Badger Meter Inc Reports Record Sales and Earnings for Q4 and Full Year 2023
Q4 Sales Surge: Total sales reached $182.4 million, a 24% increase from the previous year.
Annual Performance: Full-year sales hit a record $703.6 million, up 24% year-over-year.
Earnings Growth: Q4 diluted EPS rose 40% to $0.84, while full-year EPS increased 39% to $3.14.
Operating Profit: Operating profit margins improved significantly, reaching 17.6% in Q4.
Cash Flow: Record net cash provided by operations at $37.9 million for Q4 and $110.1 million for the full year.
On January 26, 2024, Badger Meter Inc (NYSE:BMI) released its 8-K filing, detailing a strong finish to the year with record-breaking fourth-quarter and full-year financial results. The company, a leading innovator and manufacturer of flow measurement and control products, reported a 24% increase in total sales for both the quarter and the year, highlighting the robust demand for its offerings.
Company Overview
Badger Meter Inc is renowned for its innovative solutions in flow measurement and control, serving a diverse range of markets. The company's products are essential for measuring and managing water, oil, chemicals, and other fluids. Badger Meter's offerings are split into two main categories: utility water solutions, which include water meters and software technologies, and flow instrumentation for industrial applications. The majority of the company's revenue is generated within the United States.
Financial Highlights and Challenges
The company's financial achievements are particularly noteworthy in the context of the hardware industry, where innovation and efficiency are paramount. Badger Meter's 24% sales growth in the fourth quarter, with record operating profit margins of 17.6% and record cash flow, underscores its ability to capitalize on market opportunities and optimize operations. However, challenges such as supply chain risks, material and labor cost increases, and foreign currency risks could pose potential problems moving forward.
Income Statement and Balance Sheet Breakdown
Badger Meter's income statement reflects a strong performance, with net sales of $182.4 million in Q4 and $703.6 million for the full year. The company's cost of sales and operating earnings also improved, contributing to the impressive operating profit margins. The balance sheet shows a healthy financial position, with significant cash and cash equivalents of $191.8 million and total assets amounting to $716.9 million as of December 31, 2023.
Management Commentary
"Our strong fourth quarter results capped off a stellar 2023 with continuing robust demand and operational execution. We delivered 24% sales growth in the fourth quarter with record operating profit margins of 17.6% and record cash flow. Shortly after year-end, we completed the tuck-in acquisition of select remote water monitoring assets, expanding the breadth of our smart water offerings in line with our strategic objectives. I want to thank the Badger Meter team for delivering another year of exceptional performance driven by their unrelenting commitment to our customers." - Kenneth C. Bockhorst, Chairman, President and Chief Executive Officer
Analysis and Outlook
Looking ahead, Badger Meter's strategic investments in hardware and software innovation, along with its recent acquisitions, position the company to continue capitalizing on the growing demand for digital water management solutions. The company's focus on customer-centric innovation, operational excellence, and a robust order backlog provides a solid foundation for expected sales and earnings growth in 2024 and beyond.
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Contacts: Karen Bauer, (414) 371-7276, kbauer@badgermeter.com
Explore the complete 8-K earnings release (here) from Badger Meter Inc for further details.
This article first appeared on GuruFocus.
