Badger Meter Inc. Q1 Report 2024

Highlights

• Sales of $196.3M in Q1 2024, 23% higher versus the prior year; and up nearly 8% sequentially. Q1 represents the easiest year-over-year comparison of the year.
• Strong execution with record operating margins in Q1 2024 at 18.6%; 290 bps operating margin improvement reflective of higher volumes, favorable mix and SEA leverage
• Exceptional EPS growth of 50% year-over-year to $0.99 in Q1 2024
• Free cash flow increased year-over-year and reflects typical seasonally low first quarter
• Robust order pace across array of smart water solutions; expanded water management offerings with Telog/Unity acquisition of remote monitoring assets at start of year
• utility water sales increased 29% with strong AMI demand inclusive of cellular endpoints, BEACON SaaS and ultrasonic meters; water quality, pressure and network monitoring also contributed
• Flow instrumentation sales declined 3% against a difficult comparison that benefitted from supply chain easing; sales increased 13% sequentially from Q4 2023
• Gross margin in normalized range on strong volumes and favorable sales mix, offset by inflationary cost pressures
• Continued favorable SEA spend leverage despite ongoing investments for growth • Robust 50% year-over-year increase in EPS
• Cash flow reflects typical Q1 seasonality