Badger Meter Shares Drop 18% After Mixed Q2 Earnings Report
Shares of Badger Meter (NYSE: BMI) fell nearly 18% this week following the release of mixed second-quarter earnings. While revenue and EPS declined by 7% and 13%, respectively, they still slightly exceeded Wall Street's low expectations. However, investors were disappointed with management’s guidance for only modest sales growth in 2026, which failed to meet hopes for a stronger recovery. The stock has lost over one-third of its value year-to-date but is being viewed by some analysts as an attractive buying opportunity due to its reduced valuation and long-term investment potential. Badger Meter’s current price reflects a more reasonable multiple compared to previous years when it was priced at 42 times free cash flow (FCF), now trading closer to 24 times FCF. The company attributes the recent sales slowdown to timing issues, particularly related to government budget delays affecting nine major utility projects scheduled for deployment in late 2026. Analysts believe these deployments could drive sequential revenue growth going forward and reaffirm confidence in Badger Meter’s long-term thesis around water infrastructure modernization.
Tickers: $BMI