How Q3 results and shareholder moves reshaped the Badger Meter story
Badger Meter (BMI) set its latest tone with a Q3 2026 update that paired almost flat revenue with higher earnings per share, a fresh dividend increase, and ongoing buybacks.
Sales for the quarter came in at US$235.94 million compared with US$235.65 million a year earlier, while diluted EPS from continuing operations reached US$1.24 versus US$1.19. Over the same period, the business returned US$55 million via repurchases, retiring 407,677 shares and completing a broader program totaling 850,465 shares since late 2025.
Recent trading has swung sharply in Badger Meter’s favor, with a 7 day share price return of 19.58% and a 90 day gain of 19.73%. These gains have clustered around the Q3 earnings beat, dividend hike, buybacks, and OneNetwork launch, even though the 1 year total shareholder return is still down 18.32% and the 5 year total shareholder return of 54.06% reflects much stronger long term compounding.
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Badger Meter has just put nearly 20% back on in three months off a flat sales base and richer margins. Is that the warm up, or was that most of the rerating?
Most Popular Narrative: 3.5% Undervalued
Badger Meter is trading close to the narrative fair value of $156.67 compared with the last close at $151.24. The gap now comes down to how confidently that earnings path plays out under the assumed 8.85% discount rate.
The main factor that needs to go right is execution on the large cohort of awarded but not yet fully ramped AMI and sewer monitoring projects, including PRASA and the post UDlive sewer portfolio, so that the expected second half weighting in 2026 translates into sustained volume and software attachment over the next several years.
See why 13 investors see Badger Meter as 3% undervalued.
Result: Fair Value of $156.67 (UNDERVALUED)
Still, that fair value story can wobble if the 2.6 million to 3.6 million awarded AMI and sewer projects stall or if legal actions drag on costs and focus.
Find out about the key risks to this Badger Meter narrative.
Another View: What Badger Meter’s P/E Is Telling You
There is a different read on Badger Meter when you look at simple pricing ratios instead of narrative fair value. The shares trade on a P/E of 34.6x, while the fair ratio is 24.6x and the US Electronic industry sits at 28.1x. That gap points to clear valuation risk if sentiment cools.
