Badger Meter (NYSE:BMI) Releases Earnings Results, Misses Estimates By $0.27 EPS

Key Points

• Badger Meter missed Q1 estimates, reporting $0.93 EPS vs. $1.20 expected and revenue of $202.3M vs. $232.1M, which sent the stock down roughly 24% to a 52‑week low.
• Management disclosed a newly awarded AMI pipeline of roughly 2.6–3.6 million connections expected to start in H2 2026, which it says should drive back‑half revenue weighting and momentum into 2027.
• Despite the miss, gross margin remained strong at 41.7%, the company generated about $30M of free cash flow and repurchased $38M of stock, and it agreed to acquire UDlive for $100M, a deal expected to be EPS‑accretive in year one.

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

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 Stock Down 24.0%

NYSE:BMI opened at $115.76 on Friday. The firm's fifty day simple moving average is $152.42 and its 200-day simple moving average is $167.57. The stock has a market cap of $3.38 billion, a PE ratio of 24.12, a price-to-earnings-growth ratio of 2.47 and a beta of 0.90. Badger Meter has a fifty-two week low of $115.11 and a fifty-two week high of $256.08.

Badger Meter Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, March 13th. Stockholders of record on Friday, February 27th were paid a dividend of $0.40 per share. The ex-dividend date of this dividend was Friday, February 27th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.4%. Badger Meter's dividend payout ratio is 33.33%.

Analysts Set New Price Targets

Several analysts have recently commented on the stock. Royal Bank Of Canada restated an "outperform" rating and issued a $191.00 target price (down from $229.00) on shares of Badger Meter in a research note on Thursday, January 29th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a $167.00 price target on shares of Badger Meter in a research note on Thursday, January 29th. Barclays set a $136.00 price objective on shares of Badger Meter and gave the company an "underweight" rating in a research report on Thursday, January 29th. Stifel Nicolaus set a $174.00 price objective on Badger Meter and gave the company a "buy" rating in a report on Tuesday. Finally, Robert W. Baird upgraded Badger Meter from a "neutral" rating to an "outperform" rating and boosted their target price for the stock from $165.00 to $173.00 in a research report on Monday, March 30th. Five equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Badger Meter has a consensus rating of "Hold" and an average target price of $180.12.

Trending Headlines about 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 at Badger Meter

In other Badger Meter news, VP Fred J. Begale sold 2,064 shares of the company's stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $150.00, for a total transaction of $309,600.00. Following the transaction, the vice president directly owned 3,040 shares in the company, valued at approximately $456,000. This represents a 40.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Kimberly K. Stoll sold 1,634 shares of the stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $149.01, for a total transaction of $243,482.34. Following the completion of the transaction, the vice president directly owned 3,256 shares of the company's stock, valued at approximately $485,176.56. This trade represents a 33.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 3,989 shares of company stock worth $596,002 over the last three months. 1.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Badger Meter

A number of institutional investors and hedge funds have recently modified their holdings of BMI. Caitong International Asset Management Co. Ltd increased 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 in the last quarter. Brown Brothers Harriman & Co. raised its holdings in Badger Meter by 62.3% during the third quarter. Brown Brothers Harriman & Co. now owns 185 shares of the scientific and technical instruments company's stock worth $33,000 after purchasing an additional 71 shares during the last quarter. Canada Pension Plan Investment Board purchased a new stake in Badger Meter during the second quarter worth $49,000. State of Wyoming purchased a new stake in Badger Meter during the second quarter worth $159,000. Finally, Smartleaf Asset Management LLC grew its holdings in Badger Meter by 13.5% in the fourth 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. Institutional investors and hedge funds own 89.01% of the company's stock.

Badger Meter Company Profile

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.