Company Overview - Badger Meter, Inc. (NYSE:BMI) is a leading manufacturer of flow measurement, quality, control, and communication solutions primarily for the municipal water utility market [2][3] - The company operates in an oligopolistic water-metering market, providing essential solutions with a recurring revenue model [3] Financial Performance - Badger Meter, Inc. reported total sales of $221 million in Q4 2025, reflecting an 8% increase year-over-year [4] - As of February 18, 2026, Badger Meter, Inc. stock closed at $158.20 per share, with a one-month return of -8.09% and a twelve-month decline of 27.49% [2][4] Investment Insights - The company is noted for its high-quality operations, healthy capital structure, and good management, which support durable growth and value compounding through economic cycles [3] - Despite the potential of Badger Meter, Inc. as an investment, the company is not among the 30 most popular stocks among hedge funds, with 28 hedge fund portfolios holding its stock at the end of Q3 2025, down from 32 in the previous quarter [4] - The company faces competition from certain AI stocks that are perceived to offer greater upside potential and less downside risk [4]

Core Insights - FUJIFILM Holdings Corporation reported a net income of ¥73.1 billion for the third quarter of fiscal 2025, an increase from ¥71.2 billion in the same quarter last year [1] - The company achieved record revenues of ¥857.4 billion, reflecting a year-over-year growth of 5.5%, primarily driven by the Healthcare and Electronics segments [2][10] Segment Performance - The Healthcare segment generated revenues of ¥266.1 billion, up 7.7% year over year, with Medical Systems revenues increasing by 4.7% to ¥170.2 billion, driven by strong sales of endoscopes and medical IT systems [3][4] - Bio CDMO revenues surged by 18.5% to ¥60.8 billion, attributed to new operations in Denmark, despite some delays in securing early-stage projects [5] - The Electronics segment saw revenues rise to ¥119.2 billion, a 17% increase year over year, with Semiconductor Materials revenues growing by 25.5% to ¥77.7 billion due to strong demand for advanced applications [6] - The Imaging Solutions segment reported revenues of ¥194.2 billion, up 14.6% from the previous year, driven by strong sales in both Consumer and Professional Imaging [10][11] Financial Overview - Selling, general and administrative expenses increased by 5% to ¥215.8 billion, while research and development expenses rose by 2.2% to ¥41.7 billion [13] - Operating income for the quarter increased by 2.6% year over year to ¥90 billion, supported by higher gross margins and favorable exchange-rate effects [13] - As of December 31, 2025, cash and cash equivalents were ¥188.1 billion, up from ¥160.9 billion at the end of September 2025, while total debt increased to ¥941.3 billion [14] Guidance and Projections - FUJIFILM maintained its revenue forecast for fiscal 2025 at ¥3,300 billion, indicating a growth of 3.3% year over year, while raising projections for operating income to ¥335 billion and net income to ¥264.5 billion [15][16] - Anticipated revenues from the Healthcare and Business Innovation segments are now expected to be ¥1,090 billion and ¥1,175 billion, respectively, down from previous estimates [17]

Core Viewpoint - Badger Meter's recent earnings report indicates strong performance, with earnings per share surpassing estimates and significant revenue growth, despite ongoing macroeconomic challenges [3][4][12]. Financial Performance - Badger Meter reported Q3 2025 earnings per share of $1.19, exceeding the Zacks Consensus Estimate by 7.2% and up from $1.08 in the same quarter last year [3]. - Quarterly net sales reached $235.7 million, a 13.1% increase from $208.4 million year-over-year, driven by higher utility water sales [3]. - Gross profit for the quarter was $95.8 million, up from $83.9 million in the prior-year quarter, with a gross margin of 40.7%, reflecting a 50 basis point improvement year-over-year [7]. Segmental Performance - Utility water sales increased by 14% year-over-year, with an 8% rise even when excluding SmartCover, driven by higher ultrasonic meter volumes and increased demand for BEACON Software-as-a-Service [6]. - Flow instrumentation sales grew by 4% year-over-year, supported by strength in water-related markets [6]. Cash Flow and Liquidity - The company generated $51.3 million in net cash from operating activities in Q3 2025, compared to $45.1 million a year ago [10]. - As of September 30, 2025, Badger Meter had $201.7 million in cash and cash equivalents, up from $165.2 million as of June 30, 2025 [10]. Strategic Outlook - The company is optimistic about long-term growth prospects, expecting an average high single-digit top-line growth rate over the next five years, driven by technology adoption and strategic pricing initiatives [12]. - Badger Meter has raised its normalized gross margin range to 39%–42%, positioning itself well for innovation and value-driven acquisitions [13]. Market Reaction - Following the earnings release, there has been an upward trend in fresh estimates for Badger Meter, indicating positive market sentiment [14][16]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [16].

Core Viewpoint - Badger Meter Inc (NYSE:BMI) is highlighted as a promising small-cap stock, benefiting from the growth in water utility infrastructure and technological advancements in flow measurement solutions [1][2] Company Overview - Badger Meter Inc specializes in flow measurement, quality, and control solutions, primarily for water utilities [1] - The company has a strong balance sheet with $295 million in cash and no debt, indicating financial stability [2] Growth Metrics - Badger Meter has achieved a compound annual growth rate (CAGR) of 14% in revenue over the last five years, significantly outpacing the industry average growth of single digits [2] - The company generated $827 million in revenue in 2024 and operates in a total addressable market estimated to be around $20 billion [2] Technological Advancements - The company enhances traditional monitoring systems by integrating advanced technology, improving the accuracy and capabilities of its meters [2] - Badger Meter's technology includes optimized data transmission from meters, sensors for monitoring water pressure, leak detection, and in-line water quality testing [2] Market Position - Badger Meter is well-positioned in the market due to the ongoing replacement of aging conventional meters in water system infrastructure [2]