Jeffrey Reive's questions to BADGER METER (BMI) leadership • Q2 2025
Question
Jeffrey Reive from RBC Capital Markets asked about the Smart Cover integration, seeking details on the cost synergy opportunity and timeline. He also inquired about the potential impact of EPA budget cuts on demand and the typical breakdown of customer project funding sources.
Answer
SVP & CFO Robert Wrocklage clarified that the primary synergies from the Smart Cover acquisition are commercial (revenue growth) rather than cost-based, focusing on leveraging the existing SG&A base. Chairman, President & CEO Kenneth Bockhorst addressed funding, stating that meters are the "cash register" for utilities and a high priority, funded through various means like rates, bonds, and federal programs, making them resilient to specific budget cuts.