Badger Meter Reports Significant Q1 Earnings Decline, Details UDlive Acquisition and Share Buyback
BMI is trading near its 52-week low of $112.45 (1.1% above the low) on elevated volume (3.0× avg).
Summary
Badger Meter reported a significant decline in Q1 2026 sales and earnings, with diluted EPS down 28%, while also detailing a $100 million acquisition and a $38.2 million share repurchase.
Key Events · Earnings and Guidance · BMI
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Q1 2026 Earnings Decline
Net sales decreased by 8.97% to $202.3 million, operating earnings fell by 28.84% to $35.2 million, and diluted earnings per share dropped by 28.46% to $0.93 compared to Q1 2025. This follows a prior 8-K filing on April 17, 2026, which reported a significant decline in Q1 sales and earnings.
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Strategic Acquisition Announced
The company signed a purchase agreement on April 13, 2026, to acquire UDlive Ltd for $100 million, with an earn-out component. This acquisition, expected to close by April 30, 2026, aims to expand Badger Meter's sewer line monitoring solutions. This was previously announced via news on April 17, 2026.
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Significant Share Repurchase
Badger Meter repurchased $38.2 million of common stock during Q1 2026. The board had expanded the share repurchase authorization to $150 million through November 2028, with $114.7 million remaining available as of March 31, 2026. This buyback occurred while the stock was trading near its 52-week low.
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Cash Position Decreased
Cash and cash equivalents decreased to $205.5 million at March 31, 2026, from $226.0 million at December 31, 2025, primarily due to common stock repurchases and dividend payments.
Analysis · BMI · Industrial Applications And Services
Badger Meter's first-quarter results show a substantial decline in key financial metrics, with diluted EPS falling by nearly 28% year-over-year. This performance, attributed to project timing and weaker order rates, comes as the stock trades near its 52-week low. The company also confirmed the strategic acquisition of UDlive Ltd for $100 million, aimed at expanding its sewer monitoring solutions, and executed a significant $38.2 million share repurchase during the quarter. While the acquisition and buyback offer strategic and shareholder-friendly actions, the sharp drop in core earnings is the dominant factor impacting investor sentiment. Investors will be watching for signs of stabilization in order rates and the integration of the new acquisition.
At the time of this filing, BMI was trading at $113.72 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $3.3B. The 52-week trading range was $112.45 to $256.08. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.