Overview

• US water management firm's Q2 sales fell 7% yr/yr, slightly beating analyst expectations

• Q2 diluted EPS declined 13% yr/yr to $1.02

• Company completed acquisition of UDlive, expanding sewer line monitoring capabilities

Outlook

• Company expects full-year 2026 revenue, excluding acquisitions, to be flattish versus 2025

• Company maintains focus on cost management to mitigate temporary sales pacing effects

Result Drivers

• AMI PROJECT PHASING - Co said uneven ramp of advanced metering infrastructure projects led to lower yr/yr utility water sales

• COST MANAGEMENT - Tight spending controls and lower incentive compensation helped reduce operating expenses, partially offsetting sales decline

• FLOW INSTRUMENTATION GROWTH - Sales of flow instrumentation products rose 6% yr/yr, driven by water-related markets

Company press release: ID:nBw5XX5Cza

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Sales	Slight Beat*	$222.32 mln	$220.20 mln (9 Analysts)
Q2 EPS		$1.02
Q2 Net Income		$29.72 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

• Wall Street's median 12-month price target for Badger Meter Inc is $165.00, about 13.1% above its July 21 closing price of $145.87

• The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 29 three months ago

Reuters Recommended Reads

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