Badger Meter, Inc. reported a strong financial performance for the third quarter of 2025, with net sales reaching $235.7 million, a 13.1% increase from $208.4 million in the same period last year. The utility water market was a significant contributor, generating $209.2 million in sales, up 14.3% from $183.0 million in the prior year. The growth was attributed to increased revenues from ultrasonic meters, water quality solutions, and the BEACON® Software as a Service (SaaS), along with $11.1 million in revenue from the recently acquired SmartCover, which specializes in sewer line monitoring solutions.
In terms of profitability, Badger Meter reported operating earnings of $46.1 million, or 19.6% of sales, compared to $40.6 million, or 19.5% of sales, in the previous year. The gross margin improved to 40.7%, up from 40.2% in the same quarter last year, driven by a favorable sales mix, particularly in SaaS revenues, despite facing tariff and input cost pressures. Net earnings for the quarter were $35.1 million, or $1.19 per diluted share, compared to $32.0 million, or $1.08 per diluted share, in the prior year.
For the nine months ending September 30, 2025, Badger Meter's net sales totaled $696.0 million, a 12.0% increase from $621.4 million in the same period of 2024. The utility water product line accounted for $618.7 million, reflecting a 13.8% increase from $543.7 million in the previous year. Operating earnings for this period were $140.4 million, or 20.2% of sales, compared to $118.7 million, or 19.1% of sales, in the prior year. Net earnings for the nine months were $108.1 million, or $3.65 per diluted share, up from $94.2 million, or $3.19 per diluted share, in 2024.
The company has also made strategic moves, including the acquisition of SmartCover for $184.0 million, which is expected to enhance its utility water product line. This acquisition, along with the earlier purchase of the Telog® product line, positions Badger Meter to capitalize on the growing demand for smart water solutions. The company reported that revenue from SmartCover for the eight months ended September 30, 2025, was $27.8 million.
Looking ahead, Badger Meter remains optimistic about its growth trajectory, driven by increasing demand for smart water management solutions and ongoing investments in technology. The company is focused on expanding its market presence, particularly in international markets, and is well-positioned to navigate potential challenges related to tariffs and input costs. The management believes that its operational cash flows and available credit lines will provide adequate resources to support ongoing operations and future growth initiatives.
About BADGER METER INC
Badger Meter, Inc. designs, manufactures, and markets advanced flow measurement, water quality monitoring, and control solutions primarily for water utilities and industrial customers worldwide. Its product portfolio includes durable water meters, sensors, communication devices, and software platforms that provide real-time data and analytics to optimize water management. The company’s integrated hardware and software offerings support efficient, sustainable water use and system reliability across municipal and commercial markets.
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