Badger Meter Inc (BMI) 2025 Q4 法說會逐字稿

Ladies and gentlemen, thank you for joining us, and welcome to the BMI Q4 and full-year 2025 earnings call. (Operator Instructions) I will now hand the conference over to Barbara Noverini, Head of Investor Relations. Barbara, please go ahead.

女士們、先生們，感謝各位的參與，歡迎參加 BMI 2025 年第四季及全年業績電話會議。（操作員指示）現在我將把會議交給投資者關係主管芭芭拉·諾維里尼。芭芭拉，請繼續。

Thank you for joining the Badger Meter fourth quarter and full-year 2025 earnings conference call. I'm here today with Ken Bockhorst, our Chairman, President and Chief Executive Officer; Bob Wrocklage, our new Executive Vice President of North America Municipal Utility; and Dan Weltzien, our recently appointed Chief Financial Officer.

感謝您參加 Badger Meter 2025 年第四季及全年財報電話會議。今天我與我們的董事長、總裁兼執行長 Ken Bockhorst；我們新任北美市政公用事業執行副總裁 Bob Wrocklage；以及我們新任命的財務長 Dan Weltzien 一起出席了會議。

This morning, we made the earnings release and related slide presentation available on our website at investors.badgermeter.com. As a reminder, any forward-looking statements made on this call are subject to various risks and uncertainties, the most important of which are outlined in our news release and SEC filings. On today's call, we will refer to certain non-GAAP financial metrics, including certain base metrics.

今天上午，我們已在公司網站 investors.badgermeter.com 上發布了盈利報告及相關幻燈片簡報。再次提醒，本次電話會議中所做的任何前瞻性陳述均受各種風險和不確定因素的影響，其中最重要的風險和不確定因素已在我們的新聞稿和提交給美國證券交易委員會（SEC）的文件中列出。在今天的電話會議上，我們將提及一些非GAAP財務指標，包括一些基本指標。

Use of the term base for these purposes is intended to refer to certain financial metrics, excluding the SmartCover acquisition. Our earnings presentation provides a reconciliation between the most directly comparable GAAP measure and any non-GAAP or base financial measures discussed.

此處使用「基準」一詞旨在指某些財務指標，但不包括 SmartCover 收購。我們的獲利報告提供了最直接可比較的 GAAP 指標與所討論的任何非 GAAP 或基本財務指標之間的調整表。

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

接下來，我將把電話交給肯。

Thanks, Barb, and thank you all for joining our call. Turning to slide 3. We delivered solid financial results in the fourth quarter, capping off another full year of record sales, profitability and cash flow. We continue to see robust demand for our industry-leading Cellular AMI solution, and the recent addition of SmartCover to our BlueEdge suite of smart water management solutions positions us well for long-term growth across the water cycle.

謝謝芭芭拉，也謝謝各位參加我們的電話會議。翻到第三張幻燈片。我們在第四季度取得了穩健的財務業績，為另一個創紀錄的全年銷售額、盈利能力和現金流畫上了圓滿的句號。我們持續看到市場對我們領先業界的蜂窩 AMI 解決方案的強勁需求，最近將 SmartCover 添加到我們的 BlueEdge 智慧水管理解決方案套件中，使我們在整個水循環中處於長期增長的有利地位。

I'm thankful for the dedication and perseverance demonstrated by the entire Badger Meter team during a year marked by global trade uncertainty and exciting acquisition integration and many ongoing AMI projects in various stages of deployment. I'll be back to provide a recap of the year and discuss our outlook later in the call, but for now, I'll introduce you to Dan Weltzien.

我感謝 Badger Meter 團隊全體成員在過去一年中展現出的奉獻精神和毅力，這一年充滿了全球貿易的不確定性、激動人心的收購整合以及許多處於不同部署階段的 AMI 項目。稍後我會回來為大家回顧這一年，並在電話會議中討論我們的展望，但現在，我先向大家介紹一下丹·韋爾齊恩。

As announced in December, Dan became our new CFO on January 1, 2026, following seven years as Vice President and Controller. Dan, welcome to the earnings call. Bob Wrocklage is also here today in his new capacity as Executive Vice President, North America Municipal Utility. Bob will join me later in the call to provide more detail about the significant AMI project for PRASA that we mentioned in today's press release.

正如去年 12 月宣布的那樣，丹於 2026 年 1 月 1 日成為我們的新任首席財務官，此前他擔任了七年的副總裁兼財務總監。丹，歡迎參加財報電話會議。今天，鮑勃·沃克拉格也以北美市政公用事業執行副總裁的新身份出席了活動。稍後鮑伯將加入我的電話會議，詳細介紹我們在今天的新聞稿中提到的 PRASA 的重要 AMI 計畫。

With that, I'd like to turn the call over to Dan to cover the numbers.

接下來，我想把電話交給丹來介紹數據。

Thank you, Ken. I'm truly honored to serve as Badger Meter's Chief Financial Officer. I've benefited personally and professionally from the strong relationships I've had with both Ken and Bob for many years. And remain excited by the opportunity we have ahead of us to build upon our long track record of market leadership and success.

謝謝你，肯。能夠擔任 Badger Meter 的財務官，我深感榮幸。多年來，我與 Ken 和 Bob 建立了牢固的關係，這使我在個人和職業方面都受益匪淺。我們將繼續保持熱情，因為我們面前有機會在我們長期以來保持的市場領導地位和成功基礎上再創佳績。

So let's go ahead and start by reviewing another quarter of solid financial performance. Turning to slide 4. Total sales of $221 million in the fourth quarter of 2025 represented an increase of 8% year over year or 2% base sales growth. Total utility water product line sales increased year over year by 9% or 2% excluding SmartCover.

那麼，讓我們先來回顧一下又一個季度穩健的財務表現。翻到第4張投影片。2025 年第四季總銷售額為 2.21 億美元，較去年同期成長 8%，基本銷售額成長 2%。公用事業用水產品線總銷售額年增 9%，若不計 SmartCover，則成長 2%。

As expected, fewer operating days in the fourth quarter and previously communicated project pacing effects resulted in a 6% sequential decline in utility water sales versus the third quarter of 2025. The term project pacing is intended to describe typical variation in activity driven by periodic changes in our active customer base and whether or not we act as a prime contractor in what we refer to as turnkey projects.

正如預期的那樣，第四季度營運天數減少以及先前公佈的專案進度影響導致公用事業用水銷售額比 2025 年第三季環比下降 6%。「專案進度」一詞旨在描述由我們活躍客戶群的周期性變化以及我們是否在我們所說的交鑰匙工程中擔任總承包商所驅動的典型活動變化。

Simply put, the sequential quarterly sales decline between the third and fourth quarters of 2025 has everything to do with the calendar and quarter-specific customer and project mix and very little to do with other influences, such as underlying market conditions, customer demand trends, utility budgets or the broader funding environment.

簡而言之，2025 年第三季和第四季之間的季度銷售額環比下降完全與日曆和季度特定的客戶和專案組合有關，而與其他因素（如潛在的市場狀況、客戶需求趨勢、公用事業預算或更廣泛的融資環境）關係不大。

On the last point, though not all that relevant to metering, recent congressional actions support funding of state revolving funds consistent with historic levels. This should allay some broader water industry funding reduction concerns. Sales for the flow instrumentation product line were flat year over year with modest growth in water-focused end markets, offsetting declines across the array of deemphasized applications.

關於最後一點，雖然與計量關係不大，但國會最近的行動支持為各州循環基金提供與歷史水準一致的資金。這應該可以緩解水務業對資金削減的一些普遍擔憂。流量儀表產品線的銷售額與上年持平，在以水為中心的終端市場實現了小幅增長，抵消了其他一些不太受重視的應用領域的下滑。

Turning to profitability. We were very pleased with the year-over-year operating earnings growth of 10%, which outpaced revenue growth. Operating profit margins increased 40 basis points from 19.1% to 19.5%. Base operating earnings increased 9% year over year, expanding base operating profit margins by 140 basis points to 20.5%.

轉向盈利。我們對同比增長 10% 的營業利潤非常滿意，這一增速超過了收入增長。營業利潤率從 19.1% 提高到 19.5%，成長了 40 個基點。基本營業收入年增 9%，基本營業利潤率擴大 140 個基點至 20.5%。

Gross margins expanded 180 basis points to 42.1% in the fourth quarter from 40.3% in the prior year quarter. Gross margin continued to benefit from structural mix driven by Ultrasonic meters, Cellular AMI, water quality and SmartCover sales, which were all above line average profitability. It's also important to mention that the same project pacing effects that impacted utility water sales also benefited margins in the fourth quarter.

第四季毛利率較上年同期成長180個基點，達42.1%，而上年同期為40.3%。毛利率持續受益於超音波水錶、蜂窩AMI、水質和SmartCover銷售帶來的結構性組合優勢，這些產品的獲利能力均高於平均水準。值得一提的是，影響公用事業用水銷售的相同專案進度效應也使第四季度的利潤率受益。

This is because when we act as a prime contractor during certain turnkey projects, sales often include pass-through activities, such as outsourced meter installation labor and ancillary meter pit supplies, which tend to have a lower margin profile.

這是因為當我們作為總承包商參與某些交鑰匙工程時，銷售額通常包括外包的電錶安裝人工和輔助電錶井供應等轉嫁活動，這些活動的利潤率往往較低。

Separately, while we now have largely reached price cost parity on 2025, tariff and trade-related cost impacts and related price mitigation actions, we do expect global tariff and trade conditions to remain fluid in 2026. In addition, we expect elevated prices of copper and certain other components of our [BiAlloy ingot] material cost to be a gross margin headwind in 2026.

另外，雖然我們目前已基本實現 2025 年的價格成本持平，但關稅和貿易相關的成本影響以及相關的價格緩解措施，我們預計 2026 年全球關稅和貿易狀況仍將保持不穩定。此外，我們預期銅價和我們[雙合金錠]材料成本中的某些其他成分價格上漲，將在 2026 年對毛利率構成不利影響。

We factor all of these components, along with other puts and takes, into our normalized gross margin range of 39% to 42%, and into ongoing and routine price mitigation actions. SEA expenses in the fourth quarter were $49.9 million, with the $6.4 million year-over-year increase driven primarily by the SmartCover acquisition.

我們將所有這些因素，以及其他買賣因素，都納入到我們 39% 至 42% 的正常毛利率範圍，並納入持續和常規的價格緩解措施中。第四季 SEA 支出為 4,990 萬美元，年增 640 萬美元，主要原因是收購了 SmartCover。

When excluding SmartCover related expenses, including $1.6 million of intangible asset amortization, base SEA expenses increased $1.3 million or 2.9% year over year. The year-over-year increase in base SEA expenses was mainly driven by higher personnel costs to support normal course growth of the business. The income tax provision in the fourth quarter of 2025 was 24.8% and versus the prior year's 27.1%.

若排除 SmartCover 相關費用（包括 160 萬美元的無形資產攤銷），基本 SEA 費用年增 130 萬美元，增幅為 2.9%。基礎 SEA 費用較去年同期增加主要是由於支援業務正常成長所需的人員成本增加所致。2025 年第四季所得稅準備金為 24.8%，而去年同期為 27.1%。

Consolidated EPS was $1.14 versus $1.04 in the prior year quarter, representing a 10% year-over-year increase. Primary working capital as a percentage of sales at December 31, 2025, was 20.9%, largely consistent with the comparable prior year period. Record quarterly free cash flow of $50.8 million increased by approximately $3.4 million year over year.

合併每股收益為 1.14 美元，而去年同期為 1.04 美元，年增 10%。截至 2025 年 12 月 31 日，主要營運資本佔銷售額的百分比為 20.9%，與去年同期基本一致。季度自由現金流創歷史新高，達 5,080 萬美元，比上年同期增加約 340 萬美元。

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

這樣，我就把電話轉回給肯了。

Thanks, Dan. For those of you who followed our story and interacted with Bob over the years, you've certainly experienced the passion and knowledge he has for our business, extending well beyond the traditional CFO focus. Badger Meter will benefit greatly from Bob's business acumen, customer focus and growth mindset as the leader of our largest line of business.

謝謝你，丹。多年來，一直關注我們的故事並與鮑勃互動的各位，一定感受到了他對我們業務的熱情和知識，遠遠超出了傳統首席財務官的範疇。作為我們最大業務線的領導者，Bob 的商業才能、客戶至上理念和成長型思維將使 Badger Meter 受益匪淺。

I'm now going to hand it over to Bob, so he can talk specifically about the Puerto Rico Sewer Aqueduct Authority (sic - Puerto Rico Aqueduct and Sewer Authority) or PRASA AMI project.

現在我要把麥克風交給鮑勃，讓他具體談談波多黎各污水輸水管理局（原文如此 - 波多黎各輸水和污水管理局）或 PRASA AMI 計畫。

Thanks, Ken. From the CFO's chair, it's been gratifying to be part of more than doubling our top-line revenue over the past seven years. In my new role, I'm excited about further expanding our market leadership as Cellular AMI technology continues to increasingly be adopted by North American water utilities as the industry standard for AMI.

謝謝你，肯。身為財務官，我感到非常欣慰，在過去的七年裡，我們的營收翻了一番還多。在新職位上，我很高興能夠進一步擴大我們的市場領導地位，因為蜂窩式 AMI 技術正日益被北美水務公司採用，成為 AMI 的行業標準。

Consistent with our Choice Matters BlueEdge portfolio, we continue to enable our customers to walk up the technology curve at a pace that's right for them. Our Blueprint for Growth begins with Cellular AMI as the foundation to real-time insights and analytics and expand through the BlueEdge suite of smart water management solutions, enabling visibility and efficiency throughout the entire water cycle.

秉承我們「選擇至關重要」BlueEdge產品組合的概念，我們將繼續幫助客戶以適合他們的節奏逐步提陞技術水平。我們的成長藍圖以蜂窩AMI為基礎，實現即時洞察和分析，並透過BlueEdge智慧水管理解決方案套件進行擴展，從而在整個水循環中實現可視性和效率。

A very recent example of our success with Cellular AMI is the announced award for the PRASA AMI project, which will be one of the largest deployments in the world. An overview of the project is provided on slide 5. This transformative multiyear project will include E-Series Ultrasonic Meters, ORION Cellular AMI radios and BEACON SaaS across the island of Puerto Rico, representing approximately 1.6 million service connections.

我們最近在蜂窩 AMI 方面取得成功的一個例子是，我們宣布獲得了 PRASA AMI 項目，這將是世界上最大的部署項目之一。專案概覽請見第5頁。這項具有變革意義的多年計畫將在波多黎各全島部署 E 系列超音波測量儀、ORION 蜂窩 AMI 無線電和 BEACON SaaS，預計將涵蓋約 160 萬個服務連接。

Badger Meter's role in the project will be supply only, and we will not assume any prime contractor or installation or ancillary product supply responsibilities. Those activities will be handled by others. We will be utilizing our Racine, Wisconsin facility for production.

Badger Meter 在該專案中的角色僅限於供貨，我們不承擔任何總承包商、安裝或輔助產品供應責任。這些活動將由其他人負責處理。我們將利用位於威斯康辛州拉辛市的工廠進行生產。

Over the past year, investors have understandably focused on assessing the installed base of AMI and the remaining AMI adoption potential in North America, along with the underlying customer demand drivers and typical time horizons for AMI projects. To provide color on these factors, let's use the PRASA award as an example of a large project.

過去一年，投資人理所當然地將重點放在評估北美地區 AMI 的已安裝基礎和剩餘的 AMI 採用潛力，以及 AMI 計畫的潛在客戶需求驅動因素和典型時間範圍。為了更好地說明這些因素，讓我們以 PRASA 獎為例，來探討一個大型專案。

Process planning for the project began over five years ago. That planning materialized into a technology pilot in RFP, which Badger Meter, along with its partners, first participated in beginning in 2021. The pilot deployment began in 2023, and the project award occurred in 2025.

此計畫的流程規劃始於五年多前。該規劃最終演變為 RFP 中的一項技術試點項目，Badger Meter 及其合作夥伴於 2021 年首次參與其中。試點部署於 2023 年開始，專案授予於 2025 年。

We expect the PRASA project to translate into product shipments in 2026, with an initial ramp earlier in the year and more meaningful revenue contributions in the second half of 2026 when project deployment begins, as expected to begin in earnest.

我們預計 PRASA 專案將於 2026 年轉化為產品出貨，年初將實現初步產能爬坡，並在 2026 年下半年專案部署開始後（預計會如期正式啟動）產生更有意義的收入貢獻。

To be clear, project awards of this nature, PRASA or otherwise, underpin our long-term high single-digit outlook over the next five years. And PRASA project specifically is not additive to that either in a single year or over the long-term horizon.

需要明確的是，此類專案獎勵，無論是 PRASA 還是其他機構的獎勵，都支撐著我們未來五年長期維持高個位數成長的預期。而 PRASA 專案本身，無論是在一年內還是從長遠來看，都不會對現狀產生正面影響。

While we don't regularly share customer-specific wins and project awards, we're highlighting PRASA due to its scope and scale, to illustrate the drivers behind the uneven project nature of our business, and to acknowledge that, even today, there are many PRASA project variables, known and unknown, that will influence near-term 2026 revenue contributions, the year-to-year project pacing thereafter, and the duration of the project deployment.

雖然我們通常不公開客戶的具體成功案例和專案獎項，但我們之所以重點介紹 PRASA，是因為它的範圍和規模，以此說明我們業務專案性質不均衡背後的驅動因素，並承認即使在今天，PRASA 專案仍有許多已知和未知的變量，這些變數將影響 2026 年的近期收入貢獻、此後每年的專案進度以及專案部署的持續時間以及專案部署的持續時間。

Explicitly stated for these reasons, we will not be sizing the revenue impact of this project on 2026 or more broadly. On that note, I'll pass it over to Ken for his closing remarks.

鑑於上述原因，我們不會評估該項目對 2026 年或更廣泛時期的收入影響。接下來，我將把發言權交給肯，請他作總結發言。

Thanks, Bob. I'd like to take a moment to review our full-year 2025 performance against the five-year trend line. Please turn to slide 6. In 2025, we delivered 11% sales growth, surpassing $900 million in revenue. This reflects a 17% compounded annual growth rate over the past five years.

謝謝你，鮑伯。我想花點時間回顧一下我們 2025 年全年業績與五年趨勢線的對比情況。請翻到第6張投影片。2025年，我們實現了11%的銷售成長，收入超過9億美元。這反映了過去五年17%的複合年增長率。

Our software revenue, which includes SmartCover, now exceeds $74 million and represents 8% of sales. Software revenues, largely driven by Cellular AMI, have grown at a 28% compounded annual growth rate over the past five years.

我們的軟體收入（包括 SmartCover）現已超過 7,400 萬美元，佔銷售額的 8%。過去五年，主要由蜂窩AMI推動的軟體收入以28%的複合年增長率成長。

In 2025, operating profit margins expanded 90 basis points to 20%, despite the initially dilutive impact of the SmartCover acquisition. Base operating profit margins increased 200 basis points year over year. Over the last five years, both gross margin improvement and SEA leverage contributed to 470 basis points of operating margin expansion.

2025 年，儘管 SmartCover 收購最初產生了稀釋效應，但營業利潤率仍成長了 90 個基點，達到 20%。基本營業利益率年增200個基點。過去五年，毛利率的提高和東南亞地區的槓桿作用共同促成了營業利潤率的 470 個基點。

And finally, we continue to manage our working capital intensity and again generated free cash flow in excess of 100% of net earnings. Our clean balance sheet with more than $225 million of cash on hand continues to provide significant financial flexibility to reinvest in our business, both organically and inorganically.

最後，我們繼續控制營運資本密集度，再次創造了超過淨利潤 100% 的自由現金流。我們擁有超過 2.25 億美元的現金儲備，資產負債表穩健，這為我們提供了充足的財務靈活性，可以進行內部和外部的再投資。

In the third quarter, we increased our dividend for the 33rd consecutive year. And in the fourth quarter, we opportunistically repurchased $15 million in shares when the market price implied an attractive long-term return on capital.

第三季度，我們連續第33年提高了股利。第四季度，我們抓住機會，回購了價值 1500 萬美元的股票，當時市場價格暗示著可觀的長期資本回報。

Turning to slide 7. I'm proud of what we accomplished in just 11 short months as we integrated SmartCover into the Badger Meter organization. SmartCover delivered $40 million of sales in 2025 or 25% on an annualized basis. Over this time, SmartCover's profitability improved, driven by both higher sales volumes and focused cost management.

翻到第7張投影片。我為我們僅用了短短 11 個月就將 SmartCover 整合到 Badger Meter 組織中所取得的成就感到自豪。SmartCover 預計到 2025 年銷售額將達到 4,000 萬美元，年增率為 25%。在此期間，SmartCover 的獲利能力有所提高，這得益於更高的銷售量和更集中的成本管理。

We successfully transferred SmartCover's manufacturing operations to our facility in Racine, Wisconsin, and we're on track for earnings accretion in 2026 as expected. And finally, I'll conclude with some thoughts on both our near-term and long-term outlook.

我們已成功將 SmartCover 的生產營運轉移到我們在威斯康辛州拉辛的工廠，並且我們預計在 2026 年實現預期的獲利成長。最後，我將就我們的近期和長期前景談談我的看法。

As we mentioned in our press release this morning, the second half of 2025 included a concentrated mix of concluding AMI turnkey projects, resulting in base revenue growth of 6%, which was lower than our five-year forward outlook. We expect this project pacing dynamic to extend throughout the first half of 2026 until several awarded projects, including PRASA, begin multiyear turnkey deployments.

正如我們今天早上在新聞稿中提到的，2025 年下半年集中完成了 AMI 交鑰匙工程項目，導致基礎收入增長 6%，低於我們五年來的預期。我們預計這種專案進度動態將持續到 2026 年上半年，直到包括 PRASA 在內的幾個已中標專案開始進行多年交鑰匙部署。

We'd like to remind investors that it is not unusual to experience certain quarters or even whole years that are above or below our expectation of high single-digit sales growth over a five-year forward period. Quarter-to-quarter variation in project pacing is typical in our industry and attempting to precisely time it can cause those who follow us to miss the big picture.

我們想提醒投資者，某些季度甚至整個年份的銷售額高於或低於我們對未來五年內高個位數成長的預期，這種情況並不罕見。在我們的行業中，專案進度每季都會有所變化，試圖精確地把握時間可能會導致關注我們的人忽略大局。

Our products and solutions support critical elements of the water infrastructure and the long-term secular trends impacting the water industry will continue to influence our customers to plan for better resiliency. We are actively involved in enabling that change.

我們的產品和解決方案支援水基礎設施的關鍵要素，影響水產業的長期發展趨勢將繼續影響我們的客戶，促使他們制定更具韌性的計畫。我們積極參與推動這項變革。

For example, we created the market for Cellular AMI against an incumbent technology and have since demonstrated success at gaining share. Via acquisition and internal development, we've expanded our opportunity set to include solutions across the entire water cycle. Long enduring secular trends support demand for smart water management solutions.

例如，我們針對現有技術，開創了蜂窩AMI市場，並且此後在獲取市場份額方面取得了成功。透過收購和內部研發，我們擴大了業務範圍，涵蓋了整個水循環領域的解決方案。長期存在的世俗趨勢支撐著對智慧水資源管理解決方案的需求。

When speaking directly with our customers, we have not seen meaningful evidence that real or perceived federal funding constraints will impact our ability to generate high single-digit sales growth, operating profit margin expansion and free cash flow conversion in excess of earnings over a five-year forward time horizon.

在與客戶直接溝通後，我們沒有看到任何實質性的證據表明，實際的或人們認為的聯邦資金限制會影響我們在未來五年內實現高個位數銷售增長、營業利潤率擴張和自由現金流轉化率超過收益的能力。

In summary, I'm proud of our performance in 2025, look forward to what's ahead in 2026, and see great opportunity for the execution of our long-term strategy to compound value for both our customers and shareholders.

總而言之，我對我們在 2025 年的業績感到自豪，對 2026 年充滿期待，並看到了執行長期策略、為客戶和股東創造複合價值的巨大機會。

With that, operator, please open the line for questions.

接線員，請開啟提問頻道。

(Operator Instructions) Robert Mason, Baird.

（操作說明）羅伯特·梅森，貝爾德。

Congratulations, Bob and Dan, on your new roles. Can you just to touch on the topic around the timing of projects. Understandable that it's not going to be always an even flow there. But I'm just curious, did we see the full impact of the conclusion of those projects in 4Q? Just trying to think about maybe, we normally see a sequential rise in the number of operating days in the first quarter, how that dynamic may play into the first part of 2026.

恭喜鮑伯和丹榮任新職。能否談談專案時間安排的話題？可以理解，那裡的水流不可能一直都很均勻。但我很好奇，我們在第四季是否看到了這些專案結束的全部影響？我只是想思考一下，通常情況下，我們會看到第一季的營運天數逐年增加，這種動態可能會對 2026 年上半年產生怎樣的影響。

Yeah. So first off, Rob, there are several projects that can be at play at any given time, some large, some medium, some small. So it's hard to really nail down exactly that point. But if I could take just a little look back to some of the earlier calls.

是的。羅布，首先，任何時候都可能有好幾個項目在進行，有些項目很大，有些項目中等，有些項目很小。所以很難準確地指出這一點。但如果我能稍微回顧一下之前的一些通話記錄就好了。

If you recall, in Q2 of the year, we talked about project pacing and timing and some of those issues that we thought we might see in the second half. And then additionally, we talked about the fewer working days that you start to see in Q4.

如果你還記得的話，在今年第二季度，我們討論了專案進度和時間安排，以及我們認為在下半年可能會出現的一些問題。此外，我們也討論了第四季工作日減少的問題。

So it isn't unexpected to us that the second half of the year was a lower growth than the first half. So nothing specific on any individual project, but just the nature of the business that can be uneven from time to time.

因此，下半年的成長低於上半年，這並不讓我們感到驚訝。所以，這並非針對任何具體項目，而是業務性質使然，這種性質有時會變得不穩定。

Okay. Fair enough. I guess, just did we -- I guess, did more of those conclude in the third quarter versus the fourth quarter, if we're looking at another step down as those have now fully concluded?

好的。很公平。我想，我們是不是——我想，如果這些項目現在都已經完全結束了，那麼第三季完成的專案是不是比第四季完成的專案更多？

Yeah. So what I would think about, if you look at 2025 and how it played out in 2026 and how we see it happening. The first half started out with a higher growth rate, the second half of the year with a lower growth rate. I think the way we see '26 is a lower growth rate in the first half and a higher growth rate in the second half.

是的。所以我想說的是，看看 2025 年的情況，再看看 2026 年的情況，以及我們預見到的情況會如何發展。上半年成長率較高，下半年成長率較低。我認為我們對 2026 年的預測是：上半年成長率較低，下半年成長率較高。

And that's something that is driven by the confidence that we have in projects that are in flight, awarded projects that haven't yet started. So we have visibility to some of those projects, and we do see how they're layering out in the year.

這是源自於我們對正在進行的計畫以及尚未啟動的已授標計畫的信心。因此，我們對其中一些項目有所了解，也看到了它們在這一年中的進展。

Nathan Jones, Stifel.

Nathan Jones，Stifel。

I guess I'll start. I know you don't want to talk about the size of this Puerto Rico project. So maybe I'll ask another question that you have answered previously. I think, Ken, you've said over the years that the size of the US market is about 6 million meters per year and Badger's share is roughly about 30%. Are those numbers still accurate for what the size of the overall US market is?

我想我先來吧。我知道你不想談論波多黎各項目的規模。所以，我或許會問一個您之前回答過的問題。肯，我想你這些年來一直說美國市場的規模約為每年 600 萬米，而 Badger 的市佔率約為 30%。這些數字還能準確反映美國整體市場的規模嗎？

Yeah, give or take, 85% of the market every year is replacement, and it's roughly in that space, yes.

是的，差不多吧，每年 85% 的市佔率都是替換市場，它大致上也屬於這個範圍。

Okay. So Badger shifts about, give or take, 2 million meters a year is the rough way that would break down for what the overall US market is?

好的。所以，Badger 每年大約移動 200 萬米，大致可以反映出美國市場的整體情況？

Yeah. I mean, it's not far off. Again, the indicated general volume that you alluded flexes year to year. It's probably a little bit higher than 6 million. That reference figure is dated. But at the same time, the share element that you mentioned is still relevant.

是的。我的意思是，這離真相並不遠。同樣，您提到的整體銷售量每年都會有所波動。可能略高於600萬。該參考資料已過時。但同時，你提到的分享因素仍然很重要。

Got it. I'm just trying to give people a general sense for how big a project 1.6 million [connections] per Badger Meter even over a three-to-five-year period.

知道了。我只是想讓大家大致了解一下，即使在三到五年的時間裡，每個 Badger Meter 也需要 160 萬個連接，這是一個多麼龐大的項目。

Yeah. And Nathan, one thing is -- the reason we mentioned PRASA is because, as you know, we don't get into the habit of announcing projects because there are so many. But obviously, this one is pretty meaningful in size, as you point out.

是的。內森，有一件事是——我們之所以提到 PRASA，是因為，如你所知，我們沒有養成宣布專案的習慣，因為專案太多了。但顯然，正如你所指出的，這個物體的體積相當可觀。

And to just give it some reference, and the reason we're talking about it more publicly, is we never announced the win and the project that we did recently complete in Orlando. So everyone is aware Orlando is a pretty large city. To put it in scope and scale, the PRASA award is equivalent to eight Orlandos.

順便提一下，我們之所以公開談論這件事，是因為我們從未宣布過我們最近在奧蘭多完成的那個項目以及我們贏得的這個項目。大家都知道奧蘭多是個相當大的城市。為了讓大家更能理解其意義和規模，PRASA 獎項相當於八個奧蘭多。

That's extremely helpful. My next question is going to be around gross margins. Obviously, gross margins are very strong. There's probably a few headwinds as we go through the year. I mean, second half of '26, you're talking about some more turnkey projects, which will be headwinds to gross margins.

這非常有幫助。我的下一個問題將與毛利率有關。顯然，毛利率非常高。今年我們可能會遇到一些不利因素。我的意思是，2026 年下半年，我們將迎來更多交鑰匙工程項目，這將對毛利率構成不利影響。

You've obviously seen a big spike in copper prices that will come through your business on a delay. But the first half is, as you said, is going to have an absence of some of these turnkey projects, which is a tailwind for margins.

顯然，您已經看到銅價大幅上漲，這將延遲影響您的業務。但正如你所說，上半年會缺少一些交鑰匙工程，這對利潤率來說是一個利好因素。

Any help you can give us with how we should think about first half to second half gross margins in terms of that mix or how we should think about the full year for gross margins, given you're at the very high end of the gross margin target range in 2025? Thanks.

鑑於貴公司2025年的毛利率目標處於非常高的水平，您能否就我們應該如何考慮上半年到下半年的毛利率構成，或者我們應該如何考慮全年的毛利率，提供一些幫助？謝謝。

Yeah, Nathan. This is Dan. I think a couple of things to point out. I think as we think about it quarter to quarter, there's nothing that we would specifically point to say there's going to be variability from quarter to quarter. I think you're thinking about the right topics, being we continue to see structural mix impacting margins in a positive way in 2026.

是的，內森。這是丹。我覺得有幾點需要指出。我認為，如果我們按季度來考慮，並沒有什麼具體跡象表明季度之間會出現波動。我認為你考慮的是正確的話題，因為我們繼續看到結構性組合在 2026 年對利潤率有正面影響。

And I think you highlighted a couple of the areas that we're continuing to watch, which are the commodity input costs into our ingot recipe. And then certainly, tariffs is something that we continue to monitor. We've gotten to price cost parity on tariffs in 2025, and we'll continue to manage whatever comes our way in 2026 from that perspective.

我認為你強調了我們正在持續關注的幾個方面，即我們錠料配方中的商品投入成本。當然，關稅也是我們會持續關注的事項。我們已經實現了2025年關稅價格與成本持平，我們將繼續從這個角度應對2026年可能出現的任何情況。

Jeffrey Reive, RBC Capital Markets.

Jeffrey Reive，加拿大皇家銀行資本市場。

I had another one on the Puerto Rico project. I mean, this is a really sizable win. Can you walk us through the typical timing and phasing of the large AMI project like this? How do deployments ramp? Are they smooth or chunky? How much is in year one, two versus three, four, five just over the life.

我在波多黎各項目上還有一次。我的意思是，這真的是一場意義重大的勝利。您能為我們詳細介紹一下像這樣的大型 AMI 專案的典型時間安排和階段劃分嗎？部署如何逐步推進？它們表面光滑還是粗糙？第一年、第二年與第三年、第四年、第五年整個生命週期內的成本有何不同？

Andrew, that's a fantastic question, and I would say you're a straight man for why we don't provide guidance from quarter to quarter. The project ramp-ups, oftentimes, there's a plan, there's so much that goes into an AMI project in terms of going through all the budget cycling and then having to align all the resources because you need people out on the street doing installations.

安德魯，你問得太好了，我想說，你剛好解釋了我們為什麼不提供季度業績指引。當專案啟動時，通常會有一個計劃，AMI 專案涉及許多方面，包括預算批准和資源調配，因為需要有人到街上進行安裝。

And then you might have weather factors from quarter to quarter. So it's not as smooth as people might think that it would be to do a large deployment, whether that's something the size of Puerto Rico or something the size of a medium town anywhere in the United States.

此外，每季也可能受到天氣因素的影響。因此，進行大規模部署並不像人們想像的那樣順利，無論是像波多黎各那樣大的地區，還是像美國任何中等城鎮那樣大的地區。

So typically, people look at these things and they expect them to be done over a five-year period. If everything goes really smoothly, it could potentially go faster. If you have issues, it could go longer. But there's no real blueprint, but generally, we're thinking of this over a five-year horizon for PRASA.

所以通常情況下，人們會考慮這些事情，並期望它們能在五年內完成。如果一切進展順利，速度可能會更快。如果出現問題，可能需要更長時間。但目前還沒有真正的藍圖，不過總的來說，我們考慮的是南非客運鐵路局未來五年的發展計畫。

Got it. And I think you said in the prepared remarks, meters are being manufactured in Racine, not your Mexico facility. Is there a margin differential happening there?

知道了。我想您在準備好的演講稿中說過，電錶是在拉辛生產的，而不是在墨西哥的工廠生產的。那裡是否存在利潤差異？

Yeah. I mean, I think you can imply just -- you can imply just from labor cost differential, there would be a potential margin impact. Of course, that was all contemplated in the contracting stage. And so ultimately, the location of manufacture is being driven by US-made manufacturing requirements.

是的。我的意思是，我認為僅從勞動成本差異就可以看出，可能會對利潤率產生影響。當然，這些都是在簽訂合約階段就考慮到的。因此，歸根結底，生產地點是由美國製造的需求所驅動的。

So that's part of the reason why we made an investment in that facility and continue to invest there. That's what dictates where it's made and we understand that cost footprint. And we're able to engage and embed that, if you will, into the RFP process.

所以，這也是我們投資該設施並繼續投資的部分原因。這決定了產品的生產地點，我們也了解這種成本影響。而且我們能夠將這一點融入 RFP 流程中。

Yeah. And I'm sure I'm jumping the route here on anticipating the margin question on the project, which, of course, which we won't disclose, but -- since it's not full turnkey and there's a whole lot of different factors in here, but this is one where I think we've struck a really good value proposition where PRASA sees their value in what we're offering and they're happy to buy it, and we're happy to sell it at the margin it's going for.

是的。我知道我在這裡過早地談到了專案的利潤率問題，當然，我們不會透露具體金額，但是——由於這不是一個完全交鑰匙工程，而且其中涉及很多不同的因素，但我認為我們已經找到了一個非常好的價值主張，PRASA 看到了我們提供的價值，他們很樂意購買，我們也樂於以目前的利潤率出售。

Andrew Krill, Deutsche Bank.

安德魯·克里爾，德意志銀行。

So want to go back to the [out for] sales. One of your competitors yesterday suggested their revenue could be slightly to modestly down year over year. I think you used the word growth rate for this year. So just wanted to confirm, I think that would -- you feel pretty confident sales should grow this year, even if they're below that by single digits through the cycle target.

所以想回到（外出）銷售環節。昨天，你們的一位競爭對手錶示，他們的收入可能會比去年同期略有下降。我認為你今年用的是成長率這個詞。所以我想確認一下，我認為——你很有信心今年的銷售額會成長，即使在周期目標期內低於個位數。

Yeah. So real quick. I know people really enjoy the read-throughs and trying to do the comparisons and see how things will work. First of all, there could be inherent unevenness in their business that's different than the mix of customers that we have that is hard to do, just to begin with industry-wide.

是的。簡單來說。我知道大家很喜歡通讀全文，也喜歡進行比較，看看事情會如何發展。首先，他們的業務可能存在固有的不平衡，這與我們的客戶組合不同，而這在整個行業中都是很難做到的。

Secondly, the particular competitor you're talking about, I think we have several differences that have been built over the last several years. We have an industry-leading AMI offering that has several in-flight projects and awarded not started projects informing our view.

其次，就你提到的那個競爭對手而言，我認為我們在過去幾年已經建立了一些差異。我們擁有業界領先的 AMI 產品，目前有多個正在進行的項目和已授標但尚未啟動的項目，這些都為我們的觀點提供了依據。

We've got a really exciting software business at 8% of our revenue now that's 100% recurring. We're really excited about what's happening with sewer line monitoring and water quality monitoring and network monitoring. And these are things that I believe the competitor you're talking about doesn't have. So the read-through that people are getting, I would say, isn't the same.

我們現在有一項非常令人振奮的軟體業務，占我們收入的 8%，而且是 100% 的經常性收入。我們對污水管監測、水質監測和管網監測方面的進展感到非常興奮。而我認為，你提到的那個競爭對手並不具備這些條件。所以，我認為，人們得到的閱讀經驗並不相同。

So when we look at all those factors that we're talking about, again, I would think you should view '26 as the inverse effect of '25, like I talked about before. But we feel confident given what we're seeing. Our conviction on high single digits through the five-year horizon is as strong today as it was yesterday as it was 3 months, 6 months or 12 months ago, based on all the same factors we use to think about that five-year horizon.

所以，當我們審視所有這些因素時，我認為你應該把 '26 看作是 '25 的反面，就像我之前談到的那樣。但就我們目前所看到的，我們感到充滿信心。我們對未來五年內保持高個位數成長率的信心，與昨天、3個月前、6個月前或12個月前一樣堅定，這基於我們用來考慮這五年前景的所有相同因素。

But some years -- and one thing, not to follow at all up here on this question, but everyone who's talked to us before, we've never pegged and said every single year is going to be 8%. We've said some years might be 12, some years might be 5. We just came off of 6 that I'm pretty proud of. And I think this next year is going to be exciting, and our five-year conviction is as strong as it's ever been.

但有些年份——還有一件事，雖然和這個問題完全無關，但之前和我們談過的每個人，我們從來沒有預測過每年都會是 8%。我們說過，有些年份可能是 12 年，有些年份可能是 5 年。我們剛剛取得了6場勝利，我為此感到非常自豪。我認為接下來的一年將會令人興奮，我們對五年計畫的信心也一如既往地堅定。

Great. Very helpful. And then a quick one on pricing. And I know you don't disclose that exactly. But just can you remind us, has it been primarily or all list price increases thus far to deal with tariffs mostly or have you been using surcharges as well? And in the event tariffs were ruled illegal, like do you expect you can hold on to this price [looking forward]? And then any conversations with customers looking for kind of some discounts at this point? Thanks.

偉大的。很有幫助。最後簡單談談定價問題。我知道你不會透露全部細節。您能否提醒我們一下，到目前為止，價格上漲主要是因為關稅上漲，還是也使用了附加費？如果關稅被裁定為非法，你覺得你還能維持這個價格嗎？[期待]？那麼，此時是否有顧客詢問能否獲得一些折扣呢？謝謝。

Yeah. So in our pricing, keeping in mind, 75% of our revenue is sold direct. And so we're in a constant state of doing project pricing based on real-time output. So that helps us in some ways. Two, yes, we do list price increases.

是的。因此，在定價時，請記住，我們 75% 的收入來自直接銷售。因此，我們一直處於根據即時產出進行專案定價的狀態。這在某些方面對我們有幫助。第二，是的，我們會提高標價。

What we didn't do was temporary tariff add-ons or tariff issues that could be challenged in court or could be reversed once the customer says tariffs are gone or could be demanded back because tariffs have been rolled back. So ours is pretty clean, I think, compared to how other people have handled the pricing aspects of tariffs.

我們沒有做的是臨時附加關稅或關稅問題，這些問題可能會在法庭上受到質疑，或者一旦客戶聲稱關稅消失了，或者因為關稅已被取消，就可能被撤銷。所以我覺得，與其他人處理關稅定價方面的方式相比，我們的做法相當乾淨俐落。

James Ko, Jefferies.

James Ko，傑富瑞集團。

I guess I wanted to kind of follow up on the project pacing dynamic here. So was this like dynamic kind of extending into first half 2026 expected? Or is this something you kind of developed? And kind of how much confidence do you have in kind of project converting into revenue in second half 2026?

我想就這個專案的進度安排動態做一些後續探討。所以這種動態變化持續到 2026 年上半年是可以預期的嗎？還是說這是你自己開發的？您對該專案在 2026 年下半年轉化為收入有多大信心？

Yeah. There can always be some variability. So in full disclosure, some of the projects that are starting in the second half we thought would have started in the first half. So things can slide sometimes from a quarter or two out. And this is why we talk so much about the five-year horizon. I'm absolutely confident all those things are going to happen within the five year. I'm confident in what's going to happen in the year. But trying to peg it from quarter to quarter can be difficult.

是的。總是會有一些變數。坦白說，有些項目我們原本以為會在上半年啟動，但現在卻在下半年才開始。所以有時候事情可能會從一兩個季度開始出現偏差。這就是為什麼我們經常談論五年規劃的原因。我絕對相信所有這些事情都會在五年內發生。我對今年將要發生的事情充滿信心。但要準確預測每季的走勢可能很困難。

I just want to clarify, too, that when Ken says project slides to the right, for example, it's not related to funding. Each one of these projects is different. Every customer is different. There's contracting phases, there's initial deployment areas. There's full rollout. So there's multiple steps to these projects. And everyone is different, and that's the largest impact to the timing of them.

我還要澄清一下，例如，當 Ken 說專案向右滑動時，這與資金無關。每個項目都各不相同。每個顧客的需求都不一樣。有合約簽訂階段，有初始部署區域。已全面推出。所以這些項目包含多個步驟。每個人的情況都不一樣，這是影響時間安排的最大因素。

I think the point that I would like to maybe emphasize here is that these aren't hoping for backlog increases. These aren't hoping for things to happen. These are known, awarded, not started projects that even if they have some variability in where they move, they're in our pocket.

我想在這裡強調的一點是，他們並不希望積壓訂單增加。他們並非在期盼事情發生。這些是已知的、已獲批准的、尚未啟動的項目，即使它們的進展方向存在一些不確定性，但它們都在我們的掌控之中。

Got it. Yeah. Thanks for the color. And I guess similar question, you kind of reiterated high single-digit kind of organic growth over the four-to-five-year horizon. So like how much of that outlook is kind of supported by awarded but not executed project versus kind of broader just few opportunities?

知道了。是的。謝謝你提供的色彩。我想問一個類似的問題，你重申了未來四到五年內實現個位數高成長的預期。那麼，這種觀點有多少是基於已授標但尚未執行的項目，又有多少是基於更廣泛的、數量有限的機會呢？

Well, so it's a great question. I mean, this is when we think about our five-year view and what we've talked about in several meetings is we're looking at several segmentations of how many people are looking, working with consultants and working on budget, which are items that turn into revenue three, four, and five years out.

嗯，這是一個很好的問題。我的意思是，這就是我們思考五年展望的時候，我們在幾次會議上討論過的，我們正在研究幾個細分領域，有多少人正在尋找、與顧問合作以及製定預算，這些項目將在三、四、五年內轉化為收入。

We've got the whole bucket of things that are in RFP today that become revenue in the next year to two, then we've got in-flight projects. We've got awarded not started project. So it's this whole funnel of activity that we look at.

我們現在有很多項目都在招標文件中，這些項目將在未來一兩年內轉化為收入，此外我們還有一些正在進行的項目。我們獲得了一個尚未啟動的專案。所以，我們關注的是整個活動流程。

But what underpins it all that's really helpful for us is we're confident that no matter what happens with these project cycles, 85% of what we're going to take orders and ship for every year, our replacement by nature in terms of meters and radios. So the project stuff is all very interesting, but the bottom line is very strong. And then, of course, the software continues to grow the last five years at a 28% CAGR. So it's a multivariable equation and one that we feel good about how those come together.

但真正對我們有幫助的是，我們有信心，無論這些項目週期如何變化，我們每年將要接受的訂單和發貨量的 85% 都將由自然界的替代產品（例如儀表和收音機）來滿足。所以專案方面的事情都很有趣，但最重要的是，最終結果非常出色。當然，該軟體在過去五年中繼續保持成長，年複合成長率達 28%。所以這是一個多變量方程，我們對各個變數的組合方式感到滿意。

Bobby Zolper, Raymond James.

鮑比·佐爾珀，雷蒙德·詹姆斯。

It looks like there's about [1 billion] of metering projects in the [ARPU] data, which all needs to be spent by the end of 2026. How have you reflected that in your 2026 commentary?

根據 ARPU 數據，似乎有大約 10 億個計量項目，所有這些項目都需要在 2026 年底前完成。您在2026年的評論中是如何體現這一點的？

So we haven't. I mean, so when we sit here and we talk about what's fueled our growth for the last five or six years, it's really informed by the buckets I just walked you through.

所以我們沒有。我的意思是，當我們坐在這裡討論過去五、六年推動我們發展的因素時，這實際上都受到了我剛才向你們介紹的這些因素的影響。

And when we look at who's planning for projects, who is actually doing RFPs for projects, what we have in known projects, there's so many ways that funding is done, especially around the AMI side, whether that be SRFs, WIFIA loans, rate base increases, municipal bonds. That is one factor, you're right, but it certainly is not an outsized consideration for us at all when we think about our forecast.

當我們查看誰在規劃項目，誰在實際進行項目招標，以及我們已知的項目時，會發現融資方式多種多樣，尤其是在 AMI 方面，無論是 SRF、WIFIA 貸款、費率基數增加還是市政債券。你說得對，這的確是一個因素，但在我們進行預測時，這絕對不是一個需要過多考慮的因素。

I'd also be cautious about taking something that's listed in an ARPA database with reference to the word metering, and assuming that that whole total of money is related to metering. It's oftentimes considerably larger than the actual metering spend. So a headline grabbing number question like that is not necessarily indicative of the true metering content on those line items.

我也會謹慎對待 ARPA 資料庫中列出的與「計量」一詞相關的內容，並假設所有款項都與計量有關。它通常比實際的計量支出要大得多。因此，像這樣引人注目的數字問題並不一定能反映這些項目的真實計量內容。

All right. I appreciate it. And then I have a two-part question on the PRASA project. I guess, one, how is PRASA funding that project? And then secondarily, what is the legal status of that project?

好的。謝謝。然後，我還有一個關於 PRASA 專案的兩個問題。我想問的是，PRASA是如何為該專案提供資金的？其次，該項目的法律地位如何？

Yeah. The first part of that question shouldn't surprise anyone. Part of the project purpose and intent is in response to Hurricane Maria, which took place in 2017, so over eight years ago. And so the funding of that project in part is coming from FEMA dollars. And so that is a FEMA-funded project, which ultimately drives the Buy American requirement I mentioned earlier, which then drives our location of manufacturer.

是的。這個問題的第一部分應該不會讓任何人感到驚訝。該計畫的部分目的和意圖是為了回應 2017 年發生的颶風瑪莉亞，距今已超過八年。因此，該計畫的部分資金來自聯邦緊急事務管理署（FEMA）的撥款。因此，這是一個由聯邦緊急事務管理局 (FEMA) 資助的項目，最終促成了我之前提到的「購買美國貨」的要求，進而決定了我們的製造商所在地。

To the second part of your question, first of all, we don't comment certainly on litigation of ourselves or and/or the legal status, if you will, of even our customers or potential customers. But in the direct sense, in our commentary, we mentioned there's a lot of variables related to this project. And certainly, those variables could impact the pace at which that project gets deployed, whether it be here in the immediate term of 2026 or thereafter.

關於您問題的第二部分，首先，我們當然不會對我們自身或我們客戶或潛在客戶的訴訟和/或法律地位發表評論。但就直接而言，我們在評論中提到，這個項目有很多變數。當然，這些變數可能會影響該專案的部署速度，無論是在 2026 年這個近期內還是之後。

And so I'm not making that statement generally, not specific to your legal question. But ultimately, there are a lot of variables at play, but what is known as the award and our participation in that award.

因此，我並不是泛泛而談，而是專門針對你的法律問題。但歸根結底，有很多變數在起作用，但這就是所謂的獎項以及我們參與獎項的過程。

Scott Graham, Seaport Research Partners.

Scott Graham，Seaport Research Partners。

I want to understand a little bit more, Ken, about some of your statements in the press release and then follow up on the call here about the first half versus second half.

肯，我想更了解你在新聞稿中的一些表述，然後再跟進一下我們剛才電話會議中關於上半年和下半年的問題。

It seemed in the press release to suggest that your second half growth was slower than your high single-digit long-term and that that decrement was either because of the roll-off projects, as you've discussed in the days in the fourth quarter.

新聞稿似乎暗示，你們下半年的成長速度低於你們長期高個位數的成長預期，而這種下滑可能是由於專案終止造成的，正如你們在第四季度討論的那樣。

And that the first half of this year will essentially be the same, the roll-off of the projects. Does that suggest, can that the organic growth that you're expecting in the first half of the year will be the same amount lower on a percent basis as the second half was versus the high single?

今年上半年的情況也基本相同，計畫將陸續啟動。這是否意味著，您預計今年上半年的自然成長率將比下半年相對於上半年的成長率低相同的百分比？

So Scott, as you, I'm sure, expect we're not going to get that granular with you, but when I had mentioned previously that I think you'll see 2026 play out in a similar fashion, except the inverse of how 2025 did, I would just expect a lower growth rate in the first half of the year and a higher growth rate in the second half of the year.

所以史考特，我相信你也預料到我們不會和你討論得那麼細緻，但我之前提到過，我認為 2026 年的情況會和 2025 年類似，只是方向相反，我預計上半年的增長率會較低，下半年的增長率會較高。

I had to try. Okay. So the stock is obviously -- seems to not be reflecting what you're seeing in this call. And I'm just wondering, you've been buying back some stock last couple of quarters. Is the plan here with that, the stock where it is, is there an opportunity to maybe restrain some costs in the first half of the year to boost earnings? Or will we continue to see share repurchases to boost earnings or both?

我必須試一試。好的。所以很明顯，這支股票似乎並沒有反映出你在這次電話會議中看到的情況。我只是想問一下，你們最近幾季一直在回購股票。鑑於目前的計劃和股價，是否有可能在上半年控制一些成本以提高收益？或者我們會看到公司繼續回購股票以提振獲利，還是兩者兼而有之？

Yeah. So a couple of things. So first off, obviously, with our great balance sheet, we still feel 100% positive about our capital allocation priorities. So we're going to continue to invest organically and inorganically in the business. So what that means is we'll do the right things to continue to drive long-term strategy and growth.

是的。有兩件事。首先，很顯然，憑藉我們良好的資產負債表，我們仍然對我們的資本配置優先事項充滿信心。因此，我們將繼續透過內部成長和外部收購的方式對業務進行投資。這意味著我們將採取正確的措施，繼續推動長期策略和成長。

So we would never do any shortsighted cost-cutting type things to try to short-circuit our results. So we're going to continue to invest in the business. Two, returning cash to shareholders. That's traditionally for us been 33rd consecutive year of increased dividends.

因此，我們絕不會採取任何短視的成本削減措施來試圖縮短我們的業績。因此我們將繼續投資這項業務。第二，向股東返還現金。按照慣例，這已經是我們連續第33年提高股利了。

We did buy some shares back in Q4 as we talked about. And certainly, we have the authorization to purchase more. And if we thought it was attractive in Q4, I'm not forecasting anything for you, but I would think you think we think it's attractive now, too, to repurchase shares.

正如我們之前討論的那樣，我們在第四季度確實購買了一些股票。當然，我們有權利購買更多。如果我們認為在第四季度回購股票是有吸引力的，我不會向你做出任何預測，但我認為你會認為我們現在也認為回購股票是有吸引力的。

And then on the M&A funnel, we're really, really thrilled with the deals that we've done over the last five years, and we continue to have a really exciting funnel. So the capital allocation priorities are still going to be aligned to support growth, return value to shareholders, and do more M&A.

在併購管道方面，我們對過去五年完成的交易感到非常非常滿意，而且我們繼續擁有一個非常令人興奮的管道。因此，資本配置的優先事項仍將與支持成長、為股東創造價值以及進行更多併購保持一致。

Michael Fairbanks, JPMorgan.

麥可費爾班克斯，摩根大通。

My first question is on SmartCover. So it was up 25% annualized and profitable in 4Q. I guess now that the integration is 12 months in, can you just give us an update on what you now see as the potential in that business? And how we should think about the growth algorithm there going forward? Thank you.

我的第一個問題是關於SmartCover的。因此，第四季度按年率計算增長了 25%，並且實現了盈利。我想現在整合已經進行了 12 個月，您能否為我們介紹一下您目前對該業務潛力的看法？那麼，我們該如何看待未來的成長演算法呢？謝謝。

Yeah. You cut out there a little bit, but I think what you asked was we saw 25% growth in SmartCover, and you're asking how we see the future of sewer line monitoring growth rates. So the thing that we were excited about SmartCover to begin with is that before we acquired it, it was growing at a 20% CAGR for multiple years. So that's the first point.

是的。你剛才有點離題了，但我想你問的是，我們看到 SmartCover 成長了 25%，而你問的是，我們如何看待污水管監測成長率的未來。我們最初對 SmartCover 感到興奮的原因是，在我們收購它之前，它已經連續多年保持 20% 的複合年增長率。這是第一點。

Second point is, we're still so early in adoption of sewer line monitoring that there's still so much more room to grow, which is why we really want to get into that space, and acquiring a known brand like SmartCover, the leader in North America was really important to us. So we fully, fully expect to continue to grow our sewer line monitoring at a higher rate than average.

第二點是，污水管監測技術仍處於早期應用階段，還有很大的發展空間，因此我們非常希望進入這個領域，收購像 SmartCover 這樣在北美領先的知名品牌對我們來說非常重要。因此，我們完全、完全預期我們的污水管道監測工作將繼續以高於平均水平的速度成長。

Great. Thank you. And then on PRASA, can you maybe just talk about how you could use potentially an AMI deployment like that to expand the reach, the other offerings in the portfolio just in the BlueEdge portfolio broadly?

偉大的。謝謝。那麼關於 PRASA，您能否談談如何利用像這樣的 AMI 部署來擴大 BlueEdge 產品組合中其他產品的覆蓋範圍？

Yeah. And in fact, the answer doesn't even need to be PRASA specific. I think we have multiple examples where AMI adoption by a utility ultimately serves as the catalyst to the extension of other beyond the meter technologies.

是的。事實上，答案甚至不需要專門針對南非客運鐵路局 (PRASA)。我認為我們有很多例子表明，公用事業公司採用 AMI 最終會成為其他計量表外技術擴展的催化劑。

Essentially, AMI becomes an implementation that, in many cases, a utility that grows into having data availability and the insights and analytics to influence how they run primarily the meter billing operations, but then having cascading effects into the remainder of the utility.

從本質上講，AMI 成為一種實施手段，在許多情況下，它使公用事業公司能夠獲得數據可用性以及洞察力和分析能力，從而影響其主要計量計費操作的運作方式，然後對公用事業公司的其他部分產生連鎖反應。

And once that kind of capability or core discipline is in place, it then becomes very clear that marrying up that meter and flow data with other pressure management and/or water quality data becomes a very valuable value proposition, if you will.

一旦具備了這種能力或核心紀律，那麼很明顯，將儀表和流量數據與其他壓力管理和/或水質數據結合起來，就具有了非常有價值的價值。

And so, whether it's PRASA or any other AMI customers of ours, that's oftentimes the foundation or the spring board to the broader beyond the meter technologies. We often talk about Galveston. We've talked about Galveston historically over time. But that is the exact scenario that played out there. AMI was the first technology adoption and then other use cases followed in short order as data and analytics became a primary point of emphasis with the utility.

因此，無論是 PRASA 還是我們的任何其他 AMI 客戶，這通常都是更廣泛的電錶以外技術的基礎或跳板。我們經常談論加爾維斯頓。我們已經從歷史的角度討論過加爾維斯頓了。但實際情況正是如此。AMI 是第一個採用的技術，隨後其他用例也很快跟進，因為數據和分析成為該公用事業公司的重點。

There are no further questions at this time. I will now pass the call back to Barbara for closing remarks.

目前沒有其他問題了。現在我將把電話轉回給芭芭拉，請她作總結發言。

Thank you, operator. Badger Meter's first quarter 2026 earnings release is tentatively scheduled for April 16, 2026. In addition, please save the date for Badger Meter's inaugural Investor Day, which will be held on May 21 in New York City.

謝謝接線生。Badger Meter 2026 年第一季財報暫定於 2026 年 4 月 16 日發布。此外，請預留時間參加 Badger Meter 的首屆投資者日活動，該活動將於 5 月 21 日在紐約市舉行。

During the event, we will provide greater color and tangible examples of the evolution of our BlueEdge portfolio, along with the discussion of the key drivers, enabling growth of our comprehensive suite of smart water management solutions. Information about how to attend and what more to expect will be available in early March.

活動期間，我們將提供更多關於 BlueEdge 產品組合演變的生動細節和具體實例，並探討推動我們全面的智慧水管理解決方案發展的關鍵因素。有關如何參加以及更多活動詳情將於三月初公佈。

Thanks for your interest in Badger Meter and have a great day.

感謝您對 Badger Meter 的關注，祝您度過美好的一天。

This concludes today's call. Thank you for attending. You may now disconnect.

今天的電話會議到此結束。謝謝各位的出席。您現在可以斷開連線了。