• Badger Meter, Inc. recently reported fourth-quarter 2025 sales of US$220.71 million and net income of US$33.58 million, with full-year 2025 sales reaching US$916.66 million and net income of US$141.63 million, all higher than a year earlier.
• Alongside this earnings growth, management highlighted winning the PRASA AMI smart water project in Puerto Rico, underlining the expanding role of its BlueEdge smart infrastructure platform and recurring software and services in supporting its core utility water business.
• With these results and the PRASA AMI project enhancing the BlueEdge platform’s importance, we’ll now examine how this shapes Badger Meter’s investment narrative.

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What Is Badger Meter's Investment Narrative?

To own Badger Meter, you need to be comfortable backing a premium-priced, niche leader in smart water infrastructure whose story increasingly hinges on software, data and long-term utility contracts. The latest results, with higher 2025 sales and earnings, support that quality lens, while the PRASA AMI win in Puerto Rico reinforces the idea that BlueEdge and recurring software and services are becoming more central to the business. In the short term, that contract likely acts more as a confidence boost and proof point than a needle-moving financial event, especially after a sharp share price pullback and mixed analyst views. The bigger swings still look tied to how the market reconciles Badger Meter’s rich valuation, slower forecast growth and relatively new management team with its strong balance sheet and margin profile.

However, investors should be aware of how much they are paying for that quality story. Badger Meter's share price has been on the slide but might be up to 8% below fair value. Find out if it's a bargain.

Exploring Other Perspectives

Six Simply Wall St Community fair value estimates for Badger Meter span roughly US$141 million to US$275 million, reflecting very different expectations. When you set that against the current premium earnings multiple and the company’s more modest growth forecasts, it underlines why taking in several viewpoints can be helpful before forming your own view.

Explore 6 other fair value estimates on Badger Meter - why the stock might be worth 7% less than the current price!

Build Your Own Badger Meter Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.