Badger Meter Reports Strong Q4 2025 Earnings with Record Sales and Growth Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: seekingalpha
- Strong Financial Performance: Badger Meter reported total sales of $221 million in Q4 2025, reflecting an 8% year-over-year increase, which underscores robust market demand and profitability, further solidifying the company's leadership in smart water management.
- Margin Expansion: The company's gross margin improved from 40.3% in the prior year to 42.1%, while operating profit margins increased by 40 basis points to 19.5%, indicating successful strategies in cost control and product pricing.
- PRASA Project Scale: The PRASA AMI project is described as one of the largest deployments globally, involving 1.6 million service connections, which is expected to provide long-term growth opportunities for the company, although management did not specify the revenue impact for 2026.
- Future Growth Outlook: Management reiterated a high single-digit sales growth outlook over the next five years, emphasizing a continued focus on the demand for smart water management solutions and the ongoing advancement of awarded projects to ensure stable cash flow and profitability.
Get Free Real-Time Notifications for Any Stock
Monitor tickers like BMI with instant alerts to capture every critical market movement.
Sign up for free to build your custom watchlist and receive professional-grade stock notifications.
Analyst Views on BMI
Wall Street analysts forecast BMI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BMI is 214.86 USD with a low forecast of 157.00 USD and a high forecast of 243.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
5 Buy
1 Hold
1 Sell
Moderate Buy
Current: 146.320
Low
157.00
Averages
214.86
High
243.00
Current: 146.320
Low
157.00
Averages
214.86
High
243.00
About BMI
Badger Meter, Inc. is a manufacturer and marketer of products incorporating flow measurement, quality, control and other system solutions serving markets worldwide. Its offerings, marketed as BlueEdge, include a suite of tailorable solutions that connect water management technology, software and support services to deliver insights enabling the proactive management of water across the water cycle. Its solutions include measurement and control hardware, connectivity and communication, data visualization and software-delivered actionable insights, and ongoing support to optimize customers' operations. Its measurement and control hardware, instruments and sensors include product families, such as meters that measure the flow of water and other fluids, water quality monitoring solutions and high frequency pressure and acoustic leak detection hardware that provides real-time monitoring data. It offers a range of communication solutions including the ORION branded family of radio endpoints.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Badger Meter Shares Drop 10% After Q4 Earnings Miss Expectations
- Weak Earnings Performance: Badger Meter reported Q4 sales of $221 million, falling short of the $232 million expected by analysts, leading to a 10% drop in stock price, indicating pressure on sales growth.
- Annual Performance Review: While the company achieved 11%, 13%, and 19% growth in revenue, EPS, and free cash flow for the full year 2023, the mere 8% sales growth in Q4 highlights challenges in market competition.
- Strategic Transition Progress: Badger Meter's Smart Cover saw a 25% sales increase in 2025, and its Software-as-a-Service sales grew by 27%, indicating positive strides in the shift towards tech-driven solutions.
- Cautious Future Outlook: CEO Kenneth Bockhorst mentioned that base revenue growth dynamics are expected to emerge in the second half of 2025, suggesting that while short-term challenges exist, the company remains optimistic about long-term growth potential.
Continue Reading
Badger Meter Stock Drops 15.3% Following Q4 Earnings Report
- Company Performance: Badger Meter shares fell by 15.3% following the release of their Q4 results.
- Market Reaction: The significant drop in share price indicates investor concerns regarding the company's financial performance.
Continue Reading