Company Performance - Badger Meter (BMI) closed at $159.37, reflecting a decrease of -1.56% from the previous day, underperforming the S&P 500 which gained 0.69% [1] - Over the last month, Badger Meter's shares have decreased by 5.95%, compared to the Computer and Technology sector's loss of 3.66% and the S&P 500's loss of 1% [1] Upcoming Earnings - Analysts expect Badger Meter to report earnings of $1.22 per share, indicating a year-over-year decline of 6.15% [2] - The consensus estimate for revenue is $231.56 million, representing a 4.21% increase compared to the same quarter of the previous year [2] Annual Estimates - For the annual period, Zacks Consensus Estimates project earnings of $5.03 per share and revenue of $968.27 million, reflecting increases of +5.01% and +5.63% respectively from the previous year [3] Analyst Revisions - Recent changes to analyst estimates for Badger Meter are important as they reflect short-term business trends, with positive revisions indicating analyst optimism about the company's profitability [3][4] Zacks Rank - Badger Meter currently holds a Zacks Rank of 5 (Strong Sell), with the Zacks Consensus EPS estimate having moved 5.82% lower over the last 30 days [5] Valuation Metrics - Badger Meter is trading at a Forward P/E ratio of 32.17, which is a premium compared to the industry average Forward P/E of 28 [6] - The company's PEG ratio is currently 2.6, compared to the industry average PEG ratio of 1.99 [6] Industry Context - The Instruments - Control industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 176, placing it in the bottom 29% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to______ Commission File No. 001-06706 BADGER METER, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 (Exact name of registrant as specified in its charter) | Wisconsin | 39-0143280 | | --- | --- | | (State or other juri ...

Core Insights - Small-cap stocks showed marginal gains in Q4 2025, with the Russell 2000 Growth Index returning 13.01% and the Russell 2000 Value Index gaining 12.58% [1] - The investment management company anticipates a favorable year ahead for equity markets, highlighting potential opportunities in Cyclicals, Healthcare, Information Technology, Financials, and Consumer spending sectors for 2026 [1] Company-Specific Insights - Itron, Inc. (NASDAQ:ITRI) was identified as a major performance detractor, with a one-month return of -10.68% and a 12-month decline of 7.88%, closing at $89.36 per share on February 13, 2026 [2] - Itron, Inc. has a market capitalization of approximately $4.093 billion [2] - The company's stock performance was pressured due to softer than anticipated bookings, attributed to a temporary shift in utility customer priorities amid planning uncertainty and increased regulatory scrutiny [3] - Itron, Inc. is not among the 30 most popular stocks among hedge funds, with 37 hedge fund portfolios holding its shares at the end of Q3, up from 35 in the previous quarter [4]

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Core Insights - Badger Meter, Inc. (BMI) specializes in smart water solutions and advanced metering infrastructure (AMI) projects, with a market capitalization of approximately $4.64 billion [1] Insider Transactions - Wrocklage Robert, Executive Vice President of North American Municipal Utility at BMI, purchased 1,650 shares at $152.35 each, increasing his total holdings to 19,541 shares, reflecting confidence in the company's future prospects [2] - Alps Advisors Inc. increased its stake in BMI by 85.9%, now holding 82,568 shares valued at $14.7 million, indicating a positive outlook on BMI's growth potential [3] - Bridges Investment Management Inc. increased its investment by 37%, now holding 16,820 shares valued at approximately $3 million, while Cullen Frost Bankers Inc. increased its holdings by 170.5%, owning 165 shares valued at $41,000, showing growing interest among institutional investors [4] Financial Performance - Despite an 11% decline in stock price following the fourth-quarter 2025 earnings announcement, BMI reported a 7.6% increase in quarterly net sales to $220.7 million, with full-year sales for 2025 reaching $916.7 million, an 11% increase from the previous year, driven by strong demand for smart water solutions and AMI projects [5][6]

Core Viewpoint - Badger Meter, Inc. (BMI) is a prominent player in the flow measurement and control products sector, particularly for water utilities, and is recognized for its innovative smart water solutions and advanced metering infrastructure projects [1] Financial Performance - BMI reported an earnings per share (EPS) of $1.14 for Q4 2025, which was 0.9% below the Zacks Consensus Estimate but an improvement from $1.04 in the previous year [3] - The company's quarterly net sales increased by 7.6% to $220.7 million, driven by a rise in utility water sales, although it fell short of the Zacks Consensus Estimate of $230.8 million [3] - For the full year of 2025, BMI achieved sales of $916.7 million, marking an 11% increase from the previous year, with EPS rising approximately 13% to $4.79 compared to $4.23 in 2024 [4][6] - Despite missing earnings expectations, BMI delivered record sales, margin expansion, and cash flow for 2025 [5] Market Outlook - Scott Graham from Seaport Global set a price target of $220 for BMI, indicating a potential upside of 55.46% from its current trading price of $141.52 [2][6] - The current stock price of BMI is $141.62, reflecting a decrease of approximately 3.22%, with a market capitalization of approximately $4.17 billion [5]

Core Insights - Badger Meter, Inc. (BMI) reported Q4 2025 EPS of $1.14, missing the Zacks Consensus Estimate by 0.9%, but showing an increase from $1.04 in the same quarter last year [1][11] - Quarterly net sales reached $220.7 million, a 7.6% increase from $205.2 million year-over-year, driven by higher utility water sales, although it fell short of the $230.8 million estimate [1][11] Financial Performance - For the full year 2025, BMI reported sales of $916.7 million, an 11% year-over-year increase, with EPS rising approximately 13% to $4.79 from $4.23 in 2024 [2] - Gross profit for Q4 was $93 million, up from $82.8 million year-over-year, with a gross margin of 42.1%, an increase of 180 basis points [12] - Operating earnings increased around 10% year-over-year to $43.1 million, with operating margin expanding to 19.5% from 19.1% [12] Strategic Developments - Management emphasized that 2025 marked double-digit revenue growth, expanded profit margins, and record free cash flow conversion, driven by sustained demand for smart water management solutions [3][4] - The acquisition of SmartCover in early 2025 enhanced BMI's portfolio with sewer monitoring and stormwater management capabilities, strengthening its long-term growth position [5] Market Dynamics - Utility water sales rose 9% year-over-year, with a 2% increase even excluding SmartCover, driven by customer adoption of digital smart water solutions [7] - Flow instrumentation sales remained flat year-over-year, as growth in water-focused markets was offset by declines in de-emphasized applications [8] Cash Flow and Liquidity - In Q4 2025, BMI generated $54.8 million in net cash from operating activities, compared to $52.1 million a year ago [15] - As of December 31, 2025, the company had $226 million in cash and cash equivalents, with total current liabilities of $150.7 million [15] Future Outlook - Management expressed confidence in achieving high single-digit sales growth and continued operating margin expansion in 2026, supported by the growth of its cellular AMI installed base and international expansion opportunities [16][17]

Financial Data and Key Metrics Changes - Total sales for Q4 2025 reached $221 million, an 8% year-over-year increase, with base sales growth of 2% [7] - Operating profit margins increased by 40 basis points to 19.5%, while base operating profit margins expanded by 140 basis points to 20.5% [9] - Consolidated EPS rose to $1.14, a 10% increase from $1.04 in the prior year quarter [12] - Record quarterly free cash flow of $50.8 million, up approximately $3.4 million year-over-year [12] Business Line Data and Key Metrics Changes - Utility water product line sales increased by 9% year-over-year, or 2% excluding SmartCover [7] - Flow instrumentation product line sales remained flat year-over-year, with modest growth in water-focused end markets [9] - SmartCover generated $40 million in sales for 2025, representing a 25% annualized growth [22] Market Data and Key Metrics Changes - The company reported a 17% compounded annual growth rate over the past five years, with software revenue exceeding $74 million, accounting for 8% of total sales [19] - The U.S. market for meters is approximately 6 million units per year, with Badger Meter holding about 30% market share [35][38] Company Strategy and Development Direction - The company aims to leverage its cellular AMI technology as a foundation for real-time insights and analytics, expanding through the Blue Edge suite of smart water management solutions [15] - The PRASA AMI project is expected to be one of the largest deployments globally, with a focus on enhancing market leadership in cellular AMI technology [15][16] - The company emphasizes long-term growth driven by secular trends in the water industry, with a conviction of high single-digit sales growth over the next five years [24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of fewer operating days and project pacing effects on Q4 sales, indicating that these factors are typical in the industry [8][29] - The company expects project pacing dynamics to continue into the first half of 2026, with a higher growth rate anticipated in the second half as awarded projects commence [23][61] - Management remains confident in achieving high single-digit growth despite potential fluctuations in project timing and market conditions [54][57] Other Important Information - The company has a clean balance sheet with over $225 million in cash, providing financial flexibility for reinvestment [20] - The company has increased its dividend for 33 consecutive years and repurchased $15 million in shares in Q4 [21] Q&A Session Summary Question: Did the company see the full impact of project conclusions in Q4? - Management indicated that project pacing and timing can vary, and the second half of the year was expected to show lower growth than the first half due to these factors [27][29] Question: What is the size of the U.S. market for meters? - Management confirmed that the U.S. market is approximately 6 million meters per year, with Badger Meter's share around 30% [35][38] Question: How does the company view gross margins moving forward? - Management noted that while gross margins are strong, there are headwinds expected from turnkey projects and commodity prices, but structural mix will continue to positively impact margins [42][44] Question: How is the PRASA project funded? - The project is partially funded by FEMA dollars in response to Hurricane Maria, which also drives the Buy American requirement for manufacturing [70] Question: What is the expected timeline for the PRASA project? - Management indicated that large AMI projects typically span five years, with variability in deployment timing due to various factors [47][48]

Financial Data and Key Metrics Changes - Total sales for Q4 2025 reached $221 million, an 8% year-over-year increase, with base sales growth of 2% [7] - Operating profit margins increased by 40 basis points to 19.5%, while base operating profit margins expanded by 140 basis points to 20.5% [9] - Consolidated EPS rose to $1.14, a 10% increase from $1.04 in the prior year quarter [12] - Record quarterly free cash flow of $50.8 million, up approximately $3.4 million year-over-year [12] Business Line Data and Key Metrics Changes - Utility water product line sales increased by 9% year-over-year, or 2% excluding SmartCover [7] - Flow instrumentation product line sales remained flat year-over-year, with modest growth in water-focused end markets [9] - SmartCover generated $40 million in sales for 2025, representing a 25% annualized growth [22] Market Data and Key Metrics Changes - The company reported a 17% compounded annual growth rate over the past five years, with software revenue exceeding $74 million, accounting for 8% of total sales [19] - The U.S. market for meters is approximately 6 million units per year, with Badger Meter holding about 30% market share [35][38] Company Strategy and Development Direction - The company aims to leverage its cellular AMI technology as a foundation for real-time insights and analytics, expanding through the Blue Edge suite of smart water management solutions [15] - The PRASA AMI project is expected to be one of the largest deployments globally, with a focus on enhancing market leadership in cellular AMI technology [15][16] - The company emphasizes long-term growth driven by ongoing demand for smart water management solutions and the integration of SmartCover into its operations [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving high single-digit sales growth over the next five years, despite potential project pacing dynamics in the near term [24] - The company does not foresee significant impacts from federal funding constraints on its growth trajectory [24] - Management acknowledged the fluid nature of global tariff and trade conditions but indicated that they have reached price-cost parity on tariff-related impacts [10][11] Other Important Information - The company has a clean balance sheet with over $225 million in cash, providing financial flexibility for reinvestment [20] - The company has increased its dividend for 33 consecutive years and repurchased $15 million in shares in Q4 2025 [21] Q&A Session Summary Question: Did the company see the full impact of project conclusions in Q4? - Management noted that project pacing can vary, and the second half of the year experienced lower growth than the first half due to fewer operating days and project timing [27][29] Question: How does the company view the U.S. market size and its share? - Management confirmed that the U.S. market is approximately 6 million meters per year, with Badger Meter's share around 30% [35][38] Question: What is the expected impact of the PRASA project on revenue? - Management stated that while the PRASA project is significant, it will not add to the long-term growth outlook, which remains focused on high single-digit growth [17][24] Question: How does the company plan to manage gross margins in 2026? - Management indicated that while there are headwinds from commodity prices and project mix, they expect structural mix to positively impact margins [42][44] Question: How is the PRASA project funded? - The project is partially funded by FEMA dollars in response to Hurricane Maria, which also drives the Buy American requirement for manufacturing [70]

Financial Data and Key Metrics Changes - Total sales for Q4 2025 reached $221 million, an 8% year-over-year increase, with base sales growth of 2% [6] - Operating earnings grew by 10% year-over-year, with operating profit margins increasing by 40 basis points to 19.5% [9] - Consolidated EPS was $1.14, a 10% increase from $1.04 in the prior year quarter [12] - Record quarterly free cash flow of $50.8 million, up approximately $3.4 million year-over-year [12] Business Line Data and Key Metrics Changes - Utility water product line sales increased by 9% year-over-year, or 2% excluding SmartCover [6] - Flow instrumentation product line sales were flat year-over-year, with modest growth in water-focused end markets [9] - SmartCover generated $40 million in sales for 2025, representing a 25% annualized growth [21] Market Data and Key Metrics Changes - The U.S. market for meters is approximately 6 million units per year, with Badger Meter holding about 30% market share [35] - 85% of the U.S. market is replacement-driven, indicating a stable demand for Badger Meter's products [63] Company Strategy and Development Direction - The company aims to leverage its cellular AMI technology as a foundation for real-time insights and analytics, expanding through the Blue Edge suite of smart water management solutions [14] - The PRASA AMI project is expected to be one of the largest deployments globally, with a focus on E-Series ultrasonic meters and ORION cellular AMI radios [15] - The company is committed to maintaining a clean balance sheet with over $225 million in cash, allowing for organic and inorganic growth investments [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving high single-digit sales growth over the next five years, despite potential project pacing dynamics in 2026 [24] - The company does not foresee significant impacts from federal funding constraints on its growth trajectory [23] - Management highlighted the importance of long-term trends in the water industry, which support demand for smart water management solutions [22] Other Important Information - The company successfully integrated SmartCover into its operations, with expectations for earnings accretion in 2026 [21] - SG&A expenses in Q4 were $49.9 million, with a year-over-year increase primarily due to the SmartCover acquisition [11] Q&A Session Summary Question: Did the company see the full impact of project conclusions in Q4? - Management noted that project pacing can vary, and the second half of the year was expected to show lower growth due to fewer working days and project completions [27][28] Question: What is the expected growth rate for 2026? - Management anticipates a lower growth rate in the first half of 2026, with a higher growth rate expected in the second half due to awarded projects [30][31] Question: How does the company view the U.S. market size and its share? - Management confirmed that the U.S. market size is around 6 million meters per year, with Badger Meter's share remaining approximately 30% [35][38] Question: What is the expected impact of the PRASA project on revenue? - Management refrained from sizing the revenue impact of the PRASA project, emphasizing the variability in project deployment timelines [18][19] Question: How does the company manage pricing in relation to tariffs? - Management indicated that pricing adjustments have primarily been through list price increases, without temporary tariff add-ons, maintaining a clean pricing strategy [56][57]