Badger Meter, Inc.: Key takeaways from Investor Day

研报英文原文证据摘录

Badger Meter, Inc.: Key takeaways from Investor Day

Barclays | Badger Meter, Inc.

•• Software-related recurring revenue expected to double by 2030: BMI reiterated that its

hardware-enabled software model represents a core long-term growth driver and

competitive moat, underpinning a growing base of recurring revenue. The company expects

software revenue to reach ~$150mn (or ~11-12% of total revenue) by 2030, up from ~$74mn

(or ~8% of revenue) in 2025, implying double-digit growth driven by incremental AMI

deployment, new software offerings, and installed base expansion. BMI cited further

integration of AI capabilities (through its Cobalt platform) to enhance analytics and

operational insights as key to its value proposition. BMI also highlighted its recently released

OneNetwork platform, which unifies data across devices, sensors, and third-party systems

into a single analytics layer and is designed to support cross-sell opportunities and

incremental software monetization.

•• Capital allocation: BMI maintains a balanced approach to capital deployment across

internal investment, shareholder returns, and disciplined bolt-on M&A. The company

highlighted ~$500mn of available “dry powder” to pursue accretive acquisitions aligned with

its BlueEdge strategy, with a stated leverage comfort level of ~1.5-2.5x EBITDA. Over the past

five years, BMI has deployed ~$400mn into acquisitions, primarily targeting adjacent water

technology and network monitoring capabilities that expand its solution set. The company

also reiterated its commitment to shareholder returns, supported by a track record of annual

dividend growth and opportunistic share repurchases.

•• Financial framework: Management reiterated its LT financial targets, including a HSD 5-year