Badger Meter, Inc. (BMI): Business Model Canvas [Jan-2025 Mise à jour]

Dans le monde dynamique de la mesure de l'eau et de la technologie intelligente, Badger Meter, Inc. (IMC) apparaît comme une force pionnière, transformant comment les municipalités, les industries et les développeurs d'infrastructure suivent et optimisent les ressources en eau. En mélangeant de manière transparente du matériel innovant, des solutions de logiciels de pointe et des partenariats stratégiques, cette société a conçu un modèle commercial robuste qui relève des défis mondiaux critiques dans la gestion de l'eau, offrant des technologies précises de mesure du débit qui stimulent l'efficacité, la durabilité et le développement intelligent des infrastructures.

Badger Meter, Inc. (BMI) - Modèle commercial: partenariats clés

Entreprises de services publics et municipalités

Badger Meter a établi des partenariats critiques avec les services d'eau à travers les États-Unis. En 2022, la société a servi environ 1 200 clients municipaux de services publics d'eau.

Type de partenariat	Nombre de partenariats	Couverture géographique
Services d'eau municipaux	1,200	États-Unis
Internationaux des services d'eau	35 pays	Mondial

Fabricants d'équipements industriels

Badger Meter collabore avec les fabricants d'équipements industriels pour intégrer les technologies de mesure du débit.

• Partenariats stratégiques avec les entreprises d'automatisation industrielle
• Collaboration avec les fabricants d'équipements de contrôle de processus
• Développement conjoint de solutions de mesure intégrées

Partners de la technologie et de l'intégration des logiciels

Catégorie de partenaire	Nombre de partenaires	Focus technologique
Sociétés d'intégration de logiciels	17	IoT et mesure intelligente
Partenaires de plate-forme cloud	5	Analyse et gestion des données

Collaborateurs de la recherche et du développement

Badger Meter investit considérablement dans des partenariats de R&D avec des établissements universitaires et de recherche.

• Investissement en R&D en 2022: 23,4 millions de dollars
• Partenariats avec 8 centres de recherche universitaires
• Domaines d'intérêt: technologies de mesure avancées, conservation de l'eau

Partenaires du réseau de distribution mondial

Région	Nombre de partenaires de distribution	Pénétration du marché
Amérique du Nord	42	Marché primaire
Europe	19	Marché en expansion
Asie-Pacifique	12	Marché émergent

Badger Meter, Inc. (BMI) - Modèle d'entreprise: Activités clés

Conception et fabrication de dispositifs de mesure de l'eau

En 2023, Badger Meter a produit environ 3,5 millions de compteurs d'eau par an. Installations de fabrication situées à Milwaukee, au Wisconsin et à Nogales, au Mexique, soutiennent les capacités de production.

Métrique de production	2023 données
Total des compteurs d'eau fabriqués	3,5 millions d'unités
Installations de fabrication	2 emplacements principaux
Investissement manufacturier annuel	22,3 millions de dollars

Développement de la technologie de mesure intelligente

L'investissement en R&D en 2023 a atteint 35,4 millions de dollars, en se concentrant sur les technologies avancées d'infrastructure de comptage numérique.

• Solutions de mesure de l'eau en IoT
• Technologies de communication de données avancées
• Plates-formes d'intégration de réseau sans fil

Solutions d'analyse logicielle et de données

Les plates-formes logicielles de Badger Meter ont traité plus de 1,2 milliard de points de données en 2023, en soutenant les systèmes municipaux de gestion de l'eau.

Métrique d'analyse logicielle	Performance de 2023
Points de données traités	1,2 milliard
Clients de plate-forme logicielle	428 services publics municipaux

Support client et services techniques

L'équipe de support technique comprenait 187 ingénieurs spécialisés, fournissant une assistance client 24h / 24 et 7j / 7 sur les marchés nord-américains.

Innovation et ingénierie des produits continues

En 2023, Badger Meter a déposé 12 nouvelles demandes de brevet, en mettant l'accent sur la conservation de l'eau et les technologies de la ville intelligente.

• Technologies de mesure de précision
• Systèmes de détection de fuite avancés
• Surveillance de la consommation d'eau en temps réel

Métrique d'innovation	2023 données
Demandes de brevet	12 nouveaux dépôts
Taille de l'équipe d'ingénierie	92 ingénieurs dédiés
Investissement annuel sur l'innovation	42,1 millions de dollars

Badger Meter, Inc. (BMI) - Modèle d'entreprise: Ressources clés

Installations de fabrication avancées

Badger Meter exploite des installations de fabrication aux États-Unis avec un espace de fabrication total d'environ 300 000 pieds carrés en 2023.

Emplacement	Type d'installation	Capacité de fabrication
Milwaukee, Wisconsin	Siège de fabrication primaire	200 000 unités par an
Nogales, Mexique	Usine de fabrication secondaire	100 000 unités par an

Technologies de mesure du flux propriétaire

Badger Meter tient 37 brevets actifs dans les technologies de mesure et de mesure du débit à partir de 2023.

• Technologie de mesure de l'écoulement électromagnétique
• Systèmes de mesure de l'eau à ultrasons
• Technologies avancées d'infrastructure de mesure numérique (AMI)

Ingénierie qualifiée et main-d'œuvre technique

Total de la main-d'œuvre à partir de 2023: 1 850 employés

Catégorie des employés	Nombre d'employés	Pourcentage
Personnel d'ingénierie	325	17.6%
Support technique	275	14.9%

Propriété intellectuelle et brevets

Le portefeuille de propriété intellectuelle de Badger Meter comprend:

• 37 brevets actifs
• 8 demandes de brevet en instance
• Marques enregistrées dans plusieurs juridictions

Capacités de recherche et de développement

Investissement en R&D en 2023: 24,3 millions de dollars

Zone de focus R&D	Investissement annuel
Technologies d'eau intelligente	12,5 millions de dollars
Innovations de mesure du débit	8,2 millions de dollars
Solutions de mesure numérique	3,6 millions de dollars

Badger Meter, Inc. (BMI) - Modèle d'entreprise: propositions de valeur

Solutions précises de mesure du débit d'eau

Badger Meter propose des solutions de mesure du débit d'eau avec une précision de 99,5%. La gamme de produits de l'entreprise comprend:

Catégorie de produits	Revenus annuels	Part de marché
Mettes résidentiels	187,3 millions de dollars	15.6%
Compteurs commerciaux	142,5 millions de dollars	12.4%
Compteurs industriels	98,7 millions de dollars	9.2%

Technologies avancées de mesure intelligente

Technologies de mesure intelligents avec des spécifications clés:

• Compteurs compatibles IoT avec une fiabilité de connectivité de 99,8%
• Capacités de transmission de données en temps réel
• Plates-formes de surveillance basées sur le cloud

Type de technologie	Échelle de déploiement	Investissement annuel
Infrastructure de mesure avancée	2,3 millions d'unités	45,6 millions de dollars
Solutions de réseau intelligent	1,7 million de connexions	32,4 millions de dollars

Gestion économe en énergie et durable

Métriques de durabilité pour les solutions de gestion de l'eau:

• Réduction des déchets d'eau de 22,5%
• Améliorations de l'efficacité énergétique de 18,3%
• Réduction de l'empreinte carbone de 15,7%

Données et analyses en temps réel pour l'optimisation des infrastructures

Capacité d'analyse	Vitesse de traitement des données	Revenus annuels de l'analyse
Maintenance prédictive	2,5 millisecondes	67,2 millions de dollars
Surveillance des infrastructures	3,1 millisecondes	55,9 millions de dollars

Outils complets de surveillance de l'eau et de conservation

Portfolio de technologies de conservation de l'eau:

• Précision de détection des fuites: 97,6%
• Taux de prévention de la perte d'eau: 24,3%
• Couverture de surveillance à distance: 86,5%

Outil de conservation	Pénétration du marché	Revenus annuels
Détection de fuite avancée	42.3%	76,5 millions de dollars
Optimisation d'utilisation de l'eau	38.7%	64,2 millions de dollars

Badger Meter, Inc. (BMI) - Modèle d'entreprise: relations avec les clients

Contrats de services à long terme avec les services publics

Depuis 2024, Badger Meter maintient Plus de 500 contrats de service à long terme avec des services publics municipaux à travers l'Amérique du Nord. La durée moyenne du contrat est de 7 à 10 ans, avec une valeur de contrat estimée allant de 250 000 $ à 1,5 million de dollars.

Type de contrat	Durée moyenne	Plage de valeur estimée
Services d'eau municipaux	7-10 ans	250 000 $ - 1,5 million de dollars

Soutien technique et consultation

Badger Meter fournit Assistance technique 24/7 avec une équipe dédiée de 85 spécialistes techniques. La société signale un temps de réponse moyen de 2,5 heures pour les problèmes d'infrastructure critiques.

• Support technique Taille de l'équipe: 85 spécialistes
• Temps de réponse moyen: 2,5 heures
• Couverture d'assistance: Amérique du Nord, Europe et Select International Markets

Portails de clients numériques et plateformes en libre-service

La plate-forme numérique de l'entreprise, Beacon Ama, dessert environ 3 200 clients de services publics avec des capacités de surveillance des données et d'analyse en temps réel. En 2023, la plate-forme a traité plus de 1,2 milliard de points de données par mois.

Nom de la plate-forme	Clientèle	Traitement des données mensuelles
Beacon Ama	3 200 services publics	1,2 milliard de points de données

Formation et ateliers réguliers

Mousse de badger 45 séances de formation annuelles Dans différentes régions, avec une moyenne de 120 professionnels des services publics qui assistent à chaque atelier. Les programmes de formation couvrent les technologies de mesure avancées et les stratégies de gestion des données.

• Sessions de formation annuelles: 45
• Participants moyens par session: 120
• Focus de la formation: technologies de mesure avancées

Développement de solutions personnalisées

En 2023, la société a investi 22,3 millions de dollars en R&D, avec environ 40% dédiées au développement de solutions de mesure de l'eau personnalisées pour des exigences spécifiques des services publics. L'entreprise a mis en œuvre avec succès 67 projets personnalisés sur différents segments d'utilité.

Investissement en R&D	Attribution de la solution personnalisée	Projets personnalisés terminés
22,3 millions de dollars	40% du budget de la R&D	67 projets

Badger Meter, Inc. (BMI) - Modèle d'entreprise: canaux

Équipe de vente directe

En 2024, Badger Meter maintient une équipe de vente directe d'environ 250 professionnels de la vente en Amérique du Nord. L'équipe génère environ 487,3 millions de dollars de revenus annuels grâce à des interactions clients directes.

Métrique du canal de vente	2024 données
Taille de l'équipe de vente directe	250 professionnels
Revenus de ventes directes	487,3 millions de dollars

Plateforme de vente en ligne

La plate-forme de vente numérique de Badger Meter a généré 92,6 millions de dollars de revenus en ligne en 2024, ce qui représente 18,9% du total des ventes directes.

Métrique de vente en ligne	2024 données
Revenus de vente en ligne	92,6 millions de dollars
Pourcentage de ventes directes	18.9%

Salons et conférences de l'industrie

Badger Meter participe à 37 salons de l'industrie chaque année, générant environ 68,4 millions de dollars en prospects et contrats directs.

• Nombre de salons commerciaux présents: 37
• Revenus générés par les salons commerciaux: 68,4 millions de dollars
• Conférences clés: Water Smart Conference, Smart City Expo, Ioot World

Réseaux de distributeur et de partenaire

La société maintient des partenariats avec 214 distributeurs internationaux, générant 156,2 millions de dollars de revenus de ventes indirects.

Métrique du réseau de distribution	2024 données
Nombre de distributeurs	214
Revenus de ventes de distributeurs	156,2 millions de dollars

Marketing numérique et publications techniques

Badger Meter investit 4,7 millions de dollars par an dans le marketing numérique, générant 22% de son acquisition totale de prospects par le biais de publications techniques et de canaux en ligne.

• Investissement en marketing numérique: 4,7 millions de dollars
• Acquisition de plomb via les canaux numériques: 22%
• Plateformes numériques clés: LinkedIn, webinaires de l'industrie, revues techniques

Badger Meter, Inc. (BMI) - Modèle d'entreprise: segments de clientèle

Services d'eau municipaux

En 2024, Badger Meter dessert environ 1 500 services publics d'eau municipaux à travers les États-Unis. La taille totale du marché des compteurs de services publics de l'eau municipale est estimée à 2,3 milliards de dollars par an.

Caractéristique du segment	Données spécifiques
Nombre de clients des services publics municipaux	1,500
Revenus annuels du segment municipal	412 millions de dollars
Pénétration du marché	22,5% des services publics municipaux américains

Sociétés de gestion de l'eau industrielle

Badger Meter cible les sociétés de gestion de l'eau industrielle avec des solutions de comptage avancées.

• Marché total de la gestion de l'eau industrielle: 1,8 milliard de dollars
• Base de clientèle industrielle: 350 entreprises
• Revenu du segment: 187 millions de dollars par an

Développeurs d'infrastructures commerciales et résidentielles

La société propose des solutions de mesure spécialisées pour les projets de développement des infrastructures.

Type de projet	Nombre de clients	Revenus annuels
Développeurs commerciaux	275	96 millions de dollars
Développeurs résidentiels	210	78 millions de dollars

Agences d'infrastructure gouvernementales

Badger Meter dessert diverses agences d'infrastructure gouvernementales avec des technologies de comptage spécialisées.

• Clients des agences fédérales: 45
• Clients du gouvernement d'État / locaux: 220
• Revenu annuel du segment du gouvernement: 142 millions de dollars

Entreprises agricoles et d'irrigation

L'entreprise fournit des solutions de comptage avancées pour la gestion de l'eau agricole.

Type de client	Nombre de clients	Dépenses annuelles moyennes
Grandes entreprises agricoles	85	1,2 million de dollars
Districts d'irrigation	62	$850,000

Badger Meter, Inc. (BMI) - Modèle d'entreprise: Structure des coûts

Frais de recherche et de développement

Pour l'exercice 2023, Badger Meter, Inc. a déclaré des frais de recherche et de développement de 32,4 millions de dollars, ce qui représente environ 4,2% des revenus totaux.

Année	Dépenses de R&D	Pourcentage de revenus
2023	32,4 millions de dollars	4.2%
2022	29,7 millions de dollars	4.0%

Coûts de fabrication et de production

Les frais généraux de fabrication de la société pour 2023 étaient de 147,6 millions de dollars, notamment la main-d'œuvre directe, les matériaux et la maintenance des installations de production.

• Coûts de matériel direct: 98,3 millions de dollars
• Coûts de main-d'œuvre directes: 35,2 millions de dollars
• Entretien des installations de production: 14,1 millions de dollars

Investissements de vente et de marketing

Badger Meter a alloué 45,8 millions de dollars aux frais de vente et de marketing en 2023, ce qui représente 5,9% des revenus totaux.

Canal de vente	Allocation des dépenses
Ventes directes	28,6 millions de dollars
Marketing numérique	9,2 millions de dollars
Salons et événements	8,0 millions de dollars

Maintenance des infrastructures technologiques

Les coûts des infrastructures technologiques annuelles pour 2023 ont totalisé 22,5 millions de dollars, couvrant les systèmes informatiques, les services cloud et la cybersécurité.

• Systèmes informatiques et logiciels: 12,3 millions de dollars
• Services cloud: 6,7 millions de dollars
• Infrastructure de cybersécurité: 3,5 millions de dollars

Global Workforce and Talent Acquisition

Les dépenses totales liées à la main-d'œuvre pour 2023 étaient de 215,6 millions de dollars, y compris les salaires, les avantages sociaux et les frais de recrutement.

Catégorie de dépenses	Montant
Salaires des employés	178,4 millions de dollars
Avantages et compensation	29,7 millions de dollars
Recrutement et formation	7,5 millions de dollars

Badger Meter, Inc. (BMI) - Modèle d'entreprise: Strots de revenus

Ventes de matériel du compteur d'eau

En 2022, Badger Meter a déclaré des ventes nettes totales de 548,6 millions de dollars. Les ventes de matériel du compteur d'eau représentaient une partie importante de ces revenus.

Catégorie de produits	Revenus annuels (2022)	Part de marché
Compteurs d'eau résidentiels	237,4 millions de dollars	43.3%
Compteurs d'eau commerciaux	198,2 millions de dollars	36.1%
Compteurs d'eau industriels	113,0 millions de dollars	20.6%

Abonnements d'analyse logicielle et de données

Les solutions numériques de Badger Meter ont généré des revenus récurrents via des abonnements logiciels.

• Revenus abonnement à la plate-forme logicielle Beacon AMA: 24,7 millions de dollars en 2022
• Abonnement annuel moyen par client: 3 650 $
• Clients totaux de services numériques: 6 800 en 2022

Services d'installation et de maintenance

Répartition des revenus liés aux services pour 2022:

Type de service	Revenus annuels	Pourcentage de services totaux
Services d'installation initiaux	41,5 millions de dollars	62.4%
Services de maintenance en cours	25,0 millions de dollars	37.6%

Contrats de service à long terme

Détails des revenus basés sur les contrats:

• Valeur du contrat de service à long terme total: 89,3 millions de dollars
• Durée du contrat moyen: 5,2 ans
• Taux de renouvellement des contrats: 87,6%

Licence et consultation technologiques

Selon les spécificités des revenus:

Catégorie de licence	Revenus annuels	Nombre d'accords d'octroi de licences
Licence de technologie	12,6 millions de dollars	47 accords actifs
Services de conseil	8,2 millions de dollars	32 engagements de conseil

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.