<div id="readability-page-1">Badger Meter Inc., a leading provider of smart water solutions and flow instrumentation, has released its 2024 10-K report, showcasing significant growth in financial performance and strategic advancements. The company, known for its innovative metering solutions, has demonstrated robust growth driven by increased adoption of smart water technologies and strategic acquisitions. Financial Highlights Badger Meter Inc. reported impressive financial results for 2024, reflecting strong growth across key metrics:<ul><li>Net Sales: $826.6 million, a 17.5% increase from the previous year, driven by strong growth in smart water solutions and cellular AMI adoption.</li><li>Gross Margin: $329.2 million, with a gross margin percentage increase from 39.3% in 2023 to 39.8% in 2024, attributed to higher volumes and favorable product and customer sales mix.</li><li>Operating Earnings: $157.9 million, representing 19.1% of sales, up from 16.8% in 2023, due to increased net sales and improved gross margin.</li><li>Net Earnings: $124.9 million, an increase from $92.6 million in 2023, driven by higher operating earnings.</li><li>Diluted Earnings per Share: $4.23, compared to $3.14 in 2023, reflecting the increase in net earnings.</li></ul> Business Highlights Badger Meter's business performance in 2024 was marked by significant operational achievements:<ul><li>Revenue Segments: The company's business is divided into two main product lines: Utility Water and Flow Instrumentation. The Utility Water product line, which includes smart metering solutions, accounted for approximately 88% of net sales in 2024. The Flow Instrumentation product line contributed about 12% of net sales.</li><li>Geographical Performance: North America, primarily the United States, remains the largest geographic market for Badger Meter. The company has also expanded into select regional markets outside the US, such as the Middle East and the UK, with its BlueEdge offering.</li><li>Sales Units: Strong growth was observed in sales of smart water solutions, particularly in cellular AMI adoption, including mechanical and ultrasonic meters, ORION Cellular endpoints, and BEACON SaaS revenues.</li><li>New Product Launches: The company continues to innovate with its BlueEdge suite, which includes tailorable solutions for water management technology, software, and support services.</li><li>Future Outlook: Badger Meter is well-positioned to benefit from ongoing conversion trends to AMI systems and the adoption of smart water solutions. The company is focused on expanding its presence in international markets and enhancing its product offerings to meet increasing customer demands for accurate and actionable data.</li><li>Operational Efficiency: Improved gross margin as a percentage of sales due to higher volumes and favorable product and customer sales mix. Effective inventory management resulted in a decrease in inventory levels by the end of 2024.</li><li>Research and Development: Investment of $19.2 million in research and development in 2024, focusing on the development of new products and the improvement of existing products and manufacturing processes.</li><li>Human Capital Resources: Emphasis on attracting, developing, and retaining talent, with a focus on diversity and inclusion. Various programs to support employee well-being and engagement resulted in a decrease in regrettable turnover to 6.6% in 2024.</li></ul> Strategic Initiatives Badger Meter has been actively pursuing strategic initiatives to enhance its market position and product offerings:<ul><li>Strategic Acquisitions: In 2024, the company acquired select remote water monitoring hardware and software, including the Telog product line and Unity Remote Monitoring software, for $3.0 million. In 2023, it acquired Syrinix Ltd., a provider of high-frequency pressure monitoring and leak detection solutions, for $17.1 million. These acquisitions aim to strengthen the company's position in the smart water solutions market.</li><li>Capital Management: The company maintains a strong financial position with no short-term borrowings as of the end of 2024. It has a $150 million multi-currency line of credit, with $154.1 million of unused credit lines available. Active capital management includes stock repurchases and dividend payments. In February 2023, the board authorized the repurchase of up to 200,000 shares of common stock through February 2026. The company paid dividends of $35.8 million in 2024, reflecting an increase in the dividend per share to $1.22. A stock repurchase of $427,000 was completed in 2022.</li><li>Future Outlook: The company plans to continue its strategic focus on expanding its smart water solutions through acquisitions and organic growth. Anticipated capital expenditures in the range of $15.0-19.0 million for fiscal 2025 will support growth opportunities and asset purchases. The company remains committed to maintaining a strong balance sheet and providing shareholder returns through dividends and share repurchases.</li></ul> Challenges and Risks Badger Meter faces several challenges and risks that could impact its business operations and financial performance:<ul><li>Competitive Environment: The company operates in a highly competitive environment with competitors having greater financial resources, which could impact market share and profitability.</li><li>Supply Chain Risks: Reliance on single suppliers for certain raw materials and components poses a risk of supply chain disruptions, potentially leading to increased costs and delivery delays.</li><li>Technological Advancements: The inability to develop technologically advanced products could harm future success, as maintaining a competitive advantage requires continued investment in R&amp;D.</li><li>Product Quality: Failure to manufacture quality products could damage reputation and financial performance. Software products may encounter unexpected defects, affecting operations.</li><li>Global Risks: Global public health pandemics and geopolitical crises could disrupt business operations.</li><li>Economic Conditions: Economic conditions, including rising interest rates and government budget cuts, could impact sales.</li><li>Regulatory Changes: Regulatory changes, including climate change legislation, could increase operational costs.</li><li>Cybersecurity Threats: Cybersecurity threats and data breaches pose significant risks to operations and reputation.</li><li>Market Risks: Exposure to market risks such as competition, economic conditions, and foreign currency fluctuations. The company does not typically use derivative instruments, which limits its ability to hedge against certain market risks.</li></ul>SEC Filing: BADGER METER INC [ BMI ] - 10-K - Feb. 14, 2025</div>

Badger Meter Inc. has released its 2024 10-K report, highlighting significant financial growth with net sales of $826.6 million, a 17.5% increase from the previous year. The report shows improved gross margins and net earnings of $124.9 million. The company focuses on smart water solutions, with 88% of sales from Utility Water products. Strategic acquisitions and a strong financial position, including a $150 million credit line, support future growth. Challenges include competition and supply chain risks. Badger Meter aims to expand its market presence and enhance product offerings.

BADGER METER INC SEC 10-K Report