Badger Meter, Inc. Earnings Summary — Q3 FY2026

• Revenue of $222.3 million declined 7% year-over-year against a record-setting Q2 2025, but grew 10% sequentially as order rates recovered.
• Utility water sales excluding acquisitions were down 9% Yoy due to uneven AMI project phasing, though software and BlueEdge solution sales rose.
• Operating margins compressed 110 basis points to 17.7% due to the revenue decline and integration of the UDlive acquisition.
• Management implemented tight spending controls and cost containment actions, reducing base SEA expenses by 6% year-over-year.
• The acquisition of UDlive Limited was completed on May 1, 2026, aimed at extending leadership in sewer line monitoring and global capabilities.
• Free cash flow remains healthy with operating cash flow of $26.7 million for the quarter, though down from $44.6 million in the prior year.

Management expects full-year 2026 revenue (excluding acquisitions) to be roughly flat compared to 2025. They anticipate an improvement in the revenue run-rate during the second half of the year as awarded projects move into the deployment phase.

Stable

While year-over-year comparisons were unfavorable due to high prior-year benchmarks and project timing, the sequential improvement and maintained full-year guidance suggest the business is navigating transitional project phases effectively.

The company maintains a constructive multi-year outlook supported by secular trends in digital water transformation, reiterating a long-term financial framework of high-single-digit growth over the next five years.