Badger Meter (BMI), a leader in water technology based in Milwaukee, WI, faces significant challenges as it adapts to rising costs and competitive pressure. The company’s gross profit margins have decreased from 17% to 15% over the past year, primarily influenced by higher copper and component prices and adverse global trade conditions. Analysts project that profit margins may continue to decline through 2026.
Despite holding approximately 70% market share for installed water meters in the U.S. with its utility water product line, Badger Meter is encountering increased competition from companies like Honeywell and Itron. Recent estimates for earnings in 2026 and 2027 have been lowered by several Wall Street analysts, signaling a challenging environment for growth.
In the past year, Badger Meter’s share price has fallen by about 30%, moving below key moving averages and entering a bear flag pattern, indicating a deteriorating technical outlook. As it navigates these obstacles, the outlook for the company’s profitability and market position remains uncertain.
