Badger Meter, Inc. (NYSE:BMI) Q2 2024 Earnings Call Transcript July 19, 2024 11:00 AM ET

Company Participants

Karen Bauer - VP of IR, Corporate Strategy and Treasurer
Ken Bockhorst - Chairman, President and CEO
Bob Wrocklage - CFO

Conference Call Participants

Nathan Jones - Stifel
Andrew Krill - Deutsche Bank
Rob Mason - Baird

Operator

Ladies and gentlemen, welcome to the Second Quarter 2024 Badger Meter Earnings Conference Call. After the prepared remarks, there will be an opportunity to ask questions. [Operator Instructions] As a reminder, today's conference is being recorded. It's now my pleasure to turn the conference over to Karen Bauer, Vice President of Investor Relations, Corporate Strategy and Treasurer. Please go ahead, Ms. Bauer.

Karen Bauer

Good morning, and thank you for joining the Badger Meter second quarter 2024 earnings conference call. On the call with me today are Ken Bockhorst, Chairman, President and Chief Executive Officer; and Bob Wrocklage, Chief Financial Officer. The earnings release and related slide presentation are available on our website.

Quickly, I will cover the safe harbor, reminding you that any forward-looking statements made during this call are subject to various risks and uncertainties, the most important of which are outlined in our press release and SEC filings. On today's call, we will refer to certain non-GAAP financial metrics. Our earnings slides provide a reconciliation of the GAAP to non-GAAP financial metrics used.

With that, I'll turn the call over to Ken.

Ken Bockhorst

Thanks, Karen. We appreciate all of you joining us for our second quarter earnings call. I'm pleased to report that we surpassed the $200 million quarterly revenue milestone this quarter, delivering total sales of $217 million, representing 23% year-over-year growth. This result was modestly higher than we anticipated, driven by ongoing market demand and incremental backlog conversion in support of our customers. We reported record operating margins and EPS in the quarter, along with strong year-over-year cash flow growth.

In summary, at the halfway point of the year, we remain pleased with the trajectory of our business results. I'll hand the call over to Bob to go through the details of the quarter, and I'll come back to talk about BlueEdge, our recently released sustainability report and the outlook for the back half of the year.

Go ahead, Bob.

Bob Wrocklage

Thanks, Ken, and good morning, everyone. Turning to Slide 4. As Ken noted, our total sales in the second quarter exceeded the $200 million mark for the first time and at $217 million, represented an increase of 23% compared to $176 million in the same period last year. Total utility water product line sales increased 26% year-over-year, moderating a bit from 29% growth last quarter.