Badger Meter reported total fourth quarter sales of $220.7 million, up 8% from $205.2 million in Q4 2024, with base sales (excluding SmartCover) rising 2% to $208.9 million. Operating earnings grew 10% year-over-year to $43.0 million, boosting profit margins to 19.5% from 19.1%. On a base basis, operating earnings reached $42.8 million, a 9% increase, and base operating margins expanded by 140 basis points to 20.5%. Diluted EPS improved 10% to $1.14, compared with $1.04 a year earlier, reflecting both sales mix benefits and disciplined cost management.

For the full year 2025, Badger Meter achieved record sales of $916.7 million, an 11% increase over $826.6 million in 2024. Base sales were $877.0 million, up 6%. The SmartCover acquisition contributed approximately $40.0 million in sales over 11 months, representing 25% pro-forma growth. Software as a Service revenue climbed 27% to $74 million, driven by cellular AMI deployments and the SmartCover integration. Operating earnings rose 16% to $183.4 million, lifting margins to 20.0%, while base operating earnings increased 17% to $185.2 million with base margins of 21.1%. Full-year diluted EPS was $4.79, up 13% from $4.23, and cash provided by operations reached a record $183.7 million.

Gross margin for Q4 expanded by 180 basis points to 42.1%, reflecting a favorable mix of ultrasonic meters, cellular AMI endpoints and SmartCover products. Selling, engineering and administration expenses increased to $49.9 million, including $1.6 million of intangible amortization from SmartCover; base SEA expenses rose only 2.9%. SEA as a percentage of sales edged up to 22.6% from 21.2%, while base SEA rose 30 basis points. The effective tax rate declined to 24.8% from 27.1%, contributing to improved earnings leverage despite lower interest income.

Management reaffirmed guidance for high single-digit sales growth and continued margin expansion over the next five years, with free cash flow conversion exceeding 100% of earnings. A landmark award from Puerto Rico’s Aqueduct and Sewer Authority will deploy Badger Meter’s cellular AMI solution—E-Series ultrasonic meters, ORION Cellular endpoints and BEACON SaaS—for 1.6 million service connections, one of the world’s largest projects. CEO Ken Bockhorst highlighted a robust project funnel, disciplined SmartCover integration and the continued shift toward software-enabled smart water solutions as key drivers of long-term value creation.