycles, and expanding real-time monitoring and SaaS offerings.

• Recent acquisitions, such as SmartCover, enhance network monitoring and recurring revenue streams.

• R&D investments drive advancements in ultrasonic metering, water quality sensing, and cloud-based analytics.

• International expansion targets select markets with tailored solutions.