Badger Meter Q3 operating earnings rise 4% to $47.7M
The annual dividend rate rose 10% to $1.76 per share, while management anticipates fourth-quarter Base revenue improvement.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Badger Meter, Inc. (BMI) reported third-quarter 2026 total sales of $235.9 million, compared with $235.7 million a year earlier, and 6% sequential growth. Operating earnings rose 4% to $47.7 million, with a 20.2% operating margin versus 19.6%; diluted EPS was $1.24 versus $1.19. Gross margin was 41.9%, compared with 40.7%. The annual dividend rate increased 10% to $1.76 per share, and the company repurchased $55.547 million of common stock for treasury during the quarter.
For the first nine months, net sales were $660.536 million versus $695.957 million and net earnings were $92.958 million versus $108.059 million; net cash provided by operations was $103.878 million versus $128.897 million. Base, a non-GAAP measure excluding UDlive results, had third-quarter sales of $230.299 million and operating earnings of $48.018 million. The company anticipates sequential and year-over-year Base revenue improvement in the fourth quarter and expects that momentum to continue into 2027, while addressing material cost pressures related to broad electronics supply chain dynamics.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Minor pointThe annual dividend rate increased 10% to $1.76 per share, marking the 34th consecutive year of dividend growth.
Negative
- Moderate pointNine-month net earnings fell to $92.958 million from $108.059 million.
- Moderate pointNine-month net cash provided by operations declined to $103.878 million from $128.897 million.
Filing Explained
The October 22 Form 8-K reports third-quarter results; at
8-K Event Classification
Key Figures
Key Terms
Base financial
inventory fair-value step-up amortization financial
AMI project pacing technical
structural mix benefits financial
Earnings Snapshot
The company anticipates sequential and year-over-year Base revenue improvement in the fourth quarter and expects that growth momentum to continue into 2027, while addressing material cost pressures related to broad electronics supply chain dynamics.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were BMI's third-quarter 2026 sales and diluted EPS?
What does Base mean in BMI's results?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
_______________________
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Date of Report |
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(Date of earliest event reported) |
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(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation) |
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(Commission File Number) |
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(IRS Employer Identification No.) |
(Address of principal executive offices, including zip code)
(
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report)
_______________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 |
Results of Operations and Financial Condition . |
On October 22, 2026, Badger Meter, Inc. (the “Company”) issued a press release announcing its financial results for the third quarter ended September 30, 2026.
A copy of the press release issued by the Company announcing the foregoing is furnished herewith as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits .
(a) Not applicable.
(b) Not applicable.
(c) Not applicable.
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(d) |
Exhibits . The exhibit furnished herewith is as listed in the accompanying Exhibit Index. |
EXHIBIT INDEX
Exhibit No. |
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Description |
(99.1) |
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Badger Meter, Inc. Press Release, dated October 22, 2026. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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BADGER METER, INC. |
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Date: October 22, 2026 |
By: |
/s/ Daniel R. Weltzien |
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Daniel R. Weltzien |
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Vice President – Chief Financial Officer and Treasurer |
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Selling, Engineering and Administration (SEA) expenses of $51.1 million were $1.3 million higher year-over-year. The inclusion of UDlive results along with related intangible asset amortization combined added $2.3 million to year-over-year expenses. Base SEA expenses of $48.8 million declined $0.9 million or 2% year-over-year due to the benefit of appropriate spending controls and lower incentive compensation.
The effective tax rate for the third quarter of 2026 was 25.1%, compared to 26.1% in the prior year. As a result of the above, EPS of $1.24 increased 4% from the prior year’s $1.19.
Outlook
Bockhorst concluded, “As we enter the final quarter of 2026, we continue to anticipate both sequential and year-over-year Base revenue improvement, inclusive of the fewer operating days typical for the fourth fiscal quarter, and expect to sustain this growth momentum into 2027. We remain steadfastly focused on cost management actions to mitigate the uneven 2026 sales cadence, while effectively addressing ongoing material cost pressures related to broad electronics supply chain dynamics.”
We maintain our focus on long-term strategic priorities including advancing the multi-year opportunity funnel for both metering and beyond the meter applications. We also continue to enhance our BlueEdge® portfolio of solutions against the backdrop of a multi-decade digital transformation of the global water sector, as demonstrated by the recent launch of OneNetwork™, our real-time network monitoring and analysis software platform.
During the quarter we repurchased approximately $55 million of our outstanding shares and increased our annual dividend rate for the 34th consecutive year, demonstrating our commitment to returning cash to shareholders.
In closing, I remain excited about the value creation opportunities ahead of us as we further our vision to preserve and protect the world’s most precious resource.”
1 Adjusted metrics (“Base”) are non-GAAP measures excluding the results of UDlive acquired May 1, 2026. See appendix for reconciliations of these GAAP to non-GAAP measures.
Conference Call and Webcast Information
Badger Meter management will hold a conference call to discuss the Company’s third quarter 2026 results today, Thursday, October 22, 2026 at 10:00 AM Central/11:00 AM Eastern time. A live listen-only webcast and the related presentation will be available on the Events & Presentations section of the Company’s investor relations website. Those wishing to actively participate in the conference call must pre-register using the following link: https://events.q4inc.com/attendee/365814936
Safe Harbor Statement
Certain statements contained in this news release, as well as other information provided from time to time by Badger Meter, Inc. (the “Company”) or its employees, may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those statements. The Company’s results are subject to general economic conditions, variation in demand from customers, continued market acceptance of new products, the successful integration of
acquisitions, competitive pricing and operating efficiencies, supply chain risk, material and labor cost increases, tax reform and foreign currency risk. See the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission for further information regarding risk factors, which are incorporated herein by reference. Badger Meter disclaims any obligation to publicly update or revise any forward-looking statements as a result of new information, future events or any other reason.
About Badger Meter
With more than a century of water technology innovation, Badger Meter provides comprehensive water management solutions through its BlueEdge® suite. This tailorable portfolio of smart measurement hardware, reliable communications, data visualization and analytics software and ongoing support and industry expertise give customers the edge in optimizing their operations and contributing to the sustainable use and protection of the world’s most precious resource. For more information, visit www.badgermeter.com.
BADGER METER, INC. |
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CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS |
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(in thousands, except share and earnings per share data) |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2026 |
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2025 |
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2026 |
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2025 |
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(Unaudited) |
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(Unaudited) |
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(Unaudited) |
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(Unaudited) |
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Net sales |
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$ |
235,938 |
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$ |
235,651 |
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$ |
660,536 |
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$ |
695,957 |
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Cost of sales |
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137,089 |
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139,815 |
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386,587 |
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406,874 |
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Gross margin |
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98,849 |
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95,836 |
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273,949 |
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289,083 |
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Selling, engineering and administration |
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51,107 |
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49,752 |
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151,659 |
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148,711 |
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Operating earnings |
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47,742 |
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46,084 |
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122,290 |
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140,372 |
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Interest income, net |
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(188 |
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(1,330 |
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(1,645 |
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(3,559 |
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Other pension and postretirement income |
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(28 |
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(28 |
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(84 |
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(84 |
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Earnings before income taxes |
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47,958 |
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47,442 |
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124,019 |
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144,015 |
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Provision for income taxes |
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12,055 |
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12,365 |
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31,061 |
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35,956 |
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Net earnings |
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$ |
35,903 |
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$ |
35,077 |
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$ |
92,958 |
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$ |
108,059 |
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Earnings per share: |
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Basic |
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$ |
1.25 |
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$ |
1.19 |
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$ |
3.21 |
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$ |
3.67 |
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Diluted |
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$ |
1.24 |
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$ |
1.19 |
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$ |
3.19 |
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$ |
3.65 |
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Shares used in computation of earnings per share: |
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Basic |
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28,750,150 |
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29,424,004 |
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28,999,955 |
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29,405,429 |
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Diluted |
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28,871,187 |
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29,583,384 |
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29,125,127 |
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29,577,619 |
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-more-
BADGER METER, INC. |
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CONSOLIDATED CONDENSED BALANCE SHEETS |
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(in thousands) |
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Assets |
September 30, |
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December 31, |
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2026 |
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2025 |
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(Unaudited) |
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Cash and cash equivalents |
$ |
67,928 |
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$ |
226,016 |
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Receivables |
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111,826 |
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112,356 |
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Inventories |
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166,427 |
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151,935 |
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Other current assets |
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21,719 |
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16,770 |
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Total current assets |
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367,900 |
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507,077 |
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Net property, plant and equipment |
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83,473 |
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79,636 |
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Intangible assets, at cost less accumulated amortization |
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157,513 |
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118,496 |
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Other long-term assets |
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31,957 |
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32,793 |
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Goodwill |
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302,805 |
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235,575 |
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Total assets |
$ |
943,648 |
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$ |
973,577 |
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Liabilities and Shareholders' Equity |
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Payables |
$ |
70,275 |
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$ |
72,299 |
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Accrued compensation and employee benefits |
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21,904 |
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37,619 |
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Other current liabilities |
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56,117 |
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40,798 |
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Total current liabilities |
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148,296 |
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150,716 |
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Deferred income taxes |
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16,616 |
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3,477 |
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Long-term deferred revenue, employee benefits and other |
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127,604 |
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106,090 |
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Shareholders' equity |
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651,132 |
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713,294 |
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Total liabilities and shareholders' equity |
$ |
943,648 |
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$ |
973,577 |
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-more-
BADGER METER, INC. |
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CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS |
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(in thousands) |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2026 |
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2025 |
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2026 |
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2025 |
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(Unaudited) |
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(Unaudited) |
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(Unaudited) |
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(Unaudited) |
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Operating activities: |
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Net earnings |
$ |
35,903 |
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$ |
35,077 |
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$ |
92,958 |
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$ |
108,059 |
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Adjustments to reconcile net earnings to net cash provided by operations: |
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Depreciation |
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2,636 |
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2,607 |
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8,297 |
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8,326 |
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Amortization |
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7,555 |
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6,100 |
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20,804 |
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17,458 |
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Noncurrent employee benefits |
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(154 |
) |
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40 |
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(140 |
) |
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45 |
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Stock-based compensation expense |
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2,474 |
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2,041 |
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7,821 |
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6,445 |
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Changes in: |
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Receivables |
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9,252 |
|
|
|
2,503 |
|
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|
690 |
|
|
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(22,803 |
) |
Inventories |
|
10,702 |
|
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(5,759 |
) |
|
|
(10,508 |
) |
|
|
(1,740 |
) |
Payables |
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(27,510 |
) |
|
|
(4,285 |
) |
|
|
(3,515 |
) |
|
|
11,937 |
|
Prepaid expenses and other assets |
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(2,374 |
) |
|
|
(188 |
) |
|
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(10,059 |
) |
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|
(3,276 |
) |
Other liabilities |
|
4,790 |
|
|
|
13,148 |
|
|
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(2,470 |
) |
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|
4,446 |
|
Total adjustments |
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7,371 |
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|
16,207 |
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10,920 |
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|
20,838 |
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Net cash provided by operations |
|
43,274 |
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|
51,284 |
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|
103,878 |
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|
128,897 |
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Investing activities: |
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Property, plant and equipment expenditures |
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(2,992 |
) |
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(3,089 |
) |
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(12,258 |
) |
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(9,993 |
) |
Proceeds from company owned life insurance plans |
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454 |
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- |
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454 |
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- |
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Acquisitions, net of cash acquired |
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- |
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- |
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(94,375 |
) |
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(184,024 |
) |
Net cash used for investing activities |
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(2,538 |
) |
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|
(3,089 |
) |
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|
(106,179 |
) |
|
|
(194,017 |
) |
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Financing activities: |
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Dividends paid |
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(12,634 |
) |
|
|
(11,770 |
) |
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|
(35,936 |
) |
|
|
(31,791 |
) |
Proceeds from exercise of stock options |
|
- |
|
|
|
- |
|
|
|
140 |
|
|
|
554 |
|
Repurchase of common stock for treasury stock |
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(55,547 |
) |
|
|
- |
|
|
|
(119,014 |
) |
|
|
- |
|
Net cash used for financing activities |
|
(68,181 |
) |
|
|
(11,770 |
) |
|
|
(154,810 |
) |
|
|
(31,237 |
) |
Effect of foreign exchange rates on cash |
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(360 |
) |
|
|
60 |
|
|
|
(977 |
) |
|
|
2,745 |
|
|
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|
|
|
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(Decrease) Increase in cash and cash equivalents |
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(27,805 |
) |
|
|
36,485 |
|
|
|
(158,088 |
) |
|
|
(93,612 |
) |
Cash and cash equivalents - beginning of period |
|
95,733 |
|
|
|
165,208 |
|
|
|
226,016 |
|
|
|
295,305 |
|
|
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|
|
|
|
|
|
|
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Cash and cash equivalents - end of period |
$ |
67,928 |
|
|
$ |
201,693 |
|
|
$ |
67,928 |
|
|
$ |
201,693 |
|
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|
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-more-
APPENDIX
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BADGER METER, INC. |
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RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES TO GAAP PERFORMANCE MEASURES |
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(in thousands, except share and earnings per share data) |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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|
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2026 |
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UDlive |
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Base |
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2026 |
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UDlive |
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Base |
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|
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(Unaudited) |
|
|
(Unaudited) |
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|
(Unaudited) |
|
|
(Unaudited) |
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|
(Unaudited) |
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(Unaudited) |
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Net sales |
|
$ |
235,938 |
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|
$ |
5,639 |
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$ |
230,299 |
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$ |
660,536 |
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$ |
7,663 |
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|
$ |
652,873 |
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Selling, engineering and administration |
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|
51,107 |
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|
2,272 |
|
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|
48,835 |
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|
151,659 |
|
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|
4,080 |
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147,579 |
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Operating earnings (loss) |
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47,742 |
|
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|
(276 |
) |
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|
48,018 |
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|
122,290 |
|
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(1,524 |
) |
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|
123,814 |
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Operating earnings as % of sales |
|
|
20.2 |
% |
|
|
-4.9 |
% |
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|
20.9 |
% |
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18.5 |
% |
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-19.9 |
% |
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19.0 |
% |
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* UDlive results are included from the date of acquisition of May 1, 2026. |
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** UDlive amortization was $1.2 million and $2.0 million for the three months and nine months ended September 30, 2026, respectively and reported as part of Selling, engineering and administration expenses. |
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*** UDlive results include $0.5 million and $0.7 million for the three and nine months ended September 30, 2026, respectively, of inventory step-up amortization associated with acquisition accounting. |
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###