Badger Meter (BMI) Investor Day 2026 summary

Strategic evolution and growth drivers

• Transitioned from a meter manufacturer to a hardware-enabled software platform, expanding across the entire water cycle with Beyond the Meter technologies and software-driven solutions.

• Multi-decade opportunity in municipal water digitization, with a "Choice Matters" meter portfolio supporting core replacement demand and margin expansion.

• Expanded total addressable market from $5 billion to $15 billion globally through acquisitions and internal investments, now covering sourcing, production, treatment, and collection systems.

• Recent acquisitions, such as UDlive, strengthen global leadership in sewer line monitoring and support international expansion.

• Durable macro trends—aging infrastructure, workforce churn, regulatory requirements, and water scarcity—continue to drive demand and support long-term growth.

Financial framework and capital allocation

• Targets high single-digit organic revenue CAGR (6%-8%) over the next five years, with double-digit growth in software and Beyond the Meter solutions.

• Maintains gross margin in the 39%-42% range, with incremental margins now expected in the 25%-30% range due to software and Beyond the Meter contributions.

• Free cash flow conversion consistently exceeds 100% of net income, supporting ongoing R&D, dividends, share buybacks, and M&A.

• Dividend has grown at an 11% CAGR since 1992, with 33 consecutive years of increases; opportunistic share repurchases continue.

• Strong balance sheet supports disciplined M&A, with $500M in available capital and leverage comfort zone of 1.5–2.5x EBITDA.

Business model evolution and recurring revenue

• Hardware-enabled software model ensures 100% software attachment rate, creating a compounding annuity and high customer stickiness.

• Beyond the Meter solutions convert 15-year AMI project cycles into continuous selling opportunities, increasing customer stickiness and wallet share.

• BlueEdge and unified software platforms integrate metering, sensors, connectivity, and analytics, enabling actionable insights and operational efficiency for utilities.

• Consultative, direct sales approach and turnkey/supply-only project flexibility support diverse customer needs and long-term revenue realization.

• Competitive moat strengthened by proprietary technologies, network effects, and embedded mission-critical workflows.