Q2 2024 Badger Meter Inc Earnings Call Transcript
Key Points
- Badger Meter Inc (BMI) surpassed the $200 million quarterly revenue milestone, achieving $217 million in total sales, representing a 23% year-over-year growth.
- The company reported record operating margins and EPS for the quarter, along with strong year-over-year cash flow growth.
- Total utility water product line sales increased by 26% year-over-year, driven by strong demand for smart water solutions.
- Operating margin expanded by 240 basis points, reaching a record high of 19.2% for the second quarter.
- Free cash flow increased to $34.1 million, up from $20.1 million in the prior year, largely due to higher earnings.
- Sales growth is expected to normalize to high single digits in the back half of the year, indicating a slowdown from the current growth rate.
- The company does not anticipate the same level of backlog conversion that benefited the second quarter, which may impact sequential revenue trends.
- SEA expenses increased by approximately $4 million year-over-year, primarily due to higher personnel-related costs.
- Copper prices, which are 18% higher than the previous year, pose a potential pressure on gross margins.
- The company faces ongoing inflationary pressures in areas such as transportation, energy, and other costs, which could impact profitability.
Ladies and gentlemen, welcome to the second quarter 2024 Badger Meter earnings conference call. After the prepared remarks, there will be an opportunity to ask questions. (Operator Instructions) As a reminder, today's conference is being recorded. It's now my pleasure to turn the conference over to Karen Bauer, Vice President of Investor Relation, Corporate Strategy and Treasurer. Please go ahead.
Good morning and thank you for joining the Badger Meter second quarter 2024 earnings conference call. On the call with me today are Ken Bockhorst, Chairman, President and Chief Executive Officer, and Bob Wrocklage, Chief Financial Officer. The earnings release and related slide presentation are available on our website. Quickly, I will cover the Safe Harbor reminding you that any forward-looking statements made during this call are subject to various risks and uncertainties, the most important of which are outlined in our press release and SEC filings. On today's call,
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
