Badger Meter Shares Drop Over 18% After Mixed Earnings Report
Shares of Badger Meter (NYSE: BMI) fell more than 18% in early July after the company reported mixed second-quarter results. Revenue and earnings per share declined by 7% and 13%, respectively, though both narrowly exceeded Wall Street expectations. Despite beating forecasts slightly, investor sentiment turned negative due to weaker-than-expected guidance for flat sales growth in 2026. The stock has lost over one-third of its value since the beginning of last year as it transitions from a high-growth phase to slower revenue expansion. The drop is attributed partly to delayed government projects affecting nine major utility deployments, which are expected to resume later this year and potentially drive future sales growth. Analysts suggest that while timing issues have impacted performance temporarily, Badger Meter's long-term investment thesis remains intact due to ongoing demand for water metering infrastructure upgrades. The company continues its streak of 21 consecutive years of dividend increases and has historically delivered strong returns despite recent volatility.
Tickers: $BMI
Topics: Badger Meter Q2 earnings report sales growth guidance stock decline