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Earnings Score 48 Bearish

Badger Meter Shares Plunge 19% Following Q1 Earnings Miss

Apr 17, 2026 16:48 UTC
BMI
Short term

Badger Meter (BMI) saw a sharp decline in shares after reporting a drop in first-quarter sales and earnings. Management attributes the slump to a timing gap between the completion of major municipal projects and the start of new deployments.

  • Q1 sales decreased by 9% and EPS fell by 29%
  • Stock price dropped 19% in a single session
  • Revenue gap caused by the end of projects in Florida and Texas
  • Management expects sequential growth throughout 2026
  • H2 2026 pipeline includes 2.6 to 3.6 million new connections
  • Current valuation is 21x free cash flow vs 43x historical average

Badger Meter (NYSE: BMI) experienced a significant sell-off on Friday, with shares falling 19% following the release of first-quarter financial results that missed Wall Street expectations. The company reported a 9% decline in sales and a 29% drop in earnings per share, contributing to a total share price decline of 37% over the past year. The downturn is primarily attributed to the conclusion of several large-scale projects. Between 2023 and 2025, the company benefited from major installations in Galveston, Orlando, Jacksonville, and Pinellas County, which collectively added over 800,000 water connections. The simultaneous end of these projects created a revenue void in the first quarter. CEO Kenneth Bockhorst stated that the decline in revenue and operating leverage is a result of variability in project timing and customer order patterns. He emphasized that these results do not indicate a shift in underlying demand or a weakening of the company's competitive position in the smart metering market. The company anticipates a sequential recovery throughout 2026, aiming to return to 2025 revenue levels. Management highlighted a strong pipeline for the second half of the year, with 2.6 million to 3.6 million connections scheduled for deployment. From a valuation perspective, the stock is now trading at 21 times free cash flow, a significant discount compared to its five-year average of 43.

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