Badger Meter Full-Year Report 2023

Highlights

• Record total sales of $703.6 million, 24% higher than the prior year’s $565.6 million.
• Software sales exceeded $42 million, increasing 27% year-over-year.
• Operating profit margins improved 140 basis points over the prior year to 16.8%.
• Diluted EPS increased 39% to a record $3.14, up from $2.26 in the prior year.
• Record cash flow with $110.1 million in net cash provided by operations.

Operating earnings increased an exceptional 43% year-over-year, with operating profit margins expanding 230 basis points to a record 17.6% in the fourth quarter of 2023, up from the prior year’s 15.3%.

Gross margin dollars increased $14.5 million year-over-year, and gross margin as a percent of sales was 39.2%, an increase of 50 basis points over the comparable prior year quarter.

Gross margins continue to benefit from higher volumes and structural positive sales mix trends.

Selling, engineering and administrative (SEA) expenses in the fourth quarter of 2023 were $39.4 million, with SEA as a percent of sales improving 180 basis points to 21.6% versus 23.4% in the comparable prior year quarter. The $4.9 million year-over-year increase in SEA spend included higher personnel-related costs such as headcount, salaries, and management incentives.