Badger Meter Inc 2025年度报告

Cover image:View of Milwaukee, Wisconsin, USA. Milwaukee is borderedby Lake Michigan and is home to the Badger Meter global headquarters.Lake Michigan is the third-largest freshwater Great Lake in North America. Our Company With more than a century ofwater technology innovation,Badger Meter®(NYSE:BMI)provides comprehensivewater management solutionsthrough its BlueEdge®suite. A Message to Our Shareholders To my fellow shareholders In 2025, Badger Meter employees around the world celebratedour 120-year anniversary, a milestone that underscores ourlong-standing commitment to innovation, continuous improvementand operational excellence. In 1905, we introduced the world tothe first frost-proof water meter, manufactured and sold out ofMilwaukee, Wisconsin. Today, we continue to advance our leadership I am pleased to share that2025 was another year of recordperformance, disciplined execution, and meaningful strategicprogress for Badger Meter.Amidst a dynamic operating environmentmarked by global trade uncertainty, variation in project pacing,and the integration of SmartCover®, our teams once again distinguished Kenneth C. BockhorstChairman, President and 33consecutive yearsof increasedannual dividends BlueEdge: Expanding Our LeadershipAcross the Water Cycle Nearly two years ago, we introducedBlueEdge, our tailorable suite ofsmart water management solutions that brings together advancedhardware, intelligent communications, actionable software insights,and customer support under one umbrella. The launch of BlueEdge Our acquisition ofSmartCoverin early 2025 continues thatevolution. By expanding BlueEdge into wastewater collection systemmonitoring and stormwater management, Badger Meter now offersa comprehensive solution that protects against the fallout of SmartCover’s software-integrated hardware solution enables utilities toidentify blockages proactively, reducing sewer overflows and improvingmaintenance efficiency. By allowing utilities to deploy cleaning crews toareas that require attention—rather than following fixed schedules that We’re proud of the integration progress we made in 2025. SmartCovercontributedapproximately $40 million of revenue in 2025, grew nearly25% on an annualized basis, and delivered improving profitability Across BlueEdge, customers continued adoption of ourultrasonic meters,ORION®Cellular AMI endpoints, BEACON®SaaS, pressure managementand water quality monitoring solutions, reflecting strong seculardemand for systems that improve efficiency, resiliency and sustainability. Executing Our Capital Allocation Framework “SmartCovercontributed over$40 million ofrevenue in 2025,grew nearly 25% on In January of 2025, we used cash on hand to acquire SmartCover for$184 million. We ended the year with over $225 million in cash andmaintained a clean balance sheet allowing us the flexibility for investment.We continue to demonstrate exceptional cash generation and financial •Investing in innovation:We continue to enhance production capacity,advance internal R&D capability and accelerate next-generation product •Returning capital to shareholders:We increased our annual dividendfor the33rd consecutive yearand opportunistically repurchased Kenneth C. Bockhorst,Chairman, President and Chief •Pursuing targeted acquisitions:SmartCover’s early successdemonstrates our ability to identify and integrate high value assetsthat expand our reach and accelerate growth. We continue to identify Corporate Sustainability Consistent with our long standing belief that performance andresponsibility go hand in hand, we continue to advance our corporate In 2025, we reported further progress in the reduction of our absoluteScope 1 and Scope 2 emissions, driving 20% year-over-year improvementin our combined Scope1 and 2 total intensity. Compared to the baselinewe set in 2020, we achieved 55% intensity reduction, surpassing the 2025 Financial Results 11% Strong customer demand and disciplined operational executiondrove another year of outstanding financial performance, Sales Growth 23.8%EBITDA Margin1 •Revenue of $916.7 million, up 11%from 2024 •Base sales grew 6%, excluding the acquisition of SmartCover •Operating earnings increased 16% to $183.4 million,with margins expanding to20.0% of sales 13%EPS Growth •EPS grew 13% to $4.79, compared to $4.23 in 2024 •Free cash flow reached a record $169.7 million, with strongFCF conversion at 120% of earnings. 120%Free Cash Flow Looking Ahead to 2026 and Beyond Entering 2026, our confidence in Badger Meter’s long-term outlook is asstrong as ever. The multi-year deployments we have in our pipeline position Our long-term value creation drivers remain consistent: •Growing our installed base of cellular AMI endpoints•Expanding adoption of BlueEdge technologies across the water cycle•Increasing recurring software revenue Above all, the global need for resilient, intelligent water infrastructurehas never been greater. We are proud to partner with utilit