Badger Meter (BMI) Q3 2026 earnings summary

Executive summary

• Q3 net sales were $235.938M versus $235.651M a year earlier; operating earnings rose to $47.742M from $46.084M, and diluted EPS increased to $1.24 from $1.19.

• Base sales, excluding UDlive, declined 2% YoY but rose 5% sequentially as awarded utility projects ramped; management expects Base growth in Q4 and momentum into 2027.

Financial highlights

• Q3 gross margin was 41.9% versus 40.7%; net earnings were $35.903M versus $35.077M.

• Free cash flow was $40.3M versus $48.2M, with higher cash taxes contributing to the decline; cash from operations was $43.3M versus $51.3M.

• Nine-month sales were $660.536M versus $695.957M; net earnings were $92.958M versus $108.059M, and diluted EPS was $3.19 versus $3.65.

• Nine-month operating earnings were $122.290M versus $140.372M; operating margin was 18.5% versus 20.2%.

Outlook and guidance

• Q4 Base sales are expected to grow sequentially and YoY despite five fewer operating days; management expects growth momentum into 2027.

• FY 2026 organic sales are expected to decline low single digits; Q4 growth is expected to offset some earlier weakness.

• The five-year framework targets high-single-digit sales growth, 10–15% EPS growth and free cash flow conversion above 100%.

• Long-term gross margin range remains 39%–42%; pricing and sourcing actions address electronic-component and material cost pressures.