Badger Meter, Inc. BMI reported earnings per share (EPS) of $1.04 for fourth-quarter 2024, beating the Zacks Consensus Estimate by 3%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 84 cents.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Quarterly net sales were $205.2 million, up around 12.5% from $182.4 million in the year-ago quarter. The uptick resulted from higher sales in the utility water and flow instrumentation segments.

Also, the top line surpassed the consensus mark by 2.6%. The company now expects to deliver high single-digit sales growth rates going ahead.

Following the announcement, shares inched up 2.6% and closed trading at $213.91 on Jan. 31, 2025. In the past year, shares of BMI have gained 52.9% compared with the industry’s growth of 5.6%.

Image Source: Zacks Investment Research

Badger Meter also announced the acquisition of SmartCover Systems from XPV Water Partners for a $185 million, all-cash deal. SmartCover is a leading provider of water collection system monitoring solutions across North America. With $35 million in annual revenues, SmartCover provides sensors, software and services that enable utilities to monitor sewer levels 24/7, detect potential issues and prevent sewer overflows—reducing costs and protecting public health. Its technology also minimizes the need for frequent cleanings, detects inflow and infiltration, prevents intrusion and reduces harmful sewer gases.

This acquisition expands Badger Meter’s BlueEdge suite, adding real-time monitoring for sewer lines and lift stations to its existing water management solutions.

Badger Meter, Inc. Price and Consensus

Badger Meter, Inc. price-consensus-chart | Badger Meter, Inc. Quote

Segmental Performance

In the quarter under review, utility water sales rose 14% due to continued robust adoption across the BlueEdge suite by utility customers. This growth is driven by increased adoption of cellular AMI, including sales of associated meters, ORION Cellular endpoints and BEACON Software as a Service (SaaS).

Sales of flow instrumentation products increased 1% year over year, as modest growth in water-related applications outweighed declines in various de-emphasized end markets and customer applications worldwide.

BMI’s Other Details

In the fourth quarter, gross profit was $82.8 million, up 15.8% year over year. The gross margin was 40.3%, up 110 basis points year over year. The improvement highlights the advantages of a favorable sales mix, particularly with robust sales in AMI and software. This positive trend is further supported by effective pricing strategies, cost management and strong operational performance.

Operating earnings were $39.2 million or 19.1% of sales compared with $32.1 million or 17.6% of sales in the year-ago quarter.

Selling, engineering and administration expenses were $43.5 million or 21.2% of sales compared with $39.4 million or 21.6% of sales in the prior-year quarter. This was driven by increased headcount, personnel-related expenses and acquisition costs linked to the acquisition of SmartCover.

Cash Flow & Liquidity

In the fourth quarter of 2024, Badger Meter generated $52.1 million of net cash from operating activities compared with $37.9 million a year ago.

As of Dec. 31, 2024, the company had $295.3 million of cash and cash equivalents and $118.2 million of total current liabilities compared with the respective figures of $259 million and $129.2 million as of Sept. 30, 2024.

The company reported a record quarterly free cash flow of $47.4 million, which increased 32% year over year, reflecting improved earnings and working capital management.

BMI’s Zacks Rank

Badger Meter currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Performance of Other Companies

Plexus Corp PLXS reported first-quarter fiscal 2025 adjusted EPS of $1.73, up 40.7% year over year. The figure outpaced the Zacks Consensus Estimate of $1.59 per share.

In the past year, shares of PLXS have gained 50.2%.

Seagate Technology Holdings plc STX reported second-quarter fiscal 2025 non-GAAP earnings of $2.03 per share, beating the Zacks Consensus Estimate by 7.98%. The company reported non-GAAP earnings of 12 cents per share in the year-ago quarter.

In the past year, STX shares have gained 12.7%.

Simulations Plus, Inc. SLP reported first-quarter fiscal 2025 adjusted earnings of 17 cents per share, which declined 5.6% year over year. The figure, however, missed the Zacks Consensus Estimate of 18 cents per share.

Shares of SLP have declined 8.5% in the past year.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Badger Meter, Inc. (BMI) : Free Stock Analysis Report

Seagate Technology Holdings PLC (STX) : Free Stock Analysis Report

Plexus Corp. (PLXS) : Free Stock Analysis Report

Simulations Plus, Inc. (SLP) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research