Badger Meter reported fourth quarter EPS of $1.14, missing consensus by $0.01 despite 7.6% sales growth to $220.7 million. Base sales, excluding the SmartCover acquisition, rose 2% year-over-year to $208.9 million. Operating earnings climbed 10% to $43.0 million, with margins improving to 19.5% from 19.1%. Growth in ultrasonic meters, cellular AMI endpoints and SaaS water-quality solutions drove top-line gains, while lower pass-through revenue from meter installations bolstered margins. Cash from operations totaled $54.8 million, reflecting disciplined working-capital management.

For full-year 2025, Badger Meter achieved record revenues of $916.7 million, up 11% versus prior year, with base revenues excluding SmartCover up 6% to $877.0 million. Operating earnings rose 16% to $183.4 million, delivering 20.0% margins, while base operating earnings grew 17% to $185.2 million with 21.1% margins. Diluted EPS reached $4.79, a 13% increase, and operating cash flow hit a record $183.7 million. SaaS revenues climbed 27% to $74 million, and SmartCover added $40 million in sales over 11 months, driving pro-forma growth of nearly 25%.

Badger Meter was selected by Puerto Rico’s Aqueduct and Sewer Authority to deploy one of the world’s largest cellular AMI systems for 1.6 million service connections. The project will use E-Series Ultrasonic meters, ORION Cellular modules and BEACON SaaS, improving billing accuracy, reducing non-revenue water and strengthening infrastructure resiliency. This award underscores the BlueEdge suite’s competitive strength and aligns with management’s goal to expand recurring-revenue solutions across the global water cycle.

Management reaffirmed a long-term target of high single-digit annual sales growth, margin expansion and free cash flow conversion above 100% of earnings. They expect H1 2026 base revenue growth to remain muted due to project completions, with recovery in H2 as new turnkey deployments commence. Analysts have adjusted their outlook conservatively after the Q4 miss, but the record backlog of awarded AMI projects and growing SaaS penetration support confidence in sustained profitable growth and capital-efficient returns for shareholders.