Badger Meter Reports Strong Q4 & Full Year 2025 Results, Secures Major Puerto Rico Water Infrastructure Project
Summary
Badger Meter announced strong Q4 and record full-year 2025 financial results, with double-digit growth in sales and earnings, and secured a major contract to modernize Puerto Rico's water infrastructure.
Key Events
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Strong Q4 2025 Financial Performance
Fourth quarter sales increased 8% to $220.7 million, operating earnings rose 10% to $43.0 million, and diluted EPS grew 10% to $1.14 compared to the prior year.
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Record Full Year 2025 Results
Full year sales reached a record $916.7 million, up 11%, with operating earnings increasing 16% to $183.4 million and diluted EPS up 13% to $4.79.
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Major Contract Win in Puerto Rico
Badger Meter was selected for a significant project to modernize Puerto Rico's water infrastructure with its cellular AMI solutions, covering 1.6 million service connections.
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Positive Long-Term Outlook
The company projects high single-digit sales growth, year-over-year operating profit margin expansion, and free cash flow conversion exceeding 100% of earnings over a five-year horizon.
Analysis
Badger Meter delivered robust financial performance for both the fourth quarter and full year 2025, exceeding prior-year results across key metrics. The company reported double-digit increases in sales, operating earnings, and diluted EPS, driven by sustained demand for smart water management solutions and the strategic acquisition of SmartCover. A significant highlight is the selection of Badger Meter's advanced metering infrastructure (AMI) solutions for a transformative project in Puerto Rico, one of the world's largest AMI deployments, which is expected to enhance operational efficiency for 1.6 million service connections. This major contract win, coupled with a positive long-term outlook for high single-digit sales growth and expanding operating profit margins, reinforces the company's strong market position and future growth trajectory, despite some short-term project pacing effects expected in early 2026. The strong results and major contract are particularly notable given the stock is currently trading near its 52-week low.
At the time of this filing, BMI was trading at $161.17 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $4.8B. The 52-week trading range was $162.17 to $256.08. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.