Badger Meter (NYSE:BMI) Issues Earnings Results

Badger Meter (NYSE:BMI) released its earnings results on Friday. The scientific and technical instruments company reported $0.93 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.20 by ($0.27), FiscalAI reports. The firm had revenue of $202.28 million for the quarter, compared to the consensus estimate of $232.10 million. Badger Meter had a return on equity of 20.71% and a net margin of 15.45%.Badger Meter’s revenue for the quarter was up 3.8% on a year-over-year basis. During the same quarter last year, the company posted $1.30 EPS.

Here are the key takeaways from Badger Meter’s conference call:

• Q1 sales fell 9% year-over-year to $202 million, driven by AMI project pacing and weaker short‑cycle orders (an estimated $15–$20M shortfall), and management now expects full‑year 2026 organic revenue to be roughly in line with 2025 with Q2 still down year‑over‑year.
• Management disclosed a pipeline of awarded AMI projects expected to start in H2 2026 that represent roughly 2.6–3.6 million connections (multi‑year), materially larger than the prior 800k cohort and cited as the basis for expected back‑half revenue weighting and momentum into 2027.
• Gross margin remained strong at 41.7% (down 120 bps but near the high end of guidance), the company generated about $30M of free cash flow in Q1, and repurchased $38M of stock with $115M remaining on the buyback — signaling margin resilience and continued shareholder returns.
• Badger signed a definitive agreement to acquire UDlive for $100M (expected to close end of April), expanding its sewer‑monitoring footprint alongside SmartCover; UDlive posted ~$22M trailing revenue and was profitable, and the deal is expected to be EPS‑accretive in year one.
• Management emphasized the Q1 short‑cycle weakness is timing‑related and not structural, implemented measured cost actions (including a 10% executive salary reduction for six months), and reiterated disciplined SE&A management to navigate pacing variability.

Badger Meter Price Performance

Shares of BMI opened at $115.76 on Friday. The firm has a 50-day moving average of $152.42 and a 200-day moving average of $167.49. Badger Meter has a one year low of $115.11 and a one year high of $256.08. The company has a market cap of $3.38 billion, a PE ratio of 26.13, a price-to-earnings-growth ratio of 2.47 and a beta of 0.90.

Badger Meter Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, March 13th. Stockholders of record on Friday, February 27th were given a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date of this dividend was Friday, February 27th. Badger Meter’s dividend payout ratio (DPR) is 36.12%.

Wall Street Analyst Weigh In

BMI has been the subject of a number of recent research reports. Robert W. Baird upgraded shares of Badger Meter from a “neutral” rating to an “outperform” rating and increased their price objective for the stock from $165.00 to $173.00 in a research note on Monday, March 30th. Stifel Nicolaus set a $174.00 price objective on shares of Badger Meter and gave the stock a “buy” rating in a research note on Tuesday. Barclays set a $136.00 price objective on shares of Badger Meter and gave the stock an “underweight” rating in a research note on Thursday, January 29th. Royal Bank Of Canada restated an “outperform” rating and set a $191.00 price objective (down from $229.00) on shares of Badger Meter in a research note on Thursday, January 29th. Finally, Argus downgraded shares of Badger Meter from a “buy” rating to a “hold” rating in a research note on Monday, February 2nd. Five research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $180.13.

Key Headlines Impacting Badger Meter

Here are the key news stories impacting Badger Meter this week:

• Positive Sentiment: Signed definitive agreement to acquire UDlive, a UK sewer-line monitoring hardware+software provider for ~$100M (plus contingent consideration) — expands Badger Meter’s footprint in a fast-growing smart infrastructure niche and diversifies recurring-data offerings. Badger Meter to Expand Leadership Position in Global Sewer Line Monitoring with Acquisition of UDlive
• Positive Sentiment: JPMorgan cut its price target from $190 to $160 but kept an “overweight” rating — the note signals continued analyst conviction that the company has material upside from depressed levels. Benzinga
• Neutral Sentiment: Full Q1 earnings call transcript is available for investors who want management’s explanations on project timing, regional trends (including Puerto Rico), and margin dynamics. Badger Meter, Inc. (BMI) Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Pre-earnings previews and coverage (Investing.com, Yahoo Finance, Seeking Alpha) set expectations that were not met — useful background but not market-moving after results. Badger Meter earnings up next: Can Puerto Rico revive growth?
• Neutral Sentiment: Comparative/industry coverage (head-to-head surveys) — background for investors assessing competitive positioning rather than immediate catalysts. Electro-Sensors & Badger Meter Head-To-Head Survey
• Negative Sentiment: Q1 results missed estimates: EPS $0.93 vs. consensus ~ $1.2; revenue $202.3M vs. est. ~$232M. Operating margin and EPS declined year-over-year — the core reason for the sell-off. Badger Meter Reports First Quarter 2026 Financial Results
• Negative Sentiment: Shares plunged and hit a 52-week low after the release as investors reacted to the miss and management’s remarks on project timing. Elevated volume reflects forced/urgent selling. Badger Meter Stock Sinks To 52-Week Low – Here’s Why
• Negative Sentiment: Coverage from Zacks and Motley Fool highlights the earnings and revenue shortfall and frames the move as a substantive near-term negative (though some pieces argue against panic). Badger Meter (BMI) Lags Q1 Earnings and Revenue Estimates

Insider Activity

In related news, VP Fred J. Begale sold 2,064 shares of the firm’s stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $150.00, for a total value of $309,600.00. Following the completion of the sale, the vice president directly owned 3,040 shares in the company, valued at approximately $456,000. This trade represents a 40.44% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, EVP Robert Wrocklage bought 1,650 shares of the business’s stock in a transaction that occurred on Monday, February 9th. The stock was purchased at an average price of $152.35 per share, with a total value of $251,377.50. Following the completion of the purchase, the executive vice president directly owned 19,541 shares in the company, valued at $2,977,071.35. The trade was a 9.22% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders have sold 3,989 shares of company stock valued at $596,002. Company insiders own 1.00% of the company’s stock.

Institutional Investors Weigh In On Badger Meter

Several hedge funds have recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd lifted its stake in Badger Meter by 76.5% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 150 shares of the scientific and technical instruments company’s stock valued at $26,000 after purchasing an additional 65 shares during the last quarter. Brown Brothers Harriman & Co. lifted its stake in Badger Meter by 62.3% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 185 shares of the scientific and technical instruments company’s stock valued at $33,000 after purchasing an additional 71 shares during the last quarter. Maryland State Retirement & Pension System lifted its stake in Badger Meter by 1.9% in the 4th quarter. Maryland State Retirement & Pension System now owns 4,316 shares of the scientific and technical instruments company’s stock valued at $753,000 after purchasing an additional 79 shares during the last quarter. Smartleaf Asset Management LLC lifted its stake in Badger Meter by 13.5% in the 4th quarter. Smartleaf Asset Management LLC now owns 688 shares of the scientific and technical instruments company’s stock valued at $123,000 after purchasing an additional 82 shares during the last quarter. Finally, Aviva PLC lifted its stake in Badger Meter by 3.4% in the 4th quarter. Aviva PLC now owns 2,768 shares of the scientific and technical instruments company’s stock valued at $483,000 after purchasing an additional 90 shares during the last quarter. 89.01% of the stock is currently owned by institutional investors and hedge funds.

About Badger Meter

Badger Meter, founded in 1905 and headquartered in Milwaukee, Wisconsin, is a global leader in flow measurement and control solutions. The company’s core business centers on the design, manufacture and sale of water meters, control valves and related accessories for municipal and industrial water utilities. Over its more than a century of operation, Badger Meter has built a reputation for precision engineering, durability and compliance with international regulatory standards.

The company’s product portfolio includes mechanical and ultrasonic water meters, electromagnetic flow meters for industrial applications, and a range of control valves that help utilities manage pressure and flow in distribution networks.