Badger Meter Inc. (BMI) stock soared 5.36% in intraday trading on Friday after the company announced the acquisition of SmartCover Systems for $185 million and reported strong Q4 2024 earnings that beat analysts' estimates.

The water control and measurement company's Q4 earnings of $1.04 per share exceeded Wall Street's estimate of $1.01, while revenue of $205.2 million also topped expectations of $199.8 million. For the full year 2024, Badger Meter reported record sales of $826.6 million, up 18% year-over-year, driven by robust demand for its BlueEdge suite of smart water management solutions.

The acquisition of SmartCover, a provider of sewer line and lift station monitoring solutions, will expand Badger Meter's BlueEdge offerings and enable customers to better manage their wastewater systems. The company said the deal will enhance shareholder value over the long term by leveraging Badger Meter's sales network to accelerate municipal adoption of SmartCover's products.

With strong financial results, the acquisition, and a resilient demand environment, Badger Meter expects to continue delivering high single-digit sales growth and modest operating profit margin expansion in 2025. The company's focus on innovative solutions and operational excellence positions it well to capitalize on the growing need for efficient and sustainable water management practices.