Badger Meter Q2 Sales Dip 7%, UDlive Acquired for $94M, $63M in Stock Repurchased
BMI is trading near its 52-week low of $112.09 (9.8% above the low) on elevated volume (2.1× avg).
Summary
Badger Meter posted Q2 2026 sales down 7% YoY to $222.3M and EPS of $1.02, closed the UDlive acquisition for $94.4M, and repurchased $63.5M in stock, reducing cash to $95.7M.
Key Events · Earnings and Guidance · BMI
-
Q2 Sales and Earnings Decline
Net sales fell 6.6% YoY to $222.3 million, with diluted EPS of $1.02, down 13% from $1.17 a year ago, driven by uneven AMI project pacing.
-
UDlive Acquisition Closed
Acquired UDlive Limited for $94.4 million net of cash on May 1, 2026, with up to $50 million in earn-outs; added $2.0 million in revenue and $69.9 million in goodwill.
-
Aggressive Share Repurchases
Repurchased $63.5 million of common stock in H1 2026 under a $150 million authorization, with $89.7 million remaining; treasury stock cost rose to $114.4 million.
-
Cash Position Halved
Cash and equivalents dropped to $95.7 million from $226.0 million at year-end 2025, reflecting the UDlive acquisition and buybacks, partially offset by $60.6 million in operating cash flow.
Analysis · BMI · Industrial Applications And Services
Second-quarter sales at Badger Meter slipped 7% year-over-year to $222.3 million, while diluted EPS fell 13% to $1.02—though both figures edged past consensus. The company put $94.4 million in cash toward acquiring UDlive, a sewer-monitoring software firm that contributed $2 million in revenue during the partial quarter. Aggressive buybacks consumed $63.5 million in the first half, helping drive cash reserves down sharply from $226 million to $95.7 million. Taken together, the acquisition, heavy repurchases, and a newly extended credit facility suggest management is leveraging the balance sheet to navigate softer demand while betting on digital water solutions.
At the time of this filing, BMI was trading at $123.12 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $3.6B. The 52-week trading range was $112.09 to $206.29. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.