Badger Meter (NYSE:BMI) misses Q3 2026 revenue estimates, stock drops

Badger Meter (BMI) reported Q3 2026 sales and operating profit growth, with base sales up 5% sequentially. CEO Kenneth Bockhorst noted the positive performance. The company expects modest 4Q base sales growth and full-year organic revenue down in the low single digits.

Badger Meter Inc. (BMI) stock rose 13% on October 22, 2026, driven by the launch of OneNetwork, a real-time software platform for water networks. The company's shares have climbed from the low-$120s to $149.64, supported by strong fundamentals, including an 18.6% EBIT margin and $916.7M in annual revenue. Analysts note BMI's strategic shift towards data and analytics, though its valuation remains premium with a P/E near 30.8.

Badger Meter reported Q3 2026 sales of $235.9M, with base sales down 2% YoY but up 5% sequentially. Operating earnings increased 4%, with margins up 60 bps to 20.2%. Gross margin was 41.9%, up 120 bps YoY. Diluted EPS was $1.24, up 4% YoY. The company launched OneNetwork, a real-time network monitoring platform, and remains optimistic about growth momentum into 2027.

Badger Meter (BMI) shares rose 7.3% after Q3 GAAP EPS of $1.24 beat estimates by 2.5%. Revenue was $235.9M, flat YoY but below consensus. Management expects revenue growth in Q4 and 2027, raised dividend by 10%, and repurchased $55M in stock. The stock is down 18.5% YTD but up 37.5% over 5 years.

Badger Meter reported Q3 diluted EPS of $1.24, up 4% YoY. Gross margin was 42.1%, within its target range. Utility sales were flat YoY, while flow instrumentation sales rose 2%. The company faces electronic component cost pressures but managed them through pricing and sourcing. It expects modest sequential growth in Q4 and a low single-digit organic sales decline for the year. Badger Meter repurchased $55 million in shares and raised its dividend by 10%.

Badger Meter (BMI) shares rose 7% after Q3 earnings of $1.24 per share beat estimates, though revenue of $235.9M missed expectations. Operating margin increased to 20.2%, and the dividend was raised 10% for the 34th consecutive year. Management expects growth to continue into 2027, with analysts forecasting 8% revenue growth. The stock's forward P/E remains below its five-year average.