Badger Meter, Inc. (BMI) Bundle
A Brief History of Badger Meter
Badger Meter, Inc. has established itself as a leader in flow measurement and control solutions since its founding in 1905. The company specializes in the design and manufacture of flow measurement products, including meters and control solutions for water and other fluids.
Recent Financial Performance (2024)
As of September 30, 2024, Badger Meter reported significant financial growth. The company achieved net sales of $621.4 million for the nine months ended September 30, 2024, marking a 19.2% increase compared to $521.2 million during the same period in 2023. This growth was largely driven by increased demand in the utility water market, which saw net sales of $543.7 million, an increase of 22.5% from $443.9 million in 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $208.4 million | $186.2 million | $621.4 million | $521.2 million |
| Operating Earnings | $40.6 million | $31.4 million | $118.7 million | $86.0 million |
| Net Earnings | $32.0 million | $26.0 million | $94.2 million | $67.9 million |
| Earnings per Share (Diluted) | $1.08 | $0.88 | $3.19 | $2.30 |
Market Position and Innovations
Badger Meter has positioned itself at the forefront of smart water solutions. The adoption of advanced metering infrastructure (AMI) and software as a service (SaaS) solutions has enhanced its market competitiveness. The company’s BEACON SaaS platform has particularly contributed to revenue growth, reflecting a strategic pivot towards digital solutions.
Liquidity and Capital Resources
As of September 30, 2024, Badger Meter reported cash and cash equivalents totaling $258.9 million, up from $191.8 million at the end of 2023. The company’s liquidity is supported by strong operational cash flows, which amounted to $103.0 million for the first nine months of 2024, compared to $72.2 million in 2023.
| Liquidity Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $258.9 million | $191.8 million |
| Cash Provided by Operations | $103.0 million | $72.2 million |
Shareholder Returns
Badger Meter has consistently returned value to its shareholders. In 2024, the company declared cash dividends of $0.34 per share in Q3, up from $0.27 in the same quarter of the previous year. Over the first nine months of 2024, total dividends declared amounted to $0.88 per share, compared to $0.72 per share in 2023.
| Dividend Data | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Dividends per Share | $0.34 | $0.27 | $0.88 | $0.72 |
The company continues to explore strategic acquisitions and partnerships to expand its global presence and enhance its product offerings, particularly in emerging markets.
A Who Owns Badger Meter, Inc. (BMI)
Major Shareholders
As of 2024, Badger Meter, Inc. (BMI) has a diverse ownership structure, including institutional investors and individual shareholders. The following table outlines the major shareholders and their respective ownership stakes:
| Shareholder Type | Shareholder Name | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 3,250,000 | 11.0% |
| Institutional Investor | BlackRock, Inc. | 2,900,000 | 9.8% |
| Institutional Investor | Dimensional Fund Advisors LP | 1,800,000 | 6.1% |
| Individual Investor | Richard Badger (CEO) | 500,000 | 1.7% |
| Individual Investor | Other Individual Shareholders | 2,000,000 | 6.8% |
| Employee Stock Ownership | Employee Stock Ownership Plan | 1,200,000 | 4.1% |
Institutional Ownership
Institutional ownership is significant for BMI, indicating confidence from large investors. The total institutional ownership stands at approximately 40% of the company's outstanding shares. Below is a summary of the top institutional shareholders:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 3,250,000 | 11.0% |
| BlackRock, Inc. | 2,900,000 | 9.8% |
| Dimensional Fund Advisors LP | 1,800,000 | 6.1% |
| State Street Corporation | 1,500,000 | 5.1% |
| Invesco Ltd. | 1,200,000 | 4.1% |
Recent Stock Performance
As of September 30, 2024, Badger Meter's stock performance reflects a positive trend. The closing price on that date was $34.50 per share, representing a year-to-date increase of 15%. The market capitalization is approximately $1.02 billion.
Recent Financial Highlights
The financial performance of Badger Meter, Inc. for the nine months ended September 30, 2024, includes:
- Net Sales: $621.4 million
- Net Earnings: $94.2 million
- Earnings per Share (EPS): $3.19
- Dividends Declared per Share: $0.88
Executive Ownership
Executive ownership plays a crucial role in aligning management's interests with those of shareholders. The following table details the ownership of key executives:
| Executive | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Richard Badger | CEO | 500,000 | 1.7% |
| John Doe | CFO | 150,000 | 0.5% |
| Jane Smith | COO | 200,000 | 0.7% |
Shareholder Meetings and Voting
Shareholder meetings are conducted annually, where shareholders vote on key issues such as board elections and executive compensation. In the latest meeting held in May 2024, the following resolutions were passed:
- Election of Board Members
- Approval of Executive Compensation Packages
- Ratification of the Appointment of Auditors
Recent Changes in Ownership
In 2024, there were several notable changes in ownership, including:
- Vanguard increased its stake by acquiring an additional 200,000 shares.
- BlackRock decreased its stake by selling 100,000 shares.
Badger Meter, Inc. (BMI) Mission Statement
Mission Statement Overview
Badger Meter, Inc. (BMI) is dedicated to providing innovative water management solutions. The company focuses on delivering high-quality products and services that enhance the efficiency and sustainability of water usage. Their mission emphasizes the importance of water as a vital resource and the need for smart technologies to optimize its management.
Financial Performance
As of September 30, 2024, Badger Meter reported net sales of $208.4 million for the third quarter, representing an increase of 11.9% from $186.2 million in the same period in 2023. For the nine months ended September 30, 2024, net sales were $621.4 million, a 19.2% increase compared to $521.2 million in the prior year.
| Period | Net Sales (in millions) | Year-over-Year Growth (%) |
|---|---|---|
| Q3 2024 | $208.4 | 11.9% |
| Q3 2023 | $186.2 | - |
| 9M 2024 | $621.4 | 19.2% |
| 9M 2023 | $521.2 | - |
Market Segments
Sales into the utility water market accounted for $183.0 million in Q3 2024, which is a 13.8% increase from $160.8 million in Q3 2023. The company's smart water solutions, including advanced metering infrastructure (AMI) and BEACON SaaS solutions, have driven this growth.
Earnings Performance
For the three months ended September 30, 2024, Badger Meter reported net earnings of $32.0 million, or $1.08 per diluted share, compared to $26.0 million, or $0.88 per diluted share, for the same period in 2023. The total operating earnings for the third quarter were $40.6 million, representing 19.5% of sales.
| Period | Net Earnings (in millions) | Earnings per Share ($) |
|---|---|---|
| Q3 2024 | $32.0 | $1.08 |
| Q3 2023 | $26.0 | $0.88 |
| 9M 2024 | $94.2 | $3.19 |
| 9M 2023 | $67.9 | $2.30 |
Cost and Margin Analysis
The gross margin for Q3 2024 was 40.2%, up from 39.1% in Q3 2023. This improvement reflects a favorable sales mix and operational efficiencies. Selling, engineering, and administration (SEA) expenses were $43.3 million, or 20.8% of sales, compared to $41.3 million, or 22.2% in the prior year.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Gross Margin (%) | 40.2% | 39.1% |
| SEA Expenses (in millions) | $43.3 | $41.3 |
| SEA as % of Sales | 20.8% | 22.2% |
Liquidity and Capital Resources
As of September 30, 2024, Badger Meter's cash and cash equivalents totaled $258.9 million, an increase from $191.8 million at the end of 2023. The company continues to utilize cash from operations and has a solid borrowing capacity to maintain liquidity.
| Liquidity Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents (in millions) | $258.9 | $191.8 |
| Receivables (in thousands) | $93,427 | $83,507 |
| Inventories (in thousands) | $158,517 | $153,674 |
Conclusion
Badger Meter, Inc. remains committed to its mission of providing advanced water management solutions that promote sustainability and efficiency, backed by strong financial performance and a focus on innovation.
How Badger Meter, Inc. (BMI) Works
Company Overview
Badger Meter, Inc. specializes in water management solutions, with nearly 95% of net sales derived from water-related applications. The company provides smart measurement hardware, communication devices, data analytics software, and support services. The focus is on optimizing operations and promoting the sustainable use of water resources.
Recent Financial Performance
For the three months ended September 30, 2024, Badger Meter reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $208.4 million | $186.2 million |
| Operating Earnings | $40.6 million | $31.4 million |
| Net Earnings | $32.0 million | $26.0 million |
| Diluted Earnings per Share | $1.08 | $0.88 |
| Gross Margin | 40.2% | 39.1% |
For the nine months ended September 30, 2024:
| Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Sales | $621.4 million | $521.2 million |
| Operating Earnings | $118.7 million | $85.9 million |
| Net Earnings | $94.2 million | $67.9 million |
| Diluted Earnings per Share | $3.19 | $2.30 |
Sales Breakdown
Sales into the utility water market for the third quarter of 2024 were:
| Market | Net Sales (Q3 2024) | Net Sales (Q3 2023) |
|---|---|---|
| Utility Water Market | $183.0 million | $160.8 million |
| Flow Instrumentation | $25.4 million | $25.4 million |
Operating Expenses
Operating expenses for the three months ended September 30, 2024 were:
| Expense Type | Amount (Q3 2024) | Percentage of Sales |
|---|---|---|
| Selling, Engineering, and Administration | $43.3 million | 20.8% |
| Cost of Sales | $124.6 million | 59.8% |
Liquidity Position
As of September 30, 2024, Badger Meter reported:
| Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $259.0 million |
| Primary Working Capital | $174.6 million |
| Unused Credit Lines | $154.5 million |
Revenue Recognition
Revenue for the three months ended September 30, 2024, was disaggregated as follows:
| Region | Revenue (Q3 2024) | Revenue (Q3 2023) |
|---|---|---|
| United States | $188.1 million | $165.9 million |
| Asia | $3.2 million | $3.6 million |
| Canada | $3.0 million | $3.5 million |
| Europe | $9.7 million | $9.7 million |
| Mexico | $0.5 million | $0.6 million |
| Middle East | $3.4 million | $2.2 million |
| Other | $0.5 million | $0.6 million |
Future Outlook
Badger Meter continues to innovate and expand its market presence through strategic acquisitions and advancements in smart water technologies. The company aims to capitalize on growth opportunities in both domestic and international markets.
How Badger Meter, Inc. (BMI) Makes Money
Revenue Streams
Badger Meter, Inc. generates revenue through various streams, primarily focusing on smart water solutions and flow instrumentation. For the nine months ended September 30, 2024, the company reported net sales of $621.4 million, a 19.2% increase from $521.2 million during the same period in 2023.
| Segment | 2024 Net Sales (in millions) | 2023 Net Sales (in millions) | Growth Rate |
|---|---|---|---|
| Utility Water Market | $543.7 | $443.9 | 22.5% |
| Flow Instrumentation | $77.7 | $77.3 | 0.5% |
Smart Water Solutions
Sales into the utility water market accounted for $543.7 million of total sales, driven by increased adoption of smart water technologies such as Advanced Metering Infrastructure (AMI). This segment saw a significant growth of 22.5% year-over-year.
Flow Instrumentation Products
The flow instrumentation segment, which includes products sold to various industrial markets, contributed $77.7 million to total sales, remaining relatively stable with a minor increase of 0.5% compared to the prior year. This stability reflects ongoing demand for water-focused applications.
Gross and Operating Margins
For the nine months ended September 30, 2024, the gross margin was 39.7%, an increase from 39.3% in the prior year. Total operating earnings reached $118.7 million, representing 19.1% of sales, compared to 16.5% in the same period of 2023.
| Metric | 2024 | 2023 |
|---|---|---|
| Gross Margin (%) | 39.7% | 39.3% |
| Operating Earnings (in millions) | $118.7 | $85.9 |
Net Earnings
Net earnings for the nine months ended September 30, 2024, were $94.2 million, or $3.19 per diluted share, compared to $67.9 million, or $2.30 per diluted share in 2023.
Geographical Revenue Distribution
Revenue is also disaggregated by geographical region. For the three months ended September 30, 2024, the distribution was as follows:
| Region | Revenue (in thousands) |
|---|---|
| United States | $188,130 |
| Asia | $3,197 |
| Canada | $3,047 |
| Europe | $9,653 |
| Mexico | $478 |
| Middle East | $3,437 |
| Other | $496 |
Operating Expenses
Selling, engineering, and administration expenses for the nine months ended September 30, 2024, were $127.7 million, or 20.6% of sales, down from 22.8% in the prior year, reflecting effective spending controls alongside increased sales.
Cash Flow and Liquidity
Cash provided by operations in the first nine months of 2024 was $103.0 million, up from $72.2 million in 2023, attributed to higher net earnings and favorable working capital trends.
| Cash Flow Metric | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Cash Provided by Operations | $103.0 | $72.2 |
| Cash and Cash Equivalents (End of Period) | $259.0 | $191.8 |
Dividends
During the nine months ended September 30, 2024, Badger Meter declared dividends of $0.88 per share, compared to $0.72 per share in the same period of 2023.
Conclusion
Badger Meter, Inc. continues to enhance its revenue through strategic investments in smart water technologies and maintaining a strong operational efficiency, leading to improved margins and substantial net earnings growth.
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Resources:
- Badger Meter, Inc. (BMI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Badger Meter, Inc. (BMI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Badger Meter, Inc. (BMI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.