Badger Meter (NYSE:BMI) Issues Earnings Results, Beats Estimates By $0.01 EPS

Badger Meter (NYSE:BMI) issued its earnings results on Thursday. The scientific and technical instruments company reported $1.24 EPS for the quarter, topping analysts’ consensus estimates of $1.23 by $0.01, Briefing.com reports. Badger Meter had a net margin of 14.27% and a return on equity of 18.03%. The firm had revenue of $230.30 million during the quarter, compared to the consensus estimate of $240.35 million. During the same quarter in the previous year, the firm posted $1.19 earnings per share. The company’s revenue was up .1% compared to the same quarter last year.

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

• Q4 revenue is expected to grow both sequentially and year over year, with management expecting to exit 2026 with momentum and sustain growth into 2027. Full-year organic sales are still expected to decline by low single digits.
• Profitability exceeded expectations, with operating margin rising 60 basis points year over year to 20.2% and base gross margin reaching 42.1%. Strong ultrasonic meter and software mix, pricing discipline, and cost controls offset higher electronic component costs.
• Management said awarded AMI projects, including PRASA, are ramping and that the broader project pipeline remains robust. The company believes these projects support a return toward its long-term high-single-digit growth profile, although quarterly results may remain uneven.
• Badger Meter formally launched OneNetwork, a platform integrating AMI, network monitoring, and water-quality data; customer and consultant interest was described as high. Management views the platform and related software offerings as drivers of longer-term, higher-margin growth.
• Electronic component availability and cost pressures tied to AI and data-center demand have escalated, while inventory remains above normal. Free cash flow fell to $40.3 million from $48.2 million year over year, though the company expects to reduce excess inventory by year-end.

Badger Meter Price Performance

Shares of BMI stock opened at $149.32 on Friday. The firm’s 50-day simple moving average is $130.23 and its 200-day simple moving average is $132.33. Badger Meter has a 1-year low of $112.09 and a 1-year high of $192.28. The firm has a market cap of $4.33 billion, a P/E ratio of 34.89, a PEG ratio of 3.25 and a beta of 0.64.

Badger Meter Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, September 11th. Stockholders of record on Friday, August 28th were paid a dividend of $0.44 per share. The ex-dividend date of this dividend was Friday, August 28th. This represents a $1.76 dividend on an annualized basis and a dividend yield of 1.2%. This is an increase from Badger Meter’s previous quarterly dividend of $0.40. Badger Meter’s dividend payout ratio is currently 41.12%.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on BMI shares. Robert W. Baird set a $167.00 price target on shares of Badger Meter and gave the company an “outperform” rating in a research report on Thursday, July 23rd. Zacks Research upgraded shares of Badger Meter from a “strong sell” rating to a “hold” rating in a research report on Monday, July 6th. JPMorgan Chase & Co. decreased their target price on shares of Badger Meter from $172.00 to $170.00 and set an “overweight” rating on the stock in a research report on Thursday, July 23rd. Wall Street Zen cut shares of Badger Meter from a “hold” rating to a “sell” rating in a report on Saturday, October 17th. Finally, Weiss Ratings upgraded shares of Badger Meter from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Tuesday, July 28th. Six 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’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $159.38.

Key Headlines Impacting Badger Meter

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

• Positive Sentiment: Badger Meter reported third-quarter adjusted EPS of $1.24, ahead of the $1.21–$1.23 analyst estimates and up from $1.19 a year earlier. Badger Meter Tops Q3 Earnings Estimates
• Positive Sentiment: Operating earnings increased 4% year over year to $47.7 million, while operating margin expanded to 20.2% from 19.6%. Base gross margin reached 42.1%, supporting profitability even as reported revenue was essentially flat year over year. Badger Meter Reports Third Quarter 2026 Financial Results
• Positive Sentiment: Base sales grew 5% sequentially, while total sales of $235.9 million improved 6% from the second quarter. Management indicated it expects to sustain its growth momentum into 2027, providing investors with a constructive outlook. Badger Meter: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: The earnings call gave analysts an opportunity to question management about municipal utility demand, operating performance and the company’s growth plans, with the discussion centered on sustaining momentum beyond 2026. Badger Meter Q3 2026 Earnings Call Transcript
• Negative Sentiment: Third-quarter revenue of $235.9 million was slightly below the FactSet consensus of $240.4 million and increased only 0.1% from the prior year. The revenue miss limits the strength of the headline results and remains a risk for a stock trading at a premium valuation. Badger Meter Q3 Revenue

Insider Activity

In other news, VP Edward Callahan acquired 751 shares of the company’s stock in a transaction dated Thursday, July 30th. The stock was acquired at an average cost of $135.25 per share, for a total transaction of $101,572.75. Following the acquisition, the vice president directly owned 1,937 shares in the company, valued at approximately $261,979.25. This represents a 63.32% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this link. 1.00% of the stock is owned by corporate insiders.

Badger Meter Company Profile

Badger Meter, Inc is a water technology company that develops and manufactures flow measurement, control and communications solutions. Its products are used to measure and manage water across municipal, commercial and industrial applications, helping customers improve operational efficiency, monitor usage and support water conservation.

The company’s offerings include mechanical, ultrasonic and electromagnetic flow meters; valves and related flow-control equipment; and smart water technologies.