Badger Meter Inc (NYSE:BMI), a water technology company, saw its shares fall on Friday after reporting weaker first-quarter results, with revenue and earnings declining due to project timing and softer municipal demand.
Q1 Results And Demand Trends
Sales dropped 9% to $202.3 million, missing estimates, while diluted EPS fell to 93 cents from $1.30, also below expectations.
Operating earnings declined to $35.2 million, with margins contracting to 17.4% from 22.2% a year ago. Utility water sales fell 10%, and flow instrumentation sales declined 4%, reflecting weaker short-cycle ordering.
Badger Meter reported cash and cash equivalents of $205.45 million at quarter-end, with operating cash flow of $33.89 million.
The company said the performance was impacted by project timing variability rather than underlying demand, pointing to a strong pipeline of awarded projects expected to ramp in the second half of 2026.
UDlive Acquisition Expands Capabilities
Seperately, Badger Meter also announced an agreement to acquire UK-based UDlive for $100 million plus contingent consideration, with closing expected by the end of April.
The deal will expand its sewer line monitoring capabilities and strengthen its BlueEdge platform alongside SmartCover.
UDlive reported $22 million in fiscal 2026 revenue and positive operating profit, supported by a 90% tender success rate. Badger Meter plans to leverage its global footprint to scale the business beyond the U.K.
Outlook And Management Commentary
“Our first quarter results were consistent with that expectation,” said CEO Kenneth C. Bockhorst.
“In our view, the year-over-year decline in revenue and associated operating leverage are related to variability in project timing and short-cycle customer order patterns and do not reflect a change in underlying demand, our competitive position, or the long-term market drivers for our business.”
“We have a strong pipeline of awarded projects scheduled to launch in the second half of 2026, and our broader multi-year opportunity funnel remains robust,” he added.
Technical Analysis
Badger Meter is currently trading significantly below its 52-week high of $256.08 and near its low of $139.14, suggesting a bearish trend.
The stock is trading 17.1% below its 20-day simple moving average (SMA) and 16.7% below its 50-day SMA, indicating that it is struggling in the short term.
Analyst Consensus & Recent Actions
The stock carries a Buy Rating with an average price target of $195.00. Recent analyst moves include:
- Stifel: Buy (Raises Target to $174.00) (April 14)
- Baird: Upgraded to Outperform (Raises Target to $173.00) (March 30)
- Argus Research: Downgraded to Hold (February 2)
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Badger Meter, highlighting its strengths and weaknesses compared to the broader market:
- Value: Weak (Score: 43.14) — Trading at a steep premium relative to peers.
- Growth: Strong (Score: 78.77) — Indicating solid growth potential in its market.
- Quality: Neutral (Score: 55.68) — Balance sheet remains healthy.
- Momentum: Weak (Score: 9.94) — Stock is underperforming the broader market.
The Verdict: Badger Meter’s Benzinga Edge signal reveals a mixed profile, with strong growth potential but weak momentum and value scores.
BMI Price Action: Badger Meter shares were down 20.30% at $121.37 at the time of publication on Friday. The stock is trading at a new 52-week low, according to Benzinga Pro data.
Photo by TIMS13 via Shutterstock
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