Badger Meter, Inc.

What they do

Badger Meter designs, manufactures, and markets flow measurement, quality, control, and other system solutions, with approximately 95% of net sales from water-related applications. Its product lines are Utility Water (meters, sensors, communication, software for water utilities) and Flow Instrumentation (meters, sensors, valves, software for commercial/industrial customers). The company markets its offerings under the BlueEdge brand, including ORION radio endpoints and BEACON software-as-a-service.

Revenue drivers

• Utility Water product line — Approximately 89% of 2025 net sales; includes water meters, radio endpoints, software, and sewer/water quality sensors sold to water utilities.
• Flow Instrumentation product line — The remainder of net sales; includes meters, sensors, valves, and software for commercial and industrial customers in water-related applications.
• Software and services — Recurring revenue from BEACON SaaS and other digital solutions is margin accretive and has increased significantly with adoption of ORION Cellular and BEACON.

Recent performance

In Q2 2026, total sales were $222.3 million, up 10% sequentially but down 7% year-over-year against a record prior-year quarter. Operating earnings declined 12% year-over-year to $39.4 million, with margins of 17.7%, and diluted EPS was $1.02, down from $1.17. Utility water sales fell 8% year-over-year (including two months of UDlive), while flow instrumentation sales rose 6%. For full year 2025, revenue was $916.7 million, net income was $141.6 million, and diluted EPS was $4.79.

Strategy

Management is focused on the multi-decade digital transformation of water utilities, leveraging AMI technology and smart water solutions. They are pursuing growth via acquisitions, such as SmartCover (2025) and UDlive (2026), to expand sewer monitoring and global capabilities. The company is also driving penetration of ultrasonic static meters, software adoption, and international expansion in markets like the Middle East and U.K. Cost management actions, including tight spending controls, are being used to mitigate uneven AMI project timing.

Risks

• Technology obsolescence — If the company fails to develop advanced products, or if cellular networks sunset, its competitive advantage and results could be harmed.
• Tariff exposure — Global tariffs on imports/exports could increase costs; the company relies on USMCA and price increases to mitigate but cannot guarantee full offset.
• AMI project timing — Uneven ramp of AMI projects has caused quarterly sales declines and could continue to affect near-term results.
• Acquisition integration — Recent acquisitions (SmartCover, UDlive) may not achieve expected benefits, and integration could divert management attention.

Outlook

Management expects revenue run-rate to improve in the second half of 2026, with full-year revenue excluding acquisitions roughly flat versus 2025. Longer term, they reiterated a framework of high single-digit growth over the next five years, supported by their smart water portfolio and awarded project pipeline. They continue to manage costs and curate a multi-year opportunity funnel.