Badger Meter Net Income Drops 29% to $27.3M as Q1 Revenue Falls 9%
The Milwaukee-based water meter manufacturer posted net income of $27.3 million for Q1 2026, down from $38.4 million in the prior-year quarter. Revenue declined to $202.3 million from $222.2 million.
Badger Meter, Inc. (NYSE: BMI), a manufacturer of flow measurement and control products, reported net income of $27.3 million for the quarter ending March 31, 2026, a 29% decline from $38.4 million in the same quarter of 2025. Revenue fell 9% to $202.3 million from $222.2 million in the prior-year period. Read more earnings reports.
Diluted earnings per share came in at $0.93, down from $1.30 a year earlier. The company's operating income dropped 29% to $35.2 million from $49.4 million in the first quarter of 2025.
Gross profit for the quarter totaled $84.3 million, down from $95.4 million in the prior-year quarter, representing a gross margin of 41.7% compared to 43.0% a year ago. Cost of goods sold decreased to $118.0 million from $126.8 million, falling in line with the revenue decline.
Selling, general and administrative expenses rose to $49.2 million from $46.0 million in the first quarter of 2025, an increase of 7%. The tax provision for the quarter was $9.0 million, down from $12.4 million in the year-ago period.
Cash from operations strengthened to $33.9 million for the three months ending March 31, 2026, up slightly from $33.0 million in the same period last year. Cash used in investing activities totaled $4.4 million, a sharp contrast to the $187.9 million deployed in the first quarter of 2025. Cash used in financing activities increased to $49.8 million from $10.0 million in the prior-year quarter.
Total assets stood at $970.8 million as of March 31, 2026, down marginally from $973.6 million at year-end 2025. Inventory increased to $175.2 million from $151.9 million at the end of December, while accounts receivable declined to $110.3 million from $112.4 million.
Stockholders' equity decreased to $690.4 million from $713.3 million at the end of 2025. Treasury stock increased to $89.2 million from $51.6 million, reflecting share repurchase activity during the quarter. Retained earnings rose to $661.5 million from $645.9 million.
Current liabilities increased to $169.4 million from $150.7 million at year-end, driven by a surge in accounts payable to $106.5 million from $72.3 million. Deferred revenue remained relatively flat at $73.3 million compared to $72.8 million at the end of December.
| Financial Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Revenue | $202.3M | $222.2M | -9% |
| Gross Profit | $84.3M | $95.4M | -12% |
| Operating Income | $35.2M | $49.4M | -29% |
| Net Income | $27.3M | $38.4M | -29% |
| EPS (Diluted) | $0.93 | $1.30 | -28% |
| Cash from Operations | $33.9M | $33.0M | +3% |
The company had 29.2 million shares outstanding as of March 31, 2026. Weighted average diluted shares outstanding for the quarter were 29.4 million, down from 29.6 million in the prior-year period.