Badger Meter (BMI) Q3 2026 Earnings Report
MX:BMI Q3 2026 EPS Results
- Actual EPS
- MXN 23.15
- Consensus EPS
- MXN 22.89
- Beat/Miss
- Beat by +MXN 0.26
- One Year Ago EPS
- MXN 22.22
MX:BMI Q3 2026 Revenue Results
- Actual Revenue
- MXN 4.40B
- Expected Revenue
- MXN 4.49B
- Beat/Miss
- Missed by -MXN 82.38M
- YoY Revenue Growth
- +0.12%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/22/2026
- Time
- Before Open
- Conference Call
- Thursday, October 22, 2026
MX:BMI Upcoming Earnings
Badger Meter's next earnings date is estimated for January 22, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:BMI Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly optimistic. The company delivered stronger profitability, margin expansion, sequential base sales growth, successful commercial launches, robust customer and project pipeline commentary, and continued shareholder returns. These positives outweighed the year-over-year base sales decline, expected low-single-digit full-year organic revenue decline, lower free cash flow, elevated inventory, uneven project timing, and escalating electronic component pressures.
Company Guidance
For Q4 2026, Badger Meter expects both year-over-year and sequential quarterly base sales growth despite 5% fewer workdays, with sequential growth described as “modestly up”; full-year 2026 organic sales are expected to be “down low single digits.” The company remains committed to sustaining growth momentum into 2027 and returning to its strategic growth horizon of “high single digits,” although it is “not going to peg a year.” Management expects to operate within the 39%-42% gross margin range, anticipates UDlive intangible asset amortization of approximately $5 million annually, and remains focused on free cash flow conversion in excess of 100% of net earnings.
- Sequential Base Sales GrowthThird-quarter base sales increased 5% sequentially from the second quarter, driven by the ongoing ramp of previously awarded projects, including another quarter of process shipments, and solid underlying market demand.
- Operating Profit and Margin ExpansionOperating earnings increased 4% year-over-year, with operating margins up 60 basis points to 20.2%. Base operating profit margins, excluding UDlive, were 20.9%, up 130 basis points from the prior year's third quarter.
- Resilient Gross Margin PerformanceGross margin was 41.9%, up 120 basis points year-over-year. Base gross margin was 42.1%, at the top end of the company's normalized range, reflecting structural mix improvements, primarily from higher ultrasonic meter sales and continued software-as-a-service growth, along with pricing discipline.
- Higher Earnings Per ShareDiluted earnings per share were $1.24, an increase of 4% from $1.19 in the prior-year period.
- Flow Instrumentation GrowthFlow instrumentation sales increased 2% year-over-year against the prior year's most difficult comparison, supported by broad-based water application demand. The company also continued to see increasing demand for flow instrumentation products in data center applications, although from a relatively small revenue base.
- Successful Margin MitigationThe company said it has thus far been able to adequately mitigate electronic component cost and availability pressures related to AI and data center build-out demand through structural mix, pricing discipline, and operational execution.
- Lower Effective Tax RateThe effective income tax rate was 25.1%, compared with 26.1% in the prior-year quarter.
- UDlive Acquisition ContributionUDlive contributed $5.6 million of sales in the quarter. Management said it remains excited about UDlive's opportunities, citing an important utility need, an innovative product, and the company's sales channels.
- OneNetwork Platform LaunchThe company formally launched OneNetwork, a real-time network monitoring and analysis platform that combines AMI, network monitoring, and water quality data into a unified operational view. The platform provides alerts, advanced analytics, and workflows for issues including pressure events, water quality changes, and non-revenue water spikes.
- Strong Customer Interest and EngagementCustomer and consultant interest in OneNetwork demonstrations at WEFTEC was high. At ENGAGE Live, customers interacted with company leadership, product management, sales, and support teams to share implementation best practices, outcomes, funding sources, and feedback on future product and software plans.
- Positive Utility Demand and Project PipelineManagement said underlying demand felt good and that the year had been generally normal aside from the first-quarter outlier. The universe of utilities working with consultants, utilities in RFP processes, and in-flight projects was described as robust and as strong as it has been over the past several years.
- Awarded Project Ramp and 2027 Growth OutlookThe company expects both sequential and year-over-year base sales growth in the fourth quarter of 2026 and expects to sustain growth momentum into 2027. Management said it feels good about returning to its strategic growth horizon of high single digits, while noting that it would not peg a specific year because of project and quarter-to-quarter unevenness.
- PRASA and Other AMI Projects Moving ForwardThe company began shipping PRASA product in the second and third quarters, and PRASA has hired installation contractors, is in planning, and expects to begin installations in the fourth quarter. Management also said other awarded projects are beginning to move into in-flight status and support the company's five-year outlook.
- SmartCover and Beyond-the-Meter OpportunitiesManagement said it feels equally good about SmartCover and expects UDlive and SmartCover to remain part of the company's high-single-digit growth story for years to come. The company also highlighted multi-year opportunities in metering and beyond-the-meter growth.
- Shareholder Returns and Capital AllocationThe company increased its annual dividend rate by 10% in August, marking the 34th consecutive year of dividend increases. It repurchased 423,000 shares for approximately $55 million in the quarter, bringing trailing-four-quarter repurchases to more than $130 million, with roughly $35 million remaining under the current authorization.
- Continued Investment in Growth and InnovationManagement said it will continue investing in the business and extending its lead in research and development and innovation, while also continuing to return cash to shareholders and pursue acquisitions when appropriate.
MX:BMI Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 22, 2027 | 2026 (Q4) | 23.11- | 21.28 | ― | ― |
| Oct 22, 2026 | 2026 (Q3) | 22.8923.15 | 22.22 | 4.20% (+0.93) | |
| Jul 22, 2026 | 2026 (Q2) | 18.7819.04 | 21.84 | -12.82% (-2.80) | |
| Apr 17, 2026 | 2026 (Q1) | 22.8317.36 | 24.27 | -28.46% (-6.91) | |
| Jan 28, 2026 | 2025 (Q4) | 21.6021.28 | 19.42 | 9.62% (+1.87) | |
| Oct 21, 2025 | 2025 (Q3) | 21.2422.22 | 20.16 | 10.19% (+2.05) | |
| Jul 22, 2025 | 2025 (Q2) | 23.4121.84 | 20.91 | 4.46% (+0.93) | |
| Apr 17, 2025 | 2025 (Q1) | 19.9224.27 | 18.48 | 31.31% (+5.79) | |
| Jan 31, 2025 | 2024 (Q4) | 20.4619.42 | 15.68 | 23.81% (+3.73) | |
| Oct 17, 2024 | 2024 (Q3) | 20.7220.16 | 16.43 | 22.73% (+3.73) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
