Badger Meter — Financial Results
Revenue Crossed $900M for the First Time, Driven by Smart Water Adoption
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Sales | $703.6M | $826.6M | $916.7M |
| Growth (YoY) | — | +17.5% | +10.9% |
Revenue has grown by about 30% over two years, reaching $916.7 million in 2025. The core driver is utilities upgrading to AMI (Advanced Metering Infrastructure) — systems that read meters automatically and frequently — along with growing adoption of cellular radios and cloud-based software (SaaS). Only about 40% of U.S. water utility connections have converted to AMI so far, suggesting meaningful runway ahead.
Profit Margins Are Expanding as Higher-Value Products Grow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Gross Margin % | 39.3% | 39.8% | 41.7% |
| Operating Margin % | 16.8% | 19.1% | 20.0% |
| Diluted EPS | $3.14 | $4.23 | $4.79 |
Each year the company is keeping more of each dollar in revenue as profit. The improvement comes from selling more ultrasonic meters, cellular radios, and software — products that carry better margins than traditional mechanical meters. Earnings per share (profit per share of stock) have grown 53% in two years.
SmartCover Acquisition Expands into Sewer Monitoring
In January 2025, Badger Meter paid $184 million to acquire SmartCover, a California-based company that monitors sewer lines and lift stations (pumping stations in wastewater systems). SmartCover contributed $39.7 million in revenue during its first 11 months under Badger's ownership and added $118.3 million in goodwill (the premium paid above the value of physical assets, reflecting expected future earnings). This broadens Badger's product suite beyond water supply into wastewater — a logical extension of the "manage the full water network" strategy.
The Company Generates Strong Cash and Carries No Debt
Operating cash flow reached $183.7 million in 2025, up from $155 million in 2024. Badger funded the entire $184 million SmartCover acquisition, $14 million in capital spending, and $43.5 million in dividends — all from cash on hand and operations, with zero borrowings. The company ended 2025 with a net cash position (cash exceeding all debt) of $226 million and $154.7 million in unused credit lines available.
Tariffs Are a New Cost Pressure Being Actively Managed
2025 U.S. trade tariffs introduced new input costs for the business. Badger is responding by leaning on the USMCA trade agreement (which covers trade between the U.S., Canada, and Mexico) to reduce exposure where possible, and has raised prices to offset costs it cannot otherwise avoid. The situation remains fluid as trade negotiations continue, making this a factor worth monitoring in future quarters.