Badger Meter Firm Overview
Zacks Rank #5 (Sturdy Promote) inventory Badger Meter (BMI) is a pacesetter within the water expertise sector. The Milwaukee, WI-based firm focuses on sensible meters that measure circulation and high quality of water, oil, chemical compounds, and different fluids. Badger Meter’s merchandise are best-known for his or her accuracy, long-lasting sturdiness, and priceless and well timed measurement knowledge. BMI’s enterprise falls into three main classes:
1. Utility Water: The utility water product line consists of mechanical or static water meters and associated radio and software program applied sciences utilized by water utilities to generate water and wastewater income. Roughly 70% of water meters put in in america have transformed to some type of radio resolution expertise.
2. Stream Instrumentation: This product line primarily serves water functions. The product line consists of meters, valves, and different sensing gadgets for measuring and controlling the amount of liquids and gases flowing by way of pipes or pipelines, equivalent to water, air, and steam.
3. Connectivity & IoT: BMI’s ORION product allows utilities to watch knowledge remotely, eliminating the necessity to ship a technician out for each difficulty.
Badger Meter’s Prices are Rising
As a result of Badger Meter operates internationally, the corporate is experiencing destructive impacts from international tariffs and commerce circumstances. Moreover, elevated copper and element costs are creating a possible gross margin headwind into 2026. Revenue margins have shrunk from 17% to fifteen% over the previous 12 months, and this development is more likely to proceed.
Picture Supply: Zacks Funding Analysis
Badger Meter Faces Mounting Aggressive Pressures
Whereas BMI stays the dominant participant in its business, the corporate faces mounting aggressive stress from rivals equivalent to Honeywell (HON) and Itron (ITRI). In the meantime, a number of Wall Avenue analysts tracked by Zacks Funding Analysis have lowered earnings estimates for 2026 and 2027 – a troubling development.
Picture Supply: Zacks Funding Analysis
BMI Technicals are Deteriorating
Over the previous 12 months, BMI shares have underperformed dramatically, falling ~30%. Moreover, shares are beneath the important thing transferring averages and are forming a bear flag sample.
Picture Supply: TradingView
Backside Line
Regardless of its established management in water expertise and a sturdy suite of smart-metering options, Badger Meter faces a difficult highway forward by way of 2026. The mixture of intensifying competitors and the persistent stress of rising element prices has created a troublesome setting for margin progress.
Simply Launched: Zacks Prime 10 Shares for 2026
Hurry – you’ll be able to nonetheless get in early on our 10 high tickers for 2026. Handpicked by Zacks Director of Analysis Sheraz Mian, this portfolio has been stunningly and persistently profitable.
From inception in 2012 by way of November, 2025, the Zacks Prime 10 Shares gained +2,530.8%, greater than QUADRUPLING the S&P 500’s +570.3%.
Sheraz has combed by way of 4,400 corporations lined by the Zacks Rank and handpicked one of the best 10 to purchase and maintain in 2026. You’ll be able to nonetheless be among the many first to see these just-released shares with huge potential.
Honeywell Worldwide Inc. (HON) : Free Inventory Evaluation Report
Badger Meter, Inc. (BMI) : Free Inventory Evaluation Report
Itron, Inc. (ITRI) : Free Inventory Evaluation Report
This text initially printed on Zacks Funding Analysis (zacks.com).
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.
