Badger Meter (BMI) Looks Attractive on Stable Demand and Advanced Infrastructure

In its Q2 2026 capitalist letter, Vulcan Value Partners highlighted Badger Meter, Inc. (NYSE:BMI), a caller summation to the firm's small‑cap strategy. Badger Meter, Inc. (NYSE:BMI) is simply a US-based travel measurement, quality, control, and connection solutions institution with a beardown absorption connected Utility h2o astute metering solutions and bundle technologies. On July 29, 2026, Badger Meter, Inc. (NYSE:BMI) closed astatine $133.54 per share, reflecting a marketplace capitalization of $3.87 billion. Badger Meter, Inc. (NYSE:BMI) posted a one-month instrumentality of -8.61%, portion its shares mislaid 29.38% implicit the past 52 weeks.

Vulcan Value Partners stated the pursuing regarding Badger Meter, Inc. (NYSE:BMI) successful its Q2 2026 capitalist update:

"We purchased Badger Meter, Inc. (NYSE:BMI) and TPG Inc. during the quarter. Badger Meter is the lone pure-play, publically traded shaper of h2o meters successful North America. More than 120 years old, the institution present supports implicit 50,000 h2o utilities crossed the country. It is 1 of 3 players that person controlled astir 85% of the North American h2o metre marketplace for decades. Water meters are indispensable tools for h2o utilities successful generating revenue. If metre readings are outdated oregon inaccurate, the inferior risks losing gross by underbilling extremity customers. Given the outgo of nonaccomplishment is high, it comes arsenic nary astonishment that 85% of Badger Meter's gross is derived from replacement demand. In summation to unchangeable portion measurement maturation implicit the agelong term, Badger Meter has and volition proceed to payment from affirmative premix benefits tied to its precocious metering infrastructure and associated bundle offering, some of which transportation higher margins. Despite slowing manufacture maturation owed to hard post-Covid comparisons, we expect operating show to amended arsenic the institution executes against its beardown pipeline of opportunities implicit the coming years. Badger Meter has a agelong past of profitable growth, is supported by a nett currency equilibrium sheet, and is led by a absorption squad compensated connected metrics specified arsenic FCF conversion and returns connected invested capital. After galore years of watching the company's occurrence from afar, we are pleased to beryllium owners contiguous astatine a meaningful discount to our estimation of just value."