BMI
Badger Meter Inc (BMI) Q2 2026 Earnings Call Highlights: Navigating Challenges with Strategic ...
Article Summary
HOLD- Badger Meter Inc. (NYSE: BMI) reported a 7% decline in sales year-over-year, with utility water sales down 8% and utility instrumentation up 6%, and operating margins down 110 basis points to 17.7%, with free cash flow down to $21.9 million from $40.6 million in the prior year comparable quarter.
- Badger Meter reaffirmed its outlook for improving sequential top-line results, with Flow Instrumentation product line sales up 6% and share repurchases up 204,000 shares for $25.3 million, with $90 million remaining on authorization.
- Margins declined due to lower sales volumes and project mix, and the company finalized a five-year renewal of its $150 million credit facility, providing ample financial flexibility.
- However, the company faces increasing electronic component cost and availability pressures due to AI and data center build-out demand, and a 25.2% effective income tax rate, compared to 24.5% last year, and diluted earnings per share fell 13% to $1.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 5.2% | 25% | 35.0 ptsBelow Screener (5.2%) - Weak growth |
| EPS Growth Next 5Y ? | 5.4% | 25% | 20.0 ptsWeak (5.4%) - Low expectations |
| Target Price Upside ? | 22.4% | 20% | 70.0 ptsGood Upside (22.4%) - Target: $155.00 vs Current: $126.67 |
| Gross Margin % ? | 41.4% | 15% | 60.0 ptsSolid (41.4%) - Decent margins |
| Drawdown from 52-Wk High ? | -44.6% | 15% | 80.0 ptsSolid Dip (-44.6%) - Good entry zone |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About BMI
- Badger Meter, Inc. manufactures and markets flow measurement, quality, control, and communication solutions worldwide.
- The company offers Utility water smart metering solutions and software technologies and services to municipal water utility market.
- It also provides flow instrumentation products, including meters, valves, and other sensing instruments to measure and control fluids, including water, air, steam, 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.
- In addition, the company offers ORION Cellular endpoints to power network as a service; ORION mobile read endpoints support for deploying AMR solution; radio products; hardware, instruments, and sensors, and related software, to enhance connected data to a water utility's operation; water quality monitoring solutions, including optical sensing and electrochemical instruments; and high frequency pressure and leak detection sensors to aid in burst pipe and leak events; as well as BEACON, a secure cloud-hosted software suite that establishes alerts for specific conditions and allows consumer engagement tools that permit end water user to view and manage their water usage activity.
- Its flow instrumentation products are used in water/wastewater, heating, ventilating and air conditioning, and corporate sustainability markets.
- The company serves water utilities, commercial, and industrial industries; and provides training, project management, technical support, and other collaborative services for customers.
- It sells its products and software to employees, resellers, and representatives.
- The company was incorporated in 1905 and is based in Milwaukee, Wisconsin.