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1. Company Snapshot

1.a. Company Description

Badger Meter, Inc.manufactures and markets flow measurement, quality, control, and communication solutions in the United States, Asia, Canada, Europe, Mexico, the Middle East, and internationally.It offers mechanical or static water meters, and related radio and software technologies and services to municipal water utilities.


The company also provides flow instrumentation products, including meters, valves, and other sensing instruments to measure and control fluids going through a pipe or pipeline, including water, air, steam, oil, and other liquids and gases to original equipment manufacturers as the primary flow measurement device within a product or system, as well as through manufacturers' representatives.Its flow instrumentation products are used in water/wastewater, heating, ventilating and air conditioning, and corporate sustainability markets.In addition, the company offers ORION Migratable for automatic meter reading; ORION (SE) for traditional fixed network applications; and ORION Cellular for infrastructure-free fixed network meter reading solution, as well as BEACON advanced metering analytics, a secure cloud-hosted software suite that establishes alerts for specific conditions and allows consumer engagement tools that permit end water customers to view and manage their water usage activity.


It also serves water utilities, industrial, and other industries.The company sells its products directly, as well as through resellers and representatives.Badger Meter, Inc.


was incorporated in 1905 and is headquartered in Milwaukee, Wisconsin.

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1.b. Last Insights on BMI

Negative drivers behind Badger Meter's recent performance include a Q4 earnings miss, with quarterly earnings of $1.14 per share missing the Zacks Consensus Estimate of $1.15 per share. Additionally, the company's Q4 revenue also lagged estimates, despite a 7.6% sales growth and strong smart water demand. Furthermore, institutional investors such as Universal Beteiligungs und Servicegesellschaft mbH have reduced their holdings in the company, selling 8,490 shares during the third quarter.

1.c. Company Highlights

2. Badger Meter's Q4 2025 Earnings: A Strong Finish to a Record Year

Badger Meter reported total sales of $221 million in Q4 2025, representing an 8% year-over-year increase, with operating profit margins expanding 40 basis points to 19.5%. The company's base operating earnings increased 9% year-over-year, with base operating profit margins expanding 140 basis points to 20.5%. Earnings per share (EPS) came in at $1.14, slightly below analyst estimates of $1.15. For the full year 2025, the company delivered 11% sales growth, surpassing $900 million in revenue, and reflecting a 17% compounded annual growth rate over the past 5 years.

Publication Date: Feb -15

📋 Highlights
  • Record Q4 Sales: Total revenue reached $221 million, an 8% year-over-year increase ($204.7 million in 2024), with 2% base sales growth excluding SmartCover.
  • Operating Margin Expansion: Operating profit margins rose 40 basis points to 19.5% in Q4, while full-year margins expanded 90 basis points to 20%.
  • PRASA AMI Project: A $1.6 million service connections contract in Puerto Rico, with product shipments starting in 2026 and significant revenue growth expected in H2 2026.
  • Free Cash Flow Strength: Generated over 100% of net earnings in free cash flow for 2025, driven by working capital efficiency and $900 million in annual revenue.
  • SmartCover Growth: Acquired business achieved 25% annualized growth post-acquisition, contributing $74 million in software revenue (8% of total sales) in 2025.

PRASA AMI Project: A Significant Opportunity

The company announced a significant win in the PRASA AMI project, which includes E-Series ultrasonic meters, ORION Cellular AMI radios, and BEACON SaaS across Puerto Rico, representing approximately 1.6 million service connections. The project is expected to translate into product shipments in 2026, with an initial ramp earlier in the year and more meaningful revenue contributions in the second half of 2026. As Kenneth Bockhorst noted, "the PRASA project is a significant project for Badger Meter, even over a 3- to 5-year period."

Growth Prospects and Valuation

Analysts estimate revenue growth of 7.0% for 2026, driven by the company's strong AMI offering, software business, and exciting opportunities in sewer line monitoring and water quality monitoring. With a current P/E Ratio of 32.12 and EV/EBITDA of 19.55, the market appears to be pricing in a strong growth trajectory. The company's ROIC of 16.73% and ROE of 20.71% also indicate a strong ability to generate returns on invested capital.

Outlook and Conclusion

The company expects a lower growth rate in the first half of 2026 and a higher growth rate in the second half, driven by confidence in awarded projects that haven't yet started. With a strong track record of delivering on projects and a robust pipeline of opportunities, Badger Meter is well-positioned for continued growth and success. The company's inaugural Investor Day on May 21, 2026, is expected to provide more information on the BlueEdge portfolio and smart water management solutions.

3. NewsRoom

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Dundas Partners LLP Decreases Stock Position in Badger Meter, Inc. $BMI

Mar -09

Source: defenseworld.net

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Citigroup Inc. Reduces Position in Badger Meter, Inc. $BMI

Mar -09

Source: defenseworld.net

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Badger Meter (BMI) Falls More Steeply Than Broader Market: What Investors Need to Know

Mar -06

Source: zacks.com

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New Strong Sell Stocks for March 4th

Mar -04

Source: zacks.com

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4 Factor Dividend Growth Strategy Remains Ahead Of Its Benchmark

Mar -03

Source: seekingalpha.com

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Top 15 High-Growth Dividend Stocks For March 2026

Mar -02

Source: seekingalpha.com

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New Strong Sell Stocks for February 27th

Feb -27

Source: zacks.com

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Raiffeisen Bank International AG Takes Position in Badger Meter, Inc. $BMI

Feb -23

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.00%)

6. Segments

Flow Measurement, Control, Quality and Communication Solutions

Expected Growth: 7.0%

Badger Meter's 7.0% growth driven by increasing demand for accurate flow measurement, control, and quality solutions in water and gas utilities, industrial processes, and smart city infrastructure. Growing adoption of IoT and digital technologies also fuels growth, as customers seek real-time data and analytics to optimize operations and reduce waste.

7. Detailed Products

Water Meters

Accurate and reliable water meters for residential, commercial, and industrial applications

Gas Meters

High-accuracy gas meters for residential, commercial, and industrial applications

Flow Meters

Accurate and reliable flow meters for measuring liquid flow rates in various industries

Orion Metering Systems

Advanced metering systems for water, gas, and electric utilities

BEACON Advanced Metering Analytics

Cloud-based analytics platform for water, gas, and electric utilities

E-Series Ultrasonic Meters

High-accuracy ultrasonic meters for water and gas measurement

Recordall Meters

Mechanical and electronic meters for water and gas measurement

8. Badger Meter, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Badger Meter, Inc. faces moderate threat from substitutes due to the presence of alternative technologies and products in the water metering industry.

Bargaining Power Of Customers

Badger Meter, Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

Badger Meter, Inc. relies on a few key suppliers for components and materials, giving them some bargaining power, but the company's size and reputation help mitigate this risk.

Threat Of New Entrants

The water metering industry has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new entrants to challenge Badger Meter, Inc.'s market position.

Intensity Of Rivalry

The water metering industry is highly competitive, with several established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.10%
Debt Cost 3.95%
Equity Weight 98.90%
Equity Cost 8.03%
WACC 7.98%
Leverage 1.11%

11. Quality Control: Badger Meter, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Teledyne Technologies

A-Score: 5.4/10

Value: 3.1

Growth: 6.3

Quality: 6.8

Yield: 0.0

Momentum: 7.0

Volatility: 9.3

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OSI Systems

A-Score: 4.9/10

Value: 2.6

Growth: 5.9

Quality: 7.1

Yield: 0.0

Momentum: 8.5

Volatility: 5.3

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Jabil

A-Score: 4.8/10

Value: 3.5

Growth: 6.6

Quality: 4.4

Yield: 0.0

Momentum: 9.0

Volatility: 5.3

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Vontier

A-Score: 4.6/10

Value: 5.5

Growth: 3.7

Quality: 6.4

Yield: 0.0

Momentum: 5.0

Volatility: 7.3

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Badger Meter

A-Score: 4.5/10

Value: 1.2

Growth: 8.0

Quality: 7.2

Yield: 1.0

Momentum: 3.0

Volatility: 6.7

1-Year Total Return ->

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Plexus

A-Score: 4.2/10

Value: 4.0

Growth: 6.2

Quality: 5.5

Yield: 0.0

Momentum: 3.5

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

149.54$

Current Price

149.54$

Potential

-0.00%

Expected Cash-Flows