Badger Meter reports flat Q3 sales, beats EPS but misses revenue estimates, shares rally on margin expansion
Badger Meter posted Q3 2026 revenue of $235.9 million, 2.1% below analyst forecasts, while GAAP earnings per share were $1.24, beating estimates by 2.5%. Operating margin held at 20.2% and free‑cash‑flow margin fell to 17.1%. The company highlighted a shift to higher‑margin smart‑water solutions, which helped shares jump 11.85% to $147.49. Management also said base sales rose 5% sequentially and guided full‑year organic revenue to decline in the low single‑digit range.
Why it matters
The revenue miss may temper short‑term growth expectations, but the margin expansion and strong cash flow could support the stock’s upside, as noted by investors in material 2. The guidance of a low‑single‑digit organic revenue decline signals a modest outlook for the full year, which analysts will factor into valuation models.
Key facts
- 1Q3 2026 revenue was $235.9 million. finance.yahoo.com
- 2Revenue missed analyst estimates of $241.1 million, a 2.1% shortfall. finance.yahoo.com
- 3GAAP EPS was $1.24, beating the $1.21 estimate by 2.5%. finance.yahoo.com
- 4Operating margin was 20.2%, in line with the prior year quarter. finance.yahoo.com
- 5Free cash flow margin was 17.1%, down from 20.5% a year earlier. finance.yahoo.com
- 6Shares rose 11.85% to $147.49 after the results. investing.com
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.