Badger Meter Inc

Latest Results (13.05.2026):

Badger Meter, Inc. reported first quarter 2026 results: net sales of $202.3 million (down 9% year-over-year), operating earnings of $35.2 million (17.4% operating margin), and diluted EPS of $0.93 versus $1.30 in Q1 2025. Management attributed the decline to project timing and softer short‑cycle municipal orders, announced a definitive agreement to acquire UDlive (closing end of April 2026), and expects revenue to improve sequentially with full‑year 2026 revenue (excluding acquisitions) relatively flat versus 2025.

Sales and earnings

Net sales: $202.3M (-9% YoY). Net earnings: $27.3M. Diluted EPS: $0.93 (Q1 2025: $1.30). Operating earnings: $35.2M.

Margins and expenses

Gross margin: 41.7% (near the company’s normalized 39–42% range; prior-year Q1 was 42.9%). Operating margin: 17.4% vs 22.2% a year ago. Selling, engineering & administration expense: $49.2M (24.3% of sales), up $3.1M YoY (including acquisition costs and an extra month of SmartCover expense). Effective tax rate: 24.8%.

Business segment trends

Utility water sales fell 10% YoY due to project timing and weaker short‑cycle municipal ordering; flow instrumentation sales declined 4% (modest growth in water-related markets offset by lower demand in de‑emphasized applications). SaaS, SmartCover, water quality and network monitoring partially offset declines.

Cash flow and balance sheet

Operating cash flow: $33.9M. Cash and cash equivalents at quarter end: $205.5M (down from $226.0M at year‑end). Inventories increased to $175.2M; payables rose to $106.5M. Uses of cash included $38.2M of share repurchases and $11.7M of dividends; capex was $4.4M in the quarter.

M&A and strategic positioning

Announced a definitive agreement to acquire UDlive (UK-based sewer line monitoring hardware‑enabled software). Management says UDlive complements SmartCover, extends sewer monitoring capabilities, broadens BlueEdge offerings, and supports growth of higher‑margin recurring software revenue.

Outlook

Management expects sequential revenue improvement as awarded projects move into deployment and forecasts full‑year 2026 revenue (excluding acquisitions) to be relatively flat versus 2025. Company reiterates confidence in long‑term demand drivers and its competitive position despite near‑term timing variability.