Badger Meter (NYSE:BMI) reported first-quarter 2026 financial results that showed a pullback in both top-line revenue and operating margins compared to the prior year’s record-setting performance.
The Milwaukee-based provider of water flow measurement and control technology saw its total sales decline 9% to $202.3 million, down from $222.2 million in the first quarter of 2025.
The decrease in sales volume weighed heavily on the company's profitability.
Operating earnings for the period were $35.2 million, representing an operating profit margin of 17.4%.
This was a notable compression from the 22.2% margin and $49.4 million in operating earnings reported during the same quarter last year.
On the bottom line, diluted earnings per share (EPS) came in at $0.93, down from $1.30 in the year-ago period.
Despite the quarterly retreat in earnings, Badger Meter is aggressively pursuing a transformation into a software-led smart water company.
In tandem with its financial results, the company announced that it has entered into a definitive agreement to acquire UDlive, a specialist in AI-driven water and wastewater network monitoring.
The acquisition, which is expected to close at the end of April 2026, is a strategic move to broaden Badger Meter’s digital offerings.
UDlive’s technology focuses on real-time data analytics and sensor integration for wastewater management, an area of increasing focus for global utilities facing aging infrastructure and stricter environmental regulations.