Badger Meter — Income Statement, Cash Flows & Balance Sheet
Is Badger Meter profitable?
Badger Meter has grown revenue and profit consistently over three years, with margins expanding each year.
| Metric | 2023 | 2024 | 2025 | Change (2024→2025) |
|---|---|---|---|---|
| Net sales ($000s) | $703,592 | $826,558 | $916,663 | +10.9% |
| Gross margin ($000s) | $276,438 | $329,184 | $382,070 | +16.1% |
| Gross margin % | 39.3% | 39.8% | 41.7% | +1.9 pts |
| Operating earnings ($000s) | $118,049 | $157,936 | $183,421 | +16.1% |
| Net earnings ($000s) | $92,598 | $124,942 | $141,634 | +13.4% |
| Diluted EPS | $3.14 | $4.23 | $4.79 | +13.2% |
Revenue has grown roughly 30% over two years, and profitability has grown even faster, meaning Badger Meter is not just getting bigger — it is getting more efficient. Gross margins crossed 41% in 2025, a meaningful step up.
A $184 million acquisition of SmartCover added costs in 2025 but also contributed nearly $40 million of revenue in its first eleven months.
| Item | Amount |
|---|---|
| SmartCover purchase price (net of cash) | $184.0M |
| SmartCover revenue (11 months, 2025) | $39.7M |
| Amortization expense (intangibles) | $23.5M vs. $21.1M prior year |
The SmartCover deal meaningfully lifted selling, engineering, and administration expenses and intangible amortization. Investors should be aware that reported earnings are reduced by acquisition-related amortisation charges that are non-cash in nature.
Does Badger Meter generate cash?
Badger Meter converts profits into real cash very reliably, with operating cash flow well ahead of net income.
| Metric ($000s) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net earnings | $92,598 | $124,942 | $141,634 |
| Cash from operations | $110,117 | $155,034 | $183,698 |
| Capital expenditures | $(12,003) | $(12,818) | $(14,026) |
| Free cash flow (approx.) | $98,114 | $142,216 | $169,672 |
Operating cash flow has grown faster than net earnings each year, reflecting disciplined working capital management. Capital spending remains modest relative to earnings, leaving substantial free cash flow (operating cash minus capex) available for acquisitions, dividends, and buybacks.
Badger Meter returned cash to shareholders while funding a large acquisition.
| Use of cash ($000s) | 2024 | 2025 |
|---|---|---|
| Acquisitions | $(3,000) | $(184,024) |
| Dividends paid | $(35,847) | $(43,529) |
| Share repurchases | $0 | $(15,002) |
The SmartCover acquisition consumed most of the year's free cash flow and drew down the cash balance meaningfully, though dividends still grew and a modest buyback programme was initiated.
How strong is Badger Meter's balance sheet?
Badger Meter carries no debt and held over $226 million in cash at year-end, even after a $184 million acquisition.
| Item ($000s) | 2024 | 2025 | Change |
|---|---|---|---|
| Cash and equivalents | $295,305 | $226,016 | -$69,289 |
| Short-term borrowings | $0 | $0 | — |
| Long-term debt | $0 | $0 | — |
| Unused credit facility | n/a | $154,700 | — |
The balance sheet is debt-free, which is unusual and financially conservative. The company funded its largest-ever acquisition entirely from its cash pile, yet retained a strong cash position and a $150 million undrawn credit line as a further backstop.
The SmartCover acquisition nearly doubled goodwill and significantly increased intangible assets, which are worth monitoring.
| Item ($000s) | 2024 | 2025 | Change |
|---|---|---|---|
| Goodwill | $111,770 | $235,575 | +$123,805 |
| Intangible assets (net) | $45,066 | $118,496 | +$73,430 |
| Total shareholders' equity | $606,232 | $713,294 | +$107,062 |
Goodwill and intangibles now represent a meaningful portion of total assets, which is common after acquisitions but worth watching — if the acquired businesses underperform, these values could be written down. Shareholders' equity still grew solidly, supported by strong earnings.