Badger Meter (BMI) Q2 2026 Earnings Call Transcript
Badger Meter (BMI) reported Q2 2026 utility water sales down 8% year over year, or down 9% excluding an acquisition, though up 8% sequentially on an organic basis. Operating earnings fell 12% to margins of 17.7%. Diluted EPS was $1.02. Free cash flow was $21.9 million. The company repurchased 204,000 shares for $25.3 million and has about $90 million remaining on authorization.
How this was made
The 30-second read
Why it matters
The newest actionable inputs are the quantified Q2 performance (EPS, margins, gross margin, FCF, working capital) and management’s modeling guidance for 2026 revenue ex-UDlive (flat-ish with variability) plus ongoing electronics supply cost pressures.
Market read
Traders can update models for margin trajectory, cash conversion, and 2026 revenue ex-UDlive expectations based on the call’s quantified datapoints and guidance framing.
What to watch
Working capital is elevated due to revenue timing and inventory normalization is expected; traders may overreact to FCF without waiting for the working-capital unwind.
Background
The article is a transcript of Badger Meter’s Q2 2026 earnings call, covering utility sales trends, profitability, cash flow, buybacks, and credit facility renewal.
Ticker impact
Badger Meter reported Q2 2026 EPS of $1.02, down 13% YoY, with margins down to 17.7% and free cash flow falling to $21.9M.
Near-term bias likely mixed: downside risk from margin and FCF weakness, partially offset by sequential revenue improvement and continued buybacks.
The transcript provides multiple quantified datapoints (EPS, margins, FCF, working capital) plus forward-looking framing (sequential improvement, 2026 revenue ex-UDlive flat-ish).
Market effects
Highlights ongoing electronics component cost and availability pressures tied to AI and data center demand, which can affect industrial instrumentation peers’ margins.
No specific regional impact disclosed beyond US conference participation.
No explicit global macro or international regulatory drivers cited.
Counterpoint
The YoY margin and FCF declines may be more pacing and mix related than structural deterioration, given management’s emphasis on sequential improvement and spending discipline.
Key entities
- companyBadger Meter
Reported Q2 2026 results and discussed margin, cash flow, electronics component pressures, and 2026 revenue expectations.
- product/assetUDlive
Mentioned as an acquisition-related item affecting expenses and intangible amortization expectations.
- financing$150 million credit facility
Five-year renewal finalized in the quarter; remains undrawn with an expansion feature.
