Badger Meter Reports 9.9% Revenue Growth to $238.1 Million in Q2 2025

Badger Meter, Inc. reported a notable increase in financial performance for the second quarter of 2025, with net sales reaching $238.1 million, a 9.9% rise from $216.7 million in the same period of 2024. The utility water market was a significant contributor, generating $212.2 million, up 11.4% from the previous year, driven by increased revenues from the BEACON® Software as a Service (SaaS) and higher meter volumes. The company also benefited from the acquisition of SmartCover, which added $10.6 million to sales. However, sales in the global flow instrumentation market slightly declined to $25.9 million, down 1.0% from $26.1 million in the prior year.

In terms of profitability, Badger Meter reported operating earnings of $44.9 million for the quarter, representing 18.8% of sales, compared to $41.5 million or 19.2% of sales in the same quarter last year. The gross margin increased to 41.1%, up from 39.4%, attributed to higher sales volumes and a favorable product mix, despite facing tariff and input cost pressures. Selling, engineering, and administration expenses rose to $52.9 million, or 22.2% of sales, primarily due to the inclusion of SmartCover's expenses and ongoing growth-related investments.

For the first half of 2025, Badger Meter's net sales totaled $460.3 million, an increase of 11.5% from $412.9 million in the same period of 2024. The utility water market sales surged to $409.5 million, a 13.6% increase, while flow instrumentation sales decreased by 2.9% to $50.8 million. Operating earnings for the six-month period were $94.3 million, or 20.5% of sales, compared to $78.1 million, or 18.9% of sales, in the prior year. The net earnings for the first half were $73.0 million, or $2.47 per diluted share, up from $62.2 million, or $2.11 per diluted share, in 2024.

Strategically, Badger Meter completed the acquisition of SmartCover on January 30, 2025, for $184.0 million, enhancing its capabilities in sewer line and lift station monitoring solutions. This acquisition is expected to bolster the company's utility water product line, which already accounts for a significant portion of its revenue. Additionally, the company continues to focus on expanding its SaaS offerings, which have shown strong growth and contribute positively to margins.

Looking ahead, Badger Meter remains optimistic about its growth trajectory, driven by ongoing demand for smart water solutions and the transition to advanced metering infrastructure (AMI) systems. The company is well-positioned to capitalize on the increasing need for efficient water management technologies, particularly as infrastructure investments and sustainability initiatives gain momentum. The management is also closely monitoring market conditions, including the impact of tariffs on input costs, and is prepared to implement strategic measures to mitigate potential challenges.