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Water control and measure company Badger Meter (NYSE:BMI) reported Q3 CY2025 results exceeding the market’s revenue expectations, with sales up 13.1% year on year to $235.7 million. Its GAAP profit of $1.19 per share was 8.9% above analysts’ consensus estimates.
Is now the time to buy BMI? Find out in our full research report (it’s free for active Edge members).
Badger Meter’s third quarter results saw revenue and profit exceed Wall Street expectations, but the market responded negatively, with shares declining after the announcement. Management attributed the sales growth to continued demand for its cellular AMI (Advanced Metering Infrastructure) solutions and the BlueEdge modular smart water management suite. CEO Kenneth Bockhorst noted that the company managed ongoing tariff and trade-related cost pressures effectively, maintaining gross margins above historical norms. The team highlighted higher ultrasonic meter volumes, growth in software-as-a-service offerings, and contributions from the Smart Cover acquisition as important factors in the quarter.
Looking ahead, Badger Meter’s management believes that durable industry trends—such as the need for technology adoption by utilities, ongoing labor shortages, and the push for water conservation—will support steady growth. Bockhorst emphasized the company’s confidence in maintaining a high single-digit average top-line growth rate over the next five years, citing strong customer engagement and a robust pipeline. However, he acknowledged that quarterly results may be uneven due to project timing and utility budget cycles. CFO Robert Wrocklage stated, “We remain confident in our structural mix benefits and our ability to offset tariff-related impacts with targeted pricing actions.”
Management credited third quarter outperformance to product mix improvements, robust recurring revenue from software, and successful integration of Smart Cover, while ongoing tariff and labor dynamics influenced both costs and customer behavior.
Management’s outlook centers on ongoing technology adoption by utilities, sustained product mix benefits, and the company’s ability to manage tariff-related cost pressures through pricing and efficiency initiatives.
In the coming quarters, the StockStory team will monitor (1) the pace of adoption and customer feedback for BlueEdge and Smart Cover solutions, (2) the company’s ability to sustain its margin profile amid evolving tariff and cost pressures, and (3) the conversion of project pipeline activity into new deployments and recurring software revenue. Additionally, developments in federal funding and utility budget cycles will be important to track for indications of demand stability.
Badger Meter currently trades at $180, down from $187.53 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members).
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