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Total sales of $238.1 million, 10% higher than the prior year's $216.7 million.
Operating earnings increased 8% year-over-year to $44.9 million, with operating profit margins of 18.8% versus 19.2% in the prior year quarter.
Diluted earnings per share (EPS) increased 4% to $1.17 compared to $1.12 in the prior year quarter.
Robust cash provided by operations of $44.6 million, which increased 22% year-over-year.
“We delivered strong sales growth, solid profitability and robust cash flow against last year's quarterly sales high-water mark," said Kenneth C. Bockhorst, Chairman, President and Chief Executive Officer. "Demand for our versatile, industry-leading cellular AMI solution and broad BlueEdgeTM portfolio of tailorable water management solutions remained steady, despite continuously evolving and challenging macroeconomic, trade and policy environments. I’d like to thank our dedicated employees for their continued efforts delivering yet another record sales quarter and for supporting our customers."
Second Quarter Operating Results
Utility water sales increased 11% year-over-year, including the first full quarter of the SmartCover acquisition. Excluding SmartCover, utility water sales increased 6%, lapping the 26% sales growth delivered in the second quarter of 2024. Ongoing customer adoption of digital smart water solutions, including increased sales of metering, BEACON SaaS, and water quality and remote monitoring solutions, were the primary drivers of growth compared to the prior year quarter.
Sales of flow instrumentation products were essentially flat year-over-year as modest growth in water-related markets offset lower demand in de-emphasized non-water related applications.
Operating earnings increased 8% year-over-year to $44.9 million, with operating margins down 40 basis points to 18.8% from the prior year’s 19.2%. Gross margin was 41.1%, up 170 basis points from 39.4% in the prior year quarter. Gross margin continued to benefit from ongoing structural sales mix improvement and operational excellence initiatives, while recently implemented price increases partially mitigated certain tariff-related cost pressures in the quarter.