What drove BMI's earnings growth in 2024?

Badger Meter Inc.'s (BMI) earnings growth in 2024 was primarily driven by strong sales growth and record operating margins:

1. **Sales Growth**: BMI experienced a 12% year-over-year sales growth in Q3 2024 and a 23% revenue increase in Q2 2024 compared to the same periods in the previous year. This increase in sales was likely due to market demand and the company's successful product offerings.
2. **Operating Margins**: The company achieved record operating margins of 19.5% in Q3 2024 and 19.2% in Q2 2024. Higher operating margins indicate better efficiency in generating profits from revenue, which significantly contributed to the net income growth.
3. **Net Income**: The net income of BMI grew by 23% in Q3 2024 and 50% in Q1 2024 compared to the previous year's same quarters. This substantial increase in net income reflects the company's effective management of its operations and ability to convert revenue into net income.
4. **Earnings Per Share (EPS)**: BMI reported an EPS of $1.09 in Q3 2024, up from $0.89 in the same quarter of the previous year. In Q1 2024, the EPS was $0.99, up from $0.66 in the prior year's same quarter. The increase in EPS is a direct result of the growth in net income and reflects the company's profitability.

In summary, BMI's earnings growth in 2024 was driven by a combination of sales growth, improved operating margins, and effective cost management, which together led to significant increases in net income and EPS.