Badger Meter (BMI) Q1 2026 Earnings Preview: What Investors Should Watch Closely
Key Takeaways
- Analysts expect Q1 2026 EPS of $1.20-$1.22, down about 8% from $1.30 reported in Q1 2025.
- Consensus revenue forecast around $231-232 million, up roughly 4% year-over-year from $222 million.
- Recent Q4 2025 results showed sales of $220.7 million and EPS of $1.14, slightly missing estimates but with margin expansion.
- Investors watching gross margins, SaaS revenue growth, and updates on the PRASA project in Puerto Rico.
- Company reaffirmed high single-digit sales growth outlook over next five years in recent earnings call.
- Stock has historically reacted positively to earnings beats, rising in 6 of last 12 reports.
Earnings Context and Why This Report Matters
As we approach Badger Meter (BMI)'s Q1 2026 earnings on April 17, there's understandable focus on this leader in water metering and flow measurement solutions. The company posted record full-year 2025 sales of $917 million, up 11% year-over-year, thanks to strong demand for smart water technologies like ultrasonic meters and cellular AMI systems. That said, recent quarters like Q4 2025 have included some misses on revenue. From what I see, this report will provide key signals on whether momentum holds in utility water products, especially with municipal infrastructure spending, the integration of the SmartCover acquisition, and SaaS revenue trends. Investors are looking for clarity on margin pressures from supply chain costs and project timing in a sector closely linked to water utility budgets.
What Wall Street Expects for Q1
Wall Street anticipates consensus EPS of approximately $1.21 for the quarter ended March 31, 2026, reflecting a decline from $1.30 in Q1 2025, per Zacks and MarketBeat data based on 6-11 analysts. Revenue estimates hover at $231-232 million, a 4% increase from $222 million last year, supported by utility water interval data products and software growth. Key metrics to watch include gross profit margins (expected stable near 42%), operating margins around 20%, and SaaS contributions, which reached 20% of sales in recent quarters. No specific company guidance was issued post-Q4, but management maintains conviction in high single-digit annual sales growth through 2030, fueled by projects like PRASA. Historically, Badger Meter (BMI) has beaten EPS estimates in recent quarters, though Q4 missed slightly; the stock often rises on positive surprises. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Market Reaction and Current Sentiment
Heading into earnings, sentiment is cautious after Q4 2025's slight miss led to an 11-15% stock drop post-report, though shares have partially recovered. Analysts rate BMI a Hold with targets around $183, implying modest upside from current levels near $155-160. Key risks include EPS downside from higher SEA (selling, engineering, and administration) expenses or project delays, while beats on revenue growth and margins could spark gains, given the stock's history of positive reactions to outperformance. One thing that stands out is how the stock has risen in 6 of the last 12 reports following earnings beats.
Discovering Opportunities with Tickeron's AI Screener
In my own research process, I rely on Tickeron’s AI Screener, an AI-powered tool for stock and ETF discovery that filters the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. It lets me scan thousands of stocks and ETFs with customizable filters like industry, market cap, technical indicators, price patterns, and performance metrics—making it far more efficient than manual screening for spotting trade ideas, trending stocks, or breakout candidates. I've found it particularly useful for analyzing companies like Badger Meter (BMI) in context with peers.
Forward Outlook and What to Monitor Next
Following Q1 results, focus will shift to management's commentary on full-year 2026 trajectory. Badger Meter (BMI) targets high single-digit sales growth over five years, supported by durable demand for smart water solutions amid aging U.S. infrastructure and regulatory pushes for efficiency. I'm watching this closely.
Updates on the PRASA project—one of the largest AMI deployments globally—could drive variable quarterly revenue but bolster backlog. SaaS revenue from BEACON and SmartCover platforms is key, as recurring income now exceeds 20% of sales, enhancing predictability. This is important because it adds stability to the top line.
Margin trends remain critical: Q4 showed 42.1% gross margins and 20.5% base operating margins (excluding acquisitions), up significantly YoY. Investors should track SEA leverage, supply chain costs, and cellular endpoint adoption. Broader industry dynamics, like municipal budget cycles and water quality initiatives, will influence demand signals.
No formal 2026 guidance expected yet, but consensus projects full-year EPS near $5.00-$5.08 and revenue around $962 million, implying 5%+ growth. In my view, sustained execution here could reinforce the long-term story.
Disclaimer
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BMI's RSI Oscillator recovers from oversold territory
The RSI Oscillator for BMI moved out of oversold territory on April 30, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 17 similar instances when the indicator left oversold territory. In of the 17 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 70 cases where BMI's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for BMI just turned positive on May 06, 2026. Looking at past instances where BMI's MACD turned positive, the stock continued to rise in of 51 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BMI advanced for three days, in of 310 cases, the price rose further within the following month. The odds of a continued upward trend are .
BMI may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 235 cases where BMI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on May 07, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on BMI as a result. In of 99 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
BMI moved below its 50-day moving average on April 16, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for BMI crossed bearishly below the 50-day moving average on April 20, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BMI declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.181) is normal, around the industry mean (6.525). P/E Ratio (27.729) is within average values for comparable stocks, (70.619). Projected Growth (PEG Ratio) (3.063) is also within normal values, averaging (1.976). Dividend Yield (0.013) settles around the average of (0.017) among similar stocks. P/S Ratio (4.034) is also within normal values, averaging (32.039).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BMI’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock worse than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. BMI’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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General Information
a maker of flow measurement and control products
Industry ElectronicEquipmentInstruments
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