On this page of StockholderLetter.com we present the latest annual shareholder letter from BADGER METER INC — ticker symbol BMI. Reading current and past BMI letters to shareholders can bring important insights into the investment thesis.

 •  2/26/2025 Letter Continued (Full PDF)
 •  3/9/2023 BMI Stockholder Letter
 •  3/8/2024 BMI Stockholder Letter
 •  More "Electronic Equipment & Products" Category Stockholder Letters
 •  BMI Benford's Law Stock Score = 82

BMI Shareholder/Stockholder Letter Transcript:

Badger Meter
Annual Report 2024

BADGER METER ANNUAL REPORT 2024
Our Company
DECEMBER 31,
2023
2024
% CHANGE
Net Sales
$703,592
$826,558
17.5
Badger Meter    (NYSE:BMI)
Operating Earnings
$118,049
$157,936
33.8
provides comprehensive
Net Earnings
$92,598
$124,942
34.9
Operations (dollars in thousands)
With more than a century of
water technology innovation,
water management solutions
Diluted per Common Share Amounts
through its BlueEdge    suite.
This tailorable portfolio of
Diluted Earnings
$3.14
$4.23
34.7
smart measurement hardware,
Cash Dividends
$0.99
$1.22
23.2
reliable communications,
Year-End Financial Position (dollars in thousands)
data visualization and analytics
Total Assets
$716,919
$816,413
support and industry expertise
Net Cash (Debt) 1
$191,782
$295,305
give customers the edge in
Shareholders    Equity
$516,482
$606,232
$98,114
$142,216
2,140
2,210
software, and ongoing
optimizing their operations and
Other
contributing to the sustainable
Free Cash Flow 2
use and protection of the
Number of Employees
world   s most precious resource.
Net Sales
Net Earnings
(in millions)
(in millions)
$900
$826.6
Diluted
EPS
$4.50
$150
$800
$124.9
$4.23
$3.75
$120
$700
Dividends
per Share
$1.50
$1.22
$1.20
$3.00
$600
$0.90
$90
$500
$2.25
$400
$0.60
$60
$1.50
$300
$200
$30
$0.30
$0.75
$100
$0
'20
'21
'22
'23
'24
$0
'20
'21
'22
'23
$0.00
'24
'20
1
Net cash (debt) equals cash and cash equivalents less any short and long term debt.
2
See last page for reconciliation of GAAP to non-GAAP measures, including free cash flow.
2
'21
'22
'23
'24
$0.00
'20
'21
'22
'23
'24

BADGER METER ANNUAL REPORT 2024
A Message to Our Shareholders
To my fellow shareholders
I am pleased to report that 2024 was another year of strong financial
performance and strategic accomplishments for Badger Meter.
We continued to differentiate our execution, delivering consistent
financial results and strengthening our business through investments
in innovation and value-creating acquisitions. We grew sales 18% in
2024, expanded operating margins, generated record free cash flow
and increased our annual dividend for the 32nd consecutive year,
enhancing strong returns for shareholders.
We launched BlueEdge in 2024. BlueEdge is not a new product or a
software application. Instead, it   s the overarching name we   ve given
to our tailorable, custom-deployed suite of solutions that solve
critical water challenges across the entire water cycle. The connected
technologies, integrating hardware-enabled software and support,
allow customers to gain clarity and make more informed decisions
for efficient water management. BlueEdge is a way to simplify the
breadth of our offerings to best meet the needs and preferences of
both our utility and our commercial and industrial customers today   
and as they advance and change in the future.
BlueEdge furthers the evolutionary journey we have been on
for a number of years   moving    beyond the meter    by making
investments in innovation, software development, production
capacity and acquisitions to build on the differentiated value we
deliver to customers to address the myriad of challenges faced by
the water industry.
3
Kenneth C. Bockhorst
Chairman, President and
Chief Executive Officer
32
consecutive years
of increased
annual dividends

BADGER METER ANNUAL REPORT 2024
At its core, BlueEdge empowers users with data to
enable proactive decision making. Near real-time
insights into water usage, asset performance,
and system health give our customers the
information they need to make informed decisions,
ultimately improving efficiency, building resiliency
and enabling sustainability.
We remain committed to evolving and extending our
suite of solutions to meet the needs of customers
today and into the future. A great example of this
ongoing evolution is SmartCover   , which we acquired
in late January 2025. SmartCover adds to and
augments wastewater collection system monitoring
capabilities within BlueEdge. The data and insights
collected from these additional operational sensors
in sewer lines and lift stations can be leveraged
alongside the flow measurement, pressure, water
quality and other data to unlock powerful insights
about the operations of a customer   s distribution and
collection network.
Our measurement and control hardware offering
of instruments and sensors includes meters that
measure the flow of water and other fluids and are
known for accuracy, long-lasting durability and for
providing valuable and timely flow measurement
data. Additionally, it includes water quality
monitoring solutions, such as optical sensing and
electrochemical instruments that provide real-time,
on-demand parameters as well as high frequency
pressure and acoustic leak detection hardware,
delivering real-time monitoring data.
Advancing Our Commitment
to Corporate Responsibility
We continue to believe that doing well does not
preclude our ability to do good. We take seriously our
role in increasing shareholder value by both enabling
sustainability for our customers and continuously
working to reduce our own impact on the environment.
Our broad range of communication solutions include
the ORION    branded family of radio endpoints, along
with remote telemetry units and other interfaces,
providing customers with a choice of industry-leading
options for communicating data from hardware into
use-specific software applications.
Our cloud-based software presents the collected and
communicated data to aid impactful decision making
at the customer through simple alerts, dashboards or
automated insights that leverage multiple pieces of
information. For example, our BEACON    Software as
a Service (SaaS) is used for meter-to-cash operations
and customer service, EyeOnWater    for consumer
engagement and notifications, and RADAR    for
pressure management and operational support.
Our software offerings ensure all data functions
together seamlessly and without silos.
In 2024, we continued to make progress on our
corporate responsibility journey. In summary:
    In May 2024, we published our 2023 sustainability
report outlining our progress on the most
impactful ESG matters and added new disclosure
enhancements including baseline waste data,
supplier audit process improvements and mental
health-focused employee programs.
Bringing it all together is the training, project
management, technical support and other collaborative
services for customers. This support is becoming
increasingly critical as customers strive to extract
maximum value from their technology investments
while managing workforce demographic changes,
resource constraints and infrastructure needs.
    We achieved double digit intensity reductions in
both greenhouse gas (GHG) emissions (18%) and
water usage (27%). Our GHG intensity is down 44%
from our 2020 baseline as compared to our current
goal of 50% by 2030.
4

BADGER METER ANNUAL REPORT 2024
    We made progress on our ESG-related    SMART   
goals, which are an important element to our annual
performance assessment. These include employee
safety, minimizing regrettable turnover and reducing GHG
and water intensity. Goals are cascaded throughout the
organization to ensure alignment and accountability.
    Our regrettable turnover again improved in 2024
to 6.6% after declining to 8.3% in 2023 from 10.0%
in 2022, which reflected the difficult labor market
post-COVID. We completed our fourth annual
global engagement survey in 2024 as part of our
continuous improvement process to enable positive
change and increase employee engagement.
    Safety remains a top priority and, consistent with
prior years, our goal for Total Case Incident Rate
(TCIR) is zero. In 2024, global TCIR was largely
consistent with the prior year at 0.43 compared to
0.40 in 2023 and 0.59 in 2022. While we are proud
of our performance in relation to industry averages,
we recognize there is always more work to be done
to ensure the safety of our global workforce.
    Our preliminary 2024 GHG and water usage metrics
reflect further intensity reductions based on the
execution of our action plans across the organization.
In summary, by taking a holistic approach to
sustainability, we prioritize strong governance, effective
risk management, product innovation and employee
engagement, allowing us to safeguard our future.
Record Financial Results
Through our unmatched portfolio of smart water solutions combined with
our commitment to delivering superior customer experiences, we were able to
deliver record 2024 financial performance.
    Total sales in 2024 were $826.6 million, an increase of 18% compared to
$703.6 million in 2023. Sales into the utility water sector grew 20% reflective of
the continued market adoption of our differentiated ORION Cellular advanced
metering infrastructure (AMI) solutions, water quality monitoring and BEACON
SaaS offerings. Flow instrumentation sales were flat with 2023 levels as
growth in water-related applications offset select de-emphasized markets.
    Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) of
$190.1 million 1 increased 30% year-over-year. Favorable product mix, higher
volumes, the benefit of value-based pricing actions and continued leverage of
selling, engineering and administrative expenses as a percentage of revenues
enabled us to improve EBITDA margins by 220 basis points to 23.0%.1
    Fiscal 2024 EPS was $4.23, a 35% increase from the $3.14 delivered in 2023.
    We generated free cash flow of $142.2 million,1 representing 114% 1
conversion of net earnings into cash due to our strong earnings foundation
and continued solid working capital management in 2024.
1
See last page for reconciliation of GAAP to Non-GAAP financial metrics.
5
18%
Sales Growth
23%
EBITDA Margin1
35%
EPS Growth
114%
Free Cash Flow
Conversion1



 2/26/2025 Letter Continued (Full PDF)