Badger Meter Q3 Revenue, Adjusted EPS Beat Estimates

Badger Meter reported Q3 FY2025 revenue of $235.7 million, up 13.1% year-over-year, and adjusted EPS of $1.19, beating consensus and rising from $1.08 a year earlier. Revenue strength was led by utility water sales (up 14% year over year and up 8% excluding SmartCover), higher ultrasonic meter volumes, increased BEACON SaaS and BlueEdge smart-water demand, while flow instrumentation grew 4% as water markets offset softer non-water applications. Gross profit improved to $95.8 million and gross margin rose to 40.7% (up 50 basis points), and management emphasized confidence in realizing SmartCover synergies and continued free cash flow. The company raised its annual dividend 18% to $1.60 per share, marking 33 consecutive years of dividend growth. Despite the beat and margin momentum, shares fell after the report and remain below prior highs, leaving investor attention focused on execution of software adoption and acquisition synergies.