moneyheap
BMI · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Badger Meter, Inc. (BMI) stock moving?
BMI rallied from about $149.64 on Oct 22, the day it reported Q3 2026 results, with heavy volume of 1.24M shares. Results showed flat sales at $235.9M, but operating margin expanded to 20.2% from 19.6%, gross margin rose 120 basis points to 41.9%, and EPS grew 4%. The board also raised the annual dividend 10% to $1.76, the 34th consecutive year of growth. Management tied sequential improvement to the ramp of awarded utility water projects. The weaker spots are underlying utility water sales, which fell 3% year over year excluding UDlive, and AMI project timing that management described as uneven. On Nov 3 the company announced the acquisition of 37South, an Australian utility monitoring firm, with terms undisclosed, and the stock rose to a high of $166.86 on Nov 5 before closing at $157.58 on Nov 10. Volume has fallen from the earnings-day peak to 358K shares, below recent averages, which suggests the post-earnings and acquisition interest is cooling. The available news does not include guidance or a 37South financial impact, so the outlook rests mainly on margins, the dividend, and the AMI ramp.
News behind the analysis
- Badger Meter Acquires 37SouthBadger Meter acquired 37South, a Melbourne-based utility technology and remote monitoring company. The release did not disclose terms.
- Badger Meter Acquires 37South, Terms UndisclosedBenzinga reported the 37South acquisition with no financial terms disclosed.
- Badger Meter Reports Third Quarter 2026 Financial Results (8-K, Exhibit 99.1)Q3 sales were flat at $235.9M and EPS rose 4% to $1.24. Operating margin reached 20.2%, and the annual dividend rate rose 10% to $1.76. Utility water sales fell 3% year over year excluding UDlive, reflecting uneven AMI project pacing.
- Quarterly Report (10-Q)Quarterly report for the period ended September 30, 2026, filed with the SEC. The provided extract contains no further detail.
About Badger Meter, Inc.
Badger Meter is a Milwaukee-based company that makes water meters, sensors and the software water utilities use to read meters remotely and manage their networks. What sets it apart is its cellular smart-metering system (BEACON/ORION). The meters connect to the company's software, which brings in recurring subscription revenue on top of hardware sales.
How it makes money
Most revenue comes from selling water meters and smart-meter radio units to US city and town water utilities, mostly to replace old meters and upgrade to automatic reading. It also earns subscription fees from its data, network-management and analytics software, plus sales of water-quality sensors, leak detection gear and industrial flow instruments. Utility customers make up the large majority of sales. Annual revenue is roughly $0.9 billion. Sales fell compared with a year earlier in the first half of 2026 and were about flat in the third quarter.
What usually moves BMI
- Pace of utility smart-meter (AMI) rollouts and replacement orders
- Timing of large utility projects and order volume
- Software/SaaS revenue growth
- Municipal budgets and infrastructure funding
- Component and metal costs affecting margins