Badger Meter's Q2 beat and 33.5% pullback improve its entry point, but weak revenues, margin pressure and uneven projects keep the outlook balanced.
Badger Meter's growth hinges on cellular AMI, recurring software and BlueEdge demand, while uneven project timing and cost pressures cloud 2026.
Badger Meter gains from cellular water networks, sewer monitoring and data-center flow demand, but costs and project timing cloud 2026.
Badger Meter shares have fallen once again on the firm's latest earnings report. Q2 results were mixed: EPS and revenue slightly beat consensus, but margins slipped and revenue declined 6.6% year-over-year. Management expects revenue growth to resume in H2 2026, reiterating long-term high single-digit revenue CAGR and highlighting improved contract activity.
Badger Meter remains a buy as project deployments ramp, supporting both revenue growth and margin expansion opportunities. Q2 2026 saw resilient gross margin (40.8%) despite a 7% y/y sales decline, with sequential improvement in base sales and project activity. Management's FY2026 revenue guidance implies 8% H2 growth, which appears achievable given project cadence and improved order rates.
Badger Meter, Inc. (BMI) Q2 2026 Earnings Call Transcript
Badger Meter NYSE: BMI reported lower second-quarter 2026 sales and earnings from the prior year, but management said revenue improved sequentially as previously awarded advanced metering infrastructure projects began shipping and reaffirmed its expectation for improving quarterly revenue through the rest of the year.
Badger Meter (BMI) came out with quarterly earnings of $1.02 per share, beating the Zacks Consensus Estimate of $1.01 per share. This compares to earnings of $1.17 per share a year ago.
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Badger Meter (BMI) closed the most recent trading day at $140.12, moving 2.82% from the previous trading session.
Badger Meter (BMI) closed the most recent trading day at $149.79, moving +2.69% from the previous trading session.
Badger Meter (BMI) closed at $138.67 in the latest trading session, marking a -1.57% move from the prior day.