Why Badger Meter Stock Is Plummeting Today

1 hour ago 1

Josh Kohn-Lindquist, The Motley Fool

Fri, April 17, 2026 astatine 11:48 AM CDT 3 min read

Shares of starring inferior h2o and sewer astute metering specializer Badger Meter (NYSE: BMI) dropped 19% Friday arsenic of noon ET, pursuing the company's painful-looking first-quarter results. Badger Meter's Q1 income and net per stock sank 9% and 29%, respectively, and some figures were good beneath Wall Street's expectations. Following today's drop, the institution is down 37% implicit the past year.

Badger Meter is 1 of my largest halfway holdings, truthful these figures were a spot jarring astatine archetypal glance. However, today's results are acold from a decease knell for the company, and I judge absorption laid retired a tenable mentation for what happened during the quarter.

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From 2023 to 2025, Badger Meter's income benefited from 4 large projects successful Jacksonville, Orlando, Pinellas County, and Galveston, which added implicit 800,000 caller h2o connections. While the roar from these projects was great, they each ended astir astatine the aforesaid time, which is the superior culprit down Q1's abrupt income dip. Chief Executive Officer Kenneth Bockhorst explained, "The year-over-year diminution successful gross and associated operating leverage are related to variability successful task timing and short-cycle lawsuit bid patterns and bash not bespeak a alteration successful underlying demand, our competitory position, oregon the semipermanent marketplace drivers for our business."

Four achromatic arrows constituent down, acceptable against a reddish background.

Better yet, investors shouldn't person to hold agelong for a turnaround, arsenic absorption believes income volition emergence sequentially passim the twelvemonth to astir adjacent 2025's levels. Furthermore, Badger has 2.6 to 3.6 million connections from projects that volition statesman deployment successful the 2nd fractional of 2026, which should supply a coagulated income rebound. Most importantly, from a higher-level, longer-term perspective, Badger Meter's operations should person galore decades-long tailwinds moving successful its favor.

Badger Meter benefits from:

the request to regenerate aging metering infrastructure
the modernization of inferior h2o and sewer operations
stricter regulations
water scarcity and h2o information often requiring continuous monitoring
a booming bundle business, powered by this unrecorded monitoring

Now trading astatine 21 times escaped currency travel -- compared to its five-year mean of 43 -- Badger Meter remains an outstanding bargain successful my eyes.

Before you bargain banal successful Badger Meter, see this:

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