Badger Meter (BMI) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales were $222.3 million, down 7% year-over-year but up 10% sequentially, driven by new utility project deployments and AMI project ramp-ups.

• Operating earnings declined 12% year-over-year to $39.4 million, with operating margins at 17.7%.

• Diluted EPS was $1.02, down 13% from $1.17 in Q2 2025.

• UDlive acquisition completed in May 2026 for $94.4 million, contributing $2 million in sales and expanding sewer line monitoring capabilities.

• Margin management and cost controls supported profitability despite lower year-over-year sales.

Financial highlights

• Q2 2026 total sales were $222.3 million, down 7% year-over-year; base sales excluding UDlive declined 7.5%.

• Gross margin was 40.8%, down 30 bps year-over-year, but within the normalized range.

• Free cash flow was $21.9 million, down from $40.6 million in the prior year quarter, reflecting temporary working capital increases.

• Cash and cash equivalents at quarter-end were $95.7 million, down from $226.0 million at year-end 2025, mainly due to the UDlive acquisition.

• Operating earnings for Q2 2026 were $39.4 million (17.7% of sales), down from $44.9 million (18.8%).

Outlook and guidance

• Sequential improvement in base quarterly revenue is expected through the year, with full-year organic revenue flat versus 2025 and growth heavily weighted to Q4.

• Long-term financial framework reiterated: high single-digit sales growth and 10–15% EPS growth over the next five years, with 100%+ free cash flow conversion.

• Management expects continued uneven AMI project pacing but sees growth in SaaS and BlueEdge solutions.