Description

Badger Meter Is Broadening Its Smart Water Strategy — Water Software Is Expanding!

Badger Meter reported second quarter 2026 sales of $222.3 million, reflecting a 7% decline compared to the prior year. Excluding the two-month contribution of UDlive, acquired in May 2026, base sales declined 7.5% year-over-year but showed a 9% sequential increase from the first quarter. The increase was driven by the initial ramp-up of several previously awarded Advanced Metering Infrastructure (AMI) projects, including the PRASA project, alongside modest improvements in short-cycle orders and flow instrumentation sales. Utility water sales declined 8% year-over-year (9% excluding the acquisition), impacted by project pacing, though sequentially improved by 8%. Gross margin contracted by 30 basis points to 40.8%, attributed to lower volumes and project mix, but remained in the upper half of the company’s normalized range, underscoring structural resilience and pricing discipline. Operating earnings declined 12% year-over-year, with operating margin decreasing by 110 basis points to 17.