Badger Meter Set to Release Q2 Earnings: Here's What to Expect

Badger Meter, Inc. BMI is slated to release second-quarter 2025 earnings on July 22, before market open.

The Zacks Consensus Estimate for revenues is pegged at $234.33 million, which implies growth of 8.2% from the year-ago reported number. The consensus mark for earnings is pegged at $1.21 per share, indicating a year-over-year increase of 8.04%. In the past 30 days, two analysts have revised their earnings estimates upward for the current quarter.  

The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 10.88%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Factors at Play for BMI

Badger Meter has been gaining from steady customer demand for its smart water solutions and disciplined operating execution, along with rapid uptake of cellular AMI solutions, including E-Series ultrasonic meters, ORION Cellular endpoint sales and higher BEACON Software-as-a-Service sales.

The company is likely to benefit by expanding its market share in water-related applications. In May 2024, the company introduced the BlueEdge framework to streamline its comprehensive suite of scalable water solutions. Blue Edge can be customized to address applications for the entire water cycle and will also serve as a “strategic lens” for the company to assess growth investments

To expand its smart water portfolio, Badger Meter completed the acquisition of SmartCover on Jan. 30, 2025. SmartCover offers advanced sewer and lift-station monitoring capabilities, which are now integrated into Badger’s BlueEdge water management suite. Customer feedback on SmartCover’s integration has been overwhelmingly positive, reinforcing the acquisition's strategic value.

Utility water sales rose 16% in the first quarter, driven by strong demand for mechanical and E-Series Ultrasonic meters, increased uptake of ORION Cellular radio endpoints and continued expansion of BEACON SaaS solutions.

The Zacks Consensus Estimate for utility water sales is expected to be $210 million compared with $173 million reported in the prior year quarter.

Higher volumes, structural sales mix and solid price/cost management are expected to have buoyed gross margin performance in the to-be-reported quarter. It expects a gross margin of 38–40% over the long term.

Badger Meter, Inc. Price and EPS Surprise

Badger Meter, Inc. price-eps-surprise | Badger Meter, Inc. Quote

Declining sales across certain de-emphasized end markets and customer applications are likely to have weighed on sales from the flow instrumentation segment. Flow instrumentation sales dipped 5% year over year in the last reported quarter. The Zacks Consensus Estimate for flow instrumentation sales is expected to be $25 million compared with $25.4 million reported in the prior year quarter.

However, Badger Meter is preparing for a tougher year-over-year comparison in the second quarter but remains optimistic about its long-term growth. Management expects continued high single-digit revenue growth over the long term, supported by industry tailwinds in water infrastructure, continued adoption of smart, connected technologies and operational agility to navigate tariffs and supply chain volatility.

Elevated expenses from incremental growth investments add to concerns amid a volatile global macroeconomic environment and stiff competition.

What Does Our Model Say About BMI?

Our proven model predicts an earnings beat for BMI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here, as you can see below.

BMI has an Earnings ESP of +5.61% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks With Favorable Combination

Here are some other companies with the right combination of elements to post an earnings beat in their upcoming releases.

Emerson Electric Co. EMR, expected to release earnings on Aug. 6, currently has an Earnings ESP of +0.46% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Emerson Electric’s earnings for the third quarter of fiscal 2025 is pegged at $1.51 per share, indicating year-over-year growth of 5.6%. EMR has a trailing four-quarter average surprise of 3.4%.

Illinois Tool Works Inc. ITW, slated to release second-quarter 2025 results on July 30, has an Earnings ESP of +1.44% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for Illinois Tool Works’ second-quarter 2025 earnings is pegged at $2.55 per share, suggesting a year-over-year rise of 0.4%. ITW has a trailing four-quarter average surprise of 3%.

Crown Holdings, Inc. CCK is scheduled to release second-quarter 2025 results on July 21. It currently has an Earnings ESP of +0.27% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Crown Holdings’ earnings is pegged at $1.86 per share, which indicates a year-over-year increase of 2.8%. CCK has a trailing four-quarter average surprise of 16.3%.

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This article originally published on Zacks Investment Research (zacks.com).

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