Slide 1: Fourth Quarter / Full Year 2023 Financial Results
Badger Meter Fourth Quarter / Full Year 2023 Financial Results January 26, 2024 © 2023 Badger Meter, Inc. 1
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements contained in this presentation as well as other information provided from time to time by Badger Meter, Inc. (the “Company”) or its employees, may contain forward-looking statements that involve risks and uncertainties that could cause actual results to
Slide 3: Strong Fourth Quarter Results Capped Off a Record Year
Strong Fourth Quarter Results Capped Off a Record Year Y-O-Y Sales Growth % Q4 Full Year • Sales of $182.4M in Q4, up 24% vs the prior year; full year revenue 23.8% 24.4% exceeded $700M for the first time ($703.6M, +24% year-over-year) • Strong execution with record operating margins in Q4 at 17.6%;
Slide 4: Fourth Quarter Financial Snapshot Demonstrates Strong Operating Performance
Fourth Quarter Financial Snapshot Demonstrates Strong Operating Performance (US$ in millions, except per share data) Q4 2023 Q4 2022 Change • Utility water sales increased robust 28% with strong AMI demand inclusive of cellular endpoints, BEACON SaaS Sales $182.4 $147.3 23.8% and ultrasonic meters;
Slide 5: Acquired Remote Water Monitoring from Trimble
Enhancing Hardware-Enabled Software Solutions to Solve Customer Challenges – Acquired Remote Water Monitoring from Trimble • Longstanding business partnership with Trimble (AMR meter reading) led to direct discussions on remote monitoring assets Snapshot • Extends capabilities of our smart water off
Slide 6: Over the Past Five Years We've Evolved and Expanded Our Served Market
Over the Past Five Years We’ve Evolved and Expanded Our Served Market Capitalizing On Macro Growth Tailwinds • Strategy evolution aligned with customer desire for CEO Transition Early 2020s Today comprehensive and tailorable solutions from trusted source Defend and grow Premier AMI Comprehensive & s
Slide 7: We Have Also Fundamentally Improved Our Financial Profile
We Have Also Fundamentally Improved Our Financial Profile Delivering Strong Sales Growth, Recurring Revenue, Improving Margins and Cash Generation Full Year 2023 Consolidated Sales Growth SaaS Revenue Growth Revenue in Millions $ Revenue in Millions $ $800 $50 24% Sales Growth $700 $40 $600 $30 SaaS
Slide 8: Committed to Creating Long-Term Shareholder Value
Committed to Creating Long-Term Shareholder Value by Enabling Sustainability-Driven Outcomes for Customers • Innovation leader with • Durable macro trends • Strong cash flow and • Differentiated • Strong engagement expanding technology- support long-term borrowing capacity performance on • Values-dr
Slide 9: Questions
Questions For your planning purposes, Badger Meter Q1 2024 earnings are tentatively scheduled for April 18, 2024 © 2023 Badger Meter, Inc. 9
Slide 10: GAAP To Non-GAAP Reconciliations
GAAP To Non-GAAP Reconciliations EBITDA Free Cash Flow / Conversion (US$ in millions) (US$ in millions) Q4 2023 Q4 2022 2023 2022 Q4 2023 Q4 2022 Net Earnings (GAAP) $24.7 $17.5 $92.6 $66.5 Cash from Ops (GAAP) $37.9 $29.7 Interest income (1.4) (0.5) (4.0) (0.6) Capital Expenditures (2.0) (1.2) Inco