Badger Meter reports strong Q1 results with margin expansion driven by mix, tariff uncertainty remains

From Stockstory.org does not belong to a specific media company.: 2025-04-23 23:31:00

Badger Meter (BMI) reported Q1 CY2025 revenue in line with analyst estimates at $222.2 million, a 13.2% increase year on year, with adjusted EPS of $1.30 beating estimates by 23.1%. The company’s operating margin rose to 22.2%, while free cash flow margin increased to 13.5%. Management credited favorable sales mix and software growth for its performance, but highlighted uncertainty around tariffs and supply chain pressures. Despite concerns, Badger Meter plans to use targeted pricing actions to manage potential cost increases. The company’s focus remains on technology investment and sustained growth in the upcoming quarters.

Looking ahead, Badger Meter will focus on navigating tariff uncertainty, expanding technology and software solutions, and leveraging stable utility demand to drive revenue growth and protect margins. Analysts raised questions about sustainable margin improvements, tariff impacts on costs, and utility budget priorities. Management assured that mix-driven benefits are partly episodic and tariffs are manageable, with plans to implement price adjustments as needed. Key catalysts going forward include price adjustments, SmartCover acquisition integration, and continued growth in software and AMI adoption.

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Read more at Stockstory.org does not belong to a specific media company.: Margin Expansion Driven by Mix, Tariff Uncertainty Remains