• In the second quarter and first half of 2026, Badger Meter, Inc. reported lower sales and net income than a year earlier, with quarterly revenue of US$222.32 million and net income of US$29.72 million alongside a completed share repurchase of 442,788 shares for US$60.26 million under its November 2025 buyback program.
• The combination of weaker earnings and the completion of a US$60.26 million buyback highlights management’s focus on returning capital to shareholders even as operating performance softened.
• We’ll now examine how this recent earnings decline and completed buyback program may influence Badger Meter’s existing investment narrative and outlook.

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Badger Meter Investment Narrative Recap

To own Badger Meter, you really need to believe in long term demand for smarter water metering, software and “beyond the meter” services. The recent drop in quarterly and first half earnings tightens the focus on near term margin pressure and the risk of lumpier municipal AMI spending, but it does not fundamentally change that longer term thesis. The completed US$60.26 million buyback is unlikely to be the key short term catalyst; project timing and order flow remain more important.

The most relevant recent announcement here is the Q2 2026 earnings release, which showed sales down to US$222.32 million and net income at US$29.72 million versus a year earlier. This weaker profitability matters because the core catalyst is still growing adoption of higher margin digital platforms like BEACON and BlueEdge, and softer results can raise questions about how quickly those offerings offset rising costs and any slowdown or delays in large AMI deployments.

Yet investors should also be aware that project delays and softer AMI demand could make Badger Meter’s earnings more volatile than they might expect...

Badger Meter's narrative projects $1.1 billion revenue and $176.1 million earnings by 2029. This requires 8.0% yearly revenue growth and about a $50 million earnings increase from $125.7 million.

Uncover how Badger Meter's forecasts yield a $155.11 fair value, a 15% upside to its current price.

Exploring Other Perspectives

The most optimistic analysts were assuming revenue could reach about US$1.1 billion and earnings about US$186.6 million by 2029, which looks far more upbeat than the current earnings softness and the risk of moderating AMI project demand highlighted by this latest quarter.

Explore 6 other fair value estimates on Badger Meter - why the stock might be worth 13% less than the current price!

Reach Your Own Conclusion

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your Badger Meter research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Badger Meter research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Badger Meter's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.