Badger Meter Tops Q2 Backed By Customer Demand, Effective Supply Chain Management

Badger Meter, Inc BMI reported second-quarter FY22 sales growth of 12% year-on-year to $137.8 million, beating the consensus of $133.1 million.
Utility water sales increased 14% Y/Y. Sales growth was most notable in ultrasonic meters, ORION Cellular endpoints, and BEACON SaaS revenue. Sales of flow instrumentation products rose 4% Y/Y.
The gross margin contracted 110 basis points to 39.7% due to inflationary pressures and production volatility caused by intermittent component delays.
The operating margin improved 80 basis points to 16%.
EPS of $0.57 beat the consensus of $0.51.
It held $100.2 million in cash and equivalents and generated $19.7 million in operating cash flow.
"Record sales for the second quarter were the result of continued strong customer demand, effective supply chain management, and continued price realization. Operating margins improved year-over-year despite persistent cost inflation, and we continued to experience robust orders, and correspondingly, a further expansion of our already record-high backlog," Chair and CEO Kenneth C. Bockhorst said.
Price Action: BMI shares traded higher by 2.14% at $84.46 on the last check Wednesday.

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