Q1 2026 Badger Meter Inc Earnings Call Transcript
Key Points
- Badger Meter Inc (BMI) operates in a market supported by strong long-term macro drivers, including recurring replacement cycles and increasing adoption of advanced technologies.
- The company has a robust pipeline of awarded AMI projects expected to begin deployment in the back half of 2026, representing between 2.6 million and 3.6 million connections over multiple years.
- Despite a soft start to the year, Badger Meter Inc (BMI) maintains strong gross margins, reflecting the durability of pricing discipline and structural mix benefits.
- The acquisition of UD Live is expected to be accretive to EPS in year one and enhances Badger Meter Inc (BMI)'s position in the global sewer line monitoring market.
- Badger Meter Inc (BMI) continues to see constructive market and customer activity, with utilities prioritizing modernization, efficiency, and visibility across their water networks.
- First quarter sales were down 9% year-over-year to $202 million, primarily due to project pacing and weaker short-cycle order rates.
- The company anticipates full-year 2026 organic revenue to be flat compared to 2025, reflecting a softer start to the year.
- Short-cycle order rates were weaker than expected, resulting in approximately $15 million to $20 million of lower revenue versus internal expectations.
- Operating margin decreased to 17.4% compared to a record 22.2% in the prior year period, primarily due to the deleveraging effect of lower volumes.
- The company has implemented cost reduction actions, including a 10% salary reduction for executive officers, to maintain spending discipline and protect margin integrity.
Ladies and gentlemen, welcome to the Q1 2026 Badger Meter earnings conference call. (Operator Instructions). As a reminder, today's conference is being recorded. It is now my pleasure to turn the conference over to Barbara Noverini, Head of Investor Relations. Please go ahead, Ms. Noverini.
Thank you, operator. Thank you for joining the Badger Meter first quarter 2026 earnings conference call. I'm here today with Ken Bockhorst, our Chairman, President and Chief Executive Officer; Bob Wrocklage, our Executive Vice President of North America Municipal Utility; and Dan Weltzien, our Chief Financial Officer.
This morning, we made the earnings release acquisition announcement and related slide presentation available on our website at investors.badgermeter.com.
As a reminder, any forward-looking statements made on this call are subject to various risks and uncertainties and the most important of which are outlined in our news release and SEC filings. On today's call, we may
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