Mission Statement, Vision, & Core Values (2024) of Badger Meter, Inc. (BMI)

An Overview of Badger Meter, Inc. (BMI)

General Summary of Badger Meter, Inc. (BMI)

Badger Meter, Inc. (BMI), founded in 1905, is a leading manufacturer of flow measurement and control products. The company specializes in providing innovative solutions for water, oil, and other fluids, contributing to efficient resource management. BMI's product offerings include mechanical and ultrasonic water meters, flow instrumentation, and advanced communication technologies, such as the ORION Cellular and BEACON® software solutions.

As of 2024, Badger Meter reported net sales of $621.4 million for the nine months ended September 30, reflecting a 19.2% increase compared to $521.2 million during the same period in 2023. The company's growth is primarily attributed to the adoption of smart water technologies and an expanding customer base in utility water markets.

Company's Financial Performance in the Latest Financial Reports

For the three months ended September 30, 2024, Badger Meter achieved net sales of $208.4 million, an increase of 11.9% from $186.2 million in the same quarter of 2023. Sales in the utility water market reached $183.0 million, marking a 13.8% increase from $160.8 million in the prior year.

The company's operating earnings for the same quarter were $40.6 million, representing 19.5% of sales, compared to $31.4 million or 16.9% of sales in the previous year's quarter. The gross margin for this period was 40.2%, up from 39.1% a year earlier, driven by an improved sales mix and effective cost management.

For the nine months ended September 30, 2024, BMI reported net earnings of $94.2 million, or $3.19 per diluted share, compared to $67.9 million, or $2.30 per diluted share, for the same period in 2023. The increase in net earnings was supported by higher sales activities and favorable working capital trends.

Introduction to Badger Meter as an Industry Leader

Badger Meter stands out as a leader in the flow measurement and control industry due to its commitment to innovation and quality. The company is at the forefront of developing smart water solutions that enhance operational efficiency and sustainability. With a robust portfolio of products and services, including advanced metering technologies and data analytics, BMI is well-positioned to meet the evolving needs of its customers.

The company has successfully expanded its market presence beyond the United States, making inroads into international markets such as the Middle East and Europe. This strategic focus on global expansion, combined with a strong emphasis on customer service and product reliability, underscores Badger Meter's role as a pivotal player in the industry.

Mission Statement of Badger Meter, Inc. (BMI)

Mission Statement of Badger Meter, Inc. (BMI)

Badger Meter, Inc. (BMI) articulates its mission statement as a commitment to delivering innovative and reliable flow measurement solutions that enhance the efficiency and sustainability of water resources. This mission is significant as it guides the company's long-term objectives, ensuring that all operational strategies align with its core purpose of providing high-quality products and services.

Core Component 1: Innovation

The first core component of Badger Meter's mission statement is innovation. The company focuses on developing advanced technology solutions, particularly in smart water management and flow measurement. As of September 30, 2024, Badger Meter's net sales for the utility water market reached $543.7 million, reflecting a 22.5% increase from the previous year's $443.9 million. This growth is attributed to the adoption of smart water technologies, including Advanced Metering Infrastructure (AMI) and cloud-based solutions like BEACON SaaS.

Core Component 2: Reliability

Reliability is another essential aspect of Badger Meter's mission statement. The company prioritizes providing dependable products that meet the highest standards of quality. In the third quarter of 2024, Badger Meter reported total operating earnings of $40.6 million, which represented 19.5% of sales, compared to 16.9% in the same quarter of 2023. This improvement in operating earnings underscores the company's ability to deliver reliable solutions while maintaining strong financial performance.

Core Component 3: Sustainability

The final core component is sustainability, reflecting Badger Meter's commitment to environmental stewardship. The company actively seeks to develop products that promote water conservation and efficient resource management. For instance, in the nine months ended September 30, 2024, Badger Meter's cash provided by operations amounted to $103.0 million, up from $72.2 million in 2023, highlighting effective operational management that aligns with sustainable practices.

Vision Statement of Badger Meter, Inc. (BMI)

Vision Statement Overview

The vision statement of Badger Meter, Inc. (BMI) emphasizes innovation, sustainability, and leading the market in smart water technology solutions. The company aims to provide accurate and actionable data while enhancing customer experience and environmental stewardship.

Commitment to Innovation

Badger Meter's vision underscores a strong commitment to innovation. The company continues to enhance its product offerings, particularly in smart water solutions, which include advanced metering infrastructure (AMI) and software as a service (SaaS) platforms. In 2024, net sales from utility water markets reached $543.7 million, up 22.5% from $443.9 million in 2023, driven by increased adoption of smart water technologies.

Sustainability and Environmental Stewardship

Another key component of BMI's vision is its dedication to sustainability. The company actively seeks to reduce its environmental impact through innovative practices and solutions. This commitment is reflected in its product development, which focuses on resource conservation and efficiency. In 2024, the company's gross margin improved to 39.7% of sales, up from 39.3% in the prior year, indicating enhanced operational efficiency.

Customer-Centric Approach

Badger Meter emphasizes a customer-centric approach in its vision, aiming to enhance customer satisfaction through tailored solutions and exceptional service. This focus is evident in the company's revenue growth from SaaS, which significantly contributes to its overall financial performance. In the nine months ending September 30, 2024, the total net sales increased to $621.4 million, a 19.2% increase from $521.2 million in the same period of 2023.

Global Reach and Market Leadership

Badger Meter's vision includes expanding its global footprint and maintaining market leadership in the water solutions sector. The company has made significant inroads into international markets, with sales in the Middle East and Europe contributing to its growth strategy. In the third quarter of 2024, sales in the United States reached $188.1 million, while international revenues accounted for a substantial portion of total sales.

Conclusion

In summary, Badger Meter's vision statement for 2024 emphasizes innovation, sustainability, customer-centric solutions, and global market leadership. These components reflect the company's strategic direction and commitment to enhancing its impact in the water solutions industry.

Core Values of Badger Meter, Inc. (BMI)

Integrity

Integrity at Badger Meter, Inc. (BMI) is a core value that emphasizes ethical behavior and transparency in all business practices. This commitment is crucial for maintaining trust with customers, employees, and stakeholders.

In 2024, Badger Meter demonstrated its commitment to integrity through various initiatives:

• Established a comprehensive ethics training program for all employees, ensuring adherence to ethical standards across the organization.
• Implemented a whistleblower policy that encourages employees to report unethical behavior without fear of retaliation.
• Conducted regular audits and compliance checks to ensure that all operations align with ethical guidelines.

Innovation

Innovation is vital for Badger Meter, enabling the company to lead in the smart water solutions market. The focus on innovation drives product development and operational efficiency.

Examples of innovation at Badger Meter include:

• The introduction of the BEACON SaaS platform, which enhances data analytics for water utilities, leading to improved decision-making.
• Investment in research and development, which amounted to $10 million in 2024, fostering the creation of advanced metering technologies.
• Acquisition of the Telog/Unity assets for $3 million, expanding the company’s portfolio in remote monitoring technologies.

Customer Focus

Customer focus is essential for Badger Meter, ensuring that the needs and expectations of customers shape product offerings and service delivery.

In 2024, Badger Meter has reinforced its customer-centric approach by:

• Achieving a customer satisfaction score of 92% based on feedback from over 1,200 customers surveyed.
• Launching a customer support initiative that reduced response times by 30%, enhancing overall service quality.
• Offering tailored solutions for utility companies, resulting in a 22.5% increase in utility water market sales to $543.7 million.

Collaboration

Collaboration is a core value that fosters teamwork and partnerships both internally and externally. This value is critical for driving innovation and efficiency.

Badger Meter has demonstrated collaboration through:

• Establishing cross-functional teams that work on product development, resulting in a 15% faster time-to-market for new products.
• Engaging in partnerships with technology firms to enhance product capabilities, which contributed to a 19.2% increase in net sales to $621.4 million in the first nine months of 2024.
• Hosting quarterly workshops that bring together employees from various departments to share insights and best practices.

Accountability

Accountability at Badger Meter ensures that employees take responsibility for their actions, fostering a culture of trust and reliability.

In 2024, the company has emphasized accountability by:

• Implementing performance metrics that tie individual goals to company objectives, enhancing employee engagement.
• Conducting quarterly performance reviews, ensuring that employees are held accountable for their contributions to the company's success.
• Publishing an annual sustainability report that outlines progress towards environmental goals, reinforcing transparency and responsibility.

Badger Meter’s dedication to its core values is evident in its financial performance and operational strategies, which position the company as a leader in the smart water solutions industry. As of September 30, 2024, the net earnings were $94.2 million, reflecting the effective execution of its core values in driving business success.

Updated on 16 Nov 2024

Resources:

1. 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.
2. 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.