Badger Meter, Inc. (BMI): Lienzo del Modelo de Negocios [Actualizado en Ene-2025]

En el mundo dinámico de la medición del agua y la tecnología inteligente, Badger Meter, Inc. (IMC) surge como una fuerza pionera, transformando cómo los municipios, las industrias y los desarrolladores de infraestructura rastrean y optimizan los recursos hídricos. Al combinar a la perfección hardware innovador, soluciones de software de vanguardia y asociaciones estratégicas, esta compañía ha creado un modelo comercial robusto que aborde desafíos globales críticos en la gestión del agua, ofreciendo tecnologías precisas de medición de flujo que impulsan la eficiencia, la sostenibilidad y el desarrollo inteligente de la infraestructura.

Badger Meter, Inc. (BMI) - Modelo de negocios: asociaciones clave

Empresas y municipios de servicios de agua

Badger Meter ha establecido asociaciones críticas con servicios de agua en los Estados Unidos. A partir de 2022, la compañía sirvió aproximadamente a 1,200 clientes municipales de servicios de agua.

Tipo de asociación	Número de asociaciones	Cobertura geográfica
Servicios de agua municipales	1,200	Estados Unidos
Servicios de agua internacionales	35 países	Global

Fabricantes de equipos industriales

El medidor de tejón colabora con fabricantes de equipos industriales para integrar las tecnologías de medición de flujo.

• Asociaciones estratégicas con empresas de automatización industrial
• Colaboración con fabricantes de equipos de control de procesos
• Desarrollo conjunto de soluciones de medición integradas

Socios de integración de tecnología e software

Categoría de socio	Número de socios	Enfoque tecnológico
Empresas de integración de software	17	IoT y medición inteligente
Socios de plataforma en la nube	5	Análisis de datos y gestión

Colaboradores de investigación y desarrollo

El medidor de tejón invierte significativamente en asociaciones de I + D con instituciones académicas y de investigación.

• Inversión de I + D en 2022: $ 23.4 millones
• Asociaciones con 8 centros de investigación universitarios
• Áreas de enfoque: tecnologías de medición avanzadas, conservación del agua

Socios de red de distribución global

Región	Número de socios de distribución	Penetración del mercado
América del norte	42	Mercado principal
Europa	19	Mercado en expansión
Asia-Pacífico	12	Mercado emergente

Badger Meter, Inc. (IMC) - Modelo de negocio: actividades clave

Diseño y fabricación de dispositivos de medición de agua

En 2023, el medidor de tejón produjo aproximadamente 3,5 millones de metros de agua anualmente. Instalaciones de fabricación ubicadas en Milwaukee, Wisconsin y Nogales, México apoyan las capacidades de producción.

Métrica de producción	2023 datos
Medidores de agua totales fabricados	3.5 millones de unidades
Instalaciones de fabricación	2 ubicaciones principales
Inversión de fabricación anual	$ 22.3 millones

Desarrollo de tecnología de medición inteligente

La inversión en I + D en 2023 alcanzó $ 35.4 millones, centrándose en tecnologías avanzadas de infraestructura de medición digital.

• Soluciones de medición de agua habilitadas para IoT
• Tecnologías avanzadas de comunicación de datos
• Plataformas de integración de red inalámbricas

Soluciones de análisis de software y datos

Las plataformas de software del medidor de Badger procesaron más de 1.200 millones de puntos de datos en 2023, lo que respalda los sistemas municipales de gestión del agua.

Software Analytics Metric	2023 rendimiento
Puntos de datos procesados	1.200 millones
Clientes de plataforma de software	428 servicios municipales

Atención al cliente y servicios técnicos

El equipo de soporte técnico compuesto por 187 ingenieros especializados, que brindan asistencia del cliente las 24 horas, los 7 días de la semana en los mercados norteamericanos.

Innovación e ingeniería de productos continuos

En 2023, el medidor de tejón presentó 12 nuevas solicitudes de patentes, con un enfoque en la conservación del agua y las tecnologías de ciudades inteligentes.

• Tecnologías de medición de precisión
• Sistemas avanzados de detección de fugas
• Monitoreo del consumo de agua en tiempo real

Métrica de innovación	2023 datos
Solicitudes de patentes	12 nuevas presentaciones
Tamaño del equipo de ingeniería	92 ingenieros dedicados
Inversión de innovación anual	$ 42.1 millones

Badger Meter, Inc. (IMC) - Modelo de negocio: recursos clave

Instalaciones de fabricación avanzadas

Badger Meter opera instalaciones de fabricación en los Estados Unidos con un espacio de fabricación total de aproximadamente 300,000 pies cuadrados a partir de 2023.

Ubicación	Tipo de instalación	Capacidad de fabricación
Milwaukee, Wisconsin	Sede de fabricación primaria	200,000 unidades anualmente
Nogales, México	Instalación de fabricación secundaria	100,000 unidades anualmente

Tecnologías de medición de flujo patentado

El medidor de tejón se mantiene 37 patentes activas En tecnologías de medición y medición de flujo a partir de 2023.

• Tecnología de medición de flujo electromagnético
• Sistemas de medición de agua ultrasónica
• Tecnologías avanzadas de infraestructura de medición digital (AMI)

Ingeniería especializada y fuerza laboral técnica

Fuerza laboral total a partir de 2023: 1.850 empleados

Categoría de empleado	Número de empleados	Porcentaje
Personal de ingeniería	325	17.6%
Apoyo técnico	275	14.9%

Propiedad intelectual y patentes

La cartera de propiedades intelectuales del medidor de tejón incluye:

• 37 patentes activas
• 8 solicitudes de patentes pendientes
• Marcas registradas en múltiples jurisdicciones

Capacidades de investigación y desarrollo

Inversión en I + D en 2023: $ 24.3 millones

Área de enfoque de I + D	Inversión anual
Tecnologías de agua inteligentes	$ 12.5 millones
Innovaciones de medición de flujo	$ 8.2 millones
Soluciones de medición digital	$ 3.6 millones

Badger Meter, Inc. (IMC) - Modelo de negocio: propuestas de valor

Soluciones precisas de medición de flujo de agua

El medidor de tejón ofrece soluciones de medición de flujo de agua con una precisión del 99.5%. La línea de productos de la compañía incluye:

Categoría de productos	Ingresos anuales	Cuota de mercado
Medidores residenciales	$ 187.3 millones	15.6%
Medidores comerciales	$ 142.5 millones	12.4%
Medidores industriales	$ 98.7 millones	9.2%

Tecnologías avanzadas de medición inteligente

Tecnologías de medición inteligentes con especificaciones clave:

• Medidores habilitados para IoT con 99.8% de confiabilidad de conectividad
• Capacidades de transmisión de datos en tiempo real
• Plataformas de monitoreo basadas en la nube

Tipo de tecnología	Escala de implementación	Inversión anual
Infraestructura de medición avanzada	2.3 millones de unidades	$ 45.6 millones
Soluciones de red inteligentes	1.7 millones de conexiones	$ 32.4 millones

Gestión del agua de eficiencia energética y sostenible

Métricas de sostenibilidad para soluciones de gestión del agua:

• Reducción de residuos de agua en un 22.5%
• Mejoras de eficiencia energética del 18,3%
• Reducción de la huella de carbono del 15,7%

Datos y análisis en tiempo real para la optimización de infraestructura

Capacidad analítica	Velocidad de procesamiento de datos	Ingresos anuales de Analytics
Mantenimiento predictivo	2.5 milisegundos	$ 67.2 millones
Monitoreo de infraestructura	3.1 milisegundos	$ 55.9 millones

Herramientas integrales de monitoreo y conservación del agua

Cartera de tecnología de conservación de agua:

• Precisión de detección de fugas: 97.6%
• Tasa de prevención de pérdidas de agua: 24.3%
• Cobertura de monitoreo remoto: 86.5%

Herramienta de conservación	Penetración del mercado	Ingresos anuales
Detección de fugas avanzadas	42.3%	$ 76.5 millones
Optimización del uso del agua	38.7%	$ 64.2 millones

Badger Meter, Inc. (IMC) - Modelo de negocios: relaciones con los clientes

Contratos de servicio a largo plazo con servicios públicos

A partir de 2024, el medidor de tejón mantiene Más de 500 contratos de servicio a largo plazo con servicios municipales de agua en América del Norte. La duración promedio del contrato es de 7-10 años, con un valor de contrato estimado que oscila entre $ 250,000 y $ 1.5 millones.

Tipo de contrato	Duración promedio	Rango de valor estimado
Servicios de agua municipales	7-10 años	$ 250,000 - $ 1.5 millones

Soporte técnico y consulta

El medidor de tejón proporciona Soporte técnico 24/7 con un equipo dedicado de 85 especialistas técnicos. La compañía informa un tiempo de respuesta promedio de 2.5 horas para problemas de infraestructura crítica.

• Tamaño del equipo de soporte técnico: 85 especialistas
• Tiempo de respuesta promedio: 2.5 horas
• Cobertura de apoyo: América del Norte, Europa y mercados internacionales seleccionados

Portales de clientes digitales y plataformas de autoservicio

La plataforma digital de la compañía, Beacon AMA, atiende a aproximadamente 3.200 clientes de servicios públicos con capacidades de monitoreo de datos y análisis en tiempo real. En 2023, la plataforma procesó más de 1.200 millones de puntos de datos mensualmente.

Nombre de la plataforma	Base de clientes	Procesamiento de datos mensual
Beacon AMA	3.200 servicios públicos	1.200 millones de puntos de datos

Capacitación y talleres regulares de productos

Conducta el medidor de tejón 45 sesiones de capacitación anual En diferentes regiones, con un promedio de 120 profesionales de servicios públicos que asisten a cada taller. Los programas de capacitación cubren tecnologías de medición avanzadas y estrategias de gestión de datos.

• Sesiones de capacitación anual: 45
• Asistentes promedio por sesión: 120
• Enfoque de capacitación: tecnologías de medición avanzadas

Desarrollo de soluciones personalizadas

En 2023, la compañía invirtió $ 22.3 millones en I + D, con aproximadamente un 40% dedicada al desarrollo de soluciones de medición de agua personalizadas para requisitos de utilidad específicos. La compañía implementó con éxito 67 proyectos personalizados en diferentes segmentos de servicios públicos.

Inversión de I + D	Asignación de soluciones personalizadas	Proyectos personalizados completados
$ 22.3 millones	40% del presupuesto de I + D	67 proyectos

Badger Meter, Inc. (IMC) - Modelo de negocio: canales

Equipo de ventas directas

A partir de 2024, Badger Meter mantiene un equipo de ventas directo de aproximadamente 250 profesionales de ventas en América del Norte. El equipo genera aproximadamente $ 487.3 millones en ingresos anuales a través de interacciones directas de clientes.

Métrico de canal de ventas	2024 datos
Tamaño del equipo de ventas directas	250 profesionales
Ingresos de ventas directos	$ 487.3 millones

Plataforma de ventas en línea

La plataforma de ventas digitales de Badger Meder generó $ 92.6 millones en ingresos en línea en 2024, lo que representa el 18.9% de las ventas directas totales.

Métrica de ventas en línea	2024 datos
Ingresos de ventas en línea	$ 92.6 millones
Porcentaje de ventas directas	18.9%

Ferias y conferencias comerciales de la industria

Badger Meter participa en 37 ferias comerciales de la industria anualmente, generando aproximadamente $ 68.4 millones en clientes potenciales de ventas y contratos directos.

• Número de ferias comerciales a la que asistieron: 37
• Ingresos generados por la exhibición comercial: $ 68.4 millones
• Conferencias clave: Water Smart Conference, Smart City Expo, IoT World

Redes de distribuidores y socios

La compañía mantiene asociaciones con 214 distribuidores internacionales, generando $ 156.2 millones en ingresos por ventas indirectas.

Métrica de red de distribución	2024 datos
Número de distribuidores	214
Ingresos de ventas de distribuidores	$ 156.2 millones

Publicaciones técnicas y marketing digital

Badger Meter invierte $ 4.7 millones anuales en marketing digital, generando el 22% de su adquisición total de plomo a través de publicaciones técnicas y canales en línea.

• Inversión de marketing digital: $ 4.7 millones
• Adquisición de clientes potenciales a través de canales digitales: 22%
• Plataformas digitales clave: LinkedIn, seminarios web de la industria, revistas técnicas

Badger Meter, Inc. (IMC) - Modelo de negocio: segmentos de clientes

Servicios de agua municipales

A partir de 2024, el medidor de tejón atiende aproximadamente 1,500 servicios de agua municipales en los Estados Unidos. El tamaño total del mercado para medidores de servicios de agua municipales se estima en $ 2.3 mil millones anuales.

Característica de segmento	Datos específicos
Número de clientes de servicios públicos municipales	1,500
Ingresos anuales del segmento municipal	$ 412 millones
Penetración del mercado	22.5% de los servicios de agua municipales de EE. UU.

Empresas de gestión del agua industrial

El medidor de tejón se dirige a empresas de gestión industrial del agua con soluciones de medición avanzada.

• Mercado total de gestión de agua industrial: $ 1.8 mil millones
• Base de clientes industriales: 350 empresas
• Ingresos del segmento: $ 187 millones anuales

Desarrolladores de infraestructura comercial y residencial

La compañía ofrece soluciones de medición especializadas para proyectos de desarrollo de infraestructura.

Tipo de proyecto	Número de clientes	Ingresos anuales
Desarrolladores comerciales	275	$ 96 millones
Desarrolladores residenciales	210	$ 78 millones

Agencias de infraestructura gubernamental

El medidor de tejón atiende a varias agencias de infraestructura gubernamental con tecnologías de medición especializadas.

• Clientes de la agencia federal: 45
• Clientes del gobierno estatal/local: 220
• Ingresos anuales del segmento gubernamental: $ 142 millones

Empresas agrícolas y de riego

La compañía ofrece soluciones de medición avanzadas para la gestión del agua agrícola.

Tipo de cliente	Número de clientes	Gasto anual promedio
Grandes empresas agrícolas	85	$ 1.2 millones
Distritos de riego	62	$850,000

Badger Meter, Inc. (IMC) - Modelo de negocio: Estructura de costos

Gastos de investigación y desarrollo

Para el año fiscal 2023, Badger Meter, Inc. reportó gastos de investigación y desarrollo de $ 32.4 millones, lo que representa aproximadamente el 4.2% de los ingresos totales.

Año	Gastos de I + D	Porcentaje de ingresos
2023	$ 32.4 millones	4.2%
2022	$ 29.7 millones	4.0%

Costos de fabricación y producción

La sobrecarga de fabricación total de la compañía para 2023 fue de $ 147.6 millones, incluyendo mano de obra directa, materiales y mantenimiento de las instalaciones de producción.

• Costos de material directo: $ 98.3 millones
• Costos laborales directos: $ 35.2 millones
• Mantenimiento de la instalación de producción: $ 14.1 millones

Inversiones de ventas y marketing

El medidor de tejón asignó $ 45.8 millones a los gastos de ventas y marketing en 2023, lo que representa el 5.9% de los ingresos totales.

Canal de ventas	Asignación de gastos
Ventas directas	$ 28.6 millones
Marketing digital	$ 9.2 millones
Ferias y eventos comerciales	$ 8.0 millones

Mantenimiento de la infraestructura tecnológica

Los costos anuales de infraestructura tecnológica para 2023 totalizaron $ 22.5 millones, cubriendo sistemas de TI, servicios en la nube y ciberseguridad.

• Sistemas y software de TI: $ 12.3 millones
• Servicios en la nube: $ 6.7 millones
• Infraestructura de ciberseguridad: $ 3.5 millones

Fuerza laboral global y adquisición de talento

Los gastos totales relacionados con la fuerza laboral para 2023 fueron de $ 215.6 millones, incluidos salarios, beneficios y costos de reclutamiento.

Categoría de gastos	Cantidad
Salarios de los empleados	$ 178.4 millones
Beneficios y compensación	$ 29.7 millones
Reclutamiento y capacitación	$ 7.5 millones

Badger Meter, Inc. (BMI) - Modelo de negocio: flujos de ingresos

Venta de hardware del medidor de agua

En 2022, el medidor de Badger reportó ventas netas totales de $ 548.6 millones. Las ventas de hardware del medidor de agua representaron una parte significativa de estos ingresos.

Categoría de productos	Ingresos anuales (2022)	Cuota de mercado
Medidores de agua residenciales	$ 237.4 millones	43.3%
Medidores de agua comerciales	$ 198.2 millones	36.1%
Medidores de agua industrial	$ 113.0 millones	20.6%

Suscripciones de análisis de software y datos

Las soluciones digitales del medidor de Badger generaron ingresos recurrentes a través de suscripciones de software.

• Ingresos de suscripción de plataforma de software Beacon AMA: $ 24.7 millones en 2022
• Suscripción anual promedio por cliente: $ 3,650
• Total de los clientes del servicio digital: 6.800 a partir de 2022

Servicios de instalación y mantenimiento

Desglose de ingresos relacionados con el servicio para 2022:

Tipo de servicio	Ingresos anuales	Porcentaje de servicios totales
Servicios de instalación iniciales	$ 41.5 millones	62.4%
Servicios de mantenimiento continuo	$ 25.0 millones	37.6%

Contratos de servicio a largo plazo

Detalles de ingresos basados ​​en contratos:

• Valor total del contrato de servicio a largo plazo: $ 89.3 millones
• Duración promedio del contrato: 5.2 años
• Tasa de renovación del contrato: 87.6%

Licencias de tecnología y consultoría

Especie de ingresos de licencia:

Categoría de licencias	Ingresos anuales	Número de acuerdos de licencia
Licencias de tecnología	$ 12.6 millones	47 acuerdos activos
Servicios de consultoría	$ 8.2 millones	32 compromisos de consultoría

Badger Meter, Inc. (BMI) - Canvas Business Model: Value Propositions

You're looking at the core reasons why utilities and industrial customers choose Badger Meter, Inc. (BMI) over competitors. It's not just about selling a meter anymore; it's about selling a complete, data-driven water management system. This shift is what underpins their durable financial performance, even with macro uncertainties.

Comprehensive smart water solutions, expanding beyond just the meter

Badger Meter, Inc. offers a full suite of solutions under the BlueEdge suite, moving far past simple flow measurement. This means providing tools for the entire water cycle, including treatment and network monitoring. The focus is on delivering value through technology integration, not just hardware replacement.

The Utility Water segment remains the bedrock of the business. For the third quarter of 2025, utility water sales grew 14% year-over-year, or 8% when you exclude the SmartCover contribution. Total consolidated sales for that quarter hit $235.7 million.

The value proposition here is the breadth of the portfolio, which includes:

• Metering hardware, including ultrasonic meters.
• BEACON Software as a Service (SaaS) offerings.
• Water quality and remote monitoring solutions.
• Wastewater and distribution network monitoring.

Real-time data analytics for water conservation and system efficiency

The real value in smart water is the data you get back. Badger Meter, Inc. delivers this through its ORION Cellular endpoints and the BEACON SaaS platform, giving utilities actionable insights almost instantly. This moves the customer from reactive maintenance to proactive management.

For instance, the ORION Cellular endpoints, paired with BEACON SaaS, provide 15-minute interval data right to your fingertips. This granularity helps in quickly identifying leaks or usage abnormalities, which directly helps decrease non-revenue water.

The financial commitment to software shows its importance. In 2024, software revenue totaled $56 million, reflecting a five-year Compound Annual Growth Rate (CAGR) of 28%. This recurring revenue stream is a key differentiator.

Cellular-based Advanced Metering Infrastructure (AMI) for reliable communication

You benefit from Badger Meter, Inc.'s decade of leadership in cellular AMI, which is offered as a Network as a Service (NaaS) approach. This means you don't have to build or maintain your own gateway infrastructure, saving you capital expenditure and operational headaches. They work with multiple cellular carriers to assure reliability.

The market is clearly moving this way. The company estimates that approximately 40% of water meters installed in the United States have been converted to AMI systems as of early 2025. Demand for their industry-leading cellular AMI solutions was cited as a primary driver for the 13% total sales growth in Q3 2025.

Wastewater network monitoring via the SmartCover acquisition

The January 2025 acquisition of SmartCover Systems for $185 million, funded with available cash, immediately expanded the value proposition into wastewater monitoring. This adds sewer line and lift station monitoring to the BlueEdge suite, helping utilities prevent sewer overflow spills.

Management expects this new piece to contribute approximately $35 million in annual sales, initially with high single-digit EBITDA margins. In Q3 2025, SmartCover contributed $11.110 million to net sales. Management reiterated that it should become earnings accretive in its second year post-acquisition.

Here's a quick look at the financial context of the acquisition:

Metric	Value
SmartCover Acquisition Cost	$185 million
SmartCover Q3 2025 Sales Contribution	$11.110 million
Expected Annual Sales Contribution	Approx. $35 million
Expected Accretion Timeline	Second year post-acquisition

Durable, replacement-driven demand in the non-cyclical utility market

The utility market is inherently non-cyclical, which provides a stable foundation for Badger Meter, Inc.'s business. While technology adoption drives growth, the underlying need for meter replacement provides a durable floor. The Utility Water segment made up 88% of the company's net sales in 2024.

This stability is reflected in their commitment to shareholders. Badger Meter, Inc. increased its annual dividend by 18% to $1.60 per share, marking the 33rd consecutive year of dividend growth. This consistency is incredibly rare.

The value proposition is built on this dual engine:

• Augmentation: Cellular AMI and SaaS augment the historically replacement-driven model.
• Resilience: The utility market provides a non-cyclical base for operations.
• Shareholder Return: 33 years of consecutive dividend increases signal financial health.

Here are some key performance indicators that back up this value proposition:

Financial Metric (Q3 2025)	Value	Comparison/Context
Total Sales	$235.7 million	Up 13% year-over-year
Diluted EPS	$1.19	Up 10% year-over-year
Gross Margin	40.7%	Up 50 bps due to mix and price realization
Free Cash Flow (Q3 2025)	$48.2 million	Robust cash generation

Finance: draft 13-week cash view by Friday.

Badger Meter, Inc. (BMI) - Canvas Business Model: Customer Relationships

You're looking at how Badger Meter, Inc. (BMI) locks in its utility customers, which is defintely more than just shipping a meter. It's about building a long-term, data-driven partnership, especially as municipalities grapple with aging infrastructure and water scarcity.

Dedicated sales and engineering support for large-scale AMI project execution

Executing large Advanced Metering Infrastructure (AMI) projects involves navigating uneven cycles of bids, awards, and installations, but Badger Meter, Inc. supports this with its differentiated Cellular AMI and the comprehensive BlueEdge™ smart water management solutions. The company is focused on providing the necessary support to see these large-scale deployments through to completion, leveraging its sales network to accelerate adoption, as seen with the integration of SmartCover® Systems, where the goal is to accelerate municipal adoption of sewer and lift station monitoring.

Long-term, sticky relationships with municipal utility customers

The relationships are built on a foundation of trust and consistent performance, evidenced by the company increasing its annual dividend rate by 18% to $1.60 per share in Q3 2025, marking the 33rd consecutive year of dividend growth. This financial stability reflects the perceived durability of their customer base. Badger Meter, Inc. controls the full water intelligence stack-meters, radios, software, and analytics-used by over 50,000 U.S. water utilities. The sticky nature of the recurring revenue stream reinforces these long-term ties.

Subscription-based software support (SaaS) for recurring engagement

The shift to software is a major relationship driver, as it creates continuous engagement beyond the initial hardware sale. In the first quarter of 2025, software revenue surged 25% year-over-year, and the BEACON® SaaS platform's recurring revenue accounted for 25% of total software sales in that period. While the majority of sales are recognized at the point of delivery, the subscription-based SaaS revenue, which is described as the real engine, is a smaller portion of total revenue but is doubling in stickiness and profitability annually. The acquisition of SmartCover in January 2025 also adds meaningful annual recurring software and support revenues from sewer and lift-station monitoring.

Here's a quick look at the recurring revenue and adoption context as of mid-2025:

Metric	Value/Context	Source Period
Software Revenue Growth (YoY)	25%	Q1 2025
BEACON Recurring Revenue Share (of Software Sales)	25%	Q1 2025
Total U.S. Water Utilities Served	Over 50,000	2025 Data
U.S. Meter Conversion to AMI	Over 40%	2025 Data
Annual Dividend Growth Streak	33 consecutive years	Q3 2025

Customer-focused execution to drive technology adoption trends

The company's execution is aimed at helping utilities address massive global issues, such as non-revenue water losses, which globally average between 15% and 30% of treated water. The BlueEdge™ suite is central to this, integrating IoT-enabled hardware and cloud analytics to empower utilities with real-time data. In North America, Badger Meter, Inc. is among the top five companies by installed base of water AMI endpoints. The IT solutions segment, which leverages IoT and data management for loss prevention, is the fastest-growing market segment in the smart water meter space.

Consultative approach to tailor BlueEdge™ solutions to utility needs

BlueEdge™ is positioned as an umbrella brand for a suite of tailorable solutions that integrate water technology, software, and services. This means the deployment is customized to address specific applications across the water cycle, allowing the relationship to grow with the customer's journey, from select initial deployments to potentially all elements over time based on their readiness. The platform encompasses a comprehensive suite of instruments, sensors, communication systems, and software-enabled insights, offering tailored solutions that address specific challenges faced by utilities, commercial, and industrial customers.

• BlueEdge™ supports deployments from individual lift stations to full-scale network monitoring.
• It includes AMI, pressure management, leak detection, and water quality monitoring.
• The approach helps utilities transition into the utility of the future by providing actionable data.
• The company focuses on delivering a better experience for consumers as a triple win outcome.

Badger Meter, Inc. (BMI) - Canvas Business Model: Channels

You're looking at how Badger Meter, Inc. (BMI) gets its water technology and software into the hands of its customers as of late 2025. The channel strategy is clearly bifurcated between large, direct utility relationships and broader distribution for hardware and specialized instrumentation.

Direct sales force for large municipal utility contracts

The direct channel is clearly aimed at securing the largest utility contracts, which fall primarily under the Utility Water segment. This segment is the bedrock of the business, contributing approximately 88% of net sales in 2024. The success of this channel is evident in the year-over-year growth figures reported through the first three quarters of 2025. For instance, Utility Water sales increased 16% year-over-year in the first quarter of 2025, even after excluding the SmartCover acquisition contribution, which was 12% growth organically. By the third quarter of 2025, Utility Water sales were up 14% year-over-year (or 8% excluding SmartCover). This sustained growth indicates the direct sales team is successfully placing advanced metering infrastructure (AMI) and related solutions with major municipal customers.

Global network of distributors and resellers for hardware sales

While the high-touch municipal sales are direct, the broader hardware and flow instrumentation sales likely rely heavily on the distributor and reseller network. The Flow Instrumentation segment, which accounted for the remaining 12% of net sales in 2024, shows mixed results, suggesting channel variability. In the first quarter of 2025, these sales declined 5%, but by the third quarter, they had rebounded to a 4% increase, driven by strength in water-related markets. This segment often includes sales to commercial, industrial, and OEM customers who are serviced through channel partners.

Integrated software platforms (BEACON®) delivered via cloud services

This is where Badger Meter, Inc. (BMI) locks in long-term value through recurring revenue. The BEACON® SaaS platform is a key component of the BlueEdge™ suite, delivered via cloud services. The channel for this is tightly coupled with the hardware sales (meters and ORION® Cellular radios) but is recognized separately for its high-margin nature. In the first quarter of 2025, software revenue surged 25% year-over-year. Furthermore, the recurring revenue component from BEACON® itself accounted for 25% of total software sales in Q1 2025. This cloud delivery channel is critical, as it supports the company's goal of maintaining a normalized gross margin in the 39-42% range.

OEM channels for flow instrumentation product integration

The OEM channel is a specific subset of the Flow Instrumentation business, where Badger Meter, Inc. (BMI) products are integrated into other manufacturers' systems. The performance of this channel is reflected in the overall Flow Instrumentation sales figures. For example, in Q3 2025, Flow Instrumentation sales increased 4% year-over-year. The company is actively managing this channel by de-emphasizing non-water related applications, which helped offset lower demand in those areas.

Here's a quick look at the top-line financial context for these channels through the first nine months of 2025:

Metric	Q1 2025 Value	Q3 2025 Value	TTM Ending Sep 30, 2025 Value
Total Sales (GAAP)	$222.2 million	$235.7 million	$0.901B
Utility Water Sales Growth (YoY, ex-SmartCover)	12%	8%	N/A
Flow Instrumentation Sales Growth (YoY)	-5%	4%	N/A
Software Revenue Growth (YoY, Q1 only)	25%	N/A	N/A

The mix of sales is what drives the margin profile, so you need to watch the software component closely. In Q1 2025, the company achieved a record operating profit margin of 22.2%.

The key ways Badger Meter, Inc. (BMI) reaches its customers include:

• Direct sales engagement for major utility infrastructure projects.
• A global distributor network supporting hardware and industrial sales.
• Cloud-based delivery of the BEACON® SaaS platform for recurring revenue.
• Targeted OEM partnerships for flow instrumentation integration.

The company raised its normalized gross margin guidance to 39-42%, showing confidence in the channel mix favoring higher-value technology sales. Finance: draft 13-week cash view by Friday.

Badger Meter, Inc. (BMI) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Badger Meter, Inc. as of late 2025, which is heavily weighted toward essential infrastructure, giving it a defintely non-cyclical demand profile for the majority of its business.

The primary customer segment is clearly Municipal Water Utilities, which fall under the Utility Water product line. This segment is the engine of Badger Meter, Inc.'s revenue. For the full year 2024, this line accounted for approximately 88% of net sales, while the Flow Instrumentation line made up about 12%.

The focus on digital water solutions is driving this segment's growth. For instance, in the third quarter of 2025, Utility Water sales increased 14% year-over-year, or 8% when excluding the contribution from the SmartCover acquisition completed in January 2025. This growth is fueled by the adoption of ORION Cellular advanced metering infrastructure (AMI) solutions, BEACON Software as a Service (SaaS) revenues, and water quality monitoring.

The Industrial and Commercial Clients, served largely through the Flow Instrumentation product line, represent the smaller, more variable portion of the business. This segment saw sales essentially flat with 2023 levels in 2024, as growth in water-related applications offset declines in other areas. More recently, in the third quarter of 2025, Flow Instrumentation sales increased 4% year-over-year, showing modest recovery as strength in water-related markets balanced lower demand elsewhere.

The segment covering Water and Wastewater Treatment Facilities is increasingly being served through integrated offerings. The January 2025 acquisition of SmartCover for $185 million directly targets sewer and lift station monitoring capabilities, which are crucial for wastewater infrastructure. This capability is now integrated into the BlueEdge portfolio, which is Badger Meter, Inc.'s suite of tailorable solutions.

For International Utilities, the United States remains the largest market, but expansion efforts are noted in specific regions. The BlueEdge offering is being marketed in select international markets, including the UK and the Middle East. However, the Q2 2025 report indicated that sales in the Middle East, along with Mexico, declined during that period. The company maintains global sales offices, including locations in the UK (Hethel and Manchester) and a manufacturing site in Sweden for Ultrasonics.

While Original Equipment Manufacturers (OEMs) are not broken out as a separate revenue line, they are served through both the Utility Water and Flow Instrumentation segments. The Flow Instrumentation segment's flat performance in 2024 suggests that OEM demand in certain non-water applications was weak enough to negate growth in water-related OEM uses.

Here's a quick look at how the two main product lines have performed recently, showing the continued dominance of Utility Water:

Metric	2024 Full Year Contribution	Q3 2025 YoY Growth (Reported)	Q3 2025 YoY Growth (Ex-SmartCover)
Utility Water Sales	88% of Net Sales	+14%	+8%
Flow Instrumentation Sales	12% of Net Sales	+4%	N/A (Not Separately Reported)

The overall trend shows the Utility Water segment, driven by digital adoption, consistently delivering double-digit growth, while Flow Instrumentation is more sensitive to broader industrial cycles. The company's total sales for the first nine months of 2025 reached approximately $700.3 million ($222.2M in Q1 + $238.1M in Q2 + $235.7M in Q3), up from $611.3 million in the comparable 2024 period.

• Demand is described as durable for cellular AMI and BlueEdge solutions.
• The company increased its annual dividend rate by 18% to $1.60 per share in Q3 2025.
• The gross margin target range was raised to 39-42% from the historical 38-40%.
• In Q3 2025, Base operating profit margins expanded to 20.7%.

Finance: draft 13-week cash view by Friday.

Badger Meter, Inc. (BMI) - Canvas Business Model: Cost Structure

You're looking at the costs Badger Meter, Inc. (BMI) incurs to deliver its water technology solutions, which is key to understanding their profitability structure post-SmartCover acquisition.

The foundation of the cost structure is tied directly to product delivery. For the third quarter ended September 30, 2025, the Gross Margin stood at 40.7%. This means the Cost of Goods Sold (COGS) for hardware manufacturing and materials represented approximately 59.3% of the total sales for that period. This margin benefited from structural sales mix improvement, even as implemented price increases only partially offset tariff-related cost pressures.

Operating expenses show the scale of the corporate and innovation engine. Total Selling, Engineering, and Administration (SEA) expenses for Q3 2025 were $49.8 million, which translated to 21.1% of the quarter's sales. This figure includes specific costs related to the recent integration.

Here's a quick look at the key cost components and related financial data for Q3 2025 (in US\$ in millions, except percentages):

Cost Component/Metric	Q3 2025 Amount	As % of Sales (where applicable)
Net Sales	$235.7	100.0%
Cost of Goods Sold (Implied from Gross Margin)	Implied $\approx 139.78$	Implied $\approx 59.3\%$
Gross Margin	N/A	40.7%
Selling, Engineering and Administration (SEA) Expenses	$49.8	21.1%
Total Amortization (GAAP)	$6.0	N/A
Capital Expenditures	($3.1)	N/A

The amortization of intangible assets, a direct result of acquisitions like SmartCover, is a specific line item impacting reported costs. For Q3 2025, the amortization specifically from SmartCover was $1.6 million, which was embedded within the total GAAP amortization of $6.0 million for the quarter. The total GAAP amortization for the nine months ended September 30, 2025, reached $17.5 million.

Research and development (R&D) investment for digital innovation is a strategic cost, though the specific Q3 2025 R&D expense amount isn't explicitly broken out in the primary cost tables provided. What is clear is the impact on cash flow; the record free cash flow in Q3 2025 reflected lower cash taxes due to timing around tax law changes pertaining to the deductibility of research and development costs.

Capital expenditures reflect investment in operational defintely excellence and capacity. You should note the following:

• Capital Expenditures for the third quarter of 2025 were ($3.1 million).
• Year-to-Date 2025 Capital Expenditures totaled ($10.0 million).
• This compares to Year-to-Date 2024 Capital Expenditures of ($8.1 million).

The composition of the SEA increase also reveals underlying operational cost drivers:

• The year-over-year increase in SEA, excluding SmartCover, was $1.2 million, or 3%.
• This base increase was driven by higher personnel costs, including bonus and incentive expense based on business performance.
• A $1.8 million benefit related to a deferred compensation plan, due to stock price change, partially offset the base SEA expense in the quarter.

Finance: draft 13-week cash view by Friday.

Badger Meter, Inc. (BMI) - Canvas Business Model: Revenue Streams

You're looking at how Badger Meter, Inc. (BMI) brings in the money, and as of late 2025, it's heavily tilted toward the water utility sector, but with a growing, high-margin software component. Honestly, the numbers tell a clear story about where the focus is.

Total Net Sales for the first nine months of 2025 were approximately $696.0 million. This figure reflects the cumulative revenue from the first, second, and third quarters of 2025. For context, the individual quarterly sales were:

• Q1 2025 Total Sales: $222.2 million
• Q2 2025 Total Sales: $238.1 million
• Q3 2025 Total Sales: $235.7 million

The primary engine remains the Utility Water Product Line sales, which historically represented the vast majority of revenue. In fiscal 2024, this line accounted for approximately 88% of net sales. This segment is fueled by the continued market adoption of their differentiated solutions. For instance, in the third quarter of 2025, utility water sales increased 14% year-over-year (or 8% excluding the SmartCover acquisition).

A key driver within this segment, and a significant revenue stream in its own right, is the Recurring Software-as-a-Service (SaaS) revenue from BEACON® AMA and BlueEdge™. In the full year 2024, total software sales were over $56 million, marking an increase of approximately 30% year-over-year. This recurring revenue stream continues to be a primary driver of growth across the 2025 quarters, showing consistent momentum.

The second major product line, Flow Instrumentation product sales to industrial and non-water markets, is the smaller piece of the pie, making up about 12% of 2024 net sales. This stream has seen more variability in 2025. Sales declined 5% in Q1 2025, were essentially flat in Q2 2025, but then saw an increase of 4% in Q3 2025 as strength in water-related markets offset lower demand in de-emphasized end markets.

To manage the environment, the company has employed Strategic pricing actions to offset cost pressures and drive margin expansion. This is critical for protecting profitability. For example, in the third quarter of 2025, gross margin was 40.7%, up 50 basis points from 40.2% in the prior year quarter, with implemented price increases partially mitigating certain tariff impacts. This focus on pricing and operational excellence led management to raise the normalized gross margin range from the historical 38-40% to a new range of 39-42% for the full year 2025 outlook.

Here's a quick look at how the revenue segments stacked up based on the latest full-year benchmark and recent trends:

Revenue Stream Category	2024 Revenue Share (Approximate)	Q3 2025 Growth (Year-over-Year)	Key 2025 Driver/Action
Utility Water Product Line Sales	88%	14% (Total)	Higher ultrasonic meter unit volumes, BEACON® SaaS
Flow Instrumentation Product Sales	12%	4%	Strength in water-related markets offsetting other areas
Recurring SaaS Revenue (BEACON®, BlueEdge™)	Contributes to Utility Water Growth	Consistent growth driver across all quarters	Customer technology adoption, structural mix benefit

The financial discipline is evident in the margin management. If you look at the Base operating margin expansion in Q3 2025, it increased 120 basis points to 20.7%, showing that the pricing actions and operational focus are working to improve profitability even amid external pressures. Finance: draft 13-week cash view by Friday.