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.This tailorable portfolio ofsmart measurement hardware,reliable communications,data visualization and analyticssoftware, and ongoingsupport and industry expertisegive customers the edge inoptimizing their operations andcontributing to the sustainableuse and protection of theworld’s most precious resource. 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 leadershipin smart water management solutions that span the entire watercycle. Our home base in Milwaukee is now joined by manufacturingoperations elsewhere in the U.S., as well as in Mexico and Europe,and we sell our solutions worldwide. It’s truly remarkable to see howfar we’ve come. 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 distinguishedthemselves through resilient execution and unwavering customerfocus. Their efforts enabled us to not only deliver on our commitments,but also further expand our capabilities to pave the way for the nextdecade of growth and beyond. Kenneth C. BockhorstChairman, President andChief Executive Officer 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 BlueEdgeencompasses the evolution of Badger Meter from that firstfrost-proof water meter to a leader in digital connectivity that enableswater utilities to go beyond the meter and monitor the entire watercycle from source to treatment. 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 ofextreme weather events. If you’ve experienced the aftermath ofmunicipal flooding caused by a storm, you’ll understand why asystem that predicts, detects and prevents sewer spills is critical forutility operators. 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 thatwaste resources on unnecessary cleaning—SmartCover saves both timeand money. SmartCover’s sensors also detect corrosive gases and waterinfiltration and inflow, all factors that can stress a sewer system. 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 profitabilitythroughout the year. We also successfully transferred SmartCover’smanufacturing to our Racine, Wisconsin facility. 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.SaaS revenue exceeded$74 million, growing27% year-over-year, driven byincreased cellular AMI penetration and SmartCover’s contribution. Executing Our Capital Allocation Framework “SmartCovercontributed over$40 million ofrevenue in 2025,grew nearly 25% onan annualized basis,and deliveredimproving profitabilitythroughout the year.” 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 financialflexibility for both organic and inorganic investments. Our ongoing capitalallocation priorities include: •Investing in innovation:We continue to enhance production capacity,advance internal R&D capability and accelerate next-generation productdeve