Badger Meter, Inc. (NYSE: BMI) shares fell 12% intraday on Wednesday after the company reported fourth-quarter 2025 results that missed revenue and earnings expectations. The stock recently traded near its 52-week low of about $145, down from a 52-week high of $256, reflecting a significant decline over the past year.
Fourth-Quarter 2025 Results
For the quarter ended Dec. 31, 2025, Badger Meter reported net revenue of $220.7 million, up 8% from the same period in 2024 but below analyst expectations. Diluted earnings per share were $1.14, modestly behind forecasts.
Gross margins expanded, supported by operational efficiencies and a favorable product mix. Operating profit and base margins improved modestly, and free cash flow reached a quarterly record of $50.8 million.
Revenue growth in the quarter was driven by steady demand for metering hardware and continued adoption of the company’s software and services solutions, though results fell short of projections. Management noted slower growth trends early in 2026, with expectations for acceleration later in the year, without providing detailed guidance.
Full-Year 2025 Performance
For the full fiscal year, Badger Meter reported net sales of $916.7 million, up 11% from $825.6 million in 2024. Base sales grew about 6%, while operating margins and free cash flow increased, reflecting improved efficiency and the company’s shift toward higher-margin recurring revenue streams.
Stock Trend and Valuation
Shares have been under pressure since mid-2025, declining roughly 17% to 20% over the past 12 months and recently hitting new 52-week lows following the earnings release. The stock’s price-to-earnings ratio has contracted from elevated levels earlier in the year, highlighting investor caution.
Sector and Macro Factors
Badger Meter operates in the industrial technology and water infrastructure sector, with an increasing focus on software and services solutions. Broader macroeconomic trends continue to affect investor sentiment, including slowing industrial demand, cautious municipal and utility capital spending, and pressure on technology and software valuations amid tighter credit and elevated interest rates.
Software and SaaS stocks have generally faced valuation compression, which can influence investor appetite even for industrial technology firms with recurring revenue.
Investor Takeaways
While Badger Meter delivered positive year-over-year revenue and EPS growth, the quarterly results missed expectations. Full-year performance remained strong, but shares were pressured by both the earnings miss and sector headwinds. No direct analyst rating changes were reported at the time of this release.
